Accumulation vs Distribution ETFs. Don't make a mistake in this crucial decision!

Investing in ETFs is extremely popular, especially with retail investors. But as it happens, there's a catch. And this case is no exception. In particular, it's important to focus on one point that can fundamentally affect your results.

Repetition is the mother of wisdom, so let's first take a look at what an ETF even is.

An ETF (Exchange Traded Fund) is an investment fund that is traded like a stock on an exchange. It is a collective investment that an investor gets involved in by buying shares of the fund. ETFs allow investors to get exposure to a wide range of assets such as stocks, bonds, commodities and more. An ETF is designed to reflect the performance of a particular market or sector. This means that when you invest in an ETF, you are essentially investing in the entire market or sector, not just one company. For example, if you invest in the S&P 500 ETF, you are investing in the 500 largest U.S. companies.

An ETF differs from a regular mutual fund in that it trades on an exchange…