More Individuals are Trading ETFs

From the Wall Street Journal:

"ETFs, typically index-tracking mutual funds that trade on an exchange like a stock, were once almost exclusively used by pension funds, hedge funds and other professional investors. During the past decade they’ve gained acceptance with many advisers and, more recently, are catching on in discount brokerage accounts."

"In one recent survey of about 4,000 well-to-do investors, 11% said they own an ETF, up from 9% a year ago. Investors who bought ETFs tended to be slightly younger and wealthier than the overall pool, according to market research firm Cogent Research LLC.

Cogent found investors favored low-cost ETFs, especially those from Vanguard Group, a company with a long history of catering to do-it-yourself investors."

No surprise here about Vanguard. The ETF Newsletter is a big fan of Vanguard. Read the complete Wall Street Journal post here.