While the exchange traded fund (ETF) market has shown considerable growth, some money managers are picking individual stocks once again. Is this the way things are going to be now?
Geoffrey Rogow for The Wall Street Journal reports that ETFs accounted for 40% of the total U.S. equities market in late October, and now the volume is around 35%. Is this the sign that single stock risk tolerance is back?
Institutional investors may be ready to rely less on ETFs and more upon single stocks as hedges, and excess cash is no longer an issue. While the diversification benefits are many, there are ways to access the best companies without holding the not-so-great performers either.
Full Story: http://www.etftrends.com/2009/04/why-etfs-will-trounce-single-stock-picking.html