In this episode, Ron DeLegge @etfguide chats with Mike Akins, the CEO at ETFAction.com about why mixing indexes.
This episode starts with a brief history of indexing – going back to the first stock yardstick ever created (Dow Jones Transportation Average). Today, indexing has dramatically evolved from a mere measurement tool to basis for investment portfolio construction.
As such, it’s crucial that ETF investors build their core portfolios with indexes in an efficient manner that avoids under and over-diversification along with other unwanted surprises. Examples of these potential pitfalls are cited.
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