There's No ETF for Sour Grapes
ETFs have been getting a bad rap recently, but it's undeserved, argues Todd Shriber of Global Profits Alert.
I wasn't around when the movie Cool Hand Luke came out, but my mom loves old movies and she always had them on when I was a little kid.
To this day, I remember her renting Cool Hand Luke not long after my family got its first VCR in 1985. And like many of you that have seen this classic film, one line stands out in my mind: "What we have here is a failure to communicate."
No, today's column will not be devoted to classic American cinema. I'm continuing my commitment to parsing through what I believe are inaccurate or misinformed statements regarding ETFs.
Now let me be clear and say that when I do this, I have absolutely no personal grudge against anyone that doesn't like ETFs as much as I do. Different strokes for different folks, I say. I also say everyone is entitled to their own opinion...but not their own facts.
A recent column on MarketWatch notes, "There are around 1,350 ETFs today, and hundreds more in registration." As I interpret it, this column seems to take issue with the number of ETFs on the market today by taking a backhanded shot at ETFs that focus on corn or Bulgaria.
I had to laugh. No one complained to me when we hit a 10% winner in the Teucrium Corn ETV (CORN) and according to ETFdb's country exposure tool, there isn't a single ETF currently offering exposure to Bulgaria.
The column goes onto say "Most investors really don't need a fund that leverages a segment of the market, or specializes in commercial real estate in a single foreign country.