Written by David Fabian, April 26th, 2017
There is an allure to stock picking that many investors find irresistible. They want to believe that uncovering the next Apple, Facebook, or Amazon is just a click away. That they will have the fortitude to hold through the desperate times, in order to reap the rewards of exponentially increasing their wealth.
Individual stocks also carry unique and personable stories that make them easier to latch onto. Products that consumers love. Executives with a firm grasp on their business model. Fundamentals that belie the true value of the company’s hidden potential. Some, or all, of these factors add to the attractiveness of publicly-traded stocks as they align with your philosophical beliefs about the markets and economy.
Written by David Fabian, March 14th, 2017
The world of exchange-traded funds is filled with heavy weight indexes geared towards a variety of stock selection criteria. The venerable SPDR S&P 500 ETF (SPY) is the largest and most heavily traded of the top ten funds by asset size. SPY is known for its meaningful diversification, tremendous liquidity, and low costs. It’s the benchmark by which nearly every stock-focused strategy is ultimately compared against.
Having a benchmark is important because it allows investors the opportunity to compare similar investment styles to determine if a fund is meeting their expectations. It can easily identify consistent trends that are worthy of greater interest or evasion. One such outlier among the largest U.S. stock ETFs is the pattern of outperformance demonstrated by the PowerShares QQQ (QQQ) over the last decade.
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 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, October 06th, 2016
One of the tremendous benefits of using exchange-traded funds (ETFs) is the ability to customize your exposure to target a specific theme. This flexibility allows for greater control of your sector and position sizing relative to a broad-market benchmark such as the S&P 500 Index. Read more