Quote:
Originally Posted by MysticLlama
The expense ratio on that seems terrible. 1.62% for an ETF comprised of ETFs? What am I missing?
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That's true and I am usually adverse to anything with a high expense.
I've got most of my stuff in conservative investments and expect 4 to 5% ROCE in long run, which is fine.
Bit I figured if I can bump a portion of that to 7% return or so, the kids would thank me in 30 years.
BUT ....... I've found something about this ETF that makes me nervous: derivatives.
It's at least 50% bonds but balances it out with higher risk red flag stuff.
Fer instance, 7.5% into MBB (MBS bull sheet through fnma and such).
Didn't we learned that lesson in 2008?
With so many peoples out there who are NOT making mortgage or rent payments, I don't want anything to do with mortgage derivatives. House of cards.
Oh, but it's all covid's fault, it has nothing to do with poor planning and personal irresponsibility.
I may hold on to what I have but don't think if I'll put any more into it for now.
More homework to do.