The various strategies that ETFs allow can become dangerous to inexperienced investors. Since these funds are accessible to both individual and institutional investors, the need for more ETF education is pressing.
“What we see investors wanting is a realistic return while trying to reduce the volatility of ups and downs in their portfolio. Many studies have shown that it’s much more important as to what parts of the market, what slices of the economic landscape are in your portfolio than what particular companies are represented,” Sapir said. [How ETFs Have Helped the Average Investor]
Tisha Guerrero contributed to this article.
Full disclosure: Tom Lydon’s clients own SPY and AAPL.