Rob Morgan, strategist from Janney Montgomery Scott, talked about ETFs on Squawk Box this morning, writes Roger Nusbaum. He said they have "really gotten into ETFs in a really big way." This came out of a question about a couple of sectors, materials and staples, that he expects will lag.
He feels the market is headed toward more ETF use by investors. The byproduct of the conversation was that ETFs are a good thing but not that many retail investors know much about them. While it seems hard to believe that people don't know about these, they really don't.
Maria chimed in that stock picking is difficult as a reason for ETF use. Fair to say I write about ETFs a lot. I am a big fan but long time readers know I do not think 100% ETFs are the best possible thing for people with enough assets to own individual stocks. For most people the best portfolio is a blend that utilizes many tools.
The big thing that ETFs lack are dividends. The highest yielding ETF I can find is in the 3's. There are plenty of stocks that yield in the 4's and 5's. If there is an equity ETF that has a higher yield, please let me know.