Mutual Funds in Lake Wobegon
Are all funds above average?
Too Good to Be True
The claims made for exchange-traded funds have probably raised your suspicions. Value is good. Momentum is good. Profitability is good. Dividends are good. Fundamental weightings are good. Equal weightings are good. Low volatility is good. Low liquidity is good. If you summed all the claims of ETFs, it seems that just about every investment strategy is good. Pick a factor; it will lead to superior results.
But that can't be right, can it?