What Questions Should You Ask When Shopping for an ETF?
In the past three years, the popularity of ETFs (exchange traded funds) has exploded. ETFs allow investors and traders alike to easily purchase a basket of companies as well as trade commodities and currencies through a typical brokerage account. The benefits of trading like a stock, low expense ratios, easy diversification and tax efficiency have all contributed to the demand for this relatively new trading vehicle. First it is important to evaluate the ETF. What does it track, how is it constructed, what’s inside and how long has it been around are excellent questions. It is also a good idea…