JP Morgan Gets Hip With ETFs

Exchange-Traded Funds are all the rage these days. Put simply, they are a collection of index funds that trade on the exchange, just like stocks. And now some of the biggest banks are getting in on the action. WTF Is ETF?They’re similar to mutual funds, but more prone to prices changes, as the shares are bought and sold throughout the day. They’re especially useful for people who would like to start investing, but don’t have a whole lot of pocket change just lying around, or who like to take a more passive approach to investing. ETFs are automated, which means you don’t have to pay a human to find your stocks, and you don’t have to figure out which stocks you want, in case you can’t be bothered. RoboMorgan JP Morgan Chase announced they will roll out robo-advisers with cheap ETFs, in order to lure new and younger investors. Talk about meeting people where they live. Say It The rise of cheap ETFs is another sign that Index funds are quickly becoming the preferred stock option for many investors. That’s great and all, but the downside is that when you have an index fund, you can’t vote directly, the way most shareholders can. Instead, the fund manager votes for you. But don’t worry, your friends as Say have got you taken care of, as always. If you have an index fund in a company, remember that you can use your Say platform to participate in polling, shareholder meeting Q&As, and earnings calls. -Michael Tedder Photo: Aaaron P. Bernstein/REUTERS