Exchange traded funds (ETFs) are a great way to invest. They are easy to trade, relatively low-cost, and they offer the opportunity to invest in a variety of assets. Many investors should choose ETFs over mutual funds to create a proper asset allocation. The trading costs of ETFs can be eliminated, when you choose from a stock broker that offers commission-free ETF investments.
Though commission free ETFs isn’t the only reason to choose a broker. It can be a deciding factor, since long term transaction fees can significantly decrease performance. The other factor to consider when choosing, is how closely does the ETF mirror the index it’s based upon? This is otherwise known as tracking error. Morningstar allows you to quickly check out this info by looking at historical returns. Click on any of the stock ticker symbols below for research from Morningstar.
We’ve done the research, and found all of the discount brokers that offer commission free ETFs to invest with. Most brokers ETF list will allow you to create a decent balanced portfolio.
Update 03/13/2013: Fidelity introduced 65 commission free ETFs.
Charles Schwab
Schwab doesn’t charge when you trade ETFs through your Schwab investing account. On top of that, Schwab has low expense ratios:
| ETF | Symbol | Expense Ratio |
|---|---|---|
| U.S. Broad Market | SCHB | 0.06% | U.S. Large-Cap ETF | SCHX | 0.08% |
| U.S. Large-Cap Growth | SCHG | 0.13% |
| U.S. Large-Cap Value | SCHV | 0.13% |
| U.S. Dividend Equity | SCHD | 0.17% |
| U.S. Mid-Cap | SCHM | 0.13% |
| U.S. Small-Cap | SCHA | 0.13% |
| U.S. REIT | SCHH | 0.13% |
| U.S. Aggregate Bond | SCHZ | 0.10% |
| U.S. TIPS | SCHP | 0.14% |
| Short-Term U.S. Treasury | SCHO | 0.12% |
| Intermediate-Term U.S. Treasury | SCHR | 0.12% |
| International Equity | SCHF | 0.13% |
| International Small-Cap Equity | SCHC | 0.35% |
| Emerging Markets Equity | SCHE | 0.25% |
E*Trade
E*Trade began offering commission free ETFs toward the end of 2011. However, if you don’t hold the ETF for at least 30 days, you may have to pay a redemption fee when you sell. Here are the ETFs offered by E*Trade, along their expense ratios.
| ETF | Symbol | Expense Ratio | DB-X 2010 Target Date Fund | TDD | 0.65% |
|---|---|---|
| DB-X 2020 Target Date Fund | TDH | 0.65% |
| DB-X 2030 Target Date Fund | TDN | 0.65% |
| DB-X 2040 Target Date Fund | TDV | 0.65% |
| DB-X In-Target Date Fund | TDX | 0.65% |
| DBX MSCI Brazil Currency-Hedged Equity Fund | DBBR | .61% |
| DBX MSCI Canada Currency-Hedged Equity Fund | DBCN | 0.51% |
| DBX MSCI EAFE Currency-Hedged Equity Fund | DBEF | 0.36% |
| DBX MSCI Emerging Markets Currency-Hedged Equity Fund | DBEM | 0.69% |
| DBX MSCI Japan Currency-Hedged Equity Fund | DBJP | 0.51% |
| Global X Aluminum ETF | ALUM | 0.69% |
| Global X Auto ETF | VROM | .65% |
| Global X Brazil Consumer ETF | BRAQ | 0.77% |
| Global X Brazil Financials ETF | BRAF | 0.77% |
| Global X Brazil Mid Cap ETF | BRAZ | 0.69% |
| Global X Canada Preferred ETF | CNPF | 0.58% |
| Global X China Consumer ETF | CHIQ | 0.65% |
| Global X China Energy ETF | CHIE | 0.65% |
| Global X China Financials ETF | CHIX | 0.65% |
| Global X China Industrials ETF | CHII | 0.65% |
| Global X China Materials ETF | CHIM | 0.65% |
| Global X Copper Miners ETF | COPX | 0.65% |
| Global X Fertilizers/Potash ETF | SOIL | 0.69% |
| Global X FTSE Andean 40 ETF | AND | 0.72% |
| Global X FTSE Argentina 20 ETF | ARGT | 0.75% |
| Global X FTSE ASEAN 40 ETF | ASEA | 0.65% |
| Global X FTSE Greece 20 ETF | GREK | 0.69% |
| Global X FTSE Nordic 30 ETF | GXF | 0.50% |
| Global X FTSE Norway 30 ETF | NORW | 0.50% |
