My quick answer is no. Because everywhere I turn there’s yet another ETF being formed and an article espousing their benefits. And with Wall Street firms plastering their names on all sorts of ETFs, the landscape has become littered with products that would feel more at home on the Vegas Strip. Investors be warned: Passive investing basically guarantees benchmark returns. Make sure your portfolio doesn’t rely too much on the wrong measuring stick.
As Robert Powell reports in USA Today, it’s also a good idea to avoid newly launched ETFs:
Well-known, long-established indices are better than obscure indices, the more assets under management the better, and the more trading volume the better. As a general rule, ETF experts generally advise against investing in newly launched ETFs.