john johnson

Asset Allocation and the All ETF Portfolio

Regarding individual stocks vs ETFs, do you have any comment on the idea that there is a statistical fat tail for individuals stocks -- a few high-performance stocks contribute an enormous amount to an ETF. It would be risky to assume one will be lucky enough to choose one of those stocks. Do you consider this factor important to weighing whether ETFs or individual stocks are superior on a risk-adjusted basis? thanks!