Why ETF and index funds rule

[dzwm87]

I don't think etf is for one without time and knowledge.

The way I see it, etf will need oneself to manage the allocation, shifting money from one etf to another, understanding country or sector economies,doing all the balancing. All these are not just following books. Even if one just want to do what the books tell, one also need to have some time and knowledge.

Perhaps I didn't phrase it correctly or I sounded too non-conservative but what I meant was ETF can be a better investing alternative for those who can't afford the [u]same[\u] amount of time to do sufficient due diligence for stock picking.

Individual stock picking needs a luxury of time and you need to have a fair amount of ideas to allow diversification to favor your performance. Not everybody has that luxury else FM industry might have been extinct long ago.

In contrast, ETF offers an extent of diversification and we all know that the long-term return of stocks is positive. Sure, ETF is not exactly a risk-free investment and I agree you still need some due diligence but the extent should be far lesser than individual stock picking and given the mentioned circumstances and with fixed deposits offering such low returns, ETF should be a viable option to choose.