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Exchange Traded Funds (ETFs)

Using ETFs to Diversify Your Portfolio

Using ETFs to Diversify Your Portfolio

If a flexible investment that offers a simple way to gain exposure to the market in a diversified, cost-effective way sounds appealing ? then perhaps you should consider Exchange Traded Funds (ETFs). A relatively new investment vehicle, ETFs represent a portfolio of stocks that are designed to track a corresponding index. Similar to a mutual fund, ETFs offer a diversified investment with a single product. However, ETFs offer liquidity by trading throughout the day like a stock. ETFs are...more

Are ETFs the Investing Wave of the Future?

Are ETFs the Investing Wave of the Future?

Are exchange traded funds (ETFs) the investing wave of the future? The short answer: yes. The ETF market has grown tremendously in the last 5 years. Here are a few good reasons: 1). ETF's have the trading flexibility of a stock, as well as the diversification similar to a mutual fund. For example, you might be interested in a broad health care sector, and you would like to purchase shares of an investment that tracks that sector at any time during the day. You would be able to...more

Coffee and Volatility in the Morning

Coffee and Volatility in the Morning

We are now in the middle of ?earnings season? which is one of four times per year when most U.S. companies report their quarterly results. Wall Street has a fun little game we get to play during this time called ?beat or miss?. In this game, companies that don't do as well as Wall Street analysts predicted are usually greeted with relentless selling of their shares. Companies that meet or exceed earnings estimates may go up, down, or sideways depending on what they say about the future. If...more

Investing in Sectors

Investing in Sectors

We recently discussed investing in broad indexes to diversify a portfolio, but when investors would like to focus on a specific sector or sub-sector within the broad market, they often look for individual stocks that participate in a desired sector. As noted in the 2000-2002 bear market, investing in individual stocks can have excessive company specific risk ? think Enron. Our approach would be to buy the entire sector or sub-sector through the use of specialized Exchange Traded Funds (ETF)....more

Seeing the World with Your Portfolio

Seeing the World with Your Portfolio

One of the main reasons people invest for retirement is to be able to travel to exotic and interesting places. Exposing your portfolio to far off lands can help make this goal more attainable. The problem is that researching and selecting foreign holdings can be a full time job, leaving little or no time to enjoy the fruits of portfolio success. Fortunately, there are many Exchange Traded Funds to make the task much less daunting. The first step is an understanding of various risks...more

Enhancing your investment returns through etfs, while minimizing your risk

Enhancing your investment returns through etfs, while minimizing your risk

Index funds have long been promoted as a way for investors to get broad diversification at a low cost. They?re efficient, effective, and easy to implement. Exchange-Traded funds (or ETFs) have become extremely popular in the past few years, even though they existed in 1993. There are currently over 160 different varieties now available with total assets of $250 billion. While ETFs share many characteristics with indexed mutual funds, there are some significant differences which allow for...more

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