ETFs have become increasingly popular because of the ease in which to invest, but according to Brad Reifler, one of New York’s most influential investment advisor’s, these funds are a magnet for rookie mistakes.
They are becoming increasingly popular for several reasons. ETFs are now available on almost all asset classes: in addition to index funds on equity indices, there are also index funds on commodities, currencies, bonds and special funds to regions.
In exchange-traded funds, the name says it all: ETFs are traded only on the exchange. And like traditional investment funds they represent the development of a whole range of investments – in a single security.
On one hand, of course, they are cost-effective because they can be managed in a discount brokerage, however, that doesn’t mean EFTs don’t have fund expenses. Brad Reifler says investors should look for those funds with miniscule fees, like the Vanguard S&P 500 ETF, which charges 0.05% points.
EFTs are also easy to understand, but investors tend to be less observant to the trends when it comes to EFTs. For investors who want to sit back and not worry about the funds, EFTs are not suitable. Learn more about Brad Reifler: http://www.barrons.com/articles/the-mystery-stock-thats-up-14-fold-this-year-1482555949
According to Bloomberg, Brad Reifler points out that many investors simply fail to perform due diligence and delve into the product. A name alone does not mean the asset is stable. Another major mistake many novice investors make is ignoring the tax significance of some EFTs.
For example, the IRS looks at precious metals as a collectible, which in turn impacts capital gains, resulting in higher tax rates. Reifler says although electronically traded funds are a great investment alternative, starting out you need to educate yourself on strategies that fit your goals.
Crunchbase believed that Brad Reifler has more than two decades of investment and financial analysis. He brings enormous experience and knowledge to his role as one of New York’s top investment advisors. Whether it’s planning for kids college, or retirement, he analyzes each investors goals and creates a strategy.
Reifler completed his Bachelor’s degree in Economics at Bowdoin College, then founded Reifler Trading Corporation. He currently holds various regulatory registrations including Series 3, 7, 24 and 63.