All-ETF Portfolio For Cheapskate Investors: How Low Can We Go?

Any investor who hasn’t been living under a rock probably has some idea as to why the ETF industry has been expanding so quickly over the last several years. Intra-day liquidity, enhanced tax efficiencies, and a degree of transparency not available in many other structures are all common causes of the explosive growth in both number of products and ETF assets over the past decade. But the big driver of the ETF expansion relates to expenses–or perhaps more accurately, the lack thereof. ETFs were originally designed (at least in part) to combat what Vanguard founder John Bogle has called the “tyranny of compounded costs.” For investors who believe that security selection fails to consistently add value–and there is a boatload of academic evidence that supports that theory–paying for pricey active management does little more than erode returns over the long run. Most ETFs are passive in nature, meaning that they [...] Click here to read the original article on ETFdb.com. Related Posts: Ten New Years’ Resolutions For ETF Investors Ten Commandments Of ETF Investing Five Critical Questions To Ask When Investing In ETFs Five Ways To Slash Your ETF Expenses ETF Investors Are Embracing Low Cost Options…Or Are They?