Jonathon Burton for MarketWatch reports that the bottom line for any trader or investor is to come into the market with a discipline, some type of strategy, and to stick with it. Some industry experts believe that the gap between ETF education and sophistication is still too wide. [How ETFs Save on Fees]
However, the majority of the $1.2 trillion that is invested in ETFs are in broad-based, plain vanilla ETFs that cover large portions of the market. Most of the assets under management in the smaller, niche funds are not large in terms of trading volume or assets. [ETFs Seen Hitting Nearly $4 Trillion by 2016]
Although the ETF table has become somewhat of an all-you-can-eat buffet, it is not right to blame the funds for emotional or uneducated buy-and-sell mistakes. Tools such as stocks, penny stocks and options have been around for some time, so if the average investor is going to shoot themselves in the foot, it’s probably not going to be with an ETF.
Tisha Guerrero contributed to this article.
