26.09.2014 - 3 (More) Mistakes to Avoid With Your ETF Portfolio
A little over a year ago, I wrote a well-received article about five mistakes to avoid with your ETF portfolio. The tips ranged from not falling in love with your ETFs to trade execution and tax consequences. Fast-forward to today, and the ETF universe has expanded in a number of ways that warrant some additional advice in a number of key areas. So today, I’d like to share a few thoughts to help you make more informed decisions about your ETF portfolio. The single-biggest driver of your returns in each diversified ETF you purchase will be how the index is constructed. That isn’t to say fees, taxes and liquidity aren’t important, but the makeup of the underlying holdings will ultimately determine how the portfolio reacts under various conditions and if any outsized holdings will impact returns...............................................Full Article: Source
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