ETFs generally provide easy diversification with low expense ratios. They also have the tax efficiency of index funds , while still maintaining all the features of regular stock. ETFs can be acquired economically, held and then disposed so some investors invest in ETF shares as
- a long-term investment, or
- a way to implement market timing strategies.
- Generally have lower marketing, accounting expenses & other fees
- Flexible in purchasing times (ie. any time of day)
- Tax effective
- Market exposure – introduce your portfolio to a variety of markets
- Usually lower than other financial investment products
I think i managed to list all the advantages. If not, please post your comments and let me know what you think.