The Wisdom of Investing in ETFs

This Element is an excerpt from Never Buy Another Stock Again: The Investing Portfolio That Will Preserve Your Wealth and Your Sanity (9780137071555) by David Gaffen. Available in print and digital formats.   Should you trade ETFs? An objective look at the pros and cons, the pitfalls, and how to avoid them.   ETFs have some distinct advantages, such as tax efficiency, the ability to get in and out whenever you want, and in some cases, super-low expense ratios. However, there’s a downside, particularly for investors without discipline. The ability to trade whenever you want can exacerbate investors’ emotional desire to constantly shift positions. And some ETFs are just outright perilous…