🕷️ Crawler Inspector

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Raw Queries and Responses

1. Shard Calculation

Query:

Response:

Calculated Shard: 93 (from laksa028)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa093.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical, ml_categories_json AS ml_categories_json, ml_types_json AS ml_types_json, ml_intent_types_json AS ml_intent_types_json, meta_language AS meta_language, attrs_author AS attrs_author, ifNull(toUnixTimestamp(attrs_publish_time), 0) AS attrs_publish_time, ifNull(toUnixTimestamp(attrs_original_publish_time), 0) AS attrs_original_publish_time, ifNull(attrs_is_republished, 0) AS attrs_is_republished, ifNull(attrs_nr_words, 0) AS attrs_nr_words, ifNull(attrs_boilerpipe_nr_words, 0) AS attrs_boilerpipe_nr_words, ifNull(body_ext_links_number, 0) AS body_ext_links_number, ifNull(body_int_links_number, 0) AS body_int_links_number, ifNull(meta_nofollow, 0) AS meta_nofollow, ifNull(meta_noarchive, 0) AS meta_noarchive, ifNull(props_was_rendered, 0) AS props_was_rendered, ifNull(src_redirect, \'\') AS src_redirect, ifNull(download_time_msec, 0) AS download_time_msec, ifNull(download_ttfb_msec, 0) AS download_ttfb_msec, ifNull(download_size, 0) AS download_size FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://www.fidelity.com/learning-center/smart-money/benefits-of-etfs\')), getAhrefsUnparsedNoserviceFromURL(\'https://www.fidelity.com/learning-center/smart-money/benefits-of-etfs\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/www.fidelity.com\/learning-center\/smart-money\/benefits-of-etfs","crawl_time":1776658499,"first_indexed_time":1720935856,"http_code":200,"src_unparsed":"com,fidelity!www,\/learning-center\/smart-money\/benefits-of-etfs s443","src_root_hash":"17952695050214760493","history_drop_reason":null,"meta_title":"Benefits of ETFs | Fidelity","meta_descriptions":["Deciding if you should invest in ETFs is a big decision. Here are the advantages and disadvantages of ETFs."],"attrs_boilerpipe_text":"Learn how ETFs can make investing easier.\nKey takeaways\nETFs are funds containing groups of securities, like stocks or bonds, often organized around a specific theme, like a sector or market index (for example, the S&P 500\n®\nIndex or Nasdaq composite index).\nIf you're looking for a diversified investment, ETFs might be a great option for you.\nExchange traded funds, or ETFs for short, are a popular type of investment for retirement savers and traders alike. In fact, as of the end of 2023, investors have poured over $8 trillion dollars into ETFs.\n1\nSo why are ETFs so popular? Read on to learn the advantages of investing in ETFs, and how to decide for yourself if ETFs could be a benefit to your portfolio and investing strategy.\nWhat is an ETF?\nETFs are funds containing groups of securities, like stocks or bonds, often organized around a specific theme, like a sector or market index (for example, the S&P 500\n®\nIndex or Nasdaq composite index). When you buy an individual stock, you’re only getting exposure to a single company. But with an ETF, just like a mutual fund, a single trade can gain you exposure to hundreds or even thousands of different companies or bonds—all bundled into a single fund. ETFs trade like a common stock on an exchange, and therefore, they experience price changes throughout the day as they're bought and sold. Individuals can buy an ETF through a broker—like a financial institution or a bank.\nWhy do investors choose ETFs? Here are some of the main advantages.\nAdvantages of ETFs\nLow costs\nTo offset the administrative costs associated with running and managing an ETF, investors are charged an \"expense ratio.\" These fees are represented and paid as a percent of your investment in the fund. However, fees for ETFs are often quite low compared to other investment alternatives—for example, the average ETF costs half as much as the average mutual fund (0.50% vs 1.01%).\n2\nEase of trading\nETFs help make trading easier in 2 main ways: 1. Bundling securities 2. Trading on exchanges.\nWhen you buy an ETF, you are gaining exposure to potentially hundreds of different securities at once. If you were to try to replicate that on your own, it would not only be very expensive, but also very time-consuming. Imagine trying to replicate the S&P 500 on your own—that would involve placing more than 500 different trades—not to mention adjusting how much you invest in each to match the index. ETFs allow you to buy into ready-made portfolios that are managed to track specific themes or indexes.\nAnd ETFs can be easy to trade. ETFs are listed on public exchanges, which means you can buy and sell them throughout market hours just like stocks. You can also see their prices change throughout the trading day in real time.\nDiversification\nYou’ve heard it before: \"Don’t put all your eggs in one basket.\" Investor-speak for this idiom is\ndiversification\n, according to which, by spreading your money across many different investments, you help minimize your risk of loss from a single investment’s poor performance.\nBecause ETFs, like mutual funds, generally hold dozens if not hundreds of different investments, they are naturally more diversified than investing in an individual stock or bond. But be careful when choosing an ETF, to see exactly how diversified the fund is. Like mutual funds, some ETFs have a very narrow investment focus—tracking only the price of gold, or only Treasury bonds, or only pharmaceutical companies— and those funds will be less diversified than ETFs that track broad stock indexes, for example.\nWide menu of investment options\nThere are thousands of ETFs out there, each generally with a different mandate, a different strategy, or a different approach. There are now ETFs that track virtually every major asset class, commodity, and currency in the world. Whether you’re looking for an ETF that follows a popular stock-market index, invests in only a specific type of bonds like corporate bonds, or follows the performance of the US dollar, there’s likely an ETF out there that can help you gain that exposure.\nSome aggressive investors who are looking to execute on a particular investing strategy may also appreciate the ability to buy levered or inverse ETFs. Some levered ETFs’ price will move 2 or 3 times the daily price movement of a given index, giving high-risk investors a tool to gain more exposure with their dollars over the short term. And inverse ETFs aim to move in the opposite direction of an index or benchmark’s performance, meaning an investor could use an inverse ETF to enter a short position and potentially profit off a price decline. Keep in mind, both of these options are significantly higher risk than traditional ETFs, and these funds are generally not suitable for buy-and-hold investors.\nCurious where you can research ETF options? Check our\nETF screener\n.\nTax advantages\nWhen investing in a taxable account like a brokerage account, you generally have to pay taxes when your investments generate income (like a dividend, or bond coupon) or if you sell an investment for more than what you bought it for (generating a capital gain). These same taxes that apply when trading stocks or bonds also apply to funds, like ETFs and mutual funds.\nHowever, ETFs are structured in a unique way that can help reduce the annual taxes investors face on the shares they hold. Learn more about the\ninside workings of ETFs\n. ETFs that track an index generally make few changes to their holdings, which can further help improve tax efficiency. Lastly, ETFs can be a useful tool for investors interested in\ntax-loss harvesting\n.\nTransparency\nETFs provide investors a lot of transparency into what they invest in, more even than many mutual funds. ETFs that track an index generally tell investors their full portfolios daily, which can help you know more about how your dollars are invested. With your dollars, knowledge is power. And knowing where your dollars are employed can help you determine which ETF fits your investing goals.\nDisadvantages of ETFs\nNot all ETFs may be suitable\nAlthough there are relatively low-risk ETFs that are diversified and invest in hundreds of different securities, others ETF options are more concentrated with aggressive investment strategies or investing in high-risk securities. These ETFs may not be suitable for the average investor. So just because something is an \"ETF,\" don’t think that automatically means that investment is low-risk or diversified.\nTrading costs may apply\nSome financial institutions may charge commissions or fees to buy or sell ETFs. Before opening an account or placing a trade, it’s a smart idea to see what fees may apply to transactions. Fidelity does not charge any of these fees. Although many ETFs are bought and sold thousands of times a day, some more specialty ETFs may have a lower trading volume. That means when trading, there may be a gap between the bid (what someone is willing to pay to buy) and the ask (what someone is willing to pay to sell). If an ETF isn’t traded frequently, the spread between the bid and the ask may be large and could mean you’ll be forced to sell shares of that ETF for a small discount, buy for a small premium, or wait to trade until the spread shortens.