Creating Portfolios with ETFs : Combining ETFs with Stocks and Mutual Funds

Stock and Mutual Fund investors may also look to ETFs to create “core/satellite” portfolios that include different investment products. Investors using mutual funds may look to ETFs to gain lower cost exposure to specific geographic areas, sectors or strategies.

Adding ETFs to a “Core Mutual Fund” portfolio will also create an “active / passive” strategy – with the mutual funds’ portfolio manager’s hopefully adding value through their active day-to-day management and the ETFs providing low cost index exposure.

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