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4 Ways ETFs are Perfect for Retirement


Want to know the magic formula for retirement investing? So, maybe magic is too strong a word, but there is an investment approach that's easy to implement and works as well for novice investors as it does for savvy professionals. It involves investing in exchange-traded funds (ETFs). When you buy an ETF, you are purchasing shares of an entire portfolio of assets -- similar to a mutual fund. But unlike mutual funds, ETFs are traded on a stock exchange and their share prices fluctuate throughout the day.

Here are four compelling reasons why ETFs are the perfect building blocks for your retirement portfolio.

Image source: Getty Images.

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Source Fool.com

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