How do ETF fees work on Robinhood?

How do ETF fees work on Robinhood?

Exchange-traded funds (ETFs) are a popular choice for investors looking to diversify their portfolios and minimize fees. On Robinhood, ETF fees are typically lower than those of mutual funds, and there are no commissions or account minimums. ETFs are a collection of investments, such as stocks and bonds, that are bundled together in a single fund. When you buy or sell an ETF on Robinhood, you pay a fee in the form of a spread, which is the difference between the buy and sell prices. Additionally, you may be charged an annual fee to cover the costs of managing the ETF. This fee is typically much lower than the fees associated with mutual funds, making ETFs an attractive investment option for those looking to save money.

Continue reading...

What are the risk of exchange-traded funds?

What are the risk of exchange-traded funds?

Exchange-traded funds (ETFs) are a great way to diversify your portfolio, but there are some risks associated with them. ETFs involve the risk of market fluctuation, which can lead to losses in the short term. The price of an ETF can sometimes be subject to manipulation, and there is a risk associated with the liquidity of ETFs, as they can be difficult to sell or buy at certain times. Additionally, ETFs are subject to a variety of taxes, fees, and commissions, so you should read the prospectus carefully before investing. Lastly, ETFs can be difficult to understand, so it's important to do your own research and consult a financial advisor before investing.

Continue reading...