The Curious Case of Exchange Traded Funds or ETFs

The exchange-traded fund market has been growing if not exponentially than at least rapidly. The market now represents a $6.3 trillion industry and is growing at an annual rate of 32%. Investors prefer putting money into ETFs rather than mutual funds. 69% of global ETF investors plan to increase their ETF allocation in the next 12 months and 62% of US investors will increase their exposure to actively-managed ETFs, an increase of 10 percentage points from 2019. Do not invest in something that you do not understand and check whether the ETF you chose fits your risk profile.