Exchange Traded Products – A Natural Counterparty (Part 2)
How does an investor arrive at the true cost of an ETF? An investor’s priority is always to buy a relatively low-cost ETF. ETFs are often closely compared with mutual funds. One needs to be familiar with various concepts such as ways to arrive at the true cost of owning an ETF (which is trickier than we think) and the various ways ETFs track, with some returning multiples of the benchmark index. ETFs are a tempting market to invest in, but one has to ensure that the ETF is efficient, automated, and integrated. Investing in the right ETF market can prove to be extremely beneficial.
In Part II, we delve into advanced concepts of the ETF market.
What you learn: