The 10 Best ETFs on the Planet
You can hunker down in these funds for several years and know your investment is in good hands
By Kyle Woodley
Source: Investor Place
http://investorplace.com/2016/08/the-10 ... 748m5h96M8
Investors hold $22 billion of U.S. ETNs which, like debt, constitute a pledge by an issuer.
Payouts are based on the performance of the underlying asset, but the notes do not "hold" those assets, unlike ETFs to which they are often compared.
Upon delisting, ETF holders are typically paid out in cash while ETN holders are at the mercy of the issuer.
Over the last decade, 89 ETNs have closed out of a total of nearly 300 issued, according to fund researcher Morningstar Inc. The largest closure was last year, when Royal Bank of Scotland Plc ended its stock-tracking $478 million U.S. Large Cap Trendpilot ETN.
"You want to be in a stock because it's the best name in a sector that's growing.
You don't want to be in a group of mediocre stocks that will pull down the high-quality stock you've chosen"
"If you think you can't pick the best of these stocks, then I would suggest that you might not know enough about the sector to begin with, so don't think you can outsmart it by picking an ETF"
There is now $2.8 trillion invested in US ETFs and record amounts of capital are being added to this pile of money every month.
In the first two months of the year, investors bought another $124 billion of ETF shares.
This means they know absolutely nothing about what they own.
But rather than their ignorance giving them pause, it is emboldening them and leading them to borrow record levels of margin debt (margin debt hit a record $528.2 billion in February) and express record levels of bullishness in various surveys at precisely the moment in time when they know the least about their investments!
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