Tom Lydon, vice chairman at VettaFi, said performance covers points like returns, risks and how the investment holds up in various market conditions. Many companies will provide the performance history of ETFs to help you make informed investing decisions.Lydon said beyond picking an ETF based on their individual merits, an investor should also consider his or her individual investment goals and investment time horizons.
"Someone who is in their 20s and is just starting to build an investment portfolio may have more leeway to take on greater risks to enhance capital growth as compared to someone in their 70s who is relying on a stable retirement nest egg to generate a steady income for his or her Golden Years," he said.
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