Exchange-traded funds are quirky. Like stocks, they trade throughout the day, but similar to mutual funds, they hold baskets of assets. In the early days, ETFs were mostly straightforward index funds, but over the years they have grown more complicated. Some ETFs are actively managed; others follow specially designed proprietary indexes. Keep these tips in mind before you buy one: Buy commission-free Because ETFs trade like stocks, ostensibly you pay a commission when you buy and sell shares. But gobs of ETFs trade for no charge at major online brokers. Fidelity and Schwab each offer more than 500 ETFs with no sales charge. TD Ameritrade has more than 500, and Vanguard offers a whopping 1,800 funds. Commission-free trading makes dollar-cost averaging (investing small dollar amounts at regular intervals) a no-brainer. That’s a boon to investors who are starting out or who may not be sure about a particular strategy. “A mutual fund minimum of $3,000 may be out of reach for an … [Read more...] about Investing: Smart ways to invest in ETFs
Etf dollar cost averaging
Mar 21, 12:24 AM EDT Newsletter Signup BusinessTechnologyWorldNationalMedia & CultureOpinionSportsLuxury Business By Matthew DiLallo 03/21/19 AT 12:21 AM Oil is one of the world's largest industries. The global economy consumed more than 99 million barrels of crude per day during 2018. An average price around $70 a barrel that year puts the global oil market at more than $2.5 trillion. To put that in perspective, the global economy spent more money on oil than it did on all other commodities, such as gold, iron ore, and coal, combined.Given its sheer size, and importance to the global economy, many investors desire some exposure to the oil market in their portfolio. However, it can be very challenging to pick the right oil stocks because of the sector's complexity and volatility. Oil prices can go on wild swings that seemingly come from out of nowhere. From 2014 through 2018, for example, crude prices suddenly crashed twice by more than 40%. Those plunges significantly … [Read more...] about An Investor’s Guide To Oil ETFs
By Robb Engen Special to the Star Tues., Feb. 26, 2019 I ditched my financial adviser about a decade ago and started investing on my own. I was fed up with paying high fees for underperforming mutual funds. Dividend-paying stocks were growing in popularity and so I decided to take the plunge and build my own portfolio of blue-chip companies. Several years later, I realized my folly: It’s hard to pick winning stocks. It’s even more difficult to consistently pick winners and avoid losers over the long term. Overwhelmingly, the academic research showed that passive investing using mutual funds or exchange-traded funds (ETFs) has a better chance of outperforming active investing that focuses on stock picking and market timing. I bought into the research, sold my dividend stocks and set up my new investment portfolio using two low-cost, broadly diversified ETFs. Today, investors have many more choices available to build their own portfolio on the … [Read more...] about Three easy ways to build an investment portfolio on the cheap
Anna-Louise Jackson, NerdWallet Published 11:00 am CST, Wednesday, February 27, 2019 This article was first published on NerdWallet.com. Next month marks the 10-year anniversary of the current bull market’s beginnings. Yet many Americans remain reluctant to invest in the stock market, a scary hangover from the Great Recession. From October 2007 to March 2009, the S&P 500 plummeted nearly 57% and it took more than five years for the index to recover. But the share of Americans with money invested in the stock market still hasn’t returned to pre-recession levels, according to various studies. In 2018, a Gallup Poll survey found 55% of respondents were invested in stocks or stock funds, either personally or jointly with a spouse, down from 65% in 2007. Among those younger than 35, the drop-off is especially pronounced: An average of 38% of the youngest Americans owned stocks from 2008 to 2018, down from 52% in the 2006-2007 period. This is a problem not … [Read more...] about Don’t Let the Great Recession Haunt Your Investing Dreams
Jan 09, 11:05 PM EST Newsletter Signup BusinessTechnologyWorldNationalMedia & CultureOpinionSportsLuxury Business By Dan Caplinger 01/09/19 AT 10:34 PM Exchange-traded funds (ETFs) have taken the investing world by storm, and investors have piled into them to take advantage of the opportunities that they provide. All told, investors have put about $3.5 trillion into ETFs as of October 2018, according to the Investment Company Institute's statistics, and hundreds of different ETFs are available for purchase.The popularity of ETFs owes itself to their unique characteristics and features. We'll go into great detail below about what ETFs are and why they're useful for investors, but above all, ETFs have opened the door to a wide variety of investments to which many investors had never before been able to gain access. With their efficiency, diversification, simplicity, and broad focus, ETFs have benefits that no other investment vehicle can match.What are ETFs?Exchange-traded … [Read more...] about What Is An ETF?