The rapid expansion of the ETF industry has been one of the most important developments of the last several decades to financial professionals; as the lineup of exchange-traded products has surged past 1,300, financial advisors now have more tools in their toolkits than ever before to help construct client portfolios. With these new financial products comes a responsibility to understand the various risk factors and nuances of exchange-traded products, and as the industry has expanded rapidly the amount of information to digest has swelled as well. While ETF education must be an ongoing process, there are a number of basics that can enhance overall understanding, identify opportunities and limitations, and generally promote a better experience with ETFs: 1. Volume ≠Liquidity Many advisors and investors like to implement what can best be described as “liquidity screens,” refusing to consider products that don’t have a certain average daily trading volume (25,000 shares [...] Click here to read the original article on ETFdb.com. Related Posts: Ten Commandments Of ETF Investing Alternatives To The 20 Most Popular ETFs Announcing The Free Head-To-Head ETF Comparison Tool For ETF Investors, The Details Matter (Part II) Free ETF Trading: Comparing All The Options
The rapid expansion of the ETF industry has been one of the most important developments of the last several decades to financial professionals; as the lineup of exchange-traded products has surged past 1,300, financial advisors now have more tools in their toolkits than ever before to help construct client portfolios. With these new financial products comes a responsibility to understand the various risk factors and nuances of exchange-traded products, and as the industry has expanded rapidly the amount of information to digest has swelled as well. While ETF education must be an ongoing process, there are a number of basics that can enhance overall understanding, identify opportunities and limitations, and generally promote a better experience with ETFs: 1. Volume ≠Liquidity Many advisors and investors like to implement what can best be described as “liquidity screens,” refusing to consider products that don’t have a certain average daily trading volume (25,000 shares [...]
Click here to read the original article on ETFdb.com.
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