| Global X Gold Explorers ETF | GLDX | 0.65% |
| Global X LIthium ETF | LIT | 0.75% |
| Global X Nasdaq 400 Mid Cap ETF | QQQM | 0.48% |
| Global X Nasdaq 500 ETF | QQQV | 0.48% |
| Global X Nasdaq China Technology ETF | QQQC | 0.65% |
| Global X Permanent ETF | PERM | 0.49% |
| Global X Pure Gold Miners ETF | GGGG | 0.59% |
| Global X S&P/TSX Venture 30 Canada ETF | TSXV | 0.75% |
| Global X Silver Miners ETF | SIL | 0.65% |
| Global X Social Media Index Fund | SOCL | 0.65% |
| Global X Superdividend ETF | SDIV | 1.14% |
| Global X Uranium ETF | URA | 0.69% |
| Global X/Interbolsa FTSE Columbia 20 ETF | GXG | 0.78% |
| Wisdomtree Asia Local Debt Fund | ALD | 0.55% |
| Wisdomtree Asia Pacific Ex-Japan Fund | AXJL | 0.48% |
| Wisdomtree Australia & New Zealand Debt Fund | AUNZ | 0.45% |
| Wisdomtree Australia Dividend Fund | AUSE | 0.58% |
| Wisdomtree Commodity Country Equity Fund | CCXE | 0.58% |
| Wisdomtree DEFA Equity Income Fund | DTH | 0.58% |
| Wisdomtree DEFA Fund | DWM | 0.48% |
| Wisdomtree Dividend Ex-Financials Fund | DTN | 0.38% |
| Wisdomtree Dreyfus Brazilian Real Fund | BZF | 0.45% |
| Wisdomtree Dreyfus Chinese Yuan Fund | CYB | 0.45% |
| Wisdomtree Dreyfus Commodity Currency Fund | CCX | 0.55% |
| Wisdomtree Dreyfus Emerging Currency Fund | CEW | 0.55% |
| Wisdomtree Dreyfus Euro Debt Fund | EU | 0.35% |
| Wisdomtree Dreyfus Indian Rupee Fund | ICN | 0.45% |
| Wisdomtree Dreyfus Japanese Yen Fund | JYF | 0.35% |
| Wisdomtree Dreyfus South African Yen Fund | SZR | 0.45% |
| Wisdomtree Earnings 500 Fund | EPS | 0.28% |
| Wisdomtree Emerging Markets Corporate Bond Fund | EMCB | 0.60% |
| Wisdomtree Emerging Markets Equity Income Fund | DEM | 0.63% |
| Wisdomtree Emerging Markets Local Debt Fund | ELD | 0.55% |
| Wisdomtree Emerging Markets Smallcap Dividend Fund | DGS | 0.64% |
| Wisdomtree Equity Income Fund | DHS | 0.38% |
| Wisdomtree Europe Smallcap Dividend Fund | DFE | 0.58% |
| Wisdomtree Global Equity Income Fund | DEW | 0.58% |
| Wisdomtree Ex-US Growth Fund | DNL | 0.60% |
| Wisdomtree Global Ex-US Real Estate Fund | DRW | 0.58% |
| Wisdomtree Global Ex-US Utility Fund | DBU | 0.58% |
| Wisdomtree Global Natural Resources Fund | GNAT | 0.58% |
| Wisdomtree Global Real Return Fund | RRF | 0.60% |
| Wisdomtree India Earnings Fund | EPI | 0.83% |
| Wisdomtree International Dividend Ex-Financials Fund | DOO | 0.58% |
| Wisdomtree International Hedged Equity Fund | HEDJ | 0.58% |
| Wisdomtree International Largecap Dividend Fund | DOL | 0.48% |
| Wisdomtree International Midcap Dividend Fund | DIM | 0.58% |
| Wisdomtree International Smallcap Dividend Fund | DLS | 0.58% |
| Wisdomtree Japan Hedged Equity Fund | DXJ | 0.48% |
| Wisdomtree Japan Smallcap Dividend Fund | DFJ | .58% |
| Wisdomtree Largecap Dividend Fund | DLN | 0.28% |
| Wisdomtree Largecap Growth Fund | ROI | 0.38% |
| Wisdomtree Largecap Value Fund | EZY | 0.38% |
| Wisdomtree Managed Futures Strategy | WDTI | 0.95% |
| Wisdomtree Midcap Dividend Fund | DON | 0.38% |
| Wisdomtree Middle East Dividend Fund | GULF | 0.88% |
| Wisdomtree Smallcap Dividend Fund | DES | 0.38% |
| Wisdomtree Smallcap Earnings Fund | EES | 0.38% |
| Wisdomtree Total Dividend Fund | DTD | 0.28% |
| Wisdomtree Total Earnings Fund | EXT | 0.28% |
Fidelity
Fidelity has 64 commission-free ETFs through iShares. You can find a number of ETFs with quite low expense ratios. All iShares ETFs are not margin eligible for 30 days from settlement. For margin customers, positions will automatically become margin eligible in their account after 30 days from settlement.
