A Great Way to Help You Meet Your Goals
Exchange Traded Funds (ETFs) combine features of mutual funds and stocks. With low overall costs, access to hundreds of companies and trading flexibility, ETFs can be a powerful addition to your portfolio.
ETFs Offer Familiar Benefits
Similar to mutual funds, ETFs are diversified mixes of stocks or bonds that are managed by experienced professionals. The difference is that ETFs typically offer a few extra perks, including lower fees, tax benefits and the ability to buy and sell throughout the day as long as the market is open.
To view a list of the differences between mutual funds and ETFs, see Know the Differences.
ETFs Can Help You Keep More of What You Earn
Perhaps the biggest benefit of ETFs is that they cost less, which means you can keep more of what you earn.
ETFs can also be tax efficient, which can make a big difference over the long haul. With ETFs provided by some firms, such as iShares, if you invest $100K you could save up to $20K in taxes alone over 10 years*.
There are a variety of ETFs that can help you invest in specific parts of the market and hundreds of companies. Whether you’re looking for stocks to help your investments grow or something as specific as emerging market bonds, there is likely an ETF that can provide the diversification your portfolio needs.
* Source: BlackRock. Does not include commissions, sales charges, or fees. Assumes a 1% annual tax "cost" on a $100,000 starting portfolio growing at an 8% annualized return over 10 years.