Yesterday’s Wall Street Journal warned that a “a treacherous landscape of potential trading problems” harasses the world of ETFs. Most of these problems are associated with liquidity. Some have it, some don’t. Identifying the haves, and the have-nots, is prudent way to start looking at ETFs. But the task is daunting, at least in the beginning of your search, because of the sheer number of products to review.
Sifting through the potential list of choices takes more time with each passing month. There are more than 900 ETFs, according to Morningstar Principia, and the list keeps growing. That’s good news–lots of choices. It’s also bad news because you have to sort through the list in search of investor friendly products. There are also hundreds of index mutual funds to consider, if you’re so inclined. Most of these choices aren’t worth your time for reasons including high expense ratios, insufficient liquidity, high tracking error and poor overall design, to name a few.
Daily Archives: February 2, 2010
TIDBITS FROM THE WORLD ECONOMIC FORUM
Did you attend Davos this year? No? Neither did I. Next year, perhaps. Then again, maybe we’re not missing all that much by staying home. Why suffer airports and rubber chicken lunches in the digital age? Well, it’s true you can’t have a quiet chat with Mr. X over a scotch and soda via the web with the Swiss Alps in the background. On the other hand, everyone can afford the out-of-pocket expense for taking a peek as a long distance web voyeur.