\nLack of customization\nBy buying an ETF, you are buying into a fund. But because these securities are premade funds, you don’t get a say in what the fund invests in. ETFs can’t be personalized, so if you invest in one, you’re committed to owning whatever’s in the ETF.\nAre ETFs right for you?\nIf you’re looking for a diversified investment, ETFs might be a great option for you. Whether you’re looking to invest in bonds, sectors of the stock markets, or major market indexes, like mutual funds, ETFs can help you gain diversified exposure in a single trade. Before buying any ETF or making any investment decision, make sure to thoroughly read and investigate the fund’s mission, what the fund is invested in, the expense ratio of the fund, and how the fund is rated by third-party research firms, like Morningstar. And also, make sure you have a plan for how the ETF fits into your broader asset allocation and investment plan, and consider whether the fund aligns with your investment goals, risk tolerance, and time horizon.","attrs_markdown":"[Skip to main content](https:\/\/www.fidelity.com\/learning-center\/smart-money\/benefits-of-etfs#navSkipToContent)\n\n[Fidelity.com Home](https:\/\/www.fidelity.com\/)\n\n[Log in](https:\/\/digital.fidelity.com\/prgw\/digital\/login\/full-page)\n\n- [Accounts & Trade]()\n  - [Portfolio](https:\/\/digital.fidelity.com\/prgw\/digital\/login\/full-page?AuthRedUrl=https:\/\/digital.fidelity.com\/ftgw\/digital\/portfolio\/summary)\n  - [Account Positions](https:\/\/digital.fidelity.com\/ftgw\/digital\/portfolio\/positions)\n  - [Trade](https:\/\/digital.fidelity.com\/ftgw\/digital\/trade-equity\/index\/orderEntry)\n  - [Fidelity Trader+ Web](https:\/\/digital.fidelity.com\/ftgw\/digital\/trader-dashboard)\n  - [Fidelity Trader+](https:\/\/www.fidelity.com\/trading\/trading-platforms)\n  - 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[Portfolio](https:\/\/digital.fidelity.com\/prgw\/digital\/login\/full-page?AuthRedUrl=https:\/\/digital.fidelity.com\/ftgw\/digital\/portfolio\/summary)\n  - [Account Positions](https:\/\/digital.fidelity.com\/ftgw\/digital\/portfolio\/positions)\n  - [Trade](https:\/\/digital.fidelity.com\/ftgw\/digital\/trade-equity\/index\/orderEntry)\n  - [Fidelity Trader+ Web](https:\/\/digital.fidelity.com\/ftgw\/digital\/trader-dashboard)\n  - [Fidelity Trader+](https:\/\/www.fidelity.com\/trading\/trading-platforms)\n  - [Transfers](https:\/\/www.fidelity.com\/customer-service\/money-movement)\n  - [Cash Management](https:\/\/digital.fidelity.com\/ftgw\/digital\/cashmanagement)\n  - [Bill Pay](https:\/\/digital.fidelity.com\/ftgw\/digital\/billpay\/home)\n  - [Full View®](https:\/\/digital.fidelity.com\/ftgw\/pna\/customer\/pgc\/networth\/)\n  - [Security Settings](https:\/\/digital.fidelity.com\/ftgw\/digital\/security\/dashboard\/view)\n  - [Account Features](https:\/\/digital.fidelity.com\/ftgw\/digital\/portfolio\/features)\n  - [Documents](https:\/\/digital.fidelity.com\/ftgw\/digital\/portfolio\/documents)\n  - [Tax Forms & Information](https:\/\/www.fidelity.com\/tax-information\/overview)\n  - [Retirement Distributions](https:\/\/digital.fidelity.com\/ftgw\/digital\/mrdhub)\n  - [Refer a Friend](https:\/\/www.fidelity.com\/customer-service\/friendsandfamily3a)\n- [Investing]()\n  - [Self-Directed Investing](https:\/\/www.fidelity.com\/investing\/trading)\n  - [Advanced Trading](https:\/\/www.fidelity.com\/investing\/advanced-trading)\n  - [Investing for a Child](https:\/\/www.fidelity.com\/investing\/investing-for-kids)\n  - [Managing Cash & Credit](https:\/\/www.fidelity.com\/investing\/manage-cash-credit-lending)\n  - [Investment Accounts & Products](https:\/\/www.fidelity.com\/investing\/investment-accounts)\n  - [Investing & Trading Education](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/investing-trading-education)\n- [Retirement]()\n  - [Retirement Planning](https:\/\/www.fidelity.com\/retirement\/retirement-planning)\n  - [401(k) Rollovers & IRA Transfers](https:\/\/www.fidelity.com\/retirement\/401k-rollover)\n  - [Retirement Accounts](https:\/\/www.fidelity.com\/retirement\/retirement-accounts)\n  - [Retirement Education](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/retirement-education)\n- [Wealth Management]()\n  - [Wealth Management Offerings](https:\/\/www.fidelity.com\/wealth\/wealth-management-offerings)\n  - [Financial Advisors](https:\/\/www.fidelity.com\/wealth\/financial-advisors)\n  - [Financial Planning](https:\/\/www.fidelity.com\/wealth\/financial-planning)\n  - [Investment Management](https:\/\/www.fidelity.com\/wealth\/investment-management)\n  - [Wealth Management Insights](https:\/\/www.fidelity.com\/learning-center\/wealth-management-insights)\n- [News & Research]()\n  - [News](https:\/\/www.fidelity.com\/news\/overview)\n  - [Wealth Management Insights](https:\/\/www.fidelity.com\/learning-center\/wealth-management-insights)\n  - [Watchlist](https:\/\/digital.fidelity.com\/ftgw\/digital\/watwebex)\n  - [Alerts](https:\/\/alertable.fidelity.com\/ftgw\/digital\/alerts)\n  - [Stocks, ETFs, Crypto](https:\/\/digital.fidelity.com\/prgw\/digital\/research\/src)\n  - [Mutual Funds](https:\/\/fundresearch.fidelity.com\/fund-screener)\n  - [Fixed Income, Bonds & CDs](https:\/\/fixedincome.fidelity.com\/ftgw\/fi\/FILanding)\n  - [Options](https:\/\/digital.fidelity.com\/ftgw\/digital\/options-home\/)\n  - [IPOs](https:\/\/brokerage.fidelity.com\/ftgw\/brkg\/ipo\/calendar)\n  - [Annuities](https:\/\/fundresearch.fidelity.com\/fund-screener\/annuities\/)\n  - [Learn](https:\/\/www.fidelity.com\/learning-center\/overview)\n\n## Learn\n- [Learn](https:\/\/www.fidelity.com\/learning-center\/overview)\n- [Favorites](https:\/\/www.fidelity.com\/learning-center\/favorites)\n- Topics\n  - Financial essentials\n    - [Saving and budgeting money](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/saving-and-budgeting-money \"Saving and budgeting money\")\n    - [Managing debt](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/managing-debt \"Managing debt\")\n    - [Saving for retirement](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/retirement\/saving-for-retirement \"Saving for retirement\")\n    - [Working and income](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/working-and-income \"Working and income\")\n    - [Managing health care](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/managing-health-care \"Managing health care\")\n    - [Talking to family about money](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/talking-to-family-about-money \"Talking to family about money\")\n    - [Personal finance for students](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/personal-finance-for-students \"Personal finance for students\")\n    - [Managing taxes](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/managing-taxes\/managing-taxes \"Managing taxes\")\n    - [Managing estate planning](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/managing-estate-planning \"Managing estate planning\")\n    - [Making charitable donations](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/charitable-giving\/making-charitable-donations \"Making charitable donations\")\n  - Life events\n    - [Changing jobs](https:\/\/www.fidelity.com\/learning-center\/life-events\/career-planning \"Changing jobs\")\n    - [Planning for college](https:\/\/www.fidelity.com\/learning-center\/life-events\/prepare-for-college \"Planning for college\")\n    - [Getting divorced](https:\/\/www.fidelity.com\/learning-center\/life-events\/getting-divorced \"Getting divorced\")\n    - [Becoming a parent](https:\/\/www.fidelity.com\/learning-center\/life-events\/parenting \"Becoming a parent\")\n    - [Caring for aging loved ones](https:\/\/www.fidelity.com\/learning-center\/life-events\/caring-for-the-aging \"Caring for aging loved ones\")\n    - [Marriage and partnering](https:\/\/www.fidelity.com\/learning-center\/life-events\/marriage \"Marriage and partnering\")\n    - [Buying or selling a house](https:\/\/www.fidelity.com\/learning-center\/life-events\/selling-and-buying-house \"Buying or selling a house\")\n    - [Retiring](https:\/\/www.fidelity.com\/learning-center\/personal-finance\/retirement\/planning-your-retirement \"Retiring\")\n    - [Losing a loved one](https:\/\/www.fidelity.com\/learning-center\/life-events\/loss-of-loved-one \"Losing a loved one\")\n    - [Making a major purchase](https:\/\/www.fidelity.com\/learning-center\/life-events\/major-purchase \"Making a major purchase&#9;\")\n    - [Experiencing illness or injury](https:\/\/www.fidelity.com\/learning-center\/life-events\/injury-and-illness \"Experiencing illness