The more complicated and niche the index fund or ETF, the more some of its passive investing advantages may be eroded.
That's a warning the Wall Street Journal shared
earlier this week in the monthly investing in funds Journal Report. The pub notes that on price, tradeoffs, trend-lagging and hidden costs, specialty index-based products can bite investors who turn to them.
specifically highlights issues with the IQ Hedge Multi-Strategy Tracker ETF
, some new SPDR
s, the PowerShares S&P 500 Low Volatility ETF
], the First Trust ISE Cloud Computing Index ETF
], the IQ Merger Arbitrage ETF
and First Trust Nasdaq Technology Dividend Index ETF
. PowerShares managing director Ben Fulton
, Anthony Hohmann
of S&P Capital IQ
, First Trust ETF strategist Ryan Issakainen
passive funds research director Ben Johnson
] investment strategy unit principal Francis Kinniry
, IndexIQ Advisors
] CEO Adam Patti
] global ETF sales strategy chief Kevin Quigg
all weighed in for the article.
Neil Anderson, Managing Editor
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