Because they’re traded, ETFs can suffer from high brokerage fees. But recently, competition has kicked in and now brokerages are offering deals to bring down the price. For instance, Bank of America promises 30 free online trades with a combined $25,000 in checking, savings and CDs. And E*Trade, the online broker, offers 100 commission-free trades when you sign up.
Bottom line? ETFs are an option if you’re looking for the diversity of mutual fund and the price action of a stock. But, as in everything, beware of the fees.