or injury\")\n    - [Disabilities and special needs](https:\/\/www.fidelity.com\/learning-center\/life-events\/disabilities-and-special-needs \"Disabilities and special needs\")\n    - [Aging well](https:\/\/www.fidelity.com\/learning-center\/life-events\/aging-well \"Aging well\")\n    - [Becoming self-employed](https:\/\/www.fidelity.com\/learning-center\/life-events\/how-to-become-self-employed \"Becoming self-employed\")\n  - Investing and trading\n    - [Investing for beginners](https:\/\/www.fidelity.com\/learning-center\/trading-investing\/investing-for-beginners \"Investing for beginners\")\n    - [Trading for beginners](https:\/\/www.fidelity.com\/learning-center\/trading-investing\/trading-for-beginners \"Trading for beginners\")\n    - [Crypto basics](https:\/\/www.fidelity.com\/learning-center\/trading-investing\/crypto\/crypto-for-beginners \"Crypto basics\")\n    - [Crypto: Beyond the basics](https:\/\/www.fidelity.com\/learning-center\/trading-investing\/crypto\/crypto-advanced \"Crypto: Beyond the basics\")\n    - [Alternative investing](https:\/\/www.fidelity.com\/learning-center\/trading-investing\/alternative-investing \"Alternative investing\")\n    - [Exploring stocks and sectors](https:\/\/www.fidelity.com\/learning-center\/trading-investing\/finding-stocks-and-sector-ideas \"Exploring stocks and sectors\")\n    - [Investing for income](https:\/\/www.fidelity.com\/learning-center\/trading-investing\/investing-for-income \"Investing for income\")\n    - [Analyzing stock fundamentals](https:\/\/www.fidelity.com\/learning-center\/trading-investing\/fundamental-analysis\/analyzing-stock-fundamentals \"Analyzing stock fundamentals\")\n    - [Using technical analysis](https:\/\/www.fidelity.com\/learning-center\/trading-investing\/technical-analysis\/using-technical-analysis \"Using technical analysis\")\n  - Investment products\n    - [ETFs](https:\/\/www.fidelity.com\/learning-center\/investment-products\/etf\/etfs \"ETFs\")\n    - [Mutual funds](https:\/\/www.fidelity.com\/learning-center\/investment-products\/mutual-funds\/mutual-funds \"Mutual funds \")\n    - [Stocks](https:\/\/www.fidelity.com\/learning-center\/investment-products\/stocks\/stocks \"Stocks\")\n    - [Fixed income, bonds, CDs](https:\/\/www.fidelity.com\/learning-center\/investment-products\/fixed-income-bonds\/fixed-income-bonds-cds \"Fixed income, bonds, CDs\")\n    - [Annuities](https:\/\/www.fidelity.com\/learning-center\/investment-products\/annuities \"Annuities\")\n    - [Closed-end funds](https:\/\/www.fidelity.com\/learning-center\/investment-products\/closed-end-funds\/closed-end-funds \"Closed-end funds\")\n  - Advanced trading\n    - [Using margin](https:\/\/www.fidelity.com\/learning-center\/trading-investing\/using-margin \"Using margin\")\n    - [Options trading basics](https:\/\/www.fidelity.com\/learning-center\/investment-products\/options\/options-for-beginners \"Options trading basics\")\n    - [Options: Beyond the basics](https:\/\/www.fidelity.com\/learning-center\/investment-products\/options\/options \"Options: Beyond the basics\")\n    - [Advanced trading strategies](https:\/\/www.fidelity.com\/learning-center\/trading-investing\/more-trading-strategies \"Advanced trading strategies\")\n    - [Using Fidelity Trader+](https:\/\/www.fidelity.com\/learning-center\/trading-investing\/trading-platforms\/using-trader-plus \"Using Fidelity Trader+\")\n    - [Options Strategy Guide](https:\/\/www.fidelity.com\/learning-center\/investment-products\/options\/options-strategy-guide\/overview \"Options Strategy Guide\")\n    - [Technical Indicator Guide](https:\/\/www.fidelity.com\/learning-center\/trading-investing\/technical-analysis\/technical-indicator-guide\/overview \"Technical Indicator Guide\")\n  - [Latest Market Insights](https:\/\/www.fidelity.com\/viewpoints\/market-and-economic-insights\/market-volatility-overview \"Latest Market Insights\")\n  - [Viewpoints: Expert insights](https:\/\/www.fidelity.com\/learning-center\/viewpoints \"Viewpoints: Expert insights\")\n  - [Smart Money: Tips and tactics](https:\/\/www.fidelity.com\/learning-center\/smart-money \"Smart Money: Tips and tactics\")\n  - [Money Unscripted](https:\/\/www.fidelity.com\/learning-center\/money-unscripted \"Money Unscripted\")\n  - [The Trading Post](https:\/\/www.fidelity.com\/learning-center\/trading-post \"The Trading Post\")\n  - [Women Talk Money](https:\/\/www.fidelity.com\/learning-center\/women-talk-money \"Women Talk Money\")\n  - [Wealth Management Insights](https:\/\/www.fidelity.com\/learning-center\/wealth-management-insights \"Wealth Management Insights\")\n- Events\n  - [Upcoming events](https:\/\/fidelityevents.com\/allevents\/special \"Upcoming events\")\n  - [On-demand webinars](https:\/\/www.fidelity.com\/learning-center\/events\/investing-webinars \"On-demand webinars\")\n  - [Market briefings](https:\/\/fidelityevents.com\/allevents\/filtered?hubFilter=tags|Coaching,Market%20Analysis#hub \"Market briefings\")\n  - [Market Sense](https:\/\/www.fidelity.com\/learning-center\/live-pi \"Market Sense\")\n  - [Trading Strategy Desk® coaching](https:\/\/www.fidelity.com\/learning-center\/events\/coaching-sessions \"Trading Strategy Desk® coaching\")\n  - [Trading Strategy Desk® classes](https:\/\/www.fidelity.com\/learning-center\/events\/virtual-classrooms \"Trading Strategy Desk® classes\")\n- Search\n\nSeptember 09, 2025\n\n![Estimate Time](https:\/\/www.fidelity.com\/bin-public\/600_Fidelity_Com_English\/images\/article\/time-clock-circle.svg)5 min\n\nSave ![](https:\/\/www.fidelity.com\/bin-public\/600_Fidelity_Com_English\/images\/article\/Bookmark.svg) ![](https:\/\/www.fidelity.com\/bin-public\/600_Fidelity_Com_English\/images\/article\/save-success.svg)\n\nClose Popover\n\n***\nGreat, you have saved this article to you My Learn Profile page.\n\nShare ![Share](https:\/\/www.fidelity.com\/bin-public\/600_Fidelity_Com_English\/images\/article\/share.svg)\n\nClose Popover\n\n***\nBenefits of ETFs \\| Fidelity\n\nClicking a link will open a new window.\n\n- [Facebook](https:\/\/www.fidelity.com\/learning-center\/smart-money\/benefits-of-etfs#facebook)\n- [Twitter](https:\/\/www.fidelity.com\/learning-center\/smart-money\/benefits-of-etfs#twitter)\n- [LinkedIn](https:\/\/www.fidelity.com\/learning-center\/smart-money\/benefits-of-etfs#linkedin)\n\n[Print ![Print](https:\/\/www.fidelity.com\/bin-public\/600_Fidelity_Com_English\/images\/article\/Print.svg)](https:\/\/www.fidelity.com\/learning-center\/smart-money\/benefits-of-etfs#print)\n\n# Benefits of ETFs\nLearn how ETFs can make investing easier.\n\nFidelity Viewpoints\n\n![](https:\/\/www.fidelity.com\/bin-public\/600_Fidelity_Com_English\/images\/learning-center\/heros\/Benefits-of-ETFs-banner-800x285.jpg)\n\n### Key takeaways\n- ETFs are funds containing groups of securities, like stocks or bonds, often organized around a specific theme, like a sector or market index (for example, the S\\&P 500® Index or Nasdaq composite index).\n- If you're looking for a diversified investment, ETFs might be a great option for you.\n\nExchange traded funds, or ETFs for short, are a popular type of investment for retirement savers and traders alike. In fact, as of the end of 2023, investors have poured over \\$8 trillion dollars into ETFs.1 So why are ETFs so popular? Read on to learn the advantages of investing in ETFs, and how to decide for yourself if ETFs could be a benefit to your portfolio and investing strategy.\n\n### What is an ETF?\nETFs are funds containing groups of securities, like stocks or bonds, often organized around a specific theme, like a sector or market index (for example, the S\\&P 500® Index or Nasdaq composite index). When you buy an individual stock, you’re only getting exposure to a single company. But with an ETF, just like a mutual fund, a single trade can gain you exposure to hundreds or even thousands of different companies or bonds—all bundled into a single fund. ETFs trade like a common stock on an exchange, and therefore, they experience price changes throughout the day as they're bought and sold. Individuals can buy an ETF through a broker—like a financial institution or a bank.\n\nWhy do investors choose ETFs? Here are some of the main advantages.\n\n### Advantages of ETFs\n**Low costs**\n\nTo offset the administrative costs associated with running and managing an ETF, investors are charged an \"expense ratio.\" These fees are represented and paid as a percent of your investment in the fund. However, fees for ETFs are often quite low compared to other investment alternatives—for example, the average ETF costs half as much as the average mutual fund (0.50% vs 1.01%).2\n\n**Ease of trading**\n\nETFs help make trading easier in 2 main ways: 1. Bundling securities 2. Trading on exchanges.