As an investor, it is up to you to do your research and take notice of what the ETF holds, because in some cases, you may be surprised.
Deborah Fuhr for Morgan Stanley also points to the iShares Emerging Markets ETF (EEM), which has a 4.8% tracking risk, while the U.K. version has a 1.8% tracking risk. If an ETF is to track a broad-based index in a developed country, it should do so accurately. Variations are occurring between ETFs that track the same indexes or sectors.
Fuhr expects the global growth of ETFs to match that of 2007’s, so be ready to scrutinize new funds.
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.