Listen to The ETF Store Show every Tuesday at 9am on ESPN 1510 as we cover everything you need to know about Exchange Traded Funds and the world of investing.
On our most recent radio broadcast, we discussed an article on Exchange Traded Funds in the September issue of Money Magazine which features The ETF Store Show. The article is titled “ETFs: Why So Complicated” and explains how as ETFs have grown in popularity, investors need to ensure that they’re properly educated on how best to use ETFs and how to evaluate ETF portfolio managers. The ETF Store Show is presented in the article as a prime example of the growing enthusiasm surrounding ETFs. The Money Magazine article goes on to mention something that we’ve talked about frequently on our show – that there is growing disillusionment with actively managed mutual funds and how ETFs are now winning the popularity contest with mutual funds because of potential benefits like lower costs and tax efficiency. The bulk of the article focuses on the author’s belief that there is a right way to use ETFs and a wrong way to use ETFs. At The ETF Store, we couldn’t agree more and that’s why we use ETFs to focus on important long-term return factors such as asset allocation and minimizing investment costs. We think ETFs are the best way to do both. ETFs used in the right way can be tremendous investment tools, but like anything else, there’s always the potential for misuse or abuse if not used correctly. On the show, we examined several of the potential areas for misuse and explained how you can avoid them.
In addition to discussing the Money Magazine article, we also fielded several listener questions on a variety of topics (as a reminder, you can always submit questions to be answered live on the air by clicking here). In our weekly market update, we discussed the Kansas City Fed’s annual meeting in Jackson Hole, Wyoming, and Ben Bernake’s comments. Finally, in our ETF Spotlight segment, we examined an ETF (ticker TIP) that holds Treasury Inflation Protected Securities – something that could help protect your fixed income portfolio in the event of inflation. Listen to the full show here.