\n\nWhen you buy an ETF, you are gaining exposure to potentially hundreds of different securities at once. If you were to try to replicate that on your own, it would not only be very expensive, but also very time-consuming. Imagine trying to replicate the S\\&P 500 on your own—that would involve placing more than 500 different trades—not to mention adjusting how much you invest in each to match the index. ETFs allow you to buy into ready-made portfolios that are managed to track specific themes or indexes.\n\nAnd ETFs can be easy to trade. ETFs are listed on public exchanges, which means you can buy and sell them throughout market hours just like stocks. You can also see their prices change throughout the trading day in real time.\n\n**Diversification**\n\nYou’ve heard it before: \"Don’t put all your eggs in one basket.\" Investor-speak for this idiom is *[diversification](https:\/\/www.fidelity.com\/viewpoints\/investing-ideas\/guide-to-diversification \"diversification\")*, according to which, by spreading your money across many different investments, you help minimize your risk of loss from a single investment’s poor performance.\n\nBecause ETFs, like mutual funds, generally hold dozens if not hundreds of different investments, they are naturally more diversified than investing in an individual stock or bond. But be careful when choosing an ETF, to see exactly how diversified the fund is. Like mutual funds, some ETFs have a very narrow investment focus—tracking only the price of gold, or only Treasury bonds, or only pharmaceutical companies— and those funds will be less diversified than ETFs that track broad stock indexes, for example.\n\n**Wide menu of investment options**\n\nThere are thousands of ETFs out there, each generally with a different mandate, a different strategy, or a different approach. There are now ETFs that track virtually every major asset class, commodity, and currency in the world. Whether you’re looking for an ETF that follows a popular stock-market index, invests in only a specific type of bonds like corporate bonds, or follows the performance of the US dollar, there’s likely an ETF out there that can help you gain that exposure.\n\nSome aggressive investors who are looking to execute on a particular investing strategy may also appreciate the ability to buy levered or inverse ETFs. Some levered ETFs’ price will move 2 or 3 times the daily price movement of a given index, giving high-risk investors a tool to gain more exposure with their dollars over the short term. And inverse ETFs aim to move in the opposite direction of an index or benchmark’s performance, meaning an investor could use an inverse ETF to enter a short position and potentially profit off a price decline. Keep in mind, both of these options are significantly higher risk than traditional ETFs, and these funds are generally not suitable for buy-and-hold investors.\n\nCurious where you can research ETF options? Check our [ETF screener](https:\/\/digital.fidelity.com\/prgw\/digital\/research\/etf \"ETF screener\").\n\n**Tax advantages**\n\nWhen investing in a taxable account like a brokerage account, you generally have to pay taxes when your investments generate income (like a dividend, or bond coupon) or if you sell an investment for more than what you bought it for (generating a capital gain). These same taxes that apply when trading stocks or bonds also apply to funds, like ETFs and mutual funds.\n\nHowever, ETFs are structured in a unique way that can help reduce the annual taxes investors face on the shares they hold. Learn more about the [inside workings of ETFs](https:\/\/www.fidelity.com\/viewpoints\/active-investor\/inside-etfs \"inside workings of ETFs\"). ETFs that track an index generally make few changes to their holdings, which can further help improve tax efficiency. Lastly, ETFs can be a useful tool for investors interested in [tax-loss harvesting](https:\/\/www.fidelity.com\/viewpoints\/active-investor\/tax-loss-harvesting-using-ETFs \"tax-loss harvesting\").\n\n**Transparency**\n\nETFs provide investors a lot of transparency into what they invest in, more even than many mutual funds. ETFs that track an index generally tell investors their full portfolios daily, which can help you know more about how your dollars are invested. With your dollars, knowledge is power. And knowing where your dollars are employed can help you determine which ETF fits your investing goals.\n\n### Disadvantages of ETFs\n**Not all ETFs may be suitable**\n\nAlthough there are relatively low-risk ETFs that are diversified and invest in hundreds of different securities, others ETF options are more concentrated with aggressive investment strategies or investing in high-risk securities. These ETFs may not be suitable for the average investor. So just because something is an \"ETF,\" don’t think that automatically means that investment is low-risk or diversified.\n\n**Trading costs may apply**\n\nSome financial institutions may charge commissions or fees to buy or sell ETFs. Before opening an account or placing a trade, it’s a smart idea to see what fees may apply to transactions. Fidelity does not charge any of these fees. Although many ETFs are bought and sold thousands of times a day, some more specialty ETFs may have a lower trading volume. That means when trading, there may be a gap between the bid (what someone is willing to pay to buy) and the ask (what someone is willing to pay to sell). If an ETF isn’t traded frequently, the spread between the bid and the ask may be large and could mean you’ll be forced to sell shares of that ETF for a small discount, buy for a small premium, or wait to trade until the spread shortens.\n\n**Lack of customization**\n\nBy buying an ETF, you are buying into a fund. But because these securities are premade funds, you don’t get a say in what the fund invests in. ETFs can’t be personalized, so if you invest in one, you’re committed to owning whatever’s in the ETF.\n\n### Are ETFs right for you?\nIf you’re looking for a diversified investment, ETFs might be a great option for you. Whether you’re looking to invest in bonds, sectors of the stock markets, or major market indexes, like mutual funds, ETFs can help you gain diversified exposure in a single trade. Before buying any ETF or making any investment decision, make sure to thoroughly read and investigate the fund’s mission, what the fund is invested in, the expense ratio of the fund, and how the fund is rated by third-party research firms, like Morningstar. And also, make sure you have a plan for how the ETF fits into your broader asset allocation and investment plan, and consider whether the fund aligns with your investment goals, risk tolerance, and time horizon.\n\n## Find the right ETF for you\nUse our screener to identify ETFs and ETPs that match your investment goals.\n\n[Screen ETFs now](https:\/\/digital.fidelity.com\/prgw\/digital\/research\/etf)\n\n## More to explore\n### [ETFs at Fidelity](https:\/\/www.fidelity.com\/etfs\/investing-in-etfs)\nLearn about Fidelity tools and resources for ETFs.\n\n### [Types of ETFs\/ETPs](https:\/\/www.fidelity.com\/learning-center\/investment-products\/etf\/etfs)\nSee which ETFs\/ETPs might be a good fit.\n\n## Subscribe to  *Fidelity Viewpoints®*\nTimely news and insights from our pros on markets, investing, and personal finance.(debug tcm:2365-349569)\n\n### Looking for more ideas and insights?\nWe'll deliver them right to your inbox.\n\nManage subscriptions\n\n### Thanks for subscribing\\!\nCheck out your Favorites page, where you can:\n\n- Tell us the topics you want to learn more about\n- View content you've saved for later\n- Subscribe to our newsletters\n\n[Go to Favorites](https:\/\/www.fidelity.com\/learning-center\/favorites)\n\n### We're on our way, but not quite there yet\nGood news, you're on the early-access list.   \n But we're not available in your state just yet. 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bPJL+pkG7w4iF1IiZLyXhfbQ7pml9e3604pRtnPccfbDeIDF0v6ba\/uJ4NBrnVJRu9y\/BnOlMoqjVPDpsP3c7dAzw4SR1mWv8zQEYrcClV137yHSITjs3bAQfYYQRRhhhhBFGGAH8D9DXSGd7oPh2AAAAAElFTkSuQmCC)\n\nWelcome 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1PAMmJH6Pekzn70x\/bWI5vav\/\/bO+0hAT+ntcP8P8IOrGXbdHt4cao9BL8tNnDYQU66wQ4LTrUbPJL+pkG7w4iF1IiZLyXhfbQ7pml9e3604pRtnPccfbDeIDF0v6ba\/uJ4NBrnVJRu9y\/BnOlMoqjVPDpsP3c7dAzw4SR1mWv8zQEYrcClV137yHSITjs3bAQfYYQRRhhhhBFGGAH8D9DXSGd7oPh2AAAAAElFTkSuQmCC)\n\nTo get your conversation started, type a question in the entry field or choose from one of the following popular topics and commonly asked questions.\n\n- What are the potential benefits of tax-smart investing?\n- What are smart beta ETFs?\n- Where is the money going that I contributed through the 52-week Smart Habit Challenge?\n\nProvide Feedback\n\nanswers will appear above the text input\n\nSubmit message\n\nPrivacy Settings\n\nWhen you visit our website, it may store or retrieve information on your browser, mostly in the form of cookies. 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Read on to learn the advantages of investing in ETFs, and how to decide for yourself if ETFs could be a benefit to your portfolio and investing strategy.