10-07-2013, 07:55 AM
I tend to prefer the small basket approach, of hitting a sector with two or three individual tickers. However, for exposure to exotic markets, for exposure to bonds, for exposure to sectors with complicated business structures, and finally when looking for a needle in the haystack home run among small caps, I may opt for an ETF, all of which have very modest fees as compared to any other fund structure.
Alex