Most Mutual Funds do not beat the market Almost every mutual fund ever created performs worse than the overall market in the long term. Investing in ETFs ETFs provide a great way for investors to diversify along with not having to pay those huge mutual fund fees. The SPY ETF tracks the S&P 500 which historically has gone up 10% a year if you were holding it for the long term. But unlike mutual funds those fees are very small compared to the initial investment because they do not need to hire so many people to manage your. So if you buy the ETF for a specific industry group and 1 company from that industry group goes under it is not going to affect you too much because you are invested in the sector as a whole. Yes ETFs have fees, which make them less appetizing then normal stocks.

If you are willing to bet that trend will keep going it might be for you. Here are some reasons why ETFs might be for you.

They give you a great way to diversify ETFs track certain industry groups or markets.

Well how about buying the market.