Exchange traded funds (ETFs) are a great way to invest. They are easy to trade and relatively low-cost, and they offer the opportunity to invest in a variety of assets. Many investors should choose ETFs over mutual funds to create a proper asset allocation. The trading costs of ETFs can be eliminated when you choose from a stock broker that offers commission-free ETF investments.
However, commission-free ETFs aren’t the only reason to choose a broker. It can be a deciding factor since long-term transaction fees can significantly decrease performance. The other factor to consider when choosing is how closely does the ETF mirror the index it’s based upon? This is otherwise known as tracking error. Morningstar allows you to quickly check out this info by looking at historical returns. Click on any of the stock ticker symbols below for research from Morningstar.
We’ve done the research and found all of the discount brokers that offer commission-free ETFs to invest with. Most brokers’ ETF lists will allow you to create a decently balanced portfolio.