01.06.2015 - The ETF red flags to look out for
With the exchange traded fund (ETF) market growing rapidly and new providers entering the fray, including active houses launching passive suites, investors face increasing choice. But what red flags should buyers look out for when selecting an ETF? Cheap as you think? Seven Investment Management senior investment manager Peter Sleep highlights several areas as critical, particularly costs. ‘Large creation and redemption costs are a red flag,’ said Sleep, who recently chose to buy Indian futures (with high roll costs) rather than an Indian ETF. ‘The killer for the ETF was the creation and redemption costs........................................Full Article: Source
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