Sonia Mirza

Why ETFs Are Soaring In Popularity Among Individual Investors

While I agree with some of this, allocation is key and so is diversifying, the underlying issue is an investor's capacity to tolerate and take on risk. If I want to minimize exposure to risk, I'd invest one way. I cannot agree that one stands to make a decent return (to me decent = beating the market) without taking on the corresponding amount of risk. And with that risk, I expect a higher return, but also know that I stand to lose a higher amount...

I do get lazy (who wants to figure out the best allocation mix among 120398 classes for fun?), but that still doesn't incite me to go buy an ETF since the dilution factor is too strong a disincentive. Although, point taken, for a more passive strategy and/or a less active/involved/indepe... investor, it might be the way to go. To each his own...