Asked by Anonymous

Given that ETFs are diverse in nature and low cost. How does one evaluate an ETF if its a good? What tools should you use and what should we be looking at in the quote?

0
0
Share this
Answer this question
Add
Add
Select
Clear
Add
Write your answer

Answers (1)

Sort by:
Most Upvote
  • Most Recent
  • Most Upvote
  • Luke Ho
    Luke Ho, Money Maverick at Money Maverick
    Level 6. Master
    Answered on 02 Feb 2019

    The one ETF everyone knows about is certainly not diverse in nature (The STI ETF). Consider the all-in cost including any account fees, trading fees, managing fees, rebalancing fees. Recognize that this is designed to be a long term decision.

    Diversification should come across sectorally, not globally - meaning that it should be widespread across sectors like consumer staples, financials, tech, etc, not across countries like China, US, Malaysia, etc. Which is a little bit why the STI is a piece of gunk.

    You could do much better than an ETF, but its your call.

    Comments (0)
    0
    0
    Share this