What is an ETF?

What is an ETF, You Ask?

An ETF (Exchange Traded Fund) is a diversified collection of assets (like a mutual fund) that trades on an exchange (like a stock). ETF's are an easy-to-use, low cost and tax efficient way to invest your money. 

At Kerr Wealth Management, ETF's are at the core of our investment philosophy. Over the years we have moved further away from mutual funds due to their higher cost and tax inefficiency. 

What are the potential benefits of ETF's?

  • One example: Blackrock iShares Core ETF's have outperformed more than 75% of their mutual fund peers on average over the past 10 years. 
  • ETF's are on average a third of the price of a typical mutual fund. 
  • ETF's are half the tax cost of the average active mutual fund. 

Comparing ETF's and Mutual Funds

Many investors are familiar with mutual funds. How are ETF's similar and different?

How We Use ETF's

Build a Strong Core Portfolio

ETF's can offer you diversification, low-cost access to various stocks and bonds and help build a strong foundation for your portfolio.

Generate Income

ETF's can help generate income through bonds, dividend-paying stocks and preferred stock ETF's.

Prepare for Market Turbulence

The Advisors at Kerr Wealth Management do not guarantee risk free investments however we do use minimum volatility ETF's which can help reduce risk and keep you invested. 

*The benefits listed above may not be all the benefits associated with owning ETF's. Owning ETF's does include the potential for loss of some or all of your principal investment. 

Information provided by BlackRock