Some excellent advice from Anand Chokkavelu, CFA
http://www.fool.com/investing/general/2012/06/29/the-100-things-ive-learned-in-investing.aspx#.T_q242jDldw
If you only read one point, read the first one! "1. Most of this list is dedicated to insight on beating the market, but know this: It's darn hard to beat the market. Ninety-nine percent of people are best served steadily buying and holding low-cost index funds at the core of their portfolios -- and I may be understating that 99% figure."
N.B. I am not a financial advisor
Most financial advisors are little more than leeches, telling you whatever they think you want to hear so they can earn their commissions. Learn to invest for yourself. You can do it. Hopefully this blog will contribute to that a little bit.
Showing posts with label ETFs. Show all posts
Showing posts with label ETFs. Show all posts
Monday, July 9, 2012
Monday, May 14, 2012
The Correlation Conundrum and What to Do About It: With the rise in correlations, diversification is more important than ever
The Correlation Conundrum and What to Do About It: With the rise in correlations, diversification is more important than ever
Over the past two decades, the amount of equity assets invested passively has increased from roughly 10% in 1993 to about 30% today. At the same time, correlations between individual stocks have generally risen. Let’s take the S&P 500 as an example: Based on the average daily correlation over the trailing six months, correlations have risen from roughly 10% in 1994 to 66% at the end of 2011
Over the past two decades, the amount of equity assets invested passively has increased from roughly 10% in 1993 to about 30% today. At the same time, correlations between individual stocks have generally risen. Let’s take the S&P 500 as an example: Based on the average daily correlation over the trailing six months, correlations have risen from roughly 10% in 1994 to 66% at the end of 2011
Labels:
diversification,
ETFs,
investing,
SP 500,
strategy
Thursday, December 1, 2011
There's been some negative press about ETFs. This article is about why ETFs (and ETPs - exchange traded products) are a good investment choice.
http://www.morningstar.co.uk/uk/news/article.aspxarticleid=102268&categoryid=5&refsource=newsletter
http://www.morningstar.co.uk/uk/news/article.aspxarticleid=102268&categoryid=5&refsource=newsletter
Labels:
ETFs,
financial advice,
personal finance
Thursday, June 16, 2011
Ten Commandments of ETF Investing
What began as a handful of securities seeking to replicate widely-known stock and bond indexes has grown into a lineup of more than 1,000 funds, offering exposure to nearly every asset class, region, and investment strategy imaginable. While this impressive growth has enhanced the arsenal of securities available to ETF investors, it has also created the potential for misuse and made finding the right ticker symbol a bit more challenging.
And while ETFs offer countless potential advantages relative to strategies that revolve around mutual funds and individual stocks, there are some potential pitfalls along path to enhanced cost and tax efficiency. Below, we offer up ten pieces of advice that will help to maximize the benefits of exchange-traded products for all types of investors, including tips on minimizing expenses, avoiding potential pitfalls, and picking the right fund for your portfolio.
And while ETFs offer countless potential advantages relative to strategies that revolve around mutual funds and individual stocks, there are some potential pitfalls along path to enhanced cost and tax efficiency. Below, we offer up ten pieces of advice that will help to maximize the benefits of exchange-traded products for all types of investors, including tips on minimizing expenses, avoiding potential pitfalls, and picking the right fund for your portfolio.
Labels:
asset class,
ETFs,
investing,
pitfalls
Friday, October 1, 2010
Is Do-It-Yourself Investing Right for You?
By Mary Rowland
One of the first questions investors ask is this: Should I invest on my own or get the help of a financial planner?
For many investors, the answer is an obvious one. If you receive a large inheritance or divorce or insurance settlement and have no knowledge of the markets, you need help. But what about the rest of us? We know a little bit. We're willing to learn more. We're intrigued by the idea of investing. But will we do a good job?
One of the first questions investors ask is this: Should I invest on my own or get the help of a financial planner?
For many investors, the answer is an obvious one. If you receive a large inheritance or divorce or insurance settlement and have no knowledge of the markets, you need help. But what about the rest of us? We know a little bit. We're willing to learn more. We're intrigued by the idea of investing. But will we do a good job?
Labels:
DIY,
ETFs,
investing,
mutual funds
Tuesday, September 7, 2010
The Total Cost of ETF Ownership
Expense ratios are just one of the many costs of ETF ownership
The low cost of exchange-traded funds relative to traditional actively managed open end funds and index trackers is perhaps their most appealing feature. When looking at the cost savings of ETFs, and comparing one fund to another, most of us just look at the total expense ratio given in prospectuses and other literature. But expense ratios reflect just one of the many costs of ETF ownership. Costs of buying, selling, and potential hidden charges or earnings all affect the ultimate returns that shareholders get from a given ETF.
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