“A low-cost fund is the most sensible equity investment for the great majority of investors.” -Warren Buffet-

By now, most investors have heard of Exchange-Traded Funds. Commonly known as ETFs, these low-cost investment options offer trading flexibility, portfolio diversification, and risk management. They can also be remarkably tax efficient. ETFs are now traded on nearly every major asset class, commodity, and currency in the world.

The attached piece, developed by Morningstar, illustrates how ETFs compare with INdex Funds, Mutual Funds, and Stocks. It also highlights the Pros and Cons of ETF investing. While these investments offer many benefits not available in traditional mutual funds, there are a few downsides, which every investor should consider.

We hope you enjoy the insight into what, for many, may be a new and improved approach to investing.