5 myths of ETF

ETFs are hot these years with increasing public attention over other kinds of fund. However, Exchange-Traded Fund Myths Busted (from morningstar.com) discovers some of the "famous" myths behind the shine of ETF.

• ETFs are getting all the fund flows.
• ETFs must perform better than mutual funds.
• ETFs are always the cheapest option.
• Online brokerage fees have dropped, so it's safe to dollar-cost average into ETFs.
• ETFs' structure always makes them more tax-efficient choice.

As said in the conclusion, "ETFs can be a smart way to invest, but they're only as smart as the people who use them." On the other hand, tax can be a more complicated aspect for other portfolio managers to deal with.