ETFs are not for everybody. I remember an experience from last year when I set up a retired client’s portfolio with several ETF positions along with no load mutual funds. Even though his holdings were in accordance with our long-term investment approach via trend tacking, the client couldn’t help but watch the minute-by-minute ETF price changes on his favorite financial …
No Load Fund/ETF Tracker updated through 5/18/2007
My latest No Load Fund/ETF Tracker has been posted at:http://www.successful-investment.com/newsletter-archive.phpAnother notch in the bedpost for the bulls. Our Trend Tracking Index (TTI) for domestic funds/ETFs now sits +5.57% above its long-term trend line (red) as the chart below shows:The international index has now moved to +10.03% above its own trend line, as you can see below: For more details, and …
From the ETF/No Load Fund Files: Active vs. Passive Investing
I came across another article (thanks to reader Nitin) in the NYT called “In Investing, Passive Beats Active.”It’s the same old story, which makes the case for lower cost index funds beating actively managed mutual funds—most of the time. Sure, all things being equal, if I were a Buy-and-Hold investor, it would make sense to use a less expensive ETF …
Technical Analysis: Can It Forecast Market Behavior?
The short answer is: To some degree and in certain cases. Why bring it up? A client e-mailed me this past weekend because he noticed a phenomenon on the domestic Trend Tracking chart (TTI). Since he is very much interested in technical analysis he observed that, a few weeks ago, the TTI “gapped” to the upside. Could that have any …
Are 401(k) Plans Ready For ETFs?
I just read an article in the WSJ called “Exchange Traded Funds appear in 401(k)s.”Some providers like WisdomTree Investments are rolling out funds invested in ETFs. Keep in mind that these offerings are still in an infant stage and improvements should materialize once this market matures. This story alerts you to some of the pros and cons and also reinforces …
Should You Re-Invest Your ETF Dividends?
A few days ago, I posted about the tremendous increase in assets ETFs experienced over the past few years. I also mentioned that, once pension plans and 401k make ETFs available to their investors, more money should flow in that direction. Several readers pointed out that a problem could be the transaction fees of ETFs for re-investing dividends. I did …