Funds Investing: Make More Money and Worry Less
Wall St. Journal
You know all that advice you hear about stock investing? You should ignore most of it. If you're investing for a long-term goal such as retirement, then keeping it simple with a portfolio of three to six broad-based, low-cost mutual funds can pay off in the long run. Rebalance on occasion, and you'll be well on your way. Read the complete story here.
Can You Beat the S&P 500 with the S&P 500? (STK 049)
Passive investing guru and Forbes contributor Rick Ferri joins us to talk about a “smart money” strategy that’s cropped up lately: Can you beat the S&P 500 with the S&P 500? His answer may surprise you. Listen to the Podcast here.
Launches Push US-Listed ETFs Above 1,500
Rick Ferri, founder of the investment firm Portfolio Solutions and a known advocate of passive investing, projects that over the next 20 years, the exchange-traded product industry will at least triple the number of funds on the market. Read the complete story here.
Is It Time to Buy Commodities?
The Wall Street Journal
With prices sharply down on many commodities--and stocks at record highs--investors may be wondering: Is it time to swap stocks for soybeans? We investigate. Read the complete story here.
Putting the Portfolio Odds in Your Favor
ETF Daily News
It’s well known that the majority of actively managed mutual funds underperform comparable index funds over any period longer than a few years. In fact, that statement has become so uncontroversial that even mutual fund salespeople freely acknowledge it. But a recent white paper co-authored by Rick Ferri, A Case for Index Fund Portfolios, takes this idea a step further. Read the complete story here.
Portfolio Structure: Index vs. Active
S&P Dow Jones Indexes
Craig Lazzara, Global Head of Index Investment Strategy, S&P Dow Jones Indices interviews Richard A. Ferri, CFA, Founder, Portfolio Solutions LLC. Watch the video here.
What is the Best Way to Invest Your Money?
What’s the best way to invest your money? I’m not talking about whether to invest in stocks or bonds or real estate. I assume you’ve already decided on a diversified portfolio of mutual funds or ETFs, most likely covering all three of those popular asset classes. The question is: What kind of funds should you choose? Read the complete story here.
Less is More with Simple ETF Portfolios
Less is more. That's the record message of a recent Wall Street Journal piece encouraging the use of an extremely simple portfolio with a bare minimum of funds. The record is hard to dispute. Passive funds often outperform active funds in annual surveys. And combining passive funds into a simple portfolio beats a portfolio of active funds, as Rick Ferri noted in a recent white paper. Read the complete story here.
Diversification means different things in different contexts. We can speak, for example, of diversification within an equity portfolio — i.e., of holding a number of stocks with potentially-offsetting risks, as opposed to concentrating on only one issue or on a handful of similar stocks. Or we can think of diversification across asset classes — e.g., by adding bonds, or international stocks, or commodities to a (diversified) U.S. equity portfolio. Conventional wisdom smiles on these two forms of diversification, and rightly so, since the final diversified portfolio typically has a higher expected return, or lower expected risk, than the starting portfolio.
But diversification might not always be a good idea.
- See more at: http://www.indexologyblog.com/2013/07/19/when-diversification-fails/#sthash.URPARztH.dpuf
Five Bond Questions to Ask Your Financial Advisor Now
With emerging market bond funds down 10 percent in the past month and a half, is this really the time to be jacking up exposure to a volatile asset class? Read the complete story here.
The Experts...On Couples, Collectibles, Debt and Play Money
The Wall Street Journal
Avoiding fights about money isn't easy sometimes, as most couples will attest. But even without taking relationships into account, managing one's money is increasingly challenging. Read the complete story here.