The Benefits of ETFs

ETFs offer the advantage of trading like stocks while providing diversification through baskets of companies, ranging from 20 to a thousand. They allow for flexibility in buying and selling throughout the day, which appeals to investors seeking immediate action. ETFs serve the purpose of broad diversification, mitigating single stock risk, and providing tail risk to the upside. Despite the availability of target date funds for retirement portfolios, ETFs are preferred for their vast range of options and flexibility in trading.