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Do you understand exchange-traded funds? Here are some investing tips

Do you understand exchange-traded funds? Here are some investing tips

Finance
Many analysts are predicting that exchange-traded funds will continue to sweep up assets in 2017. ETFs recorded $ 288.6 billion of inflows in 2016 and closed the year with nearly $ 3 trillion in assets under management.Traded on exchanges just like stocks, these index-tracking investments have attracted investors with their trading flexibility, low costs and tax efficiency. Yet how well do investors actually understand the funds they're buying?As with any investment, advisors and individual investors should be ready to undertake careful due diligence before buying an ETF. One common source of confusion when it comes to these funds is that there are often sizable discrepancies between ETFs whose naming conventions sound very similar yet utilize very different approaches in terms of how they...