In life we all make mistakes. Some are small and don't really matter much, others are larger and the consequences last longer. When it comes to investing, the same holds true. And since mistakes will most certainly be made both in life and in investing, regardless of how careful we are, in an attempt to help you make fewer mistakes when it comes to ETF investing I have put together a list of the top three biggest mistakes ETF investors make. Two of them will be minor mistakes, while the last will be a big one that could substantially hurt an investor's long-term performance.
Not looking at Funds Holdings
While the number of ETF's having grown over the past few years is great, giving investors hundreds of options to choose from, it has also caused a lot of confusion. There are now ETF's that track all the indexes, ever industry, commodities, international markets, futures, bonds; the list can go on and on and although just because an ETF has certain name, doesn't mean that is the end all of what it invests in or that its holdings are not overweight certain assets compared to the rest of its holdings. I have written about this problem in the past, pointing out that a lot of funds are massively overweight Apple Inc. (AAPL). Continue reading "2 Small And 1 Big Mistakes ETF Investors Make"
