What are the advantages of ETFs?

ETFs have many advantages over the traditional investment vehicles such as mutual funds. ETFs usually have much lower expense ratios and lower transaction costs. They are also more tax efficient compared to mutual funds. These low cost advantages which seem insignificant on a cursory glance become extremely important in the long run, because of the effects of compounding. Long-term investors can come out ahead in tens of thousands of dollars if they use low cost ETFs compared to mutual fund. Please take a look at Compare Savings page.