How do i know if ETFs are for me?

Asked by scrappy (23

) February 2nd, 2008

I’ve been thinking of adding some etf’s to my portfolio. I have no experience with theses and wonder what I need to look out for. I was thinking of purchasing a Vanguard ETF. any advice on what i should look out for when purchasing these would be greatly appreciated. Is there a buying to expense ratio I should look at? I have an account with scottrade if that helps .. thanks in advance.

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3 Answers

The Vanguard.com gang are user-friendly. Call the number (866–499-8473) and ask someone there. Or take their online test to see what makes sense for you.

Or read: Vanguard ETF FAQ

gailcalled (54644

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ETF’s should be cheap, otherwise not really beneficial over mutual funds. What I have found useful is they provide access to some other investment classes, such as gold and other commodities. So in my view, they are helpful with asset allocation / diversification more than anything else.

justin (179

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I find them useful, actually, for diversifying my portfolio without having to buy individual stocks. Plus, my broker offers about 30 commission-free iShares ETFs (although Vanguard may offer more).

tallin32 (333

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