The PDF version of the April issue of ETFInvestor is now available for download.

The iPad version will be available in approximately 3 business days.

When it comes to investing, we are so often our own worst enemy. Countless studies have shown that we tend to chase performance: buying high, selling low, and failing to learn from our mistakes every time. This applies to individual stocks, funds, Beanie Babies, cryptocurrencies, you name it.

We pay a steep price for our actions, one that can be many multiples of a commission or an annual fee. In the realm of funds, we can roughly quantify the cost of this bad behavior. For years, my colleague and Morningstar FundInvestor editor Russ Kinnel has documented this phenomenon and sized the toll it takes on investors’ returns in his annual “Mind the Gap” study. In this month’s issue, we look at the behavior gap and its root causes. I kick things off with the third-annual installment of the active versus passive edition of the “Mind the Gap” study.

Also in this issue:

• I share a peek at the results of the year-end 2017 edition of the Morningstar Active/Passive Barometer report.
• I share four trips for trading ETFs.
• Daniel Sotiroff demonstrates how investors have failed to effectively time currency movements using currency-hedged ETFs.
• Phillip Yoo discusses the difficulties investors face in defending against the negative effects of rising interest rates.
• Daniel profiles WisdomTree Europe Hedged Equity ETF HEDJ, which carries a Morningstar Analyst Rating of Neutral.
• Phillip shares his analysis of Neutral-rated PowerShares Senior Loan ETF BKLN.
• In this month's Sector Snapshot, I dissect the factors behind the market’s February decline.

You can download this month's issue here:

http://etf.morningstar.com/Newsletter.aspx?download=currentIssue

Best,

Ben Johnson, CFA