The Wiser Roundtable Podcast provides only the best financial advice free of conflict. Host Casey Smith, President of Wiser Wealth Management, is joined by co-hosts and colleagues Brad Lyons and Matthews Barnett. In today’s episode, the group talks everything an investor should know about Exchange Traded Funds (ETFs).
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Casey first begins by explaining that Exchange Traded Funds are an investment strategy where an investor buys a fund containing a specific group of stocks. The stocks within the fund, known as the ETF, are strategically chosen to offer growth while mitigating risk.
After they define ETFs, Casey, Brad and Matthews elaborate further on the way ETFs work and how an investor can use these funds to their advantage. As Casey tells how ETFs were inspired by mutual funds, a similar investment strategy, he dives into the history of why mutual funds were created and how they inspired ETFs.
Moving to the core of the conversation, the group talks about the key advantages of ETFs when compared to mutual funds. ETFs are intraday liquid, meaning they can be day traded. Mutual funds are not intraday liquid. ETFs are also lower cost, tax-efficient, and more transparent in reporting their holdings.
Wiser Wealth Management recommends the ETF as an investment strategy for investors to take advantage of if they’re educated on investing and know the risks of buying and selling. Investors must know what types of ETFs they are buying through inspecting the stocks inside to see how they fit in the fund structure.
If investors follow the advice of Casey, Brad and Matthews, then they can use ETFs to broaden and diversify their portfolio. Casey reminds listeners that since Wiser Wealth Management is a fee-only firm, they have no ulterior motive to push products and services they can earn commissions on. The show focuses on providing sound, transparent advice to increase financial literacy for all.
Learn more about Brad Lyons.
Learn more about Matthews Barnett.
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Learn more about ETF.com, a trusted authority Casey and the group recommends in those wanting to learn more about specific funds and about daily news regarding ETFs.