That is just one example of the variances of ETF make-up. Another aspect to consider is what stocks the fund actually holds, and how many. If one fund holds 50 stocks and another one holds 250, the weighting and diversification will have an effect on the overall performance. [An ETF Trend Following Plan for All Seasons]
There is no rule of thumb when it comes to which type of fund will perform best. At times, a more diversified approach serves best, but at other times a concentrated ETF will outperform.
As an active investor, the responsibility will rest with them to do the research and figure out which funds will benefit their investment goals.
Tisha Guerrero contributed to this article.