Barron's Finds Even The Rich Turn To ETF as a Safe Investment

Exchange-Traded Funds seem to have gained the confidence of the rich, Barron's says, because they are tax efficient, low cost and offer transparency and liquidity. ETFs are an excellent way to diversify portfolios into all asset classes, with firms like Morgan Stanley Smith Barney finding an increasing number of clients interested in ETFs.

The Bernard Madoff scam and the fall of Lehman Brothers coupled with the financial meltdown has made even the rich with millions of dollars at stake look for safer investments like ETFs. High-net worth advisors also look at ETFs positively, claims Barron's, since they can be traded throughout the day, unlike mutual funds. For firms like Bel Air Investments SPDR Gold Shares ETF (NYSE: GLD) is a great opportunity to expose some of their portfolios to the commodities market.