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Lastly but importantly is cost efficiency; generally speaking, expense ratios – which measure what it costs an investment company annually per $1,000 invested – for ETFs are lower than those of average mutual funds. This is because most ETFs are passively managed and aim to replicate the performance of a specific index, rather than trying to outperform it. Lower costs gattorandagio.com translate into more money in investors’ pockets over the long term.
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