What are the advantages and disadvantages of ETFs?

ETFs gained increased popularity in recent years and are becoming widely used by investors. This has been especially true after the GFC. Despite their popularity, they have not been around as long as managed funds. This means that investors are still unaware of how they work. ETFs are financial products that are similar to managed funds except you can buy and sell them on the exchange. Many ETFs track and duplicate a market index. However, some may track other investments …

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Are ETFs causing a bubble?

ETFs have become hugely popular recently as they can offer portfolio diversification at a very low fee. However Michael Burry, as portrayed in the “The Big Short” and who predicted the subprime mortgage crisis thinks there is a bubble brewing in passive investing with ETFs. In this article we discuss the impacts of ETFS on the stock markets. What is an ETF? It is a fund which usually holds multiple stocks and tracks an asset class or an index traded …

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Why ETF’s can be bad investments

ETF’s have become very fashionable recently and their popularity has grown substantially in the last few years. ETF’s can make investing easy for the beginner as they take out the guess work in selecting stocks. They can also be a source of instant diversification for the investor who does not have the funds to buy a large portfolio of different shares. However, convenience always comes at a cost. For some investors who don’t need the convenience of an ETF, they …

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