ETFs Replace Mutual Funds

ETFs are the “New” investment vehicle replacing Mutual Funds.  ETFs are cheaper and you can buy and sell at a price that you decide, whereas Mutual Funds are marked to the price at the end of the day.

Today, I saw a well-written concise article on the ETF Firm, Wisdom Tree.

Feb 8, 2012 | 1:00 PM EST |

The ETF issuer has a bright future as investors increasingly embrace….……

For investors looking to gain exposure to an ETF issuer, WETF is the only game in town. As the ETF bug continues to spread, that could be a huge advantage for existing shareholders. With a sort of monopoly on the market, demand for WETF stock should skyrocket in coming years.

The downside to WETF is its correlation to the broader equity markets; WisdomTree’s revenues move with its assets under management, meaning that a tumultuous environment can eat into earnings. But I’m extremely bullish on this stock over the long haul, and recently added WETF to my own portfolio. If you believe the future for the ETF industry is bright, it could be time for you to do the same.

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