Written by David Fabian, December 01st, 2016
Investors like to stick with what they know and that is often demonstrated in the use of a single fund company for all their wealth. I see it quite frequently when I review portfolios for prospective clients. “I’m a Vanguard guy.” “I love Fidelity funds.” “All my money is at American Funds or PIMCO or T. Rowe Price.” Read more
Written by David Fabian, November 08th, 2016
Hedge funds have come under fire in recent years as a streak of underperformance has led to allocation cutbacks in various pension and institutional portfolios. Many investors are comparing hedge fund returns to passively managed vehicles like exchange-traded funds and coming away unimpressed with the results.
The crux of the issue is that active managers have had a difficult time selecting stocks or allocating to asset classes that justify their high expenses. Returns in these vehicles are often streaky and industry correlations are becoming increasingly similar to that of an index fund. Furthermore, the high liquidity, low costs, transparency, and tax efficiency of ETFs are strong influences in today’s modern investment landscape.
Written by David Fabian, December 01st, 2015
The CBOE VIX Volatility Index is an interesting animal that has grown to become one of the most heavily watched indicators of fear and greed in the market. This index functions by measuring near-term volatility expectations from options activity on the S&P 500 Index. It’s calculated on an intra-day basis, so investors are able to watch as implied volatility expands or contracts in real time. The CBOE has a nice primer on how this is accomplished that you can read here. Read more
Written by David Fabian, November 10th, 2015
Everyone loves to save money wherever possible, and shopping for the cheapest investment products should be no different. After all, excess money you pay in underlying fees can add up significantly over time and erode the gains in your investment portfolio.
Investors in exchange-traded funds (ETFs) have become savvy to this concept as they make the switch from expensive actively managed mutual funds for passively managed indexes. The end result is often times better correlation to the major indices with lower overall costs and friction. Nevertheless, not all ETFs are created equal when it comes to their embedded expenses.
Read the complete article at NASDAQ.com
Written by David Fabian, July 14th, 2015
One of the reasons I love exchange-traded funds is the majority of the industries’ assets are concentrated in products with very low fees. Sure there are a few rogue funds out there with 2%+ expense ratios, but these are primarily relegated to the black corners of obscurity. Read more