About · Press · Contact · Write For Us · Top Personal Finance Blogs
Featured In:
Darwin is a Chemical Engineer and MBA by trade. Enamored by investing and saving since his teen years, Darwin has been an advocate for optimized investment returns and frugal hacks for everyday consumers.  His two primary projects are Darwin's Money and ETFBase, a site dedicated solely to ETF investing strategies.  Darwin works full time as a Project Manager in Biopharma and finds time to contribute here and oversee his blogging projects in the wee hours of night after he spends evenings and weekends keeping up with his 3 children.

4 Problems With ETFs To Watch For

By Darwin

Exchange Traded Funds (ETFs) are certainly one of the best financial innovations to hit main street since mutual funds and retail online brokers. ETFs combine all the benefits of stock trading like instant execution, liquidity, and low fees with the diversification that mutual funds offer. It offers a great way to form a diverse portfolio through the use of passive investing. Additionally, there are now hundreds of different sectors, strategies, commodities, and asset classes to choose from. While these benefits are certainly great, retail investors need to also need to recognize some subtle risks that aren’t often widely publicized. Investors often start investing in a new ETF without fully understanding the actual objective or likely performance of the instrument in comparison to the desired benchmark. Here are four key pitfalls to watch for:

Click to continue reading...

The content on MoneyCrashers.com is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, consult a licensed financial or tax advisor. References to products, offers, and rates from third party sites often change. While we do our best to keep these updated, numbers stated on this site may differ from actual numbers. We may have financial relationships with some of the companies mentioned on this website. Among other things, we may receive free products, services, and/or monetary compensation in exchange for featured placement of sponsored products or services. We strive to write accurate and genuine reviews and articles, and all views and opinions expressed are solely those of the authors.

Advertiser Disclosure: The offers that appear on this site are from credit card companies from which MoneyCrashers.com receives compensation. This compensation may impact how and where products appear on this site, including, for example, the order in which they appear on category pages. MoneyCrashers.com does not include all credit card companies or all available credit card offers, although best efforts are made to include a comprehensive list of offers regardless of compensation. Advertiser partners include American Express, U.S. Bank, and Barclaycard, among others.