May 09, 2011
"There is now a greater understanding on the part of institutional investors that asset allocation is the issue rather than stock picking.” The CIO of a pension fund in northern Europe concurred: “Strategic asset allocation has always been a more important driver of returns than the selection of asset managers that pursue outperformance vis-à-vis a market benchmark.”
CFA Institute Publications Link
ETFreplay.com believes that exchange traded funds will increasingly be viewed as the core building-blocks of modern portfolios -- not individual stocks. There is much larger value to be added in the decision to own the Australian market (EWA) and REITs and Commodities than spending too much time on the decision of which large-cap United States stocks to own.
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