Active-Fund Problems? These ETFs Can Help
Whether your goal is lower costs, better tax efficiency, or style purity, these ETFs get the job done.
The uptake of index funds and ETFs has been breathtaking: More than $400 billion flowed into various passive products in 2015 alone. Meanwhile, active funds continue to lose market share, seeing outflows of more than $200 billion last year.
There are good and bad reasons to exit an active fund in favor of index funds or ETFs. Good reason? You want to lower your portfolio's cost load. Bad reason? Your active funds have underperformed so far this year. Good reason? You're seeking to fill a portfolio hole or address an asset allocation issue simply and cheaply. Bad reason? You're convinced you can beat the market by tactically trading ETFs.
Christine Benz does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.