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| ETFs provide you with a different way to invest in | | | | Almost every mutual fund ever created performs |
| the stock market. Instead of buying individual | | | | worse than the overall market in the long term. So |
| stocks you can buy something that tracks individual | | | | what can you do about this? Well how about |
| sectors. | | | | buying the market. The SPY ETF tracks the S&P |
| ETFs provide a great way for investors to diversify | | | | 500 which historically has gone up 10% a year if you |
| along with not having to pay those huge mutual fund | | | | were holding it for the long term. If you are willing |
| fees. Here are some reasons why ETFs might be | | | | to bet that trend will keep going it might be for you. |
| for you. | | | | 3. ETFs have low fees |
| 1. They give you a great way to diversify | | | | Yes ETFs have fees, which make them less |
| ETFs track certain industry groups or markets. So if | | | | appetizing then normal stocks. But unlike mutual funds |
| you buy the ETF for a specific industry group and 1 | | | | those fees are very small compared to the initial |
| company from that industry group goes under it is | | | | investment because they do not need to hire so |
| not going to affect you too much because you are | | | | many people to manage your money. |
| invested in the sector as a whole. | | | | 4. |
| 2. Most Mutual Funds do not beat the | | | | |