Investing In ETFs

I’m Miriam Neff and I’m Valerie Neff Hogan with Wise Women Managing Money.

M We love to talk about investing. The parable of the talents teaches us to multiply what God entrusts, Matthew 25:14-30.  Exchange Traded Funds are popular today.  They are replacing mutual funds as a desirable, low-cost vehicle to be diversified in equities.

V Be aware of some dangers though. ETF’s are designed to passively track a particular market index investing in all the stocks in that particular category.  That means high flyers and gainers as well as low flyers.  Before investing examine what companies are in that ETF, and make sure it is transparent and meets your investment needs.

M Exchange Traded Funds are low cost, but direct equity investments may offer more growth.