Mind The ETF Internals—-They’re Butt Ugly

Categories that seem self-identified and straight-forward are anything but. They have been polluted by the relativism of those trying to maximize fee income. The popularity of indexation has required the index funds to include more liquid stocks from other categories. This destroys the integrity of the fund(s) and makes it increasingly homogeneous with the market basket. The distinction of the category is reduced because it includes stocks that do not qualify and should not be included.