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Full-Text Articles in Business
Are Etfs Good Or Bad?, Steven D. Dolvin
Are Etfs Good Or Bad?, Steven D. Dolvin
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Like many questions, the right answer is probably, "it depends." Whether ETFs are the best investment vehicle for a particular person likely depends on their goals and needs. However, with trillions of dollars being held by ETFs, their size has necessitated a broader discussion of their merits. This is particularly true in light of recent pricing issues where ETFs traded well below their NAV (such as in August of this year, as well as during the "flash crash" in May 2010). See a good summary article here: WSJ.
Lower Minimum Investment, Steven D. Dolvin
Lower Minimum Investment, Steven D. Dolvin
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Charles Schwab cut the initial minimum investment from $2,500 to $100 for most of the mutual funds on its Mutual Fund OneSource platform, which charges no transaction fees. At the same time, it cut the minimum for subsequent investments from $500 to $1. See article here, Financial Advisor Magazine.
Target Date Funds: Benefits And Disadvantages, Steven D. Dolvin
Target Date Funds: Benefits And Disadvantages, Steven D. Dolvin
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Target date (i.e., lifecycle) funds are increasing in popularity, particularly among unsophisticated investors. These funds provide key benefits, as they automatically rebalance through time and also generally limit return chasing. Given the dollar cost averaging effect, the result may also be a higher (dollar-weighted) average return. On the downside, the target date funds may choose underlying funds in each category that benefit the fund family more than the investor. However, for most investors, the benefits would generally outweigh the potential disadvantages. See article here, WSJ.
Etf Trading, Steven D. Dolvin
Etf Trading, Steven D. Dolvin
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ETFs are designed to track a particular underlying index. As these "baskets" of securities are traded, excessive demand or supply of shares can cause a disparity between the price of the ETF and the underlying value of securities held. However, because of the ability of large institutions to trade directly with the ETF firm to create and redeem shares, arbitrage keeps prices in line. See article here, WSJ.
Investing In Sin....., Steven D. Dolvin
Investing In Sin....., Steven D. Dolvin
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Socially conscious investing has attracted numerous followers, and this has precipitated the development of many socially conscious mutual funds. In contrast, other investors have taken an alternative approach, opting for so-called "sin funds." As this WSJ article points out, these sin funds have actually performed quite well over the last 10 years.
Growth In Etf Assets Continues, Steven D. Dolvin
Growth In Etf Assets Continues, Steven D. Dolvin
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Given the advantages of liquid trading and lower management fees, ETFs continue to add assets. As a recent Wall Street Journal article discusses, US ETF assets surpassed $2 Trillion and more asset managers are rolling out ETFs.