28.04.2014 - Questions ETF investors should ask
When you think about using ETFs, the first thing you think about is, “What are my financial goals?” But you should also ask yourself, “Where do I want to invest?” And if you want exposure to U.S. markets, which benchmark represents that exposure? Do you want a narrow blue chip index or something broader? Or do you want something tilted and more fundamental, so instead of using market cap, the index will be looking at underlying company sales, price-to-earnings ratio and dividends? You will find different benchmarks will have different biases. So the S&P 500, which most people understand, is a market-cap index...............................................Full Article: Source
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