Friday, October 08, 2010

EQIX-One Advantage of ETFs


One of the main advantages of ETFs is that they don't preannounce earnings and drop $35.00 like this stock did Wednesday.  ETFs remove the event risk of bad news from a individual stock in investor's portfolios.  That risk, to the extent it's born in an ETF if a stock such as EQIX is part of the index, is diluted by diversification.

*No positions in stock shown above.