| ETF | Symbol | Expense Ratio |
|---|---|---|
| Barclays 0-5 Year TIPS Bond | STIP | 0.20% |
| Barclays 1-3 Year Treasury Bond | SHY | 0.15% |
| Barclays 20+ Year Treasury Bond | TLT | 0.15% |
| Barclays 7-10 Year Treasury Bond | IEF | 0.15% |
| Barclays Agency Bond | AGZ | 0.20% |
| Emerging Markets Local Currency Bond | LEMB | 0.60% |
| Barclays GNMA Bond | GNMA | 0.32% |
| Barclays Intermediate Government Credit Bond | GVI | 0.20% |
| Barclays MBS Bond | MBB | 0.26% |
| Barclays TIPS Bond | TIP | 0.20% |
| Barclays U.S. Treasury Bond | GOVT | 0.15% |
| Core Long-Term U.S. Bond | ILTB | 0.12% |
| Core MSCI EAFE | IEFA | 0.14% |
| Core MSCI Emerging Markets | IEMG | 0.24% |
| Core MSCI Total International Stock | IXUS | 0.18% |
| Core S&P 500 | IVV | 0.07% |
| Core S&P Mid-Cap | IJH | 0.15% |
| Core S&P Small-Cap | IJR | 0.16% |
| Core S&P Total U.S. Stock Market | ITOT | 0.07% |
| Core Short-Term U.S. Bond | ISTB | 0.12% |
| Core Total U.S. Bond Market | AGG | 0.08% |
| Dow Jones International Select Dividend Index | IDV | 0.50% |
| Dow Jones Select Dividend Index | DVY | 0.40% |
| Dow Jones U.S. Real Estate Index | IYR | 0.47% |
| Emerging Markets Dividend | DVYE | 0.68% |
| Russell Micro-Cap Index | IWC | 0.69% |
| Floating Rate Note | FLOT | 0.22% |
| FTSE EPRA/NAREIT Global Real Estate ex U.S. | IFGL | 0.48% |
| iBoxx $ High Yield Corporate Bond | HYG | 0.50% |
| iBoxx $ Investment Grade Corporate Bond | LQD | 0.15% |
| International Inflation-Linked Bond | ITIP | 0.40% |
| JPMorgan USD Emerging Markets Bond | EMB | 0.60% |
| MSCI ACWI Index | ACWI | 0.34% |
| MSCI All Country Asia ex Japan Index | AAXJ | 0.69% |
| MSCI BRIC Index | BKF | 0.69% |
| MSCI China Index | MCHI | 0.61% |
| MSCI EAFE Minimum Volatility | EFAV | 0.34% |
| MSCI EAFE Small-Cap Index | SCZ | 0.40% |
| MSCI Emerging Markets EMEA | EEME | 0.68% |
| MSCI Emerging Market Minimum Volatility Index | EEMV | 0.69% |
| MSCI Emerging Markets Small-Cap | EEMS | 0.69% |
| MSCI Frontier 100 Index | FM | 0.79% |
| MSCI Global Agriculture Producers | VEGI | 0.40% |
| MSCI Global Gold Miners | RING | 0.39% |
| MSCI Global Metals & Mining Producers | PICK | 0.39% |
| MSCI Global Silver Miners | SLVP | 0.39% |
| MSCI Japan Index | EWJ | 0.53% |
| MSCI USA Minimum Volatility Index | USMV | 0.15% |
| S&P 100 Index | OEF | 0.20% |
| S&P 500 Growth Index | IVW | 0.18% |
| S&P 500 Value Index | IVE | 0.18% |
| S&P CA AMT-Free Municipal Bond | CMF | 0.25% |
| S&P Europe 350 Index | IEV | 0.60% |
| S&P India Nifty 50 Index | INDY | 0.92% |
| S&P Latin America 40 Index | ILF | 0.50% |
| S&P Mid-Cap 400 Growth Index | IJK | 0.25% |
| S&P Mid-Cap 400 Value Index | IJJ | 0.27% |
| S&P National AMT-Free Municipal Bond | MUB | 0.25% |
| S&P NY AMT-Free Municipal Bond | NYF | 0.25% |
| S&P S/T National AMT-Free Municipal Bond | SUB | 0.25% |
| S&P Small-Cap 600 Growth | IJT | 0.25% |
| S&P Small-Cap 600 Value Index | IJS | 0.29% |
| S&P U.S. Preferred Stock Index | PFF | 0.48% |
| S&P/Citi 1-3 Year International Treasury Bond | ISHG | 0.35% |
| S&P/Citi International Treasury Bond | IGOV | 0.35% |
Firstrade
