Some exchange traded funds may not offer as much diversification as you think.
"I think not enough people spend time to go to the website, look at what that ETF actually holds," said Peter Tchir of TheStreet's Income Seeker. "There is often a discrepancy between what it says it does and what it actually holds. So one, I want to look for something that's truly diversified where it's not two or three names have 25% of it because you're not getting what you want."
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Editors' pick: Originally published Nov. 3.