ETF Trends
ETF Trends

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."

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.