Maximum diversification may be achieved at rock bottom fees when buying ETFs, but the wide spectrum exposures calls for a definite ETF research prior to investing, particularly if the selected ETF has more than 50% exposure to the foreign equity.
ETF Consulting sprouts for one reason only; that increasing number of people now focus on an all ETP Portfolios and the many choices that are available today are sorted to create a tailor made portfolio that must yield in harmony with the investor's age, expectations and financial needs. A lot of investors here agree on one thing, Leave ETF research to the professionals.
I am yet to hear someone say, "I invested in ETFs and would never try again". The success of the Equity traded products lies in their ability of enabling an instant diversity in the portfolio, and this feature, in turn has radically transformed the financial markets today.
If unique exposures are available at a very low expense, the added on transparency whilst practical liquidity puts them in a position, a notch lower than the direct equity investments. The investors are ok with this owing to the reduced risk factors when investing in equity traded funds, especially for folks who wish to play on emerging markets.
Crowded market place calls for caution; Even if a hundreds of ETFs are available today, the net investments of the entire ETF Industry are concentrated among a few top rated ETFs. Again, although a size is no guarantee of returns, however a larger fund corpus never fails to impress the potential investors. Effective ETF Consulting and guidance must revolve around the investor education because only that can empower long term investments in this Industry and quite frankly, ETFs are no fun when treated with a short term outlook.
The space is busy luring the investors who want to focus on their retirement funds but are averse to risk that is otherwise associated with the first hand equity purchases.
A good move here is to partially allocate a fund towards product tracking high yield stocks and offer regular incomes where the frequency of pay outs may be even monthly. ETF research in this area will also tell you that although value growth is negligent in this category, but over a long term the dividend payments amount to double digit annual returns for periods longer than even fifteen years.
Investors who want to hedge against inflation may look to out weight their investments towards Commodity ETF space where most players rely on the demands of the emerging economies and the long term middle class story is still intact in these parts of the world. Even most primary commodities, precious or otherwise are still in the surge run barring a few cyclic corrections, but by no means are any of the metals which we use today, going to get cheaper in future.
No one can argue the fact that the industrial demands from Latin Ems and from the BRIC zone will increase manifold in the next ten to twelve years., but ETF consulting can aid in selecting the funds that well balances your investment capability with your expectations for the returns.
Exposure to treasuries and bond ETFs are available from both the long term and short term tenure variety and when this exposure is combined with majority investments in Cash Market ETFs, you have recession ready investments that may or may not grow as fast as the equity based products, but are genetically very less volatile.
Although ETF research on historical data in cash markets, clearly indicates that this is a pessimistic approach, but has enough takers and a partial allocation is most recommended.
Toroso Investments LLC SEC approved financial advisory firm that conducts precise ETF Research for the benefit of its clients and takes pride in the hive like mentality of its ETF Consulting. As per the Toroso Management, their team works singularly towards designing portfolios that fit into all of its investors needs and their "point of view investing" approach will visibly improve the existing interface between the investors and the advisors.