It is easy to feel overwhelmed by the large number of potential candidates when choosing ETFs to implement a market view. Over 70 ETPs track the gold price, and that number goes over 100 for the S&P 500 and the MSCI World indexes. Investors across the globe have to choose between over 6,600 ETFs.
The selection criteria must match investors’ constraints as well as their risk and cost appetite, but they might also need to be asset class or exposure-specific. To capture new ideas and stimulate innovation, an ETF selection process should look beyond standard metrics and dig into investment, counterparty, survivorship, and liquidity risks along with tax and cost-efficiency simultaneously.
To know more about the ETF selection process, continue here.
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