The stated goal of the free ETFs offered by Firstrade is to help investors create a portfolio that is strong and diversified. There are few funds offered; here they are:
| ETF | Symbol | Expense Ratio |
|---|---|---|
| iShares S&P 500 Index Fund | IVV | 0.09% |
| iShares FTSE/Xinhua China 25 Index Fund | FXI | 0.73% |
| iShares S&P MidCap 400 Index Fund | IJH | 0.22% |
| PowerShares DB Commodity Index Tracking Fund | DBC | 0.85% |
| Vanguard Dividend Appreciation ETF | VIG | 0.23% |
| Vanguard Emerging Markets ETF | VWO | 0.27% |
| Vanguard Intermediate Term Bond ETF | BIV | 0.12% |
| Vanguard Long Term Bond ETF | BLV | 0.12% |
| Vanguard Short Term Bond ETF | BSV | 0.12% |
| Vanguard Small Cap Growth ETF | VBK | 0.14% |
Interactive Brokers
Interactive Brokers provides you with the opportunity invest in commission-free ETFs, including leveraged spread ETFs from FactorShares that are considered riskier. All of these are FactorShares 2X:
| ETF | Symbol | Expense Ratio |
|---|---|---|
| S&P 500 Bull/TBond Bear | FSE | 0.75% |
| TBond Bull/S&P 500 Bear | FSA | 0.75% |
| S&P 500 Bull/USD Bear | FSU | 0.75% |
| Oil Bull/S&P 500 Bear | FOL | 0.75% |
| Gold Bull/S&P 500 Bear | FSG | 0.75% |
Scottrade
Another broker that offers a number of low-cost, commission-free ETFs is Scottrade. This brokerage has 15 commission-free ETFs in a variety of sectors, all of them branded as Focus Morningstar:
| ETF | Symbol | Expense Ratio |
|---|---|---|
| US Market | FMU | 0.05% |
| Large Cap | FLG | 0.05% |
| Mid Cap | FMM | 0.12% |
| Small Cap | FOS | 0.12% |
| Basic Materials | FBM | 0.19% |
| Communication Services | FCQ | 0.19% |
| Consumer Cyclical | FCL | 0.19% |
| Consumer Defensive | FCD | 0.19% |
| Energy | FEG | 0.19% |
| Financial Services | FFL | 0.19% |
| Healthcare | FHC | 0.19% |
| Industrials | FIL | 0.19% |
| Real Estate | FRL | 0.12% |
| Technology | FTQ | 0.19% |
| Utilities | FUI | 0.19% |
TD Ameritrade
TD Ameritrade features several commission-free ETFs to choose from, including equity funds, as well as sector, bond, international, and commodity EFTs:
| ETF | Symbol | Expense Ratio |
|---|---|---|
| iShares S&P Aggressive Allocation | AOA | 0.48% |
| iShares S&P Conservative Allocation | AOK | 0.44% |
| iShares S&P Moderate Allocation | AOM | 0.45% |
| iShares S&P Growth Allocation | AOR | 0.46% |
| iShares S&P MidCap 500 Index | IJH | 0.22% |
| iShares S&P SmallCap 600 Index | IJR | 0.20% |
| iShares S&P SmallCap 600 Value Index | IJS | 0.25% |
| iShares S&P 500 Value Index | IVE | 0.18% |
| iShares S&P 500 Index | IVV | 0.09% |
| iShares Russell 1000 Index | IWB | 0.15% |
| iShares Russell MicrocapIndex | IWC | 0.71% |
| iShares Russell 1000 Value Index | IWD | 0.20% |
| iShares Russell 1000 Growth Index | IWF | 0.20% |
| iShares Russell 2000 Value Index | IWN | 0.41% |
| iShares Russell 2000 Growth Index | IWO | 0.25% |
| iShares Russell Midcap Growth Index | IWP | 0.25% |
| iShares Russell Midcap Value Index | IWS | 0.25% |
| iShares Russell 3000 Index | IWV | 0.21% |
| Vanguard Mega Cap 300 Index | MGK | 0.13% |
| Vanguard Small Cap | VB | 0.14% |
| Vanguard Small Cap Growth | VBK | 0.14% |
| Vanguard Small Cap Value | VBR | 0.14% |
| Vanguard Dividend Appreciation | VIG | 0.23% |
