I have a few ETFs, but they are a small part of my portfolio.  Ditto mutual funds....  Most of my equity holdings are individual shares.  The transaction fees are only trading commissions and, since I’m a ‘buy and hold’ investor, the fees are minimal and under my control.  To me, they represent to cost I pay for the full-service broker’s research dept.  I have no interest in doing detailed company research, so I’m willing to pay for for that service.  If I opted for mutual funds, lots of ETFs, or a managed portfolio, I’d pay a lot more in fees!   The use of computer algorithms in ETFs worry me as a potential contributor to/cause of ‘flash crashes’  so I think they could become a negative factor in the market.  The fundamental problem that gives rise to all the fund-type products is that too many people do not take responsibility to managing their finances!   ETFs seem to be the latest product that allows people to think they are managing their money smartly while actually ignoring it!