Exchange Traded Fund Flaws

Exchange Traded Funds are an extremely popular and often cheap way of getting exposure to a wide variety of markets from shares to bonds to commodities. But there are some caveats, five of which we explore here.

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[gdpdr]

Your videos are amazing don't understand how you don't have more followers...keep up the good work and thanks for the content

[onderbetaald]

I didn't know that ETFs suffer from the problem you describe @ 2:21. I thought that price fluctuations in underlying assets do not cause management to change its holdings, since these fluctuations are automatically reflected into the ETF.

For example, if you own an SP500 index with 4% in Apple shares and Apple would lose 25% of its value, the ETF would fall by 1% right? The management wouldn't need to rebalance in my opinion.

Am I wrong or did I misinterpret you explanation?

Thanks you for your videos btw, I really enjoy them!

[Llama]

:29 *well above $4500 Billion. Large difference.

[musaabsi]

As a muslim investor im more comfortable with iShares MSCI World islamic ETF.
However, unfortunately this is the lowest expense ratio (0.6) i could find to have a global equity.
1-I was wondering if i can do this by myself and avoid the charges.?
2-Will the expense ratio ever go down in the upcoming years when more Islamic ETFs come up in the market ?