Are ETFs the holy grail of investments?

SINGAPORE (July 7): It is amazing the number of exchange-traded funds (ETFs) and index mutual funds being promoted. Are these “passively managed funds” the holy grail of investments?

The Edge Singapore previously shared how assets managed by global ETFs have grown to about US$4 trillion ($5.5 trillion) now from under US$1 trillion in 2008. Their main attraction is the low cost to investors.

Investors have fled actively managed mutual funds that have underperformed the market, compounded by the high fees charged.

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