ETF DB – There is no denying that the ETF boom is in full swing, as billions of dollars continue to flow into the industry every month despite a difficult economic environment. As individual investors and advisors alike become more informed on the nuances and potential benefits of ETFs, usage has surged. Part of the impressive surge in assets is no doubt attributable to the flexibility of the exchange-traded structure; these securities have found homes in the portfolios of investors across the risk tolerance spectrum. ‘
ETFs have been embraced by long-term buy-and-holders because of the extremely competitive expense ratios relative to traditional actively managed mutual funds. They’ve also become quite popular as “replacements” to equities; more active investors who measure holding periods in hours have gravitated towards the exchange-traded structure because it provides exposure to a basket of securities that can be traded throughout the day.
