Why investors turn to ETFs during times of market stress

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Etfs,Stock Market

Market volatility is picking up once again, prompting investors to kick the tires of their portfolios and assess investment tools.

Market volatility often prompts investors to kick the tires on their portfolio, which for US investors has often meant turning to exchange traded funds, or ETFs, to refresh positions or act on new ideas.

To simply buy one share of each component of the S&P 500 would cost about $105,000. To replicate the entire index according to each stock'swould cost a minimum of $15,500,000, according to Yahoo Finance calculations, which doesn't include brokerage commissions. In contrast, an annual fee of 3 basis points — or 0.03% — on an ETF means an investor would pay $3 for every $1,000 invested.Sohn highlighted that ETFs give investors "access to virtually any market around the globe.

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