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“With 800 choices, you can't just throw darts,” warns Senior Editor Jeffrey Kosnett in his article “Getting Past the ETF Clutter.” Kosnett explains the ETF confusion: “Not long ago, exchange-traded funds were a novelty. But the number of ETFs has soared from fewer than 200 two years ago to nearly 800, and they now include funds that track Turkish stocks, wind-power companies and the price of livestock.” He suggests that investors pair ETF investments with traditional mutual funds, claiming that the best ETFs aren’t likely to perform as well as mutual funds when a category rallies. In the small-company category, Kosnett highlights Royce 100 Fund (RYOHX) as a potential pairing option, “if you want to take extra risk to angle for higher returns.”
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