| Vanguard Mid Cap | VO | 0.14% |
| Vanguard Mid Cap Value | VOE | 0.14% |
| SPDR Dow Jones Global Real Estate | RWO | 0.50% |
| SPDR Dow Jones REIT | RWR | 0.25% |
| Vanguard REIT Index | VNA | 0.13% |
| iShares Barclays Aggregate Bond | AGG | 0.24% |
| Vanguard Intermediate-Term Bond | BIV | 0.12% |
| Vanguard Long-Term Bond | BLV | 0.12% |
| Vanguard Total Bond Market | BND | 0.12% |
| Vanguard Short-Term Bond | BSV | 0.12% |
| SPDR Barclays Capital International Treasury Bond | BWX | 0.50% |
| iShares Barclays Capital International Treasury Bond | CIU | 0.20% |
| iShares Barclays 1-3 Year Credit Bond | CSJ | 0.20% |
| Vanguard Extended Duration Treasury Index | EDV | 0.14% |
| iShares Barclays Intermediate Government/Credit Bond | GVI | 0.20% |
| iPath Optimized Currency Carry | ICI | 0.65% |
| iShares Barclays 3-7 Year Treasury Bond | IEI | 0.15% |
| Market Vectors Intermediate Municipal Index | ITM | 0.24% |
| iPath GEMS Index | JEM | 0.89% |
| SPDR Barclays Capital High Yield Bond | JNK | 0.40% |
| iShares iBoxx $ Investment Grade Corporate Bond | LQD | 0.15% |
| iShares Barclays MBS Bond | MBB | 0.33% |
| iShares S&P National AMT-Free Municipal Bond | MUB | 0.25% |
| PowerShares Emerging Markets Sovereign Debt Portfolio | PCY | 0.50% |
| SPDR Nuveen Barclays Capital Short Term Municipal Bond | SHM | 0.20% |
| iShares Barclays 1-3 Year Treasury Bond | SHY | 0.15% |
| SPDR Nuveen Barclays Capital Municipal Bond | TFI | 0.30% |
| iShares Barclays TIPS Bond | TIP | 0.20% |
| iShares Barclays 20+ Year Treasury Bond | TLT | 0.15% |
| Vanguard Intermediate-Term Corporate Bond | VCIT | 0.15% |
| iShares MSCI All Country Asia ex-Japan Index | AAXJ | 0.73% |
| iShares MSCI ACWI Index | ACWI | 0.35% |
| iShares MSCI BRIC Index | BKF | 0.72% |
| iShares MSCI EAFE Growth Index | EFG | 0.40% |
| iShares MSCI EAFE Value Index | EFV | 0.40% |
| WisdomTree India Earnings | EPI | 0.88% |
| iShares MSCI Australia Index | EWA | 0.55% |
| iShares MSCI Canada Index | EWC | 0.55% |
| iShares MSCI Germany Index | EWG | 0.55% |
| iShares MSCI Italy Index | EWI | 0.59% |
| iShares MSCI Japan Index | EWJ | 0.56% |
| iShares MSCI Spain Index | EWP | 0.56% |
| iShares MSCI France Index | EWQ | 0.55% |
| iShares MSCI United Kingdom Index | EWU | 0.55% |
| SPDR S&P Emerging Markets Small Cap | EWX | 0.66% |
| iShares MSCI Brazil Index | EWZ | 0.65% |
| SPDR EURO STOXX 50 | FEZ | 0.29% |
| iShares FTSE China 25 Index | FXI | 0.73% |
| SPDR S&P Emerging Europe | GUR | 0.59% |
| SPDR S&P China | GXC | 0.59% |
| iShares S&P Latin America 40 Index | ILF | 0.50% |
| iShares S&P Global 100 Index | IOO | 0.40% |
| Market Vectors Russia Index | RSX | 0.62% |
| SPDR Dow Jones International Real Estate | RWX | 0.59% |
| iShares MSCI EAFE Small Cap | SCZ | 0.40% |
| PowerShares DB Commodity Index Tracking Trust | DBC | 0.85% |
| PowerShares DB Oil Trust | DBO | 0.75% |
| iPath Dow Jones-UBS Commodity Index Total Return ETB | DJP | 0.75% |
| PowerShares DB Commodity Long ETN | DPU | 0.75% |
Vanguard
Another broker that offers all its ETFs commission-free is Vanguard. You can choose from a number of funds, you won’t pay commissions, and you can enjoy some rather low expense ratios:
