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That is factually inaccurate. There are a wide variety of ETFs which have non-equity instruments as the underlying assets.
by sseveran 13y ago
That is factually inaccurate. There are a wide variety of ETFs which have non-equity instruments as the underlying assets.
- tedunangst 13y agoWell, I did say index fund, not ETF. I assume the article was talking about stock index funds. I'd add that if you're not smart enough to pick a stock, you're maybe not smart enough to pick a different asset class.
- grmarcil 13y agoYou can have index funds composed of non-stock assets. Eg Vanguard's Total Bond Market Index Fund https://personal.vanguard.com/us/funds/snapshot?FundId=0084&FundIntExt=INT https://personal.vanguard.com/us/funds/snapshot?FundId=0084&...
- sseveran 13y agoAsset class correlations are more stable then stock correlations and thus can be used more reliably in portfolio construction. If you are not smart enough to pick a stock or asset classes then your money will whither away.