Investors prided on their individual stock picking strategy sometimes cast their bets on lists of stocks others picked out, called ETFs. In the third quarter, the rare event that noted investors with a value slant agreed with large U.S. funds of all stripes occurred. The majority of both groups signaled that certain sector ETFs deserved their money more than the vast universe of all others.
Index investing’s big moment has been fueled by lackluster active management returns, high fees, regulation and a buoyant market. ETFs treat entire sectors like a stock but in a competition between the two leaders in each, a U.S. company trading on the S&P 500, itself an ETF of the broad market, would have won this year. NVIDIA Corp. (NASDAQ:NVDA), the highest returning stock year to date, soared 184.8%. The best-performing ETF, PureFunds ISE Junior Silver ETF (SILJ), followed on its heels with a 169.3% gain. Continue Reading »