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How ETFs Really Work – And Why It Matters

Active investors typically hold a lot of different types of securities in their brokerage accounts. From interacting with my newsletter subscribers, I know that many of them think of every investment in their brokerage account as “stocks”; however, much of what we own may not be common stock shares.

This may seem like a minor point, but it can have big implications for your returns. So today, let’s take a look at how ETFs differ from common stock shares – and I’ll throw in one of my favorite, high-yield ETFs right now, too…

This post originally appeared Investors Alley.