Richard Kang1

Two Concerns With the New ETFs Hitting the Market

Thanks JonD and Andrew for comments. Would have loved to had the choice to use DFA ETFs 3 years ago at the bottom of the market. I only wonder if it's too late for them to get in now . Consider GLD vs IAU. "First to market" matters in this space as much as in information technology.

JonD: Interesting input on timber. As much as I like the idea of passive instruments, I'm not an absolute fanatic about it. Thus, perhaps this is an area (and infrastructure as well) where it pays to put down some $$$ to get an active manager who specializes in that area (like Hancock for timber and Macquarie for infrastructure).

Lastly, back to Andy. The iPath ETNs and a significant concern for retail investors: Any word on negative tax consequences on these versus ETFs? I hear "notes" and I think "taxed as income". I need to find some documentation that explains the difference in the underlying structure of ETNs versus ETFs. I saw someone from BGI talking about these on CNBC but didn't provide much other than that they provided exposure to certain markets (I think he was pushing commodities ... big surprise).