Why Investors Should Look Beyond ETF Returns
June 03, 2016 at 11:56 AM EDT
Many investors compare exchange-traded funds (ETFs) by looking at recent returns. While this seems to be a logical approach on the surface, choosing an investment based purely on price momentum is rarely a reliable approach to maximizing risk-adjusted returns. There are many other risk factors that are important for investors to consider in order to ensure that the investment is suitable for their portfolio and the returns are sustainable.