The late-year rally in stocks and bonds has created an opportunity for investors to re-evaluate their portfolios at a time when the ETF industry is cranking out new products in areas including active fixed income and, potentially, cryptocurrency. The best performing ETFs in any given year are ultimately a function of what’s happening in the broader markets. Investors should be sure to understand not just how a fund might perform in different market environments, but also how buying it changes their portfolio. That is especially true after the narrow market rally of 2023, which increased the concentration of the largest tech stocks in the S & P 500. That means that investors who buy into broad equity ETFs that are market cap weighted, or certain sector funds, would in some sense be doubling down on names like Nvidia and Meta Platforms . That could prove painful if tech stocks reverse…
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