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.
Finding Your Way through the ETP Maze
CFA Institute Conference Proceedings Quarterly
The exchange-traded product (ETP) market has grown dramatically over the past 15 years. Exchange-traded funds (ETFs) are the largest component of the ETP market. ETFs trade like individual stocks but have unique regulatory, tax, and operating features. ETPs have evolved from purely passive beta strategies with complete index replication to fully active alpha-seeking strategies. The number of advisers who use ETPs is growing, which signals a return to investors investing passively and advisers, not funds, making alpha-seeking decisions. Read the complete story here.
Your Money, Your Wealth Podcast
Your Money, Your Wealth Radio Show
Rick shares his views on The Power of Passive Investing and the 20th anniversary of ETFs during the second hour of the Feb 9, 2013 radio show. Listen to the Podcast here.