FundX CIO Jason Browne Talks ETFs on Nightly Business Report

November 18, 2017

What’s the appeal of ETFs, and how should you use them?

FundX Chief Investment Officer Jason Browne answered these questions on the Nightly Business Report on November 10, 2017.

He also shared three ETFs that have strong recent returns because funds that have done well recently may continue to do well in the coming months or even years.

Click here to watch Jason on NBR.

“We use ETFs as we use any other mutual fund,” Jason said. “Even though you can trade ETFs at any time usually you do so at your own peril.”

Many investors like ETFs because they offer diversified exposure to different areas of the market and make it easy for investors to adapt to changing trends, Jason noted.

Investors should remember that most ETFs track an index, so ETF managers don’t get to pick which stocks they might want to include or exclude.

Three ETFs with Strong Recent Returns

If you’re looking to own ETFs that are in favor now, here are three diversified ETFs that have strong recent returns.

ETF #1 – SPDR Dow Jones Industrial Average (DIA)

If you’re looking to get into the market, consider DIA.

“A lot of people might say, why not just buy the S&P 500?, and the answer is that currently, you’re just better served investing in a more concentrated portfolio like the Dow Jones Industrial Average. It’s done better this year,” Jason said.

ETF #2 – iShares MSCI USA Momentum Factor (MTUM)

If you’re looking for an ETF that’s adapted to recent market shifts, you might try MTUM.

“This ETF has a factor-driven strategy. So as opposed to the Dow, which is just buying the market, here you’re buying stocks that have good momentum on a risk-adjusted basis. This fund has done a really good job at adapting to the changing markets over the last year,” Jason said.

ETF #3 – Vanguard FTSE Europe (VGK)

If you’re looking to own a foreign ETF, consider VGK.

“This ETF is a great way to diversify further into Europe, while still owning household names. You’re owning Nestle, you’re owning HSBC Holdings and so forth. VGK is an easy way to add Europe exposure to your portfolio.”

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