One type of ETF is taking over the market

In the Fidelity Insight of the week, Silverstein speaks to Matt Goulet, a vice president of sector investment strategy, about the rise of bond ETFs. He says financial advisers are driving this by replacing their individual bond holdings with ETF shares. And while it hasn’t happened on the retail side yet, Goulet sees that coming in the future. In terms of retail investors, he says that they’re focusing mostly on sector funds, which they seek out because of the diversification they offer. Goulet also mentions that ETFs are more tax efficient.

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