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ETF Trends
07-30-2008, 10:40 AM
ETF Trends - Keeping a Grip on Exchange Traded Funds (ETFs)

http://www.etftrends.com/wp-content/uploads/2008/07/36-300x260.jpgAre you a novice to exchange traded fund (ETF) investing?
If you would like to build an all-ETF portfolio, there are some things to consider.
We had a conversation with Katy Marquardt for U.S. News & World Report about it (http://www.usnews.com/blogs/new-money/2008/7/28/etf-picks-for-new-investors.htm).

Diversification: As a new investor, this is a must-have for a portfolio. Given that we’ve had a decline in the market, it is a good time to get in. We encourage large, mid, small and international ETFs. From a diversification standpoint there is Vanguard Total Stock Market (VTI (http://finance.yahoo.com/q/hl?s=vti)) which offers quick and easy allocation. The underlying index has a bit of everything.
Do not over-allocate domestically: Remember that the world’s market-cap is two-thirds that outside the United States. As U.S. investors, we tend to do a vast majority of allocation domestically, because it’s what we know. We should be looking more internationally. Vanguard FTSE All-World ex-US (VEU (http://finance.yahoo.com/q/hl?s=veu)) gives just international stocks in the index. http://www.etftrends.com/wp-content/uploads/2008/07/z130.png


complete story here... (http://feeds.feedburner.com/~r/etftrends-feed/~3/350465689/etf-beginners-should-start-here.html)