A version of this article appeared in the November 2017 issue of Morningstar ETFInvestor. Download a complimentary copy of ETFInvestor here.
It is easier, and often more important, to avoid mistakes than to identify great investment ideas. Among the low-hanging fruit, you can improve your odds of success by avoiding strategies that cost too much, take too much risk, or are poorly constructed. Unfortunately, the exchange-traded fund landscape is littered with funds that suffer from these problems, and it's not always obvious which funds do. But you can identify them if you know what to watch.
Alex Bryan, CFA has a position in the following securities mentioned above: DVY EEM. Find out about Morningstar's editorial policies.