Beware the Flaws of Trading ETFs

There is no absolutely correct answer. You need to assess why you own these funds and then decide if the flaws inherent in ETFs -- remember, anything you could invest in has some flaws -- outweigh the potential benefits.

Most ETF providers have data that shows how often the premium or discount to NAV strays beyond 0.5%. If you look at the data, you are likely to see that any ETF you care about spends the vast majority of the time within that so-called normal range. So if an ETF you care about spent 10 of the last 200 days outside of the normal range, would you care? If you would, perhaps you should sell.

If 10 days would not bother you, would 30 days out of 200? As I said above, there is no right answer; this can only be sorted out by the individual.

Anyone using ETFs as part of a diversified portfolio, as opposed to trading them in the short term, is trying to capture a certain segment of the market. Perhaps a given ETF has a tracking error issue, or perhaps the expense fee is on the high side, or maybe there is a composition issue that makes an ETF less than perfect. I would say that most ETFs have at least one characteristic that is less than ideal.