Combining ETFs with stocks and mutual funds

Claymore Investments, Inc. 15 May, 2010 | 4:36AM

Stock and mutual fund investors may also look to ETFs to create a "core/satellite" portfolio that includes different investment products. Investors using mutual funds may look to ETFs to gain lower-cost exposure to specific geographic areas, sectors or strategies.

Adding ETFs to a core mutual fund portfolio will also create an active/passive strategy, with the mutual funds' portfolio manager's hopefully adding value through their day-to-day active management and the ETFs providing low-cost index exposure.

Core stock investors that actively track and follow individual stocks may consider adding an ETF satellite to get exposure to sectors and areas outside of their general expertise. For example, investors who feel confident picking Canadian stocks, ETFs can be used to add investments in areas such as fixed income, preferred shares, commodities, U.S., international and emerging market exposure or specific niche themes. Tracking all areas of the market is difficult -- even for the professionals -- so focusing on a few areas of expertise and interest such as dividend stocks or gold or energy stocks, and then using ETFs for exposure to other asset classes and markets can be a very successful long-term strategy for portfolio management.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

About Author

Claymore Investments, Inc.

Claymore Investments, Inc.  

© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies