Investors looking to diversify their portfolios opt for exchange-traded funds because they are typically cheaper, usually more tax-efficient, and simple to buy and sell. However, their attractiveness can vary substantially depending on the specific fund, so it’s essential to evaluate each option carefully.

This guide highlights our latest research on ETFs, insights on how the ETF landscape operates, and ideas for ETFs that could work in your portfolio.

ETF Insights From Morningstar Analysts

The popularity of ETF investing over mutual funds is a continuing trend that has not lost steam this year.

As of June 2026, ETFs now represent roughly 39% of the combined ETF and mutual fund market, according to Morningstar’s fund-flows data….