ETFs behave just like a stock except they track a specified index. there are benefits to this and drawbacks. You can be more flexible than mutual funds because they can be traded at any time. They will help the tax-efficiency of your portfolio as well and there are no loads. However, you will have large fees if you wanted to invest $100 in an ETF like you can in a mutual fund. If you are going to be buying in smaller sums it is best to go with mutual funds, but consider ETFs for your large investments because you will only incur the trade fee.
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