I think ETFs are basically just glorified mutual funds. They are so similar.
1) own a pool of stocks (same as a mutual fund that tries to match the market)
2) they charge a MER (but slightly less than most funds since there are less trades)
This is likley to cause a bubble with eveyone buying etfs just like what happened with the mutual funds.
The only reason we have ETFs now is because it is common knowledge that fund managers suck at beating the market as a result they rename there mutal funds etfs and try to match the market with a similar basket of stocks.
The only real difference is that there are no front/back end fees associated with etfs (at lease I think so).
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Investing In Canada
1) own a pool of stocks (same as a mutual fund that tries to match the market)
2) they charge a MER (but slightly less than most funds since there are less trades)
This is likley to cause a bubble with eveyone buying etfs just like what happened with the mutual funds.
The only reason we have ETFs now is because it is common knowledge that fund managers suck at beating the market as a result they rename there mutal funds etfs and try to match the market with a similar basket of stocks.
The only real difference is that there are no front/back end fees associated with etfs (at lease I think so).
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Investing In Canada