When considering an exchange traded fund to capture any market segment, there may be a number ETF options available. Consequently, an investor has to look under hood and weigh on a fund’s structure to determine what he or she is comfortable with.
ETF Trends’ Tom Lydon recently sat down with Daniel Weiskopf, Managing Partner at Access ETF Solutions, to remind investors that “structure matters” when investing in ETFs.
“What people don’t usually get is that structure matters,” Weiskopf said. “So choosing the right ETF can be a key differentiation in your outcome.”
For instance, dividend investors may be plowing into the highest yielding option available. However, Weiskopf warns that investors should also consider sector weights in a changing market environment. Specifically, as rates rise, dividend paying utilities will face an uphill battle and dividend ETFs with heavy exposure to the utilities sector may be pressured.
Watch the video below to see the full interview with Daniel Weiskopf.
To view past video interviews, visit our video section.