There are many advantages to ETFs and some of the most popular are:

  • ETF typically have lower management fees as well as there are no sales load on ETFs. However, brokerage commissions do apply
  • ETFs can be bought or sold at any time of the day. Conversely, mutual funds settle after the market close
  • More tax efficient: Investors have better control over when they pay capital gains tax
  • Trading transactions: Because they are traded like stocks, investors can place a variety of types of orders such as limit orders, stop-loss orders, and buying on margin, which are not possible with mutual funds