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Old 14-09-2018, 09:57 PM   #648
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Join Date: Aug 2016
Posts: 558
The exchange traded (ET) part isn't necessary, but the popular ETFs are more accessible and have lower costs than their unit trust/mutual fund cousins.
With the performance comparable to managed funds as well?

Well, one big problem is that over the typical multiple decades of an accumulation phase whole new sectors might arise. As a notable example, the world's second most valuable publicly traded company, Amazon, only listed in 1997, barely 20 years ago. If you had picked sectors A, B, and C back in 1996, let's suppose, you probably would not have picked whatever sector included Amazon. (And what sector would that have been? Book selling? Hard to say.) The sectors themselves are volatile over these timespans, with whole new sectors popping up that didn't exist in the past.
Understood. Just seems to me that a Biotech fund *for example* or even a regular customer oriented or healthcare fund bought say 5 or 7 years ago would have brought someone with a high risk appetite and significant surplus higher gains than a broad based ETF. Again, conditional on a high risk appetite aren't there are potentially higher rewards to be reaped?
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