Clients could be losing out by sticking to index funds over ETFs

Awareness of ETF upsides challenges the notion mutual funds are ‘just as good’

clock • 5 min read

Ryan Hughes explains why he believes clients could be losing out if they stick with index funds over ETFs…

Exchange-traded funds (ETF) have now been part of the market for more than 25 years, but some in the investment community still seem indifferent towards using them. When we speak to advisers, one of the main reasons for the lack of interest is the option to use index funds instead, which in many ways serve the same purpose from the standpoint of the end investor. Yet the differing structures of the two products mean that ETFs can hold small advantages resulting in a better return in the long run. Of course, these potential cost advantages won't always outstrip what you can find in ...

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