Do Mega Cap ETFs Offer Mega Returns?

The ancient Chinese curse that reads “may you live in interesting times” has always seemed more like a blessing than a wishing of ill will. But perhaps in the current investing environment, the negative side of the phrase becomes more apparent. Between lingering debt concerns in Europe, the fallout from the Gulf oil spill, China’s new currency policy, and a host of hurdles in the domestic economy, these are certainly interesting times (see Surprise Winners From A Rising Yuan). The outlook for financial markets is uncertain, and the number of bears seems to have multiplied considerably in recent months. Different investors have reacted to the current environment in different ways. Those with higher risk tolerances may establish short positions, perhaps even using leveraged ETFs to amplify exposure. Some sell off risky assets and flock to safe havens such as bonds and gold bullion, preferring to reduce exposure to equities until the [...] Click here to read the original article on ETFdb.com. Related Stories: Mega Cap ETFs: Is Bigger Always Better? Brazil ETFs: Big Returns Come In Small Caps Red Chips (FXI) vs. Blue Chips (DIA): Mega Cap ETFs Head-To-Head