ETFs are all the rage lately, as most of them follow well-known indexes, cost very little and are easy to trade. But a new variety is making a splash, so called smart-beta ETFs, which use algorithms to concoct asset mixes designed to beat the market. Let’s check out one of the hottest new entries and weigh its advantages (good performance) against its weaknesses (vulnerability to a drooping market).
Reducing your investment fees is the surest way to improve returns. Index funds are cheap, but their prices do vary. Doing your due diligence and comparison shopping pays off.
Investing is Africa has long seemed like a promising, if perilous, bet. But its potential always fizzled, due to its wars, political instability and corruption. Now, though, we may be on the verge of when it makes sense to try out the continent, with a landmass three times the size of the U.S., albeit in a cautious way.
Guess right with men’s college basketball champ Duke Blue Devils? Think the Golden State Warriors will take it all this June in professional hoops? If you’re among the millions of fans who systematically try to pinpoint winners before the big games, similar strategies can also apply to your stock picks.
At some point this year, interest rates should go up. What will happen then to dividend-paying stocks? Because they benefited when fixed-income rates were low, they will dip – and some already have, in anticipation. Over the long pull, however, dividend payers do well.
Some think that diversification calls for simply splitting your holdings between stocks and bonds. A really good asset allocation, however, is a bit more complicated, and involves gauging how much risk you can stomach.
Diversification gets a bad rap when almost everything falls at once (2008) or one sector vastly outpaces others (tech in the late 1990s). But a comparison of last year and this year shows how, once again, diversifying always makes sense over the long pull.
Amid good U.S. economic news and lower oil prices, growth stocks are finally showing a recovery.
Being a proactive investor means paying attention to more than just your investments’ fees and expenses. What your dividends yield is very important. And their tax situation is, as well, as dividends are taxable income.
The question of how we array our investments is vital to our future financial well-being. Key to this is knowing the different between asset allocation and diversification.