Exchange Traded Funds (ETFs)

With exchange traded funds from Fifth Third Securities, you can diversify your portfolio while enjoying the ease of exchange trading. If you’re ready to add ETFs to your investment portfolio, a Fifth Third Financial Professional can help you get started.

Potential Advantages of ETF Investment

Lower cost: ETFs may have lower investment minimums and lower fees than most mutual funds.

Less risk vs. an individual security: Because exchange traded funds are a collection of securities, which can include stocks and/or bonds, if a single security performs poorly, your losses may be minimized due to the other assets in the collection.

Diversification: ETFs allow investors to invest in broad markets, as well as specific industries or sectors.

Liquidity: ETFs offer the freedom to trade during trading hours.

Tax efficiency: Typically, ETFs are only taxed when the investment is sold, while mutual funds can be taxed much more frequently.

What is an Exchange Traded Fund?

To put it simply, an ETF combines the best of two worlds: mutual funds and stock trading. Like a mutual fund, an ETF is a collection of stocks, bonds, and other assets, and shareholders own a portion of the ETF. And similar to stocks, ETFs are traded on an exchange and can be traded throughout the day, which means they experience price changes throughout the day, too.

How Exchange Traded Funds Work

ETFs may provide a lower cost way to gain exposure to specific asset classes, geographic regions, and other targeted investment areas. They trade like stocks with the ability to buy and sell, with prices adjusting throughout the trading day. A Fifth Third Securities Financial Professional can help you determine whether ETFs make sense for your investment portfolio.

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