Why ETFs and not Mutual Funds?

Even though they are very similar, ETFs beat Mutual Funds in different aspects.

Compared to mutual funds, ETFs have the following benefits:

  • Low costs: Sarwa's selected ETFs' average expense ratio is roughly 0.1%, while mutual funds' expense ratio is 1-2%.
  • Liquidity: Since they trade like stocks, meaning you can enter and exit the markets faster.
  • Passive investment: While mutual funds are active investments. Studies after studies have shown that active investments do not hit their benchmarks, deeming passive investing a better strategy.
  • Transparency: Since they disclose their earnings daily, allowing you to know your earnings at any point in time.
  • Low minimum initial investment: Allowing you to begin investing with a much smaller amount.

All these factors considered make ETFs a better choice for investors than mutual funds.

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