In her article ETF-only model proves an attractive option, Financial Times reporter Rebecca Knight explores the trend of financial advisers abandoning mutual funds in favor of ETF-only portfolios.
Knight reports that advisers say they switched to ETFs after years of frustration with active fund managers who failed to out-perform their benchmarks, and the high expenses and costs linked to mutual funds.
To describe the difference between mutual funds and ETFs, one financial adviser uses this analogy:
“it’s the difference between listening to music on vinyl records, versus the way we listen to music today. It’s the same notes but a different vehicle, and ETFs as a vehicle are more tax efficient, more liquid, and generally cheaper.”
For a complete listing of ETFs, see the ETF Directory at ETF MarketPro.