Exchange Traded Fund (ETF) Portfolios
Our Exchange Traded Fund (ETF) portfolios are constructed in a very similar manner to our Mutual Fund Portfolios, but use ETFs instead of Mutual Funds.
There are two key differences between the ETFs we use and the mutual funds we use:
- ETFs are passive investments: they are designed to replicate an index and therefore (generally) have the exact same holdings as the index it tracks. The mutual funds we use are actively managed, meaning the managers buy and sell the funds holdings with the goal of outperforming a benchmark index.
- Because there is no need for research or security selection, ETFs typically have lower costs than actively managed mutual funds.