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Dave Nadig
3:31
I still think we'll see a true fiduciary standard in the next 5-10 years, but right now, we're sort of in the soup.  As an investor, you should really ask your advisor what standard their under as part of your due dilligence.,
3:32
if you do feel like you got "scammed" somehow, you can report that to FINRA, or even just start by asking to speak to the advisor's boss.
That can be surprisingly effective.  Nobody wants a bad mark on their record from a FINRA investigation.
ron
3:32
I saw your webinar yesterday where you were giving a tour of ETF.com's fund reports and how to read them. What is the first two things you look at when exploring a new fund report? Obviously you have some idea what the fund does
Dave Nadig
3:33
If it's an index based fund that's been out for a while, I look right to tracking difference (under efficiency) because that bakes in all the costs and the effectiveness of the portfolio management in one number.
3:34
If it's truly a brand new fund, well, you're going to be a bit in the dark.  I tend to look (beyond the fund description) to the portfolio info, and see how it compares with the segment that it's in.  Do the tilts of the fund make sense?  Is it getting the exposure I'd expect from the description.  That's a pretty good smell test.
Only after that would I worry about trading issues.
great question .
OK, running a bit long here, and sorry if I didn't get to your question. I'll grab one more here.
Lesley B.
3:35
Is liquidity a more important factor than expense ratio when considering which ETF to buy?
Dave Nadig
3:35
I love this question,
Its TOTALLY dependent on time horizon.
3:36
Assuming that the ETF in question is "ownable" -- that is it's not OUTRAGEOUSLY expensive (say, 1.5%) and it's not completely untradable (a few hundred shares of daily volume or something)....
Then the expense ratio matters more, the longer your time horizon.
And tradability (spreads, mostly) matters more the shorter your time horizon.
You can see this all over the market.  Just think of gold ETFs.
3:37
If you're planning on holding for a week or two, then the incredible liquidity of GLD is hard to beat.  You're not going to pay its comparatively high expense ratio for very long, but your going to book the spread right away.
But if you plan on this being a core holding for a few years, well, BAR, with its 17bps expense ratio, will save you 23bps year after year.
3:38
if BAR's spread was, say, 40bps and GLDs was 1bps, BAR would STILL be the right cal if you were holding for two years.
So it really depends on your use case, and both are important to look at.
3:39
OK, that's gonna wrap it for today.  I'm on the road the next two weeks, but we'll be back at this in October.  Thanks for the great questions as always, and have a great rest of the week.,
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