Topic: How To Invest

What is Pat’s commentary for the week of March 27, 2019

Article Excerpt

When ETFs (Exchange Traded Funds) first gained wide investor attention years ago, we called them one of the most benign investment innovations that the financial industry ever came up with. But we also warned that they might become less benign, if not downright dangerous, as time passed. It was an easy prediction to make and accept, if you are familiar with the idea of conflicts-of-interest. The financial industry has a long and successful history of coming up with new wrinkles to add to existing financial products, to make them more profitable for the industry and easier to market to investors. These new wrinkles generally come with obvious positive aspects and easy-to-overlook risks and drawbacks. New investment products give investors new choices, and that always seems like a good thing. It certainly works that way in most consumer goods, where buyers favour the good products, and their lack of interest drives the bad ones off the market. But the financial industry deals in…

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