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How to Pick a Great ETF

By John Maxfield - Dec 13, 2013 at 5:31PM

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Exchange-traded funds can be an extremely valuable asset for investors. Here are four things to look out for when deciding which one(s) to add to your portfolio.

One of the greatest financial inventions over the last few decades has been the exchange-traded fund. Serving effectively the same purpose as a mutual fund but at a fraction of the cost, ETFs should be core holdings in virtually every individual investor's portfolio. 

With this in mind, Motley Fool contributor John Maxfield outlines the four things investors should look for when selecting an ETF, highlighting the Vanguard Total Stock Market ETF (VTI 2.53%) and the SPDR S&P 500 (SPY 2.46%) ETF, which tracks the S&P 500.

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Stocks Mentioned

SPDR S&P 500 ETF Trust Stock Quote
SPDR S&P 500 ETF Trust
SPY
$415.26 (2.46%) $9.95
Vanguard Index Funds - Vanguard Total Stock Market ETF Stock Quote
Vanguard Index Funds - Vanguard Total Stock Market ETF
VTI
$208.07 (2.53%) $5.14

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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