Is It Time To Buy TIPS ETFs, Mutual Funds?
… investments in TIPS ETFs or mutual funds. Why? I rely on individual I Bonds and TIPS, held to maturity, to fill my allocation. Yet, I can understand that this investment style isn’t for everyone. Continue reading at seekingalpha.com
How Investors Face Inflation With TIPS
[See: 7 ETFs to Buy as Interest Rates Rise … will mature when the investor expects to need money. Of course, a TIPS investment largely depends on one’s inflation fears, and not everyone … Continue reading at money.usnews.com
October US Inflation Highest in 9 Months: TIPS ETFs in Focus
Schwab U.S. TIPS ETF SCHP -- Up 0.5% The underlying index includes all publicly-issued U.S. Treasury Inflation-Protected Securities that have at least one year remaining to maturity, are rated investme… Continue reading at msn.com
Video: ‘Fast Money’ Co-Host Tim Seymour Shares Tips To Invest In Marijuana Stocks, ETFs
You've probably read this a thousand times this year already: cannabis is going mainstream by the minute. In the past couple of months, we've seen Jim Cramer weigh in on pot stocks on “Mad … Continue reading at finance.yahoo.com
Dividend hikes, CIBC's new ETFs and Carrick's robo-adviser guide: What you need to know this week in investing
With management fees between 0.3 per cent and 0.4 per cent, the four ETFs are: CIBC Active Investment Grade Floating Rate Bond ETF, CIBC Active Investment Grade Corporate Bond ETF, CIBC Multifactor Ca… Continue reading at theglobeandmail.com
Exchange Traded Funds (or ETFs) are a type of financial instrument or asset class that can be traded on stock exchanges, much like…
Volatility is one of the defining characteristics of today's global markets. As a result, many traders are seeking better way…
Very early right after the introduction of Leveraged ETFs in 2007/08 I started to invest in these double short and long ETFs. My i…
Wednesday’s 10-Year TIPS Auction Still Looks Attractive
The net-asset-value of the TIP ETF, which owns all maturities … funds could be good news for investors looking to invest in new TIPS auctions. They’ll find much more attractive after-inflation … Continue reading at seekingalpha.com
Tips for Finding The Best Smart Beta ETFs
As has been widely noted, multi-factor ETFs are a growing part of the broader smart beta space. There is a runway for that growth because more advisors and investors are realizing timing individual in… Continue reading at investopedia.com
10 ETFs to Avoid a Stock Market Crash -- or Even Profit From It
Another investment in Treasury debt is in the Treasury Inflation-Protected Securities (TIPS). SPDR Bloomberg Barclays TIPS ETF (NYSE: IPE) invests in Treasury debt that has an adjustable yield … Continue reading at 247wallst.com
Morningstar Investment Services LLC Increases Holdings in iShares TIPS Bond ETF (TIP)
Morningstar Investment Services LLC raised its holdings in shares of iShares TIPS Bond ETF (NYSEARCA:TIP) by 27.2% in the 3rd quarter, according to its most recent 13F filing with the Securities and E… Continue reading at themarketsdaily.com
Why Now is the Time to Invest in a Preferred Stock ETF
InvestorPlace – Stock Market News, Stock Advice & Trading Tips Yet, preferred stock and preferred stock ETFs have advantages and disadvantages. Unlike bond investing, preferred stock might not … Continue reading at finance.yahoo.com
* When To Purchase Etfs vs Stocks. When to Buy ETFS vs Stocks (6 Times When Investing In Etfs Is Better Than Picking Stocks)
By the end of this video you will have much better idea of when invest in etfs (Exchange traded funds) versus selecting individual stocks. Let's begin
1. When the sector has a narrow dispersion of returns.
Sectors that have a narrow dispersion of returns from the mean do not offer stock pickers an advantage when trying to generate market-beating returns. For example lets assume there are 100 companies in the utility sector and most of them provide an annual rate of return of 4%, because the performance of all companies in these sectors tends to be similar. This is usually true for consumer staple investments as well.
Its kind of like trying to choose which McDonalds to go to. No matter which one you choose the hamburger is basically going to taste the same.
Since the dispersion of returns from these kind of investments tends to be narrow or similar; picking individual stock does not offer sufficiently higher return for the risk so purchasing a utility etf or index fund might make the most sense in this example. .
2. When you want to invest in a particular market sector or industry, but you have limited knowledge of that sector or industry
For example, if you believe that now is a good time to invest in the mining sector, you may want to gain specific industry exposure. However, you are concerned that some stocks might encounter political problems harming their production. In this case, it is prudent to buy into the sector rather than a specific stock, since it reduces your risk.
You can still benefit from growth in the overall sector, especially if it outperforms the overall market.
3. When the performance drivers of a company are difficult to understand.
These companies may possess complicated technology or processes that cause them to underperform or do well. Perhaps performance depends on the successful development and sale of a new unproven technology. You find it difficult to understand the company or industry.
Chipper told me a pharmaceutical company was going to do well, but I don't understand how they operate, and there are so many of them to choose from. Which one do I pick?
Unlike in the first example where the dispersion of investment returns were narrow, the desperation of returns in this case are wide so may even more challenging to pick the winning stocks in the industry.
The biotechnology industry is a good example, as many of these companies depend on the successful development and sale of a new drug. If the development of the new drug does not meet expectations in the series of trials, or the FDA does not approve the drug application, the company faces a bleak future. On the other hand, if the FDA approves the drug, investors in the company can be highly rewarded.
4. When you want instant diversification
ETFs provide instant diversification relative to individual stocks. It would be challenging to have a properly diversified portfolio with 10 individual stocks, but relatively simple with the same number of ETFs. (To learn more, see 10 Ways ETFs Can Grow Your Portfolio.)
5. Invest In Hard-to-access Markets
Owning gold is a pain for most individual investors; owning SPDR Gold Shares (NYSE:GLD) (which owns gold bullion) is simple. Not only does this ETF bypass the bid-ask spreads of retail gold and the expense of rolling over futures contracts, but it has no storage or security requirements. Likewise, investors can access commodities like copper, precious metals, timberland and so on through the convenient forms of ETFs. (For more, check out Commodities: The Portfolio Hedge.)
6. Less time consuming way to invest
The iShares US Medical Devices ETF (NYSE:IHI) contains 40 different stocks. It would take weeks for an individual investor to do proper due diligence on each of those names, and that is one of the advantages of ETF investing.
Why should I spend all my time trying to sit here and pick individual stocks? I need to get my sorceress in Diablo 2 to level 99!
Because the impact and importance of any one stock is relatively small, investors can spend their time thinking about which sectors and markets are poised to perform and make investment choices without being bogged down by an overwhelming amount of initial and ongoing due diligence.
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