Forbes - USA (2019-11-30)

(Antfer) #1
In 2007, a legendary investor and philanthropist
took a $1 million wager that an index fund would
outperform a collection of hedge funds over the
course of a decade. At the end of the decade, he won
the bet.^1

We’re not suggesting placing bets. While index
investing bested hedge funds in this case, it does not
necessarily mean it will happen again. Still, the results
of this bet are worth noting since they illustrate the
potential of index investing and ETFs.

ETFs generally seek to track an index of stocks, bonds
or other securities. They can be broad market

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NOVEMBER 30, 20 19 FORBES.COM

THE ETF


REVOLUTION


IS HERE


There are some 1, 8 00 ETFs listed in the United
States,^4 and iShares, BlackRock’s ETF business, offers
more than 300 in the U.S. and over 8 00 globally,^5
representing a broad range of asset classes and
geographical regions. You can curate a portfolio
of ETFs that best suits you, your goals and
your passions.

With sustainable iShares ETFs, you don’t have to
separate your investment choices from your personal
beliefs. If you are an environmentalist, you can invest
in companies committed to positive environmental,
social and governance (ESG) business practices. Or
if you’re looking to invest in the long-term forces
shaping our future, megatrend ETFs offer access to
companies driving advances and shaping our global
economy and society.

CHOICE


Whether it’s setting you up for retirement or allowing
you to support the causes you care most about,
your investment strategy can help you pursue your


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To help achieve progress in an ever-changing world,
consider exchange-traded funds, or ETFs. An ETF is



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that trades on an exchange (like a stock).


Keep reading to learn how ETFs have transformed


investing and how they can help you build
a better future.


indexes like the S&P 500, Nasdaq or Bloomberg
Barclays US Aggregate Bond Index; more targeted
regional indexes; or even niche indexes.

ETFs can have hundreds of securities in their
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reduce risk when compared with owning individual
stocks. There is also an opportunity to further diversify
by building a core portfolio of multiple ETFs, each
of which may hold different types of securities across
asset classes.

By offering investors choice, value and accessibility,
ETF adoption is accelerating. The 21st century began
with less than $100 billion in ETF assets; as of 201 8 ,
the ETF world counts $4.7 trillion globally in assets
and an expanding number of products.^2 BlackRock
projects that ETF assets will grow to over $12 trillion
by 2023.^3

Your money should work for


you—and that means not


just pursuing yield but also


helping you capitalize on your


convictions in the process.


Whatever your age, goal,
investment horizon or income,
there are ETFs out there designed
to fit nearly every portfolio.

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