The Best Sector ETFs to Buy in 2020
Exchange-traded funds (ETFs) blend the diversification of a mutual fund with the liquidity of a stock. Unlike mutual funds, which have a set closing price each day, ETFs are actively traded like stocks.
ETFs also generally have lower and less complex fees than mutual funds. Like passive mutual funds and index funds, ETFs generally track certain sectors or indexes instead of following the whims of an active portfolio manager.
When selecting an ETF, investors should consider a few things. First, its net asset value (NAV), or its ratio of the value of fund liabilities to the value of its underlying assets, should be close to its market price. Its expense ratio, which equals an ETF's annual fees, shouldn't be much higher than the industry average of 0.44%.
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Source Fool.com
