Larry Swedroe, Director of Research for Buckingham Strategic Wealth, with over $13.7 billion in assets under management (AUM), in an interview with Wealth Management magazine, January 10, 2019
The Takeaway: ETFs (Exchange Traded Funds) can be great additions to your portfolio thanks to their tax efficiency and typical low cost ( if you are not familiar with ETFs, think of them as mutual funds in a new and often improved wrapper).
But as Swedroe points out, not every ETF is a good deal from an investment or cost-savings perspective. Many are packaged with a catchy name or theme, like companies likely to benefit from tax reform, or distillers of whiskey, but they really don’t deserve your investment dollars.
What’s important is what’s inside the box, not how it’s wrapped on the outside, or how clever the ticker is. When you invest, focus on the investments, not the marketing hype. Stick with mutual funds or ETFs with a clear investment premise, low expenses, and proven results.