ETFs can be used to provide low-cost1, transparent exposure to various asset classes, regions, sectors or investment styles as:
Gain access to all markets by combining ETFs and mutual funds
Combining ETFs and mutual funds within a portfolio can provide the flexibility needed to gain complete and total access to the financial markets.
Diversification does not ensure a profit or protect against a loss in a declining market.
1. Like mutual funds, ETFs charge a management fee that is deducted directly from the assets of the fund. Therefore, the investment return of an ETF may be lower than the underlying benchmark index. This fee may be referred to in the prospectus as an “expense ratio,” management fee,” or “investor fee.” A broker’s commission fee is also assessed each time an investor purchases shares in an ETF. It’s important to note that while ETFs do not have some of the administrative costs as similar index mutual funds, they do not always have lower fees.