Why is trading so important? ETFs give investors the ability to trade a “single stock without the single-stock risk.”¹ Trading allows you to make the trade when it’s most advantageous to you. Trading offers continuous pricing and liquidity, which is the ability to buy or sell very quickly. If you need money fast, the ability to price and time your purchase or sale can mean the difference in millions of dollars.

Prior to ETFs, investors used futures for index funds to catch the market’s move. Many investors like ETFs better than index futures because they offer four distinct advantages: smaller order sizes, no special accounts, no roll costs, and futures have tighter margin requirements.