Investing in Exchange-Traded Funds (ETFs)

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ETFs, Mutual Funds, and the Vanguard Group

It may sound like exchange-traded funds (ETFs) are not only the best thing since sliced bread but as a replacement for sliced bread. Well, not quite. As nice as ETFs are, good old mutual funds still enjoy [more…]

Exchange-Traded Funds: Better than Brokers

Although most investors are now familiar with exchange-traded funds (ETFs), mutual funds remain the most popular investment vehicle of choice by a margin of 12:1. [more…]

Indexed Funds and ETFs vs. Actively Managed Funds

Indexed funds (such as Exchange-Traded Funds and mutual funds) are safer and easier than actively managed funds. They also make more money over the long-run. [more…]

When an Exchange-Traded Fund Closes Down

New exchange-traded funds (ETFs) are being born every week, but at the same time, others are dying. About 150 ETFs in the past several years have been zipped up, closed down, folded, and sent to that Great [more…]

Commercialization and Strange ETF Indexes

Innovation is a great thing. Usually. In the world of exchange-traded funds (ETFs), a few big players (BlackRock, State Street Global Advisors, Vanguard) jumped in early when the going was hot. [more…]

How Exchange-Traded Funds Work

Just as a deed shows that you have ownership of a house, a share of an exchange-traded fund (ETF) represents ownership (most typically) in a basket of company stocks. [more…]

ETFs and Risk: Measuring Risk through Correlation

These correlations of several iShares ETFs show to what degree different ETFs moved in the same direction over a recent three-year period. The lower the correlation, the better — from a portfolio-building [more…]

ETFs and Risk: How to Diversify Your Portfolio

Experts don’t agree on how best to diversify the domestic-stock portion of an ETF portfolio or any investment portfolio for that matter. Two competing methods predominate: [more…]

ETFs and Risk: Keep Diversification Simple

You can build yourself, at least on the domestic side of your stock holdings, a pretty well-diversified portfolio with but four ETFs: one small value, one small growth, one large value, and one large growth [more…]

Stock ETFs: Large Cap Growth Stocks

Capitalization or cap refers to the combined value of all shares of a company’s stock. The lines dividing large cap, mid cap, and small cap are sometimes as blurry as the line between, say, [more…]

Stock ETFs: Investment Options Based on Portfolio Size

If there were no trading costs involved with ETFs, then you would always be best off to hold separate ETFs for each stock style, i.e. large growth, large value, and so on. [more…]

Stock ETFs: Blended Options for Large Cap Exposure

If you are seeking a blended (large cap value and growth) investment option for smaller portfolios ($10,000 to $20,000), these ETFs are worth a look.

All the expense ratios, average cap sizes, price/earnings [more…]

Stock ETFs: Strictly Large Growth Options

For large growth and large growth alone, the four ETF options listed here all provide good exposure to the asset class at very reasonable cost. But please remember that holding a large growth ETF whould [more…]

Large Cap Stock ETFs to Avoid

None of the ETFs listed below is horrible — far from it. But given the plethora of choices, barring very special circumstances, here are the reasons these options should not rank at the top of your list [more…]

Stock ETFs: The Difference between Growth Stock and Value Stock?

Many different criteria are used to determine whether a stock or basket of stocks (such as an ETF) qualifies as growth or value. But perhaps the most important measure is the ratio of price to earnings [more…]

Stock ETFs: Six Ways to Recognize a Value Stock

Warren Buffett knows a value stock when he sees one. Do you? Different investment pros and different indexes, upon which ETFs are fashioned, may define “value” differently, but here are some of the most [more…]

Five Good Large Value ETF Picks for Your Investment Portfolio

Of the 100 or so large cap ETFs on the market, perhaps 20 or so are worth particular attention for tapping into the value market. The following five offer good large value indexes at reasonable prices. [more…]

Stock ETFs: Getting Real about Small Cap Investments

In the past century, small cap stocks and the ETFs based on them have outperformed large cap stocks. The volatility of small cap has also been greater. In terms of return per unit of risk [more…]

Stock ETFs: Top Picks for Small Cap Blend

If you have a portfolio of under $20,000 or so, consider small cap blend ETFs, which combine small value and small growth stocks. Small cap domestic stocks shouldn’t occupy more than 20 percent or so of [more…]

Top Picks in Small Cap Growth ETFs

If you have a portfolio of more than $20,000 and you can buy-and-hold, break up your small cap holdings into a growth ETF and a value ETF. Given the dramatic outperformance of value in the past, you might [more…]

Types of Accounts for Your Exchange-Traded Funds

The first question you have to answer when opening an account from which you can trade your exchange-traded funds (ETFs) is whether it will be a retirement account or a non-retirement account. [more…]

Don’t Margin Your House Away with ETFs!

It is possible to buy stocks and exchange-traded funds (ETFs) on margin. “Buying on margin” means that the brokerage house is lending you money, and charging you interest, so you can purchase securities [more…]

How to Place an Order to Buy ETFs

After your account is in place, which should take only a few days, you’re ready to buy your first exchange-traded fund (ETF). Most brokerage houses give you a choice: Call in your order, or do it yourself [more…]

How to Trade Exchange-Traded Funds Like a Pro

If you’re familiar with trading stocks, you already know how to trade exchange-traded funds (ETFs). If you aren’t, don’t sweat it. Although there are all kinds of fancy trades you could make, the two most [more…]

ETFs: Introduction to Brokerage House Choice

In the world of exchange-traded funds (ETFs) and other investments, after someone has a portfolio in place at a brokerage house such as Fidelity, Vanguard, or Schwab, that client is often very hesitant [more…]

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