Say the ETF you’re considering holds thousands of companies, it may be simplest for you to just own the ETF. If the holdings in the ETF trade on a major, accessible market like the NYSE, then the ETF is easier to replicate. Finally, it’s worth simply considering the fee that the ETF is charging and how much you’re investing. If you’re investing $1,000 in an ETF with a 0.03% fee then holding a basket of stocks yourself offers a saving of $0.30 a year. Finally owning stocks directly, if you’re doing it in a taxable account, may offer more opportunities for tax-loss harvesting.

Source: Forbes October 20, 2019 00:45 UTC