Written by David Fabian, February 22nd, 2017
ETF investors are spoiled by the tremendous number of quality choices for building their diversified stock allocations. The sheer breadth of selection across market cap, sector, industry, and factor-based strategies ensures there is something for virtually everyone.
Yet, one of the lesser understood qualities of exchange-traded funds are their ability to simplify your portfolio. You can own hundreds or even thousands of stocks in a single holding with extremely low costs and impeccable tracking efficiency. That eliminates the need to screen numerous positions and creates benefits of widening your exposure profile.
Written by David Fabian, February 16th, 2017
The volatility in the biotech space over the last two years has been quite a sight to behold. I’m not strictly speaking of volatility in terms of downside either. There has been money to be made on both sides of the market for those that have been nimble in their trades.
Most ETF investors are probably familiar with trading the iShares NASDAQ Biotechnology ETF (IBB). This market-cap weighted giant has $8.2 billion dedicated to a basket of 164 stocks in the biotech research and medical services fields. As you can see on the chart below, this index has been on a rollercoaster ride of whipsaws in both directions over the last year.
Read the complete article at Seeitmarket.com
Written by David Fabian, February 15th, 2017
Retail stocks have become a highly-publicized area of the market in recent years as the continued struggle for brick and mortar relevance battle the efficiency of online sales. The trend has been exacerbated with the steady expansion of retail juggernaut Amazon Inc (AMZN) into more and more households. The strength of Amazon has unavoidably weighed on the share prices of more traditional retailers that find themselves strung with slowing sales and inescapable costs.
There is no doubt that consumerism is alive and well in the heart of the American economy. Which is why it’s worth considering if the pendulum of momentum will eventually swing back in the direction of numerous stalwart retail competitors.
Written by David Fabian, February 07th, 2017
Ask a room full of experts what the most important part of a successful investment strategy is and you will likely get a range of candid responses. Most would gravitate towards answers like security selection, position size, time, or cost as their primary recommendations.
Those characteristics are certainly important and should not be overlooked. However, the data behind ETF asset flows and fund returns continues to signify a tremendous deficiency in net performance for individual investors. Much of this gap can be attributed to behavioral choices – i.e. buying high or selling low.
Written by David Fabian, January 31st, 2017
ETF investors often spend an inordinate amount of time trying to find the best spot in the market. They love focusing on specific sectors, factors, or tactical strategies that are showing a promising edge. However, there is often a fundamental need for simple and diversified stock exposure at the lowest possible cost.
This type of core foundation is the essence behind total stock market funds. They allow you to stay correlated with the broadest possible indexes and charge expenses that are so fractional as to be almost non-existent. They embody the true spirit of the ETF philosophy in their liquidity, tax efficiency, and transparency.