Transparency
ETFs report their holdings every day and typically disclose the specific weighting of the constituents of the tracked index, which means you will know when the ETF has modified its position in a particular stock or other security. In contrast, most mutual funds report their holdings periodically - typically quarterly or semi-annually. You may not know for months if the mutual fund you own has substantially changed its holdings, their weightings or the overall investment style (i.e. - from growth to value). The transparency inherent in ETFs, coupled with the tracking of a set index, provides greater confidence that the ETF will maintain its original investment strategy.
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