Three ETF myths explained

18 April 2019 | Topical insights


ETFs are becoming more and more popular, but many myths and misconceptions are still alive. Our recent research explores three myths and reveals evidence-based investor behaviours. The three myths we consider are:

  • Only costs matter
  • Investors avoid global portfolios
  • Just for tactical use

The findings are based on a survey of over 400 European ETF buyers and in-depth interviews with senior figures at European asset management firms in the UK, Germany, Switzerland and Italy.

Find out more by clicking on the links.

ETF myth: Only costs matter
Vanguard considers investor behaviour in Europe to find out the truth behind the ETF myth that only costs matter when selecting an ETF.


ETF myth: Investors avoid global portfolios
Vanguard explores the myth that ETF investors shun global portfolios in favour of local, regional and sector ETFs.


ETF myth: ETFs are just for tactical use
Vanguard explores the myth that ETFs are just used for short-term investment opportunities.


Important information:

The value of investments, and the income from them, may fall or rise and investors may get back less than they invested. Past performance is not a reliable indicator of future results.

ETF shares can be bought or sold only through a broker. Investing in ETFs entails stockbroker commission and a bid- offer spread which should be considered fully before investing.

Other important information:

This material is for professional investors as defined under the MiFID II Directive only. In Switzerland for institutional investors only. Not for public distribution.

This material was produced by The Vanguard Group, Inc. This article is for educational purposes only and is not a recommendation or solicitation to buy or sell investments.

The opinions expressed in this article are those of the author and individuals quoted and may not be representative of Vanguard Asset Management, Ltd or Vanguard Investments Switzerland GmbH.

Issued by Vanguard Asset Management, Ltd, which is authorised and regulated in the UK by the Financial Conduct Authority. In Switzerland, issued by Vanguard Investments Switzerland GmbH.