Sarah is a new investor who is considering investing in exchange-traded funds (ETFs). Before making a decision, she wants to know more about the benefits of ETF investing.

She researches the subject and discovers that ETFs offer diversification, which reduces the risk of investment portfolios by providing exposure to a wide range of assets, including stocks, bonds, and commodities.

Sarah is also attracted by the low cost of ETFs. Unlike traditional mutual funds, ETFs have lower expense ratios and management fees, which means that investors keep more of their returns and pay less in fees.

She is also impressed by the liquidity of ETFs. They can be bought and sold throughout the day on stock exchanges, just like individual stocks, giving investors like Sarah greater flexibility to manage their investments and respond to market changes.

Overall, Sarah sees the diversification, low costs, and liquidity of ETFs as significant benefits and believes that they could be a smart choice for her portfolio. Before making a final decision, she continues to research and consult with a financial advisor to ensure that ETFs are the right investment for her goals and risk tolerance.