Exchange Traded Funds trading or ETF trading stands as a dependable means in diversifying the portion of your portfolio which you might want to protect from the unstable sways of direct investments in common stocks. ETF investing has some distinct benefits. Let us discuss: Benefit 1 – ETF trading stands as an attractive investment option because of the intraday pricing. This means ETFs are traded on an active stock exchange so that the sales are almost immediate. This is not particularly based on the price at the close of trading. This means that you can take advantage of daily trading activity. Benefit 2 - Tax efficiency makes ETF trading a beneficial investment option. The fact is, there are in fact no gains to be distributed when you sell an ETF. But if and when a key portion of the ETF is changed, it may generate the distribution of gains. Benefit 3 – ETF investing is beneficial because ETFs have much lower fees than mutual funds. ETF is basically a no-load fund; hence you don’t have to pay the redemption fees when it comes to the point of liquidating it and the ongoing management fees are a fraction of the equivalent mutual fund. Benefit 4 - One more major advantage of ETF trading is the liquidity that it offers. This typically means that you will be able to keep your financial portfolio pretty fair by using the ETFs for the liquid component.