Investors are increasingly turning to exchange-traded funds (ETFs), with a new study showing that 62% envision putting their entire portfolios into ETFs, 50% aiming to do so within the next five years. Many are drawn to ETFs for their low costs and ease of access, especially those under 40.

ETFs are seen as a safer option in a volatile market, with many investors fearful of the risks associated with individual stock investing. Market experts emphasize the benefits of ETFs as low-cost building blocks, offering a flexible entry point for investors to diversify their portfolios.

While the idea of an ETF-only world may seem unlikely, it could have significant implications for market structure, impacting capital allocation to larger-cap companies and potentially drying up incentives for early-stage investors and venture capital firms.

Investors considering an ETF-only portfolio should conduct thorough research and understand the composition of the funds they are investing in, balancing broad market exposure with sector-specific plays. Diversification across asset classes remains important, with ETFs providing a convenient way to access various investment opportunities.

Read more at Yahoo Finance: ETFs are taking over portfolios. What it means for markets and investors