The recent growth in the ETF industry is indicative of the need for investor education, especially for the retail investor.
“My sense is that the education of the retail investors on what are ETFs and what are their choices is an evolving process,” Tom Graves says. ” ETF providers and financial advisers are talking to their clients about the choices out there, and it’s not surprising to me that there is a media presence for ETFs in terms of advertising. The market is becoming increasingly competitive.” [ETFs and Tactical Asset Allocation]
What many ETF professionals want to avoid is retail investors getting caught up in investments that they don’t understand. Education must be made accessible so that investors can understand how fancy ETFs work and what the risks are before they jump in.
Tisha Guerrero contributed to this article.