This write-up is the next installment in our series about low-expense-ratio exchange-traded fund (ETF) provider Vanguard and features the Vanguard FTSE Developed Markets Fund (VEA). VEA is Vanguard’s third-largest ETF by assets under management at $44.46 billion, and its 0.09% expense ratio is less than a quarter of the average ratio for similarly allocated funds. […]
Following last week’s introduction to exchange-traded fund (ETF) provider Vanguard and its low-expense-ratio funds, we turn our attention today to an offering with a 0.05% expense ratio, Vanguard Total Stock Market ETF (VTI). VTI is the second-largest ETF among Vanguard’s offerings, and its highly cost-effective expense ratio is noted by Morningstar Inc. to be 95% […]
As we head into the final quarter of 2014, I thought it would be interesting to take a look at where investors are putting their money. As of Sept. 30, the top 20 ETFs as measured by assets under management (AUM) account for almost 40% of all assets invested in exchange-traded funds. Here are a […]
Vanguard, one of the world’s largest mutual fund companies, also has carved out a strong niche as a provider of exchange-traded funds (ETFs) that fit the investment firm’s focus on keeping its management expenses low. In 2013, Vanguard’s funds incurred an average expense ratio of 0.19%, compared to the industry average expense ratio of 1.08%, […]
Fans of baseball know there are two main ways to evaluate team and individual performance: the old-school “eyeball test” method and the newer practice of statistical analytics, popularized in the book (and later the film) “Moneyball.” An analogous distinction can be drawn between ordinary exchange-traded funds (ETFs) and so-called “smart beta” ETFs. A typical ETF […]
Successful Investing is Jim Woods’ flagship investment advisory service. For almost 40 years, its proprietary approach (called the Fabian Plan in honor of founders, Doug and Dick Fabian) has determined whether the market’s flashing “buy” or “sell.” When it’s time to buy, Jim tells you which stocks and ETFs offer the best potential and least risk. When it’s time to sell, he tells you exactly when to get out. In almost four decades, Successful Investing has called just about every major market plunge.
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In the long term, the market rewards companies for demonstrating good business fundamentals. Examples include companies that sell goods and services to a large number of people while profiting handsomely by containing costs. Sure, in the short term the market can function as a sort of popularity contest. However, over time there is nothing better […]
Volatility, the potential for the market or a stock to swerve sharply in value, serves as a deterrent for many prospective investors. After all, who wants to lose a sizable portion of hard-earned savings in a flash? Luckily for investors such as these, there exists a smart beta ETF designed specifically to offer a calmer […]
Last week’s ETF Talk introduced the concept of smart beta funds. A key reason a person might invest in a smart beta fund would be to use the fund’s formula to invest more heavily in quality equities that are underrepresented in a typical market-cap-weighted exchange-traded fund (ETF). One quality indicator in a stock is whether […]
This month, we’re doing a little something different with our ETF Snapshot, and it involves our comprehensive ETF Report. At my investment advisory firm, Fabian Wealth Strategies, the last thing we ever want to do is stay static, and not improve. That’s the surest way to mediocrity, and we don’t embrace mediocrity — we embrace excellence. […]
Many exchange-traded funds (ETFs) have their holdings weighted by market capitalization. In other words, the total market value of a company’s shares determines what proportion of an ETF’s assets are invested in that holding. But “smart beta” funds are different, since they are not market-cap weighted. For example, the market-cap-weighted SPDR S&P 500 (SPY), an S&P […]