Written by David Fabian, May 12th, 2017
The ETF world is full of articles touting the advantages of mega-firms like Vanguard, BlackRock, and State Street. These companies have set the bar high for delivering exceptionally transparent, diversified, low-cost, and liquid vehicles to every American investor. Read more
Written by David Fabian, May 02nd, 2017
The concept of investing in European stocks seems difficult to stomach considering the decade of lost returns versus their U.S. counterparts. A new post by Michael Batnick, Director of Research for Ritholtz Wealth Management, details the difficult 10-year journey for this foreign investment class. The U.S. has simply been the star outperformer on the global stage for so many consistent years that the home-bias phenomenon has been taken to a new level.
According to their research, U.S. stocks now make up 80% of the average U.S. investor’s equity portfolio. The remaining 20% is likely split among a variety of European, Asian, and emerging market exposure. This overweight exposure towards a high-flying asset class ultimately leaves many investors susceptible to being caught off guard as the pendulum swings in the opposite direction.
Read the complete article at NASDAQ.com
Written by David Fabian, January 10th, 2017
The impact of currency fluctuations is a dynamic that more and more investors have taken an interest in over the last several years. A decade ago, it was difficult to trade the currency markets without a dedicated forex account and sophisticated knowledge of the landscape. This was the realm of institutional investors and macro hedge funds. Fast forward to 2017 and there is a myriad of mainstream options to take advantage of these markets in a normal brokerage account.
At present, there are 32 exchange-traded products dedicated to currency trading pairs or indexes. There are also countless other ETFs and mutual funds with embedded currency strategies coupled with stock or bond holdings. These “local currency” or “currency hedged” indexes allow ETF investors the ability to mitigate certain risks of owning foreign investments or take advantage of a specific currency trend.
Written by David Fabian, December 10th, 2016
Investors are likely feeling emboldened by the strength of stocks as we close out the final month of 2016. Bullish enthusiasm can be infectious and now the race is on to determine which sectors or regions will be the top-performing areas of the market in 2017. While there is no way to know where the winner will be ahead of time, there is one noteworthy area that has piqued my interest – emerging markets. Read more
Written by David Fabian, August 09th, 2016
In my experience as an investment advisor, most portfolios that utilize exchange-traded funds have an embedded “home country” bias. This means that the majority of the underlying assets are focused in U.S.-centric stocks and bonds rather than foreign markets.
This trend has been further exacerbated in recent years by the outperformance of U.S. large cap stocks versus their international peers. Many ETF investors have grown weary of the persistent lagging returns and heightened volatility of both developed and emerging markets. As a result, they have underweighted or altogether eliminated these assets from their portfolios.