Because of how ETFs are constructed, the ETFs that have been introduced thus far for purchase
by individual investors tend to be indexed and therefore more similar to passively managed index mutual funds.
Not exact matches
What we were really providing
investors was a level of discipline that few
individual investors can muster over time —
by adopting a long term asset allocation strategy and using low cost investment vehicles, our long term performance was always going to be better than the average
individual investor who
tends to time markets and chase performance, with little understanding of the costs they are incurring.
«The more
investors invest
by asset class rather than
by picking
individual companies, the more the market will
tend to move as one, intensifying herd behaviour and the likelihood of panics, making hundred year floods even more likely.»
Conversely,
investors who maintain an age - appropriate asset allocation
tend to win over the long - term because poor
individual stocks are outweighed
by the correct overall mixture.
It
tends to have low correlations to most assets usually held
by institutional and
individual investors whether it is in good times or bad.