Unlocking the Potential of Exchange-Traded Funds in Your Portfolio

Exchange-traded funds (ETFs) have become increasingly popular among investors due to their tax efficiency and lower expense ratios compared to mutual funds. ETFs offer more control over the tax impact and can help minimize taxable income. They can be used in both core and satellite portfolios to provide stability and diversification, respectively. While ETFs are less risky than individual stocks, they still have the potential for significant gains and losses. Overall, ETFs have evolved over the years and are now a viable option for investors looking to optimize their portfolios.