Understanding the Risk of Investing with ETFs and Why They Still Beat Mutual Funds by Jeffrey Feldman, Andrew Hyman
This is the eBook version of the printed book.
This Element is an excerpt from Three Paths to Profitable Investing: Using ETFs in Healthcare, Infrastructure, and the Environment to Grow Your Assets (9780137054268) by Jeffrey Feldman and Andrew Hyman. Available in print and digital formats.
Systematically evaluate the risks of ETFs, so you can use them more safely and profitably.
Despite their advantages, ETFs (Exchange Traded Funds) are not risk free. No investment is. However, understanding the risks that are particular to ETFs helps investors prepare for unforeseen events and build their portfolios. The first risk to understand is index risk. ETFs are designed to match an index and are passive investments.
Jeffrey Feldman, founder and CEO of the XShares Group and a 40-year veteran of Wall Street, created the TDX Independence Funds, the first target-date ETFs in partnership with TD Ameritrade, and serves as the Funds’ Chairman. Andrew Hyman is the coauthor of ETF Strategies and Tactics: Hedge Your Portfolio in a Changing Market and Energy Risk Management: A Primer for the Utility Industry, as well as other books on the utility industry.