\n\n### What is an ETF?\nETFs are funds containing groups of securities, like stocks or bonds, often organized around a specific theme, like a sector or market index (for example, the S\\&P 500® Index or Nasdaq composite index). When you buy an individual stock, you’re only getting exposure to a single company. But with an ETF, just like a mutual fund, a single trade can gain you exposure to hundreds or even thousands of different companies or bonds—all bundled into a single fund. ETFs trade like a common stock on an exchange, and therefore, they experience price changes throughout the day as they're bought and sold. Individuals can buy an ETF through a broker—like a financial institution or a bank.\n\nWhy do investors choose ETFs? Here are some of the main advantages.\n\n### Advantages of ETFs\n**Low costs**\n\nTo offset the administrative costs associated with running and managing an ETF, investors are charged an \"expense ratio.\" These fees are represented and paid as a percent of your investment in the fund. However, fees for ETFs are often quite low compared to other investment alternatives—for example, the average ETF costs half as much as the average mutual fund (0.50% vs 1.01%).2\n\n**Ease of trading**\n\nETFs help make trading easier in 2 main ways: 1. Bundling securities 2. Trading on exchanges.\n\nWhen you buy an ETF, you are gaining exposure to potentially hundreds of different securities at once. If you were to try to replicate that on your own, it would not only be very expensive, but also very time-consuming. Imagine trying to replicate the S\\&P 500 on your own—that would involve placing more than 500 different trades—not to mention adjusting how much you invest in each to match the index. ETFs allow you to buy into ready-made portfolios that are managed to track specific themes or indexes.\n\nAnd ETFs can be easy to trade. ETFs are listed on public exchanges, which means you can buy and sell them throughout market hours just like stocks. You can also see their prices change throughout the trading day in real time.\n\n**Diversification**\n\nYou’ve heard it before: \"Don’t put all your eggs in one basket.\" Investor-speak for this idiom is *[diversification](https:\/\/www.fidelity.com\/viewpoints\/investing-ideas\/guide-to-diversification \"diversification\")*, according to which, by spreading your money across many different investments, you help minimize your risk of loss from a single investment’s poor performance.\n\nBecause ETFs, like mutual funds, generally hold dozens if not hundreds of different investments, they are naturally more diversified than investing in an individual stock or bond. But be careful when choosing an ETF, to see exactly how diversified the fund is. Like mutual funds, some ETFs have a very narrow investment focus—tracking only the price of gold, or only Treasury bonds, or only pharmaceutical companies— and those funds will be less diversified than ETFs that track broad stock indexes, for example.\n\n**Wide menu of investment options**\n\nThere are thousands of ETFs out there, each generally with a different mandate, a different strategy, or a different approach. There are now ETFs that track virtually every major asset class, commodity, and currency in the world. Whether you’re looking for an ETF that follows a popular stock-market index, invests in only a specific type of bonds like corporate bonds, or follows the performance of the US dollar, there’s likely an ETF out there that can help you gain that exposure.\n\nSome aggressive investors who are looking to execute on a particular investing strategy may also appreciate the ability to buy levered or inverse ETFs. Some levered ETFs’ price will move 2 or 3 times the daily price movement of a given index, giving high-risk investors a tool to gain more exposure with their dollars over the short term. And inverse ETFs aim to move in the opposite direction of an index or benchmark’s performance, meaning an investor could use an inverse ETF to enter a short position and potentially profit off a price decline. Keep in mind, both of these options are significantly higher risk than traditional ETFs, and these funds are generally not suitable for buy-and-hold investors.\n\nCurious where you can research ETF options? Check our [ETF screener](https:\/\/digital.fidelity.com\/prgw\/digital\/research\/etf \"ETF screener\").\n\n**Tax advantages**\n\nWhen investing in a taxable account like a brokerage account, you generally have to pay taxes when your investments generate income (like a dividend, or bond coupon) or if you sell an investment for more than what you bought it for (generating a capital gain). These same taxes that apply when trading stocks or bonds also apply to funds, like ETFs and mutual funds.\n\nHowever, ETFs are structured in a unique way that can help reduce the annual taxes investors face on the shares they hold. Learn more about the [inside workings of ETFs](https:\/\/www.fidelity.com\/viewpoints\/active-investor\/inside-etfs \"inside workings of ETFs\"). ETFs that track an index generally make few changes to their holdings, which can further help improve tax efficiency. Lastly, ETFs can be a useful tool for investors interested in [tax-loss harvesting](https:\/\/www.fidelity.com\/viewpoints\/active-investor\/tax-loss-harvesting-using-ETFs \"tax-loss harvesting\").\n\n**Transparency**\n\nETFs provide investors a lot of transparency into what they invest in, more even than many mutual funds. ETFs that track an index generally tell investors their full portfolios daily, which can help you know more about how your dollars are invested. With your dollars, knowledge is power. And knowing where your dollars are employed can help you determine which ETF fits your investing goals.\n\n### Disadvantages of ETFs\n**Not all ETFs may be suitable**\n\nAlthough there are relatively low-risk ETFs that are diversified and invest in hundreds of different securities, others ETF options are more concentrated with aggressive investment strategies or investing in high-risk securities. These ETFs may not be suitable for the average investor. So just because something is an \"ETF,\" don’t think that automatically means that investment is low-risk or diversified.\n\n**Trading costs may apply**\n\nSome financial institutions may charge commissions or fees to buy or sell ETFs. Before opening an account or placing a trade, it’s a smart idea to see what fees may apply to transactions. Fidelity does not charge any of these fees. Although many ETFs are bought and sold thousands of times a day, some more specialty ETFs may have a lower trading volume. That means when trading, there may be a gap between the bid (what someone is willing to pay to buy) and the ask (what someone is willing to pay to sell). If an ETF isn’t traded frequently, the spread between the bid and the ask may be large and could mean you’ll be forced to sell shares of that ETF for a small discount, buy for a small premium, or wait to trade until the spread shortens.\n\n**Lack of customization**\n\nBy buying an ETF, you are buying into a fund. But because these securities are premade funds, you don’t get a say in what the fund invests in. ETFs can’t be personalized, so if you invest in one, you’re committed to owning whatever’s in the ETF.\n\n### Are ETFs right for you?\nIf you’re looking for a diversified investment, ETFs might be a great option for you. Whether you’re looking to invest in bonds, sectors of the stock markets, or major market indexes, like mutual funds, ETFs can help you gain diversified exposure in a single trade. Before buying any ETF or making any investment decision, make sure to thoroughly read and investigate the fund’s mission, what the fund is invested in, the expense ratio of the fund, and how the fund is rated by third-party research firms, like Morningstar. And also, make sure you have a plan for how the ETF fits into your broader asset allocation and investment plan, and consider whether the fund aligns with your investment goals, risk tolerance, and time horizon.","meta_canonical":null,"ml_categories_json":"{\"\/Finance\":998,\"\/Finance\/Investing\":995,\"\/Finance\/Investing\/Funds\":972}","ml_types_json":"{\"\/Article\":997,\"\/Article\/Tutorial_or_Guide\":487}","ml_intent_types_json":"{\"Informational\":999}","meta_language":"en-us","attrs_author":"Fidelity Viewpoints","attrs_publish_time":0,"attrs_original_publish_time":1720935856,"attrs_is_republished":0,"attrs_nr_words":"5066","attrs_boilerpipe_nr_words":"1404","body_ext_links_number":16,"body_int_links_number":193,"meta_nofollow":0,"meta_noarchive":0,"props_was_rendered":1,"src_redirect":"","download_time_msec":486,"download_ttfb_msec":484,"download_size":44016}

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Benefits of ETFs | Fidelity

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Deciding if you should invest in ETFs is a big decision. Here are the advantages and disadvantages of ETFs.

