How To Best Profit From The ETF Boom And Its Inevitable End

Posted On July 29, 2017 12:57 am

Most investors, even professional fund managers, have a very tough time beating the market. In fact over the past 20 years only 8% of mutual funds have outperformed the S&P 500.

This is why, the decade long boom in passive investing, particularly low cost exchange traded funds or ETFs, is a generally great thing.  In fact, I recently highlighted two ETFs that I own myself, SPHD , XSHD, and REET, which I consider to be the new gold standard in REIT ETFs.

That’s because it means that more investors are realizing that being part of the ownership society (participating in corporate America’s long-term earnings growth) is more important than chasing the next “hot growth stock”.

Of course, as with all things in finance, there are also potential downsides to the explosive popularity in ETFs. Find out what those risks are, and more importantly how it could affect your own quest for financial independence and a prosperous retirment.

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Dividend Sensei

I'm an Army veteran and former energy dividend writer for The Motley Fool. I'm a proud co-founder of Wide Moat Research, Dividend Kings, and the Intelligent Dividend Investor. My work can be found on Seeking Alpha, Dividend Kings, iREIT, and the Intelligent Dividend Investor. My goal is to help all people learn how to harness the awesome power of dividend growth investing to achieve their financial dreams and enrich their lives. With 24 years of investing experience, I've learned what works and more importantly, what doesn't, when it comes to building long-term wealth and income streams and achieving long-term financial goals.

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