Investing luminary Charles D. Ellis famously compared investing to amateur tennis: because victory goes to the player who makes the least mistakes. Not the player who tries to smash every point – only to keep whacking the ball into the net or out of the court.
There are several big mistakes that ETF investors should avoid like the plague.
One example is attempting to beat the market. Everyone wants to do that but hardly anyone can do it consistently. Even the active fund professionals who are paid to beat the market persistently fail to do so – as shown by the long-running SPIVA study.
Solution: Warren Buffett regularly advises people to use funds that track indexes – such as ETFs.
To continue reading: We collected 5 more mistakes, we created an investment guide about China and we teach you how to filter ETFs in our ETF screener.
Glimmer of hope? In the last month, the stock markets in China have developed positively. The easiest way to invest in the whole Chinese stock market is to invest in a broad market index. This can be done at low cost by using ETFs.
