The big benefit of an ETF over an index fund is its superior structure. An ETF can much closely mimic its benchmark index than an index fund because of the way an ETF is ‘created’. As passive investing gains traction among retail investors, an index funds’ underperformance - in the past - has put the spotlight on an ETF’s superior structure. But lack of liquidity can dampen an ETF, which might result in the rise of its impact cost.
How does inflation affect your savings & investments?
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