ETFs have become more popular as passive investing strategies have gained traction. We use certain ETFs to access specific components of the stock market such as the bond market and certain complex products.
The liquidity and low cost to buy and sell make them a superior product compared to mutual funds. They provide our clients an easy way to access indices and specific strategies that are extremely liquid. Not to mention, the expense ratio can be extremely low on an index ETF, often times lower than many mutual funds.