Just to be clear. I’m still sticking to my Dollar Cost Averaging (DCA) and Value Cost Averaging (VCA) of index ETFs and robo-advisor accounts strategy. This post is my attempt at understanding how investing in ETFs can be a problem as more and more people engage in it. Specifically when people in different age groups, personal and financial circumstances invest in index ETFs.

My index ETF portfolio gives me broad-based exposure to various geographical and specific segments of equity markets globally. Although I achieve diversification, I pay a price in the form of only getting market returns on the index ETF portfolio. For your information, market returns is nothing to shout about. It’s probably the main reason why people still gravitate towards investing in stocks and other financial assets to obtain higher than market returns.

For market returns on index ETFs to work, you need to have a large cash …