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.