I'm ditching mutual funds and switching my retirement savings to ETFs for 4 key reasons - Business Insider

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'With more than double the number of ETFs since I got started in the markets, there's now a fund for nearly any investment style, goal, or need'

, the industry average expense ratio is 0.23%. That's about a third of the average mutual fund. You probably wouldn't pay three times more for a similar car or home appliance. Why would you pay three times more for similar investments? I know I wouldn't.When I started investing in 2008, there were about 8,000 mutual funds in the United States and just 700 ETFs.

, goal, or need. While there are still fewer ETFs than mutual funds, there's enough selection that your needs, like mine, are likely covered., commodity, precious metal, currency, asset allocation, and even alternatives. There are ETFs that follow the market and ETFs that move opposite to the market. There are very low-risk ETFs and very high-risk ETFs. It doesn't matter if you are an active trader or passive investor. In 2020 and beyond, you can certainly create the right portfolio of ETFs for your needs and not feel like you're lacking because you don't have mutual funds.

 

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