Using ETFs

Using ETFs (Exchange Traded Funds) in an investment portfolio is considered a prudent strategy for three simple reasons: 

• Cost Efficiency: ETFs offer reasonable and transparent fees.
• Transparency: ETFs offer a flexible and transparent investments.
• Risk Management: ETFs help manage risk through diversification.

High fees erode investment performance.

This chart from a Government Accountability Office report illustrates exactly how much expenses matter: over the course of 20 years, a $20,000 investment, earning 7% annually and paying 0.5% annual fees, will grow to about $70,500. But if fees are 1.5%—a mere 1% difference—that same $20,000 will only grow to about $58,400.

This is approximately a 17% difference in asset value!

Depending on the needs of a client, NAMCO may prepare an evaluation of existing portfolio investments and provide recommendations for other investments as appropriate.  

Carefully consider the prospectus and other disclosure documents that discuss investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the ETF's prospectuses.  Read the prospectus carefully before investing.  Investing involves risk, including possible loss of principal.. Diversification may not protect against market risk.  Investment comparisons are for illustrative purposes only and not meant to be all-inclusive. To better understand the similarities and differences between investments, including investment objectives, risks, fees, and expenses, it is important to read the products' prospectuses.