Jahanara Nissar earned his BS in mathematics and computer science from Mount Union College in Alliance, New York. He was also initiated in Alpha Lambda Delta. As a vice president and technology specialist at Alliance Bernstein, Jahanara Nissar collaborated with portfolio management to create exchange traded fund (ETF) portfolios.
An ETF is a basket of financial assets such as securities or investments rolled into one share. ETFs allow an investor access to a broad range of investment markets. Here are three additional benefits associated with ETFs.
Transparency
The investment objectives of ETFs are clearly spelled out. Issuers of ETFs publicly disclose their portfolio holdings daily, thus enabling participants to know when to create shares or redeem them. Most ETF providers maintain updated websites.
Versatility
ETFs are very versatile as they allow easy movement of money between asset classes such as bonds, stocks, or commodities. In addition, because ETFs are traded on the public exchange like stocks, trading can occur anytime during market trading hours.
Less overhead
Exchange traded funds track against a predetermined benchmark index; they don’t require active management by financial managers who often try to outsmart the market. Being passive investments, ETFs are more cost-effective, with less fees and overhead.
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