What are the pros and cons of etf?

But of course, no investment is perfect, and ETFs also have their drawbacks, ranging from low dividends to large supply and demand differentials. Identifying the advantages and disadvantages of ETFs can help investors deal with risks and rewards and decide if these securities make sense for their portfolios. These are some of the downsides of investing in ETFs. Exchange-traded funds (ETFs) have gained popularity as an investment vehicle over the past decade.

The pros and cons of ETFs attract a wide range of investor types and levels of risk, making them an excellent form of intermediary investment. They don't carry the risk of individual securities, but they're not as broad as index funds. In addition, ETFs don't charge the fees that mutual funds usually pay. They are a very attractive product for a wide range of investors.