Written by David Fabian, October 12th, 2017
This morning I saw the graphic below posted on social media as a marketing tool for the new Schwab 1000 Index ETF (SCHK). The intent of this message is to point out the advantageous expense ratio of SCHK in relation to its competition. The fund charges just 5 basis points per year to own the 1,000 largest stocks in the United States. Read more
Written by David Fabian, September 12th, 2017
Most people are hardwired to look for shortcuts. The fastest way home from work. The most efficient way to mow the lawn. The chance to make our lives easier or more productive can be a positive in many work environments. It may also make you feel more accomplished in other aspects of your life as well.
However, when that same impulse is applied to the stock market, it takes a much darker turn. Read more
Written by David Fabian, August 04th, 2017
Emerging markets have been off to the races in 2017 and China has played a huge role in fueling that growth. The world’s second largest economy felt the heavy contraction that plagued many stock markets throughout 2015 as commodity and currency volatility took their toll. However, its turning point coincided with a global rally in risk assets that has been persistently strengthening over the last eighteen months. Read more
Written by David Fabian, June 13th, 2017
ETF investors have wholeheartedly embraced the transparency and low-cost of passively managed investment vehicles. Billions of dollars every year since the great financial crisis have left the obfuscated world of high-priced mutual funds and transitioned into index-based ETFs.
This rotation is almost entirely based on the foundation that you know exactly what you own, why you own it, and what the minimal expenses will be. There is a comfort and reliability that the fund will perform to an exacting standard with very little deviation from its benchmark.
Written by David Fabian, June 05th, 2017
The investment universe is littered with articles touting the advantages of various funds or strategies. I should know. I have written for the last five years about the characteristics of ETFs and closed-end funds that we consider for our clients. Some pass my rigorous test, while others are weeded out through careful analysis.
Throughout this time, I have realized it’s easy to compare two or three funds in a vertical category and dissect their merits. Some will stand out based on costs, while others may promote index methodology, tax efficiency, or security selection as their primary benefits. Read more