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Learn how ETFs can make investing easier. Key takeaways ETFs are funds containing groups of securities, like stocks or bonds, often organized around a specific theme, like a sector or market index (for example, the S&P 500 ® Index or Nasdaq composite index). If you're looking for a diversified investment, ETFs might be a great option for you. Exchange traded funds, or ETFs for short, are a popular type of investment for retirement savers and traders alike. In fact, as of the end of 2023, investors have poured over $8 trillion dollars into ETFs. 1 So why are ETFs so popular? Read on to learn the advantages of investing in ETFs, and how to decide for yourself if ETFs could be a benefit to your portfolio and investing strategy. What is an ETF? ETFs are funds containing groups of securities, like stocks or bonds, often organized around a specific theme, like a sector or market index (for example, the S&P 500 ® Index or Nasdaq composite index). When you buy an individual stock, you’re only getting exposure to a single company. But with an ETF, just like a mutual fund, a single trade can gain you exposure to hundreds or even thousands of different companies or bonds—all bundled into a single fund. ETFs trade like a common stock on an exchange, and therefore, they experience price changes throughout the day as they're bought and sold. Individuals can buy an ETF through a broker—like a financial institution or a bank. Why do investors choose ETFs? Here are some of the main advantages. Advantages of ETFs Low costs To offset the administrative costs associated with running and managing an ETF, investors are charged an "expense ratio." These fees are represented and paid as a percent of your investment in the fund. However, fees for ETFs are often quite low compared to other investment alternatives—for example, the average ETF costs half as much as the average mutual fund (0.50% vs 1.01%). 2 Ease of trading ETFs help make trading easier in 2 main ways: 1. Bundling securities 2. Trading on exchanges. When you buy an ETF, you are gaining exposure to potentially hundreds of different securities at once. If you were to try to replicate that on your own, it would not only be very expensive, but also very time-consuming. Imagine trying to replicate the S&P 500 on your own—that would involve placing more than 500 different trades—not to mention adjusting how much you invest in each to match the index. ETFs allow you to buy into ready-made portfolios that are managed to track specific themes or indexes. And ETFs can be easy to trade. ETFs are listed on public exchanges, which means you can buy and sell them throughout market hours just like stocks. You can also see their prices change throughout the trading day in real time. Diversification You’ve heard it before: "Don’t put all your eggs in one basket." Investor-speak for this idiom is diversification , according to which, by spreading your money across many different investments, you help minimize your risk of loss from a single investment’s poor performance. Because ETFs, like mutual funds, generally hold dozens if not hundreds of different investments, they are naturally more diversified than investing in an individual stock or bond. But be careful when choosing an ETF, to see exactly how diversified the fund is. Like mutual funds, some ETFs have a very narrow investment focus—tracking only the price of gold, or only Treasury bonds, or only pharmaceutical companies— and those funds will be less diversified than ETFs that track broad stock indexes, for example. Wide menu of investment options There are thousands of ETFs out there, each generally with a different mandate, a different strategy, or a different approach. There are now ETFs that track virtually every major asset class, commodity, and currency in the world. Whether you’re looking for an ETF that follows a popular stock-market index, invests in only a specific type of bonds like corporate bonds, or follows the performance of the US dollar, there’s likely an ETF out there that can help you gain that exposure. Some aggressive investors who are looking to execute on a particular investing strategy may also appreciate the ability to buy levered or inverse ETFs. Some levered ETFs’ price will move 2 or 3 times the daily price movement of a given index, giving high-risk investors a tool to gain more exposure with their dollars over the short term. And inverse ETFs aim to move in the opposite direction of an index or benchmark’s performance, meaning an investor could use an inverse ETF to enter a short position and potentially profit off a price decline. Keep in mind, both of these options are significantly higher risk than traditional ETFs, and these funds are generally not suitable for buy-and-hold investors. Curious where you can research ETF options? Check our ETF screener . Tax advantages When investing in a taxable account like a brokerage account, you generally have to pay taxes when your investments generate income (like a dividend, or bond coupon) or if you sell an investment for more than what you bought it for (generating a capital gain). These same taxes that apply when trading stocks or bonds also apply to funds, like ETFs and mutual funds. However, ETFs are structured in a unique way that can help reduce the annual taxes investors face on the shares they hold. Learn more about the inside workings of ETFs . ETFs that track an index generally make few changes to their holdings, which can further help improve tax efficiency. Lastly, ETFs can be a useful tool for investors interested in tax-loss harvesting . Transparency ETFs provide investors a lot of transparency into what they invest in, more even than many mutual funds. ETFs that track an index generally tell investors their full portfolios daily, which can help you know more about how your dollars are invested. With your dollars, knowledge is power. And knowing where your dollars are employed can help you determine which ETF fits your investing goals. Disadvantages of ETFs Not all ETFs may be suitable Although there are relatively low-risk ETFs that are diversified and invest in hundreds of different securities, others ETF options are more concentrated with aggressive investment strategies or investing in high-risk securities. These ETFs may not be suitable for the average investor. So just because something is an "ETF," don’t think that automatically means that investment is low-risk or diversified. Trading costs may apply Some financial institutions may charge commissions or fees to buy or sell ETFs. Before opening an account or placing a trade, it’s a smart idea to see what fees may apply to transactions. Fidelity does not charge any of these fees. Although many ETFs are bought and sold thousands of times a day, some more specialty ETFs may have a lower trading volume. That means when trading, there may be a gap between the bid (what someone is willing to pay to buy) and the ask (what someone is willing to pay to sell). If an ETF isn’t traded frequently, the spread between the bid and the ask may be large and could mean you’ll be forced to sell shares of that ETF for a small discount, buy for a small premium, or wait to trade until the spread shortens. Lack of customization By buying an ETF, you are buying into a fund. But because these securities are premade funds, you don’t get a say in what the fund invests in. ETFs can’t be personalized, so if you invest in one, you’re committed to owning whatever’s in the ETF. Are ETFs right for you? If you’re looking for a diversified investment, ETFs might be a great option for you. Whether you’re looking to invest in bonds, sectors of the stock markets, or major market indexes, like mutual funds, ETFs can help you gain diversified exposure in a single trade. Before buying any ETF or making any investment decision, make sure to thoroughly read and investigate the fund’s mission, what the fund is invested in, the expense ratio of the fund, and how the fund is rated by third-party research firms, like Morningstar. And also, make sure you have a plan for how the ETF fits into your broader asset allocation and investment plan, and consider whether the fund aligns with your investment goals, risk tolerance, and time horizon.

