Cost effectiveness
Like all funds, ETFs have an annual fee referred to as a management fee. But because ETFs are typically able to achieve lower operating costs, the fee charged by ETFs is generally lower than that charged by mutual funds, and certainly lower than the expense of holding physical commodities directly, making ETFs more cost-effective. Although the percentage difference between an ETF and a mutual fund might seem insignificant, the difference can substantially affect the return on the investment over a long period of time. The degree of cost saving needs to be measured against the brokerage commissions applicable when buying or selling ETFs.
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