ETFs

If you have a large sum of money that you want to invest in a mutual fund, look into Exchange-Traded Funds (ETFs). ETFs contain many stocks like mutual funds but can be bought and traded directly like stocks. The benefit of ETF investing are similar to mutual fund benefits. You get exposure to a large segment of the market for relatively low maintenance fees. You only pay the charges associated with buying and selling the stock – which can be pretty low if you go through an online discount broker. ETFs are not appropriate for investors planning on adding to their portfolio in small contributions over time. This investment strategy, called dollar cost averaging, when paired with ETFs will rack up more fees every time you invest and reduce your overall gain.