| ETF | Symbol | Expense Ratio | Dividend Appreciation | VIG | 0.23% |
|---|---|---|
| Extended Market | VFX | 0.16% |
| Growth | VUG | 0.12% |
| High Dividend Yield | VYM | 0.18% |
| Large Cap | VV | 0.12% |
| Mega Cap 300 | MGC | 0.13% |
| Mega Cap 300 Growth | MGK | 0.13% |
| Mega Cap 300 Value | MGV | 0.13% |
| Mid Cap | VO | 0.12% |
| Mid Cap Growth | VOT | 0.12% |
| Mid Cap Value | VOE | 0.12% |
| S&P 500 | VOO | 0.06% |
| Small Cap | VB | 0.17% |
| Small Cap Growth | VBK | 0.12% |
| Small Cap Value | VBR | 0.23% |
| Total Stock Market | VTI | 0.07% |
| Value | VTV | 0.12% |
| Extended Duration Treasury | EDV | 0.13% |
| Intermediate Term Bond | BIV | 0.11% |
| Intermediate Term Corporate Bond | VCIT | 0.15% |
| Intermediate Term Government Bond | VGIT | 0.15% |
| Long Term Bond | BLV | 0.11% |
| Long Term Corporate Bond | VCLT | 0.15% |
| Long Term Government Bond | VGLT | 0.15% |
| Mortgage Backed Securities | VMBS | 0.15% |
| Short Term Bond | BSV | 0.11% |
| Short Term Corporate Bond | VCSH | 0.15% |
| Short Term Government Bond | VGSH | 0.15% |
| Total Bond Market | BND | 0.11% |
| Consumer Discretionary | VCR | 0.24% |
| Consumer Staples | VDC | 0.24% |
| Energy | VDE | 0.24% |
| Financials | VFH | 0.27% |
| Health Care | VHT | 0.24% |
| Industrials | VIS | 0.24% |
| Information Technology | VGT | 0.24% |
| Materials | VAW | 0.24% |
| REIT | VNQ | 0.13% |
| Telecommunication Services | VOX | 0.24% |
| Utilities | VPU | 0.24% |
| FTSE All World ex-US | VEU | 0.22% |
| FTSE All World ex-US Small Cap | VSS | 0.33% |
| Global ex-US Real Estate | VNQI | 0.35% |
| MSCI EAFE | VEA | 0.12% |
| MSCI Emerging Markets | VWO | 0.22% |
| MSCI Europe | VGK | 0.14% |
| MSCI Pacific | VPL | 0.14% |
| Total International Stock | VXUS | 0.20% |
| Total World Stock | VT | 0.25% |
“Read the Fine Print”
You failed to mention that TDAmeritrade changes customers a $19.00 USD penalty fee if they sell one of their “commission free” ETF within 30 days.
Hi Tim,
That is a good point. Some of the other brokers I know also have similar restrictions. If you are looking to do day trades or other short term plays many of these ETFs will not work for you. In writing this article we were assuming these were long term investments.
Hi Larry,
There is a huge difference between being a “day trader” and someone who buys an ETF and places a trailing stop loss order; and I don’t think the definition of “day trading” is to sell an equity withing 30 days of buying it.
The bookstores are full of experts who will tell you that traditional “buy and hold” is dead; and it results in huge losses for many investors; and just all experts in investing recommend placing orders on all positions to limit exposure and risk during a downside (for long positions).
Even “long term” investors benefit for protecting their capital with orders; because there is no smart reason to ride a market downturn to the bottom to just then ride it up again.
Fidelity, for example, offers all their commission free (iShares) ETFs without any “short term” penalty; because, I assume, they realize that even long term traders are wise to protect their capital during downtrends.