How has thinking changed around ETFs in a bear market?

  • Rand Low

Press/Media: Expert Comment

Description

Extract]
Does it still make sense for investors to invest in ETFs that track market indices?

For long-term investors (>8 year investment horizon), it is best not to try timing the market. Regardless of market conditions, ETFs that track market indices are the best risk-adjusted, low-cost, diversified equity instruments for long-term investors.

Should investors leave funds in exiting ETF investments that track an index?

Long-term investors should leave funds in existing ETF investments that are index trackers even in a bear market. Often, most investors who exit their ETF investments during a bear market to switch to cash either forget to re-invest their cash into equities and as a result miss out on the upward swing that usually follows a bear market.

Period20 Mar 2020

Media contributions

1

Media contributions

  • TitleHow has thinking changed around ETFs in a bear market?
    Degree of recognitionInternational
    Media name/outletPythonic Finance
    Media typeWeb
    CountryAustralia
    Date20/03/20
    Description[Extract] Does it still make sense for investors to invest in ETFs that track market indices? For long-term investors (>8 year investment horizon), it is best not to try timing the market. Regardless of market conditions, ETFs that track market indices are the best risk-adjusted, low-cost, diversified equity instruments for long-term investors. Should investors leave funds in exiting ETF investments that track an index? Long-term investors should leave funds in existing ETF investments that are index trackers even in a bear market. Often, most investors who exit their ETF investments during a bear market to switch to cash either forget to re-invest their cash into equities and as a result miss out on the upward swing that usually follows a bear market.
    PersonsRand Low