3 [Big Mistakes] ETF Investors Make

29/01/2024 13 min

Listen "3 [Big Mistakes] ETF Investors Make"

Episode Synopsis

One of the biggest mistakes ETF investors make is to try and compare two ETFs - like VTO and VTI - using basic past performance measures. The place to start is expense ratios, and both VTI ETF and VOO ETF have the same expenses - just 3 basis points. Where the difference between these two ETFs lies is in the size of the stocks they hold. This begs the question, does VTI outperform given it holds mid / small / micro stocks? The answer is more complex, and a look at past performance over 66 years shows that these two ETFs offer almost the same performance profiles. So which ETF would we hold? Maybe neither of them, and that's where the conversation goes into the domestic bias problem. It's one of two problems most ETF investors make, and you'll need to watch the video to learn about the other two.


Stay informed with our free disruptive technology investing newsletter, Nanalyze Weekly. Sign up now at ⁠https://www.nanalyze.com/nanalyze-weekly/⁠. This episode is pulled from a YouTube presentation. View the original presentation at ⁠https://youtu.be/uRDS4uElxqw.⁠