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 …
Which No Load Fund Is better: CVGRX or CAAPX?
The following story made me chuckle because the answer surprised me and may surprise you as well.MarketWatch had an interview with Morningstar mutual fund analyst Marta Norton. The point of the interview was Marta’s contention that funds should earn their place in your portfolio by “meeting future expectations” rather than past performance. As an example, she mentioned CVGRX and CAAPX. …
Investment Management: Advisor-Sold Mutual Funds—Are They Worth It?
What I am referring to in this heading are not the mutual funds a fee-only advisor gets you into if he manages your portfolio; I am talking about those that a commissioned advisor sells you. I ran across an article on the Motley Fool website, which is titled “Are Advisor-Sold Funds Ever Worth It?” It outlines some of the upfront, …