ETFs: Creating a Diversified Portfolio

ETFs have become an increasingly popular option, and are advantageous in helping an investor build a diversified, more efficient portfolio.

1. Increased access to a wide variety of investments
The ETF market has dramatically expanded since the first one was introduced in 1993. The rapid growth of this market has provided investors with access to a wider variety of investments.

2. Designed to enhance portfolio construction
ETFs can be used to provide low-cost, transparent exposure to various asset classes, regions, sectors or investment styles as core investments, complementary investments or supplemental investments.

3. Flexibility to take advantage of market opportunities
Traded throughout the day like traditional stocks and bonds, ETFs provide a high level of liquidity and increased flexibility to take advantage of market movements.

4. Lower expenses and tax consequences
Expenses and taxes can greatly reduce an investor’s return over time. ETFs typically have lower expenses and tax consequences, making them attractive to many investors.