Exchange-Traded Funds
« Previous EntriesThe Mathematics of Overcoming Negative Returns
Saturday, January 5th, 2008My last post got me to thinking about the mathematics involved in overcoming negative returns. In that post, I mentioned that 15 of the ETFs listed in the Wall Street Journal are down over 10% so far in 2008 (and that’s after just 3 days of trading!).
If a stock goes down 10%, it takes [...]
Three Trading Days Into the Year…
Saturday, January 5th, 2008and already 149 exchange-traded funds are down over 5%! I got this information from analyzing the exchange-traded quotes in today’s Wall Street Journal:
Although the graphic doesn’t mention it, 15 ETFs are down over 10%.
This isn’t a fun way to start off the year.
Index Mutual Funds vs. Exchange-Traded Funds
Wednesday, December 12th, 2007I was asked by SingleMa to write a post comparing index mutual funds and exchange-traded funds. I was about to do just that when I came across The Honest Dollar’s post titled Index Funds vs. ETFs. Lily, the blog’s owner, did such a great job comparing the two that I don’t think it [...]
Total Market Index vs. Sector Investing - Part 2
Monday, December 3rd, 2007As promised, here’s my follow-up to last week’s post, Total Market Index vs. Sector Investing. In that post, I mentioned that a spin on investing in the Dow Jones Total Market Index (TMI) would be to buy equal allocations of the ten sectors that make up the TMI and rebalance them annually. I [...]
Total Market Index vs. Sector Investing
Wednesday, November 28th, 2007Take a look at the graphic below, which is the sector allocation of the iShares DJ Total Market Index Fund (IYY):
Notice anything significant about that allocation? I’ll give you a hint: it’s the fact that over 17% of the fund is allocated to the financial sector. Unfortunately, financial stocks have been hammered this [...]
Index Mutual Funds or Exchange-Traded Funds? How About Both!
Thursday, November 1st, 2007Yesterday’s Getting Going column, Spicy or Mild? When ETFs Are Better Than Index Funds (free), in the Wall Street Journal took a look at investing in index mutual funds vs. exchange-traded funds. Jonathan recommends using both:
Use index mutual funds for accounts you’re regularly adding to or drawing on, while stashing longer-term money in exchange-traded [...]
How Long is That ETF Going to be Around?
Wednesday, May 9th, 2007Today’s Getting Going column by Jonathan Clements is titled Survival of the Fittest: Finding
An ETF With Staying Power. It’s an interesting read.
His point? There’s too many exchange-traded funds (ETFs as most people now call them). As the article states from Morningstar, there are:
39 ETFs focused on healthcare
32 ETFs focused on technology
35 ETFs [...]
What Do You Do When You’re Too Scared to Invest?
Monday, May 7th, 2007Check out this question sent to Walter Updegrave over on the CNNMoney website:
QUESTION: Is now the time to invest new money in mutual funds? I’ve been sitting on $100,000 for over a year because the market has been climbing to historic highs. I have always been told to buy low and sell high, so [...]
iShares Has Introduced a Preferred Stock ETF (PFF)
Tuesday, April 10th, 2007This is potentially good news for investors looking for extra yield and the potential for capital gains. iShares recently introduced the iShares U.S. Preferred Stock Index Fund (PFF). Although there’s not much information available regarding PFF, the index that it tracks, the S&P U.S. Preferred Stock Index, had an indicated yield of 6.4% [...]
Great Exchange-Traded Funds (according to Smart Money)
Tuesday, February 20th, 2007There’s an article over on Smart Money titled Seven Great ETFs. Their list:
Large Company
Rydex S&P Equal Weight (RSP)
iShares Russell 1000 Growth (IWF) - picked because the article’s author thinks that growth is the place to be.
Midsize Company
Midcap SPDRS (MDY)
Vanguard Midcap (VO)
Small Company
iShares Russell 2000 Value (IWN)
Multicap
Vanguard Total Stock Market (VTI)
International
iShares MSCI EAFE (EFA)
It looks [...]