Dear friends, check out today's edition of the Sunday Time where there is a feature on ETFs..how some folks trade this investment instrument which has been around for a while but its becoming more & more favourable. It highlights the pros & cons of ETFs vs stocks or mutual funds or unit trust. With ETFs, one can easily participate in the different country's stock market or a certain asset class....which takes the chore out of stock picking.
Investors should spend most of their time on overall asset selection and ignore individual stocks for the most part. Repeated studies by unbiased university researchers have shown that about 95% of money managers' performance, for better or worse, can be explained by their selection of asset classes, not by their selection of individual stocks. When a stock performs well, invariably stocks from the same asset classes follow in parallel. All one has to do is pick asset classes well to outperform.
Asset allocation is not necessarily easy, but it is less detailed and time consuming than stock picking, and it rewards the diligent investor handsomely
The primary asset classes in which ETFs are available include:
Large Cap Stocks
Mid Cap Stocks
Small Cap Stocks
Growth Stocks
Value Stocks
Sector Stocks
International Stocks
Country
Emerging Market Stocks
Long-term Bonds
Mid-term Bonds
Short-term Bonds
Real Estate Investment Trusts
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