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Share ![Share](https://www.fidelity.com/bin-public/600_Fidelity_Com_English/images/article/share.svg) Close Popover *** Benefits of ETFs \| Fidelity Clicking a link will open a new window. - [Facebook](https://www.fidelity.com/learning-center/smart-money/benefits-of-etfs#facebook) - [Twitter](https://www.fidelity.com/learning-center/smart-money/benefits-of-etfs#twitter) - [LinkedIn](https://www.fidelity.com/learning-center/smart-money/benefits-of-etfs#linkedin) [Print ![Print](https://www.fidelity.com/bin-public/600_Fidelity_Com_English/images/article/Print.svg)](https://www.fidelity.com/learning-center/smart-money/benefits-of-etfs#print) # Benefits of ETFs Learn how ETFs can make investing easier. Fidelity Viewpoints ![](https://www.fidelity.com/bin-public/600_Fidelity_Com_English/images/learning-center/heros/Benefits-of-ETFs-banner-800x285.jpg) ### Key takeaways - ETFs are funds containing groups of securities, like stocks or bonds, often organized around a specific theme, like a sector or market index (for example, the S\&P 500® Index or Nasdaq composite index). - If you're looking for a diversified investment, ETFs might be a great option for you. Exchange traded funds, or ETFs for short, are a popular type of investment for retirement savers and traders alike. In fact, as of the end of 2023, investors have poured over \$8 trillion dollars into ETFs.1 So why are ETFs so popular? Read on to learn the advantages of investing in ETFs, and how to decide for yourself if ETFs could be a benefit to your portfolio and investing strategy. ### What is an ETF? ETFs are funds containing groups of securities, like stocks or bonds, often organized around a specific theme, like a sector or market index (for example, the S\&P 500® Index or Nasdaq composite index). When you buy an individual stock, you’re only getting exposure to a single company. But with an ETF, just like a mutual fund, a single trade can gain you exposure to hundreds or even thousands of different companies or bonds—all bundled into a single fund. ETFs trade like a common stock on an exchange, and therefore, they experience price changes throughout the day as they're bought and sold. Individuals can buy an ETF through a broker—like a financial institution or a bank. Why do investors choose ETFs? Here are some of the main advantages. ### Advantages of ETFs **Low costs** To offset the administrative costs associated with running and managing an ETF, investors are charged an "expense ratio." These fees are represented and paid as a percent of your investment in the fund. However, fees for ETFs are often quite low compared to other investment alternatives—for example, the average ETF costs half as much as the average mutual fund (0.50% vs 1.01%).2 **Ease of trading** ETFs help make trading easier in 2 main ways: 1. Bundling securities 2. Trading on exchanges. When you buy an ETF, you are gaining exposure to potentially hundreds of different securities at once. If you were to try to replicate that on your own, it would not only be very expensive, but also very time-consuming. Imagine trying to replicate the S\&P 500 on your own—that would involve placing more than 500 different trades—not to mention adjusting how much you invest in each to match the index. ETFs allow you to buy into ready-made portfolios that are managed to track specific themes or indexes. And ETFs can be easy to trade. ETFs are listed on public exchanges, which means you can buy and sell them throughout market hours just like stocks. You can also see their prices change throughout the trading day in real time. **Diversification** You’ve heard it before: "Don’t put all your eggs in one basket." Investor-speak for this idiom is *[diversification](https://www.fidelity.com/viewpoints/investing-ideas/guide-to-diversification "diversification")*, according to which, by spreading your money across many different investments, you help minimize your risk of loss from a single investment’s poor performance. Because ETFs, like mutual funds, generally hold dozens if not hundreds of different investments, they are naturally more diversified than investing in an individual stock or bond. But be careful when choosing an ETF, to see exactly how diversified the fund is. Like mutual funds, some ETFs have a very narrow investment focus—tracking only the price of gold, or only Treasury bonds, or only pharmaceutical companies— and those funds will be less diversified than ETFs that track broad stock indexes, for example. **Wide menu of investment options** There are thousands of ETFs out there, each generally with a different mandate, a different strategy, or a different approach. There are now ETFs that track virtually every major asset class, commodity, and currency in the world. Whether you’re looking for an ETF that follows a popular stock-market index, invests in only a specific type of bonds like corporate bonds, or follows the performance of the US dollar, there’s likely an ETF out there that can help you gain that exposure. Some aggressive investors who are looking to execute on a particular investing strategy may also appreciate the ability to buy levered or inverse ETFs. Some levered ETFs’ price will move 2 or 3 times the daily price movement of a given index, giving high-risk investors a tool to gain more exposure with their dollars over the short term. And inverse ETFs aim to move in the opposite direction of an index or benchmark’s performance, meaning an investor could use an inverse ETF to enter a short position and potentially profit off a price decline. Keep in mind, both of these options are significantly higher risk than traditional ETFs, and these funds are generally not suitable for buy-and-hold investors. Curious where you can research ETF options? Check our [ETF screener](https://digital.fidelity.com/prgw/digital/research/etf "ETF screener"). **Tax advantages** When investing in a taxable account like a brokerage account, you generally have to pay taxes when your investments generate income (like a dividend, or bond coupon) or if you sell an investment for more than what you bought it for (generating a capital gain). These same taxes that apply when trading stocks or bonds also apply to funds, like ETFs and mutual funds. However, ETFs are structured in a unique way that can help reduce the annual taxes investors face on the shares they hold. Learn more about the [inside workings of ETFs](https://www.fidelity.com/viewpoints/active-investor/inside-etfs "inside workings of ETFs"). ETFs that track an index generally make few changes to their holdings, which can further help improve tax efficiency. Lastly, ETFs can be a useful tool for investors interested in [tax-loss harvesting](https://www.fidelity.com/viewpoints/active-investor/tax-loss-harvesting-using-ETFs "tax-loss harvesting"). **Transparency** ETFs provide investors a lot of transparency into what they invest in, more even than many mutual funds. ETFs that track an index generally tell investors their full portfolios daily, which can help you know more about how your dollars are invested. With your dollars, knowledge is power. And knowing where your dollars are employed can help you determine which ETF fits your investing goals. ### Disadvantages of ETFs **Not all ETFs may be suitable** Although there are relatively low-risk ETFs that are diversified and invest in hundreds of different securities, others ETF options are more concentrated with aggressive investment strategies or investing in high-risk securities. These ETFs may not be suitable for the average investor. So just because something is an "ETF," don’t think that automatically means that investment is low-risk or diversified. **Trading costs may apply** Some financial institutions may charge commissions or fees to buy or sell ETFs. Before opening an account or placing a trade, it’s a smart idea to see what fees may apply to transactions. Fidelity does not charge any of these fees. Although many ETFs are bought and sold thousands of times a day, some more specialty ETFs may have a lower trading volume. That means when trading, there may be a gap between the bid (what someone is willing to pay to buy) and the ask (what someone is willing to pay to sell). If an ETF isn’t traded frequently, the spread between the bid and the ask may be large and could mean you’ll be forced to sell shares of that ETF for a small discount, buy for a small premium, or wait to trade until the spread shortens. **Lack of customization** By buying an ETF, you are buying into a fund. But because these securities are premade funds, you don’t get a say in what the fund invests in. ETFs can’t be personalized, so if you invest in one, you’re committed to owning whatever’s in the ETF. ### Are ETFs right for you? If you’re looking for a diversified investment, ETFs might be a great option for you. Whether you’re looking to invest in bonds, sectors of the stock markets, or major market indexes, like mutual funds, ETFs can help you gain diversified exposure in a single trade. Before buying any ETF or making any investment decision, make sure to thoroughly read and investigate the fund’s mission, what the fund is invested in, the expense ratio of the fund, and how the fund is rated by third-party research firms, like Morningstar. And also, make sure you have a plan for how the ETF fits into your broader asset allocation and investment plan, and consider whether the fund aligns with your investment goals, risk tolerance, and time horizon. ## Find the right ETF for you Use our screener to identify ETFs and ETPs that match your investment goals. [Screen ETFs now](https://digital.fidelity.com/prgw/digital/research/etf) ## More to explore ### [ETFs at Fidelity](https://www.fidelity.com/etfs/investing-in-etfs) Learn about Fidelity tools and resources for ETFs. ### [Types of ETFs/ETPs](https://www.fidelity.com/learning-center/investment-products/etf/etfs) See which ETFs/ETPs might be a good fit. ## Subscribe to *Fidelity Viewpoints®* Timely news and insights from our pros on markets, investing, and personal finance.(debug tcm:2365-349569) ### Looking for more ideas and insights? We'll deliver them right to your inbox. Manage subscriptions ### Thanks for subscribing\! Check out your Favorites page, where you can: - Tell us the topics you want to learn more about - View content you've saved for later - Subscribe to our newsletters [Go to Favorites](https://www.fidelity.com/learning-center/favorites) ### We're on our way, but not quite there yet Good news, you're on the early-access list. 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Loading - [Investing for beginners](https://www.fidelity.com/learning-center/trading-investing/investing-for-beginners) - [Finding stock and sector ideas](https://www.fidelity.com/learning-center/trading-investing/finding-stocks-and-sector-ideas) - [Investing for income](https://www.fidelity.com/learning-center/trading-investing/investing-for-income) - [Fixed income, bonds, CDs](https://www.fidelity.com/learning-center/investment-products/fixed-income-bonds/fixed-income-bonds-cds) - [ETFs](https://www.fidelity.com/learning-center/investment-products/etf/etfs) - [Mutual funds](https://www.fidelity.com/learning-center/investment-products/mutual-funds/mutual-funds) - [Stocks](https://www.fidelity.com/learning-center/investment-products/stocks/stocks) - [Using technical analysis](https://www.fidelity.com/learning-center/trading-investing/technical-analysis/using-technical-analysis) 1\. "The US ETF Market: FAQs," Investment Company Institute, May 2024. 