How To Find The Right ETF

by on September 30, 2011 | Updated July 8, 2014

With the ETF lineup as of 2014 at more than 1,600 products and growing quickly, investors and advisors have more choices than ever before. While many of the new products that have begun trading after the financial crisis in 2008 have been first-to-market ideas, there has been a fair amount of overlap in the ETF industry as well. Investors seeking exposure to the S&P 500 Index, for example, have three options from which to choose. Those looking for pharmaceutical exposure have the task of selecting from a lineup of four possible ETFs; even those looking for exposure to Indonesia or Poland have to make a decision between an iShares ETF and a Van Eck fund.

Almost every corner of the investable universe is now accessible with all the benefits of the exchange-traded structure–and in many cases there is more than one option for implementing the desired exposure.

Free ETF Webinar
Topic How To Find The Right ETF
Date Wed., October 5
Time 4 pm ET / 1 PM PT
CE Credits 1.0 Hours CFP
Registration Free

The tremendous growth of the ETF industry has certainly afforded advisors and individual investors a luxury of choice. But with that choice comes the potentially intimidating task of selecting the product that most closely corresponds to return objectives and risk restraints. Simply put, not all ETFs are created equal; two products that may appear to be similar on the surface, there are both obvious and subtle differences that can have a major impact on bottom line return and volatility. From product structure to weighting methodology to management strategy, when it comes to ETF investing, the details matter.

In October 2011, ETF Database offered a free 1-hour webinar, How to Find the Right ETF. The live webinar, which was approved for 1.0 hours of CE credit by the CFP Board, provided a checklist for evaluating potential ETF investments, covering topics ranging from expense and yield analysis to product structure and “roll” strategy of commodity ETPs.

ETFdb continues to offer webinars like this one. Sign up for the free newsletter now to keep updated.