The Individual Investor’s Guide to Exchange-Traded Funds 2016


This week’s AAII Weekly Digest highlights these “must-read” AAII articles:

AAII’s founder, James Cloonan, introduces his new Level3 Passive Portfolio, which is based on research carried out for the writing of his forthcoming book “Investing at Level3.” It is an ETF portfolio of index funds meant to be the complete equity portfolio for investors who wish to maintain their own portfolio, but do not choose to be involved in individual stock selection or non-index mutual fund selection, or a semi-permanent portion of an overall portfolio where some assets are in individual equities or more aggressive funds.

Rochelle Antoniewicz

Exchange-traded funds (ETFs) have been one of the most successful financial innovations in recent years. Since the introduction of ETFs in the early 1990s, demand for these funds has grown markedly in the United States, as both institutional and individual investors have increasingly found their features appealing. Like mutual funds, ETFs are a way for investors to participate in the stock, bond and commodity markets; achieve a diversified portfolio and gain access to a broad array of investment strategies.

The EZ Approach To ETF Portfolio Building Splash imageAs investment products increase in number, complexity and cost, many individuals are plaintively searching for an investment approach guided by two very basic principles: keep it simple and keep it cheap. Exchange-traded funds (ETFs) offer a useful starting point for such an investment approach. In fact, building a diversified portfolio of exchange-traded funds is not nearly as complicated as it may at first seem.

Last year’s “flash crash” highlighted some concerns underlying the safety of exchange-traded funds (ETFs). This AAII Blog post takes a look at an article written in The Wall Street Journal regarding the issues many ETFs faced on August 24, 2015, and the potential impact it could have on the industry.

 Our Member Question for this week is:

When selecting an ETF (assuming they target the same general area of the market), what is most important to you?


Last Week’s Results:

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Click here to learn about the results of last week’s AAII Special Question.

The Individual Investor’s Guide to Exchange-Traded Funds 2016

Total assets invested in exchange-traded products (ETPs), which include exchange-traded funds (ETFs) and exchange-traded notes (ETNs), was $2.3 trillion as of June 30, 2016, a nearly 140% increase over the last five years. This year’s Individual Investor’s Guide to Exchange-Traded Funds provides the return, expense and portfolio composition information on 473 ETFs, ETNs and other exchange-traded products.

The AAII Weekly Digest is one of the many benefits of AAII membership. To learn more, consider a risk-free 30-day Trial AAII Membership to start becoming an effective manager of your own assets.


1 Reply to “The Individual Investor’s Guide to Exchange-Traded Funds 2016”

  1. I just received my 2016 (2015 edition) for the universe of ETF’s

    What a fantastic tool to pare down may to much information. What I liked is the relative performance of etf over the last 7 years. That allowed me to sort the ETF’s for
    how consistent (or not) a given equity has performed based on numerical real results.

    Thanks to AAii for delivering such a comprehensive tool to build my portfolio.


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