It’s time to add exchange-traded funds (ETFs) to your wealth-building arsenal.

Offering low fees, instant diversification and easy access, ETFs are the ideal investment tools for the smart investor. Over the next decade, the ETF market is poised to hit US$50 trillion in assets, according to Bank of America. As an increasing number of retail and institutional investors turn to ETFs for wealth creation, here’s a look at the five key attributes that make ETFs your right choice.

ETFs have much lower fees compared to unit trusts. For instance, an investor looking to invest in Singapore equity funds can choose between a unit trust like the Aberdeen Standard Singapore Equity Fund or an ETF like the Straits Times Index ETF. While both funds have largely similar holdings, there is a significant cost difference. The Aberdeen Standard Singapore Equity Fund has an expense ratio of 1.64% while the Straits Times