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March 5, 2024

Financials Matter

"It's Not Just About Finance"

Indexing ETF’s…The Near Perfect Scam

I just can’t let this ETF thing go.

If you’ve read any earlier emails I’ve written about ETF’s, (HERE, HERE, HERE, and HERE) you might think I’m obsessed (I am, kinda).

But just look at how a fund manager tries to explain his “innovative” ETF to you:

“Think of a Strategic Beta ETF as an advancement in the binary world of passive and active management.  It combines the appeal and intuition of a passive approach…with the prudence and perspective of an active manager…”

 

HUH?

Or better, yet…LOLOLOLOLOLOL!

I’ve heard some of the best bull***t artists in the world but very few can compare to the thieves on Wall Street that create things like Strategic Beta ETF’s.

The crazy part is the public falls for these scams nearly every time.

It’s because the Wall Street presstitutes are constantly telling everyone to buy ETF’s and take advantage of professional management.

The truth is the funds always make more money than the individual investor.

Consider these little-known facts.  There are over 6,500 ETF’s available for trading.  But there’s only 3,500 (approximately) stocks available to buy.

Since most ETF’s buy more than 25 stocks (sometimes hundreds “for diversification”), how will they diversify when they’re all chasing after the same stocks?

Most major mutual funds (remember those?) today all have a significant share of the ETF market as well.

Are you connecting the dots yet?

Let me help.  The managers sell stocks they own in their ETF’s to their mutual funds (and vice versa) collecting fees from both and laughing at you all the way to the bank.

This is just the tip of the iceberg.

In November’s Simplifying Wall Street in Plain English we’ll show you how to beat the ETF scam.

Get it (HERE).

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