ETF Provider Gets Lump of Coal Award
December 12th at 7:06am by Tom Lydon
Financial columnist, Chuck Jaffe is at it again this Holiday Season with a Lump of Coal Award for ETF manufacturer PowerShares Capital Management. It seems Chuck feels that basketing stocks representing small sectors of stocks is even more risky for investors than investors buying the stocks themselves. Chuck, you need to give people a little more credit.
"PowerShares is the king of the goofy and trendy in the exchange-traded fund (ETF) world. This year, it started several gimmicky ETFs, PowerShares Lux Nanotech, PowerShares Water Resources and PowerShares Dynamic Food and Beverage.
Trendy funds typically make for good conversation, but bad investments. Smart money managers recognize that, and don’t create products that set investors up for a fall."
