ETFReference.com just published a great thought leadership article where they asked a select group of ETF industry experts for their thoughts and best practices for ETF investing. One of the experts they asked to contribute is 3D’s CIO Ben Lavine, and he was more than happy to oblige. Ben’s principles on ETF investing that made the list are:

1)      Understand what you’re investing in: that’s why you should prefer ETFs that track underlying benchmarks vs active ETFs that do not.

2)      All else equal, minimize your costs: understand the value proposition that comes with higher priced ETFs.

3)      Avoid leveraged ETFs: the financing costs and intra-day frictional tracking costs eat away at total return.

Check out the entire article, ETF Investing Tips from the Experts. It is a wealth of information, and has some great guidelines for portfolio management using ETF’s.