This ETF Might Benefit From Active Management

Stock quotes in this article: PIE  

I often suggest waiting to buy an ETF until it has proven itself, but I don't think that necessarily applies here. DWA has proven, long before launching its first ETF, that it knows what it is doing. Whether PIE would serve as a proxy in your portfolio for broad-based emerging market exposure boils down, I think, to whether you think a product like this should be rebalanced more than four times a year.

You could argue that it's not in your interest to put arbitrary restrictions on a manager in whom you have faith and are willing to pay.

To be candid, there is no correct answer.

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At the time of publication, Nusbaum had no positions in any of the securities discussed in this article, although positions may change at any time.

Roger Nusbaum is a portfolio manager with Your Source Financial of Phoenix, and the author of Random Roger's Big Picture Blog. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Nusbaum appreciates your feedback; click here to send him an email.

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