There is no doubt exchange traded funds (ETFs) are an expedient, cost-effective, sensible way to get in touch with well-known markets. With today’s list of more than 500 ETFs, some say many of these funds we can do without. David Landis for Kiplinger reasons that to be fair, some of the proliferation of ETFs were created especially with professional investors in mind. Traditionalists argue the exotic varieties of funds such as nanotechnology, dermatology or wound care is just an easy route for an investor to wind up sidetracked.
It’s important for any investor to do homework to understand what exactly they are buying. Some worry narrowly-focused ETFs can get investors in trouble, but there are plenty of other investment tools available that can be just as (if not more so) risky. With the ETF market growing, it creates more options for investors as well as a healthy, competitive environment.
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.