Brand Array

For future individual investors, there are really three important ways to best ETFs for investment . Expenses. All else being equal, you would like to get the ETF has a rock bottom expense ratio. Why? Well, assuming the ETF is representing an equivalent asset class, every dollar you save on expenses goes directly into your expected return from holding that investment. Tracking Error. This one may be a bit harder for the individual investor to research but is additionally incredibly important. simply because an ETF says that it tracks a specific asset class doesn't suggest it does it also as other ETFs. All things being equal, you would like the ETF that tracks its asset class/index with the smallest amount of error. Liquidity. Some ETFs trade many shares per day. Others trade infrequently. The more liquidity an ETF has, the lower the market spreads for pricing and thus lower implicit execution costs. In 2011, Wealthfront published an excellent SlideShare presentation on thi

There are objective criteria that will be wont to prioritize which ETF would, ex-ante, presumably be a more appropriate selection than others. the standards that we use include, in no special order of priority:  Issuer: This looks at the issuer of the ETF. Their diary, credibility & reputation, what percentage of assets under management (AUM) do they have? AUM & Age: How long has the ETF been around for and the way large is it in terms of AUM? If it's relatively new and with relatively low AUM? How serious can we judge the issuer to be? How large a share of the ETF’s AUM are our clients likely to represent? Total Expense Ratio: How expensive will the ETF be over the longer-term? Tracking Error & Tracking Difference: How good employment does the ETF do at tracking its index? Distribution Policy: Does the ETF distribute the dividends it receives, and, if so, how frequently? Tax Status: Does the ETF issuer report the relevant tax information for it to be eligible to be i