Submitted by Matthew Tuttle on Fri, 12/13/2013 - 9:00am
New alternatives to conventional exchange-traded funds and mutual funds, which are weighted by their market value, have gotten a lot of attention lately. But are these so-called smart beta products any better? Maybe, maybe not. Here are a few caveats.
Submitted by Roger Wohlner on Thu, 11/14/2013 - 9:00am
The ETF price wars are heating up. This is good for investors in that it acts to keep fees down for exchange-traded funds. But simply because an ETF has a very low cost is not a sufficient reason for you to buy it.
Fidelity late last month fired the latest salvo in the ongoing price wars with the introduction of a number low cost sector ETFs. Charles Schwab, TD Ameritrade, Blackrock, Vanguard and others also participate in this price war in one form or another over the past couple of years.
Submitted by Manisha Thakor on Mon, 09/30/2013 - 9:00am
One investing style seems all on-the-edge flash. The other is slow and steady. Both can win the stock market race, but history shows one wins a lot more often than the other. Here are ways to decide which is right for you.
Picture two cars driving down a three-lane highway. A red sports car darts between all three lanes trying to find the fastest possible way ahead. A gray sedan in the right lane steadily goes the speed limit. Suddenly a train whistle sounds and in the distance the barrier arm of the railroad crossing comes down.
Submitted by Joseph A. Clark on Tue, 09/03/2013 - 9:00am
Exchange-traded funds (ETFs) are increasingly popular. Aside from their generally low costs and liquidity – these baskets of securities trade on exchanges throughout the day – ETFs typically have the advantage of specialization: They allow you to target particular segments of investing.
Submitted by Dan Crimmins on Fri, 08/09/2013 - 9:00am
At the beginning of every season, sportscasters often forecast who will triumph. They usually are wrong. Stock pickers are no better. With stocks, though, you can back a whole bunch of teams at once. That’s called diversification, and it has a pretty good record.
The professional talking heads on radio and television base their team predictions on evidence, but they are ultimately just guesses. Their often-misguided guesses do not cost them anything. Rarely is a sportscaster fired for a false World Series prophecy.
Submitted by Manisha Thakor on Wed, 07/31/2013 - 9:00am
A lot of people use the terms mutual fund and exchange-traded fund interchangeably. While similar in many respects, these two investment vehicles have key differences. Mutual funds, particular those low costs ones following indexes, tend to be ideally suited for long-term, “evidenced-based”, asset allocation oriented investors. ETFs, on the other hand, are able to be traded intra-day, tend to be cheaper than active mutual funds and have the potential to be more tax-efficient if utilized in an active management context.
Submitted by Roger Wohlner on Mon, 07/15/2013 - 9:00am
The first half of 2013 is in the books, so now is a good time to review your portfolio. Keep these five investing lessons learned (and relearned) from the first half in mind.
It’s been a good year in terms of the domestic stock market; other areas of the markets were mixed. The second quarter saw declines in most fixed-income categories, real estate and in many international stock segments, including emerging markets. Commodities and precious metals also suffered setbacks of late.
Submitted by Roger Wohlner on Wed, 06/12/2013 - 9:00am
Index funds are a great tool for investors of all ages. These vehicles, which track the broad market or sections of it, are relatively inexpensive and easy to understand. But even investing in index funds takes work, especially with the proliferation of new index products in the marketplace.
Submitted by Roger Wohlner on Thu, 05/02/2013 - 9:00am
Since the financial crisis, many investors lost faith in mutual funds, especially actively managed ones with higher fees, and flocked to low-cost exchange-traded index funds. This isn’t a bad thing, but there is no reason to categorically exclude mutual funds from your portfolio.