The Answer:
Exchange Traded Funds (ETFs)
Like Mutual Funds, ETF’s invest into a Basket of the Best Companies within a sector. You can choose over 2,000 ETF’s listed in the US Stock Market.
What makes them SUPER ATTRACTIVE is you can buy ETF’s directly from the stock market with ZERO Commission. Plus, their Annual Fees are Negligible. Here’s a comparison table:
ETF’s | Mutual Funds | |
Upfront Sales Charge | Nil | 3% to 5% |
Annual Fees | 0.03% to 0.50% every year | 1% to 2% every year |
Here’s the Performance of a Lump Sum Investment
$10,000 Invested into a S&P500 ETF
(Blue Line)
versus Buying a S&P500 Mutual Fund
(Red Line)
