What Growth Can You Expect from Your ETF?

If you are looking for steady growth, ETF investing could be for you. ETFs are a very popular segment of the investment market, and they are growing rapidly. There are over 800 different ETFs, and all of them offer something unique. With ETFs, you can get involved in complex investments, even if you do not know that much about trading. The flexibility that they offer is unmatched in the industry. However, you may be wondering what you can expect from a good ETF. 

ETF Returns

The returns that you can get from an ETF vary wildly across the industry. If you were going to compare them to another type of investment, the returns would be similar to mutual funds. ETFs are diversified assets that are made up of many different securities. Therefore, sometimes you will find one that puts up a 20% return one year, while others might be lucky to get 5%. It varies quite a bit.

When you compare them to stocks, they are much safer. Stocks have a much greater possibly return on investment. However, you could just as easily lose all of your money investing in stocks. Consider ETFs a more easily traded mutual fund. 

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