Posted by: Karyn McCormack on October 19, 2006
Every week it seems I get several press releases in my email box from PowerShares Capital Management, the growing ETF machine. This week, the one that caught my eye was describing the upcoming launch of the PowerShares Listed Private Equity Portfolio, so I wrote a story about it. I’m not against these specialty ETFs as a rule — in fact, some of them, if purchased in very small doses, can probably help you spread out your assets and in all hopes, prop up your returns. But with ETFs becoming more exotic and so many new ones hitting the market, you have to check carefully to see what’s inside and figure out if the holdings meet your risk tolerance. You should also make sure you’re not loading up on the same stocks you already own. As always, study before you buy.