The underlying indexes utilize a quant-based methodology in an effort to identify component stocks that have the greatest potential for capital appreciation-essentially an automated process of stock-picking. The results have been generally impressive over the last few years; many AlphaDEX ETFs have outperformed their cap-weighted peers by a wide margin.

Bottom Line: AlphaDEX ETFs offer a compelling methodology that has a proven track record of outperforming its peers in the past.

74. ETFs Can Access Alternatives To Stocks And Bonds

While the bulk of ETF assets are in products covering traditional asset classes such as stocks and bonds (and even commodities), the breadth of the ETF lineup has expanded considerably in recent years to include more "exotic" strategies. ETFs have emerged as a popular way to access alternatives, a general term for securities that tend to exhibit low correlations to equities and fixed income and that may be helpful in smoothing overall volatility of a portfolio.

There are a number of different types of alternatives ETFs, including ETPs that access volatility, long/short products, hedge fund replication funds, and inflation-focused ETFs.

Bottom Line: You can use alternative ETFs to access strategies and asset classes that were previously out-of-reach for mainstream investors.

75. You've Got Options

It wasn't that long ago that the decision around establishing exposure to a particular asset class was binary; you either had it or you didn't. The tremendous expansion in the ETF product lineup over the last several years has changed that dramatically; investors now often have the luxury of choice when considering a position. For just about every major asset class there are several ETFs from which to choose. Even for granular types of exposure, there are, in many cases, multiple ETFs available. A few examples: there are now four pharmaceutical ETFs, three nuclear energy ETFs, and even two automotive ETFs.

Take advantage of the ability to choose from multiple products; increased competition among ETF issuers is great news for investors-if they're able to take advantage.