Tom Lydon, president of Global Trends Investments, says good ETFs have a reasonable expense ratio, a well-diversified underlying index and underlying stocks with lots of liquidity.

FORBES: How To Find The Best ETFs

Tom Lydon, president of Global Trends Investments, an investment advisory firm, says investing in ETFs is much better and easier than trying to find an actively managed mutual fund with a manager who has beaten the market consistently.

FORBES: Intelligent Investing Panel

Tom Lydon : Well sure, Kate.

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