I’ll tell you why…They’re expensive! That’s one reason we use a lot of ETFs and other types of index funds here at Alhambra. Here’s an excellent primer on ETFs from the Wall Street Journal:
Exchange-traded funds, commonly called ETFs, are index funds (mutual funds that track various stock market indexes) that trade like stocks. As such, they have all of the benefits of plain old index funds with some added punch. The fees for ETFs are often — but not always — cheaper than index funds, and they may cost you less in taxes.