2\. Bryan Armour, "ETFs vs. Mutual Funds: The Benefits That Really Matter," Morningstar, February 6, 2024. *Investing involves risk, including risk of loss.* **ETFs are subject to market fluctuation and the risks of their underlying investments. ETFs are subject to management fees and other expenses.** Exchange-traded products (ETPs) are subject to market volatility and the risks of their underlying securities, which may include the risks associated with investing in smaller companies, foreign securities, commodities, and fixed income investments. Foreign securities are subject to interest rate, currency exchange rate, economic, and political risks, all of which are magnified in emerging markets. ETPs that target a small universe of securities, such as a specific region or market sector, are generally subject to greater market volatility, as well as to the specific risks associated with that sector, region, or other focus. ETPs that use derivatives, leverage, or complex investment strategies are subject to additional risks. The return of an index ETP is usually different from that of the index it tracks because of fees, expenses, and tracking error. An ETP may trade at a premium or discount to its net asset value (NAV) (or indicative value in the case of exchange-traded notes). The degree of liquidity can vary significantly from one ETP to another and losses may be magnified if no liquid market exists for the ETP's shares when attempting to sell them. Each ETP has a unique risk profile, detailed in its prospectus, offering circular, or similar material, which should be considered carefully when making investment decisions. **Past performance is no guarantee of future results.** Leverage can magnify the impact of adverse issuer, political, regulatory, market, or economic developments on a company. In the event of bankruptcy, a company's creditors take precedence over its stockholders. Indexes are unmanaged. It is not possible to invest directly in an index. Diversification and asset allocation do not ensure a profit or guarantee against loss. Views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author and not necessarily those of Fidelity Investments or its affiliates. Fidelity does not assume any duty to update any of the information. Fidelity does not provide legal or tax advice. The information herein is general in nature and should not be considered legal or tax advice. Consult an attorney or tax professional regarding your specific situation. The Fidelity Investments and pyramid design logo is a registered service mark of FMR LLC. The third-party trademarks and service marks appearing herein are the property of their respective owners. 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zw4SR1mWv8zQEYrcClV137yHSITjs3bAQfYYQRRhhhhBFGGAH8D9DXSGd7oPh2AAAAAElFTkSuQmCC) 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zw4SR1mWv8zQEYrcClV137yHSITjs3bAQfYYQRRhhhhBFGGAH8D9DXSGd7oPh2AAAAAElFTkSuQmCC) 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Readable Markdown

Learn how ETFs can make investing easier. ### Key takeaways - ETFs are funds containing groups of securities, like stocks or bonds, often organized around a specific theme, like a sector or market index (for example, the S\&P 500® Index or Nasdaq composite index). - If you're looking for a diversified investment, ETFs might be a great option for you. Exchange traded funds, or ETFs for short, are a popular type of investment for retirement savers and traders alike. In fact, as of the end of 2023, investors have poured over \$8 trillion dollars into ETFs.1 So why are ETFs so popular? Read on to learn the advantages of investing in ETFs, and how to decide for yourself if ETFs could be a benefit to your portfolio and investing strategy. ### What is an ETF? ETFs are funds containing groups of securities, like stocks or bonds, often organized around a specific theme, like a sector or market index (for example, the S\&P 500® Index or Nasdaq composite index). When you buy an individual stock, you’re only getting exposure to a single company. But with an ETF, just like a mutual fund, a single trade can gain you exposure to hundreds or even thousands of different companies or bonds—all bundled into a single fund. ETFs trade like a common stock on an exchange, and therefore, they experience price changes throughout the day as they're bought and sold. Individuals can buy an ETF through a broker—like a financial institution or a bank. Why do investors choose ETFs? Here are some of the main advantages. ### Advantages of ETFs **Low costs** To offset the administrative costs associated with running and managing an ETF, investors are charged an "expense ratio." These fees are represented and paid as a percent of your investment in the fund. However, fees for ETFs are often quite low compared to other investment alternatives—for example, the average ETF costs half as much as the average mutual fund (0.50% vs 1.01%).2 **Ease of trading** ETFs help make trading easier in 2 main ways: 1. Bundling securities 2. Trading on exchanges. When you buy an ETF, you are gaining exposure to potentially hundreds of different securities at once. If you were to try to replicate that on your own, it would not only be very expensive, but also very time-consuming. Imagine trying to replicate the S\&P 500 on your own—that would involve placing more than 500 different trades—not to mention adjusting how much you invest in each to match the index. ETFs allow you to buy into ready-made portfolios that are managed to track specific themes or indexes. And ETFs can be easy to trade. ETFs are listed on public exchanges, which means you can buy and sell them throughout market hours just like stocks. You can also see their prices change throughout the trading day in real time. **Diversification** You’ve heard it before: "Don’t put all your eggs in one basket." Investor-speak for this idiom is *[diversification](https://www.fidelity.com/viewpoints/investing-ideas/guide-to-diversification "diversification")*, according to which, by spreading your money across many different investments, you help minimize your risk of loss from a single investment’s poor performance. Because ETFs, like mutual funds, generally hold dozens if not hundreds of different investments, they are naturally more diversified than investing in an individual stock or bond. But be careful when choosing an ETF, to see exactly how diversified the fund is. Like mutual funds, some ETFs have a very narrow investment focus—tracking only the price of gold, or only Treasury bonds, or only pharmaceutical companies— and those funds will be less diversified than ETFs that track broad stock indexes, for example. **Wide menu of investment options** There are thousands of ETFs out there, each generally with a different mandate, a different strategy, or a different approach. There are now ETFs that track virtually every major asset class, commodity, and currency in the world. Whether you’re looking for an ETF that follows a popular stock-market index, invests in only a specific type of bonds like corporate bonds, or follows the performance of the US dollar, there’s likely an ETF out there that can help you gain that exposure. Some aggressive investors who are looking to execute on a particular investing strategy may also appreciate the ability to buy levered or inverse ETFs. Some levered ETFs’ price will move 2 or 3 times the daily price movement of a given index, giving high-risk investors a tool to gain more exposure with their dollars over the short term. And inverse ETFs aim to move in the opposite direction of an index or benchmark’s performance, meaning an investor could use an inverse ETF to enter a short position and potentially profit off a price decline. Keep in mind, both of these options are significantly higher risk than traditional ETFs, and these funds are generally not suitable for buy-and-hold investors. Curious where you can research ETF options? Check our [ETF screener](https://digital.fidelity.com/prgw/digital/research/etf "ETF screener"). **Tax advantages** When investing in a taxable account like a brokerage account, you generally have to pay taxes when your investments generate income (like a dividend, or bond coupon) or if you sell an investment for more than what you bought it for (generating a capital gain). These same taxes that apply when trading stocks or bonds also apply to funds, like ETFs and mutual funds. However, ETFs are structured in a unique way that can help reduce the annual taxes investors face on the shares they hold. Learn more about the [inside workings of ETFs](https://www.fidelity.com/viewpoints/active-investor/inside-etfs "inside workings of ETFs"). ETFs that track an index generally make few changes to their holdings, which can further help improve tax efficiency. Lastly, ETFs can be a useful tool for investors interested in [tax-loss harvesting](https://www.fidelity.com/viewpoints/active-investor/tax-loss-harvesting-using-ETFs "tax-loss harvesting"). **Transparency** ETFs provide investors a lot of transparency into what they invest in, more even than many mutual funds. ETFs that track an index generally tell investors their full portfolios daily, which can help you know more about how your dollars are invested. With your dollars, knowledge is power. And knowing where your dollars are employed can help you determine which ETF fits your investing goals. ### Disadvantages of ETFs **Not all ETFs may be suitable** Although there are relatively low-risk ETFs that are diversified and invest in hundreds of different securities, others ETF options are more concentrated with aggressive investment strategies or investing in high-risk securities. These ETFs may not be suitable for the average investor. So just because something is an "ETF," don’t think that automatically means that investment is low-risk or diversified. **Trading costs may apply** Some financial institutions may charge commissions or fees to buy or sell ETFs. Before opening an account or placing a trade, it’s a smart idea to see what fees may apply to transactions. Fidelity does not charge any of these fees. Although many ETFs are bought and sold thousands of times a day, some more specialty ETFs may have a lower trading volume. That means when trading, there may be a gap between the bid (what someone is willing to pay to buy) and the ask (what someone is willing to pay to sell). If an ETF isn’t traded frequently, the spread between the bid and the ask may be large and could mean you’ll be forced to sell shares of that ETF for a small discount, buy for a small premium, or wait to trade until the spread shortens. **Lack of customization** By buying an ETF, you are buying into a fund. But because these securities are premade funds, you don’t get a say in what the fund invests in. ETFs can’t be personalized, so if you invest in one, you’re committed to owning whatever’s in the ETF. ### Are ETFs right for you? If you’re looking for a diversified investment, ETFs might be a great option for you. Whether you’re looking to invest in bonds, sectors of the stock markets, or major market indexes, like mutual funds, ETFs can help you gain diversified exposure in a single trade. Before buying any ETF or making any investment decision, make sure to thoroughly read and investigate the fund’s mission, what the fund is invested in, the expense ratio of the fund, and how the fund is rated by third-party research firms, like Morningstar. And also, make sure you have a plan for how the ETF fits into your broader asset allocation and investment plan, and consider whether the fund aligns with your investment goals, risk tolerance, and time horizon.

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