101 need-to-know facts about ETFs

ETFs have prompted a major shift towards indexing strategies.

The quantity of ETFs has continued to increase and there’s been a surge in ETF assets, says Sandeep Gosal, senior analyst of Investor Economics.

Read: Position ETFs to counteract yo-yoing markets

Many investors remain unfamiliar with the category, however. Countless statements claim ETFs are the preferred investment option—they’re cheaper and more flexible—but investors need to do their research.

Read: Use ETFs as your last line of defense

ETFs are in fact governed by the same regulations that govern other types of funds, and carry similar risks and benefits. Investors need to understand their structure, opportunities, and limitations to get the most out of the vehicle.

Read 101 facts that advisors and investors need to know about ETFs.