Not so simple: the pitfalls of ETF investing

ETF investing has become synonymous with efficiency, simplicity and ease of transaction, and in many cases rightly so. That said, the industry has exploded in size during the past ten years, and this increase has created areas of complexity, opacity and obfuscation that lays pitfalls at the feet of unwary investors. Here are a few of the pitfalls we have encountered in the last decade of investing in ETFs. Size matters The average trading spread on the world's largest five ETFs is approximately one basis point. The average trading spread on the world's smallest five ETFs can be a...