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This has become even easier over the past few years as more and more funds have hit the market, bring the total number of ETFs well over the 1,000 mark and combined assets in the space over the key $1 trillion level. Yet, despite the proliferation of ETFs over the past few years, several misconceptions remain about the product type and how they not only work, but are designed to be used as well.
This is rather unfortunate as there is a great deal of education out there about the ETF market and how these new funds are built for investors. However, instead of learning more about the funds, many just blame the product, declaring these new funds somehow ‘flawed’, despite plenty of evidence to the contrary.
From what I have seen over the last few years, most ETF complaints and confusion center around a few key issues that are, time and time again, at the heart of investor misunderstandings in the exchange-traded fund market. Fortunately, all three of these ETF mistakes are easily explainable, and rectifiable, with just a few extra minutes of research and education (read ETFs vs. Mutual Funds).
Below, we highlight three of the biggest mistakes investors make when investing with ETFs. Hopefully, this discussion will assist investors in better understanding how ETFs are designed to be used, and some of the main pitfalls that often slip investors up when they are looking at this relatively new product type: ... Continue to read.

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