ETFs Can Offer Reduced Risk, Less Volatility

By Dan Greenshields, CFA

The last two years in the global financial markets can make any investor wince; the huge swings have left many investors shaking.

As we know, too many new and experienced investors put all their chips into one or two different stocks, crossed their fingers, and hoped for the best. This, combined with one of the worst market downturns in decades, decimated a significant percentage of the retirement savings and investment accounts of everyday Americans.

The recent market roller coaster has bolstered the case for finding investments that are lower-cost and diverse. Enter Exchange Traded Funds (ETFs). Even if you do not have a portfolio as big as Warren Buffett's, you can have a similar strategy by placing added emphasis on ETFs in your portfolio. Those who have a diversified ETF investment strategy may benefit from reduced risk and volatility. ...