Victims of Madoff’s Ponzi Scheme Should Have Invested in ETFs

The cost and tax advantages of ETFs compared to mutual funds are well known.  A less well known benefit is their transparency.  Unlike the holdings in a mutual fund, which are only published four times a year, the holdings of an ETF are published every day.  As this Arizona Republic article so explains, with ETFs you won’t be surprised when your mutual fund manager invests in things you don’t know about.  This kind of visibility makes ETFs perfect for someone who wants something “180 degrees different from what Madoff was up to.”