Unmanaged ETFs follow various indexes, and are a low-cost way of diversifying investments. Apart from fulfilling your investment purpose, be sure to buy seasoned funds that have been around for awhile.
ETFs can sometimes be costly to trade. A big buy or sell order can adjust that price. That is, to a premium where the price is higher than underlying assets, or a discount, if the price is lower than the net asset value or NAV of that ETF.
New, smaller ETFs may have this problem, which generally disappear when the fund is around a few years and has grown in size. You can check to see what the stated, recorded amounts of premium or discounts are on average. (See the Earl J Weinreb NewsHole® comments.
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