ETFs: High Tax, High Expense, and Inefficient [View article]
>> If the Efficient Market Hypothesis (EMH) is correct, then only two ETFs are needed at most
the title of this article is alarming. ETFs should be compared to an alternative, such as mutual funds. An ETF sector fund, such as XLE is generally much cheaper than its equivalent mutual fund. And in many cases, there is no mutual fund equivalent at all.
"active investing" via ETFs is not necessarily bad, as one can concentrate on macro-economics more easily. For example, peak-oil believers can overweight the commodities sector. Deflationists can overweight long treasuries, etc.
ETFs: High Tax, High Expense, and Inefficient [View article]
the title of this article is alarming. ETFs should be compared to an alternative, such as mutual funds. An ETF sector fund, such as XLE is generally much cheaper than its equivalent mutual fund. And in many cases, there is no mutual fund equivalent at all.
"active investing" via ETFs is not necessarily bad, as one can concentrate on macro-economics more easily. For example, peak-oil believers can overweight the commodities sector. Deflationists can overweight long treasuries, etc.
ETFs: Clearly Better Than Mutual Funds [View article]