Friday, August 10, 2012

Index Investing: One Size Doesn't Fit All - ETF - eWallstreeter


From: Seeking Alpha ETFs & Portfolio Strategy stocks - 12:40pm - August 9, 2012

By Skyler Greene: In recent years, the art of stock picking has fallen somewhat out of favor. Many investors now prefer passive or "index" investing for various reasons.I'm certainly not opposed to index investing; in fact, I believe that it can certainly be beneficial for investors in various categories. For example, I recently advised a teenager who saved $500 from working a summer job to invest his savings in the SPDR S&P 500 ETF (SPY), which is obviously an index fund.Despite the fact that index funds are certainly appropriate in certain situations, it troubles me when I see advice like the following: Aim to own at least 3 or 4 non-correlating asset classes ... buy only index funds. - Kyle Bumpus, AmateurAssetAllocator.com I'm not completely against index investing. I personally hold both the Vanguard REIT ETF (VNQ) and the iShares MSCI Emerging Markets Index (EEM). No...

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Source: http://ewallstreeter.com/index-investing-one-size-doesn-t-fit-all-3638/

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