Fund experts weigh in on the dangers and opportunities offered by new fangled ETFs (exchange traded funds) in a recent AP story:
Market watchers said, however, that the diversification ETFs can bring doesn't excuse investors from knowing where their money is going.
'Investors should be cautious in these areas unless they have great expertise,' said Tom Roseen, an analyst at fund-tracker Lipper Inc. 'Some of the slicing - for the average retail investors - has become much too narrow.'"
One way to determine if an ETF is the sort that can get you into trouble (or offer you a speculative thrill ride...) is to check out the expense ratio. More broadly focused ETFs tend to have lower fees (sub 0.30%). With ETFs, their is almost a direct relationship between fees and risk.
There you have it. Now you don't have to waste any time looking over gobs of data and analysis at fund oriented web sites. Hey wait a minute. Scratch that last part.
Fund experts weigh in on the dangers and opportunities offered by new fangled ETFs (exchange traded funds) in a recent AP story:
Market watchers said, however, that the diversification ETFs can bring doesn't excuse investors from knowing where their money is going.
'Investors should be cautious in these areas unless they have great expertise,' said Tom Roseen, an analyst at fund-tracker Lipper Inc. 'Some of the slicing - for the average retail investors - has become much too narrow.'"
One way to determine if an ETF is the sort that can get you into trouble (or offer you a speculative thrill ride...) is to check out the expense ratio. More broadly focused ETFs tend to have lower fees (sub 0.30%). With ETFs, their is almost a direct relationship between fees and risk.
There you have it. Now you don't have to waste any time looking over gobs of data and analysis at fund oriented web sites. Hey wait a minute. Scratch that last part.
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