Your WEALTH MATTERS BLOG

Exchange-Traded Funds or ETFs have become increasing popular to the mainstream investor due to their easy access and typically low-cost fee structure. They provide an avenue for broad-based market exposure across many different regions and specialties. ETFs can be a useful tool for those DIY investors venturing out into the world of investing, but not necessarily wanting the task of individual stock picking. However, there are some things to bear in mind when investing in ETFs.

Since the debt crisis of 2008, many investors have sought to build market resiliency into their portfolios through diversification in funds outside of the traditional markets. While achieving total immunity to market risk is unlikely, a strategic, outside-the-box investment approach that incorporates holdings from intensely different market sectors is a great start. But if it’s such a good idea, why isn’t everyone doing it?

If you are not a professional in the investment industry, and sometimes even if you are, it can be difficult to evaluate the ins and outs of any particular investment. Deciphering the fine print, especially when it comes to evaluating risk, can be especially difficult.