ETF Investors: The Real Action is Beneath the Surface | ETF Trends

A few years ago, we took our children snorkeling off the Florida Keys.  We told them about the beauty and diversity of sea life that they should expect to see. They were bursting with anticipation as we rode in the boat out to the reef. Their surprise was visible as the boat stopped.  The location looked no different than the expanse of ocean we had spent the last several minutes riding through. I could see the look on their faces ask “why here?” To their joy, this question was quickly answered as we dove into the water and discovered a breathtaking world of sea life. The diversity that existed just a few feet below the boat was remarkable. This experience pointed out two things to me—I was glad that some experienced people knew where to take us, and I realized that there is a lot going on below the surface.  This stunning underworld was not visible from the boat!

In today’s investment world, it is easy to be frustrated by the investment view from the boat that looks out at the seemingly endless expanse of ocean.  We may be moving at full speed up above in the broad asset classes, while completely missing the diversity and activity going on below the surface of the asset class...