Great piece on ETF's by Vanguard!

-
I am of the mind that going with Exchange traded funds may be the best alternative for most people.
Low commissions , liquidity and effectiveness!
A piece on ETF's from the Vanguard website.
Image result for ETF's
What is an ETF?
The simplest definition of an exchange-traded fund, or ETF, is that it's an investment that's built like a mutual fund but trades like an individual stock.
The most common ETFs are designed to track the performance of a market benchmark, or "index."
Enjoy the same built-in benefits of mutual funds

Diversification
One fund can hold potentially hundreds—sometimes thousands—of individual stocks and bonds, which helps spread out risk.
Professional management
You don't have to keep track of every single investment your ETF owns. The fund is managed by fund experts who take care of that for you.
Get more control with ETFs—at lower costs
While ETFs are in many ways the same as mutual funds, there are some features that make them unique.
Trading flexibility
ETFs offer you the same intraday pricing you get when trading stocks and bonds through a broker on a major stock exchange.
Lower cost
Funds that track an index, like ETFs and index mutual funds, generally offer lower expense ratios than conventional mutual funds.
Tax savings
Like index mutual funds, ETFs are typically more tax-efficient, which could translate into tax savings for you.

Lower minimums

Comments

Post a Comment

Popular posts from this blog

The DuPont Identity: A vital key to understanding the Financial Markets

-
Image
The DuPont Identity: A vital key to understanding the Financial Markets . Friday, February 17th, 2012 “Knowledge is power.”  – Sir Francis Bacon We promised at the outset, to deliver an amusing, yet educational experience. On that note, we unveil today’s feature: The DuPont Analysis. DuPont deconstructs and reviews the components that encompass the essential view of a company’s health, its return on Equity (ROE). It was developed by DuPont in the 1920’s to help them manage their conglomerate, and it is brilliant! The inspiration to delve into this financial abstruse was the story of Billy Beane, as portrayed in Michael Lewis’ popular book, “Money Ball”. Beane, the general manager for the Oakland Athletics baseball team, discovers the usefulness of viewing major league prospects through the lens of statistical analysis that goes far beyond the normal batting and earned run average statistics. Beane, who was once a baseball prodigy himself, found disappointment through un...
Read more

The corporate debt problem refuses to recede..click on link,

-
Image
Opinion   Market Volatility The corporate debt problem refuses to recede Non-financial leverage is higher today than it was before the crisis London Financial Times Retreived from: https://www.ft.com/content/ceb8d8ee-0b57-11e8-8eb7-42f857ea9f09 As stock markets gyrated wildly earlier this week, the Reddit social media platform delivered a scream of pain from somebody called “Lilkanna”, who claimed to be a small-time investor holding exchange-traded notes that bet on low US equity volatility. “I started with 50k [dollars] and traded all the way to 4 mill over 2.5 years . . . using more and more margin [ie debt],” this declared. “But now I have lost $4m, three years of work, and other peoples’ money.  I feel like such a fool.” Quite so. For months, commentators have warned that a correction in the US stock market was overdue. Financial insiders have also warned that volatility was bound to explode after last year’s supernatural calm, spelling disaster for anybo...
Read more

Great comment by an online student of mine about the perils of Social Media.

-
Image
Great comment by an online student of mine! https://www.marketwatch.com/…/heres-what-you-should-do-when… Re:Not winning the Mega Millions could be the best thing that ever happens to you Published: Oct 21, 2018  Wow, Professor Strafaci, this article hits a lot of great topics! I live in Las Vegas, NV, and while we do not have the lottery here, many people spend their hard earned money gambling at the various casinos. We have the Mega Bucks jackpot that most people dream of winning to change their life circumstances. Yes, there are some "wealthy" people who are gamblers, but most of the people in the local casinos, are average or low-income people. It makes me sad when we go to the movies, the theater is in a casino, and I see all these people looking like zombies as they play the slot machines and table games. This article also hit on the influence social media plays in people thinking they need more. I try to do a social media fast one to two times per mo...
Read more