• 14

    Dec

    Active ETF cannot beat Passive ETF

    It is not good for investor whose has active ETF. They think the active is better than the passive. I have read the article from Investopedia.com. Actively ETF is different with passive ETF. The management of active ETF must work hard to manage active fund. They do short selling, sector rotation, and buying on margin. On the other hand, a passive ETF manager will not do like that. They invest their money at index such as S&P 500. Unfortunately, most active investor does not get money as they think. The active ETF cannot beat the index or market performance. Actively-managed ETF is rare. It is because the technical challenge in creating the product. We do not know the share or stock price exactly. There is disparity price. To the big buyer such as ETF management, the stock seller give
  • 9

    Dec

    Index Funds is not same with stock

    Some people may guess that index fund is similar to stock. They think that Index fund can give higher return like investing in stock. Index fund invest not only stock but also bond. Bond index that include treasury bond, corporate bond, mortgage-backed bonds, and so on is less popular than stock index. By investing in index, you diversify your money to numerous company. You should also pay some fee for funds too. The critics of mutual fund is that the manager cannot beat the market. Some manager also cannot beat the market. Perhaps they cannot construct a good portfolio. The Bond Fund expected return usually is lower than Stock Fund. It is because the expected return of stock is higher than the expected return of bond.
  • 18

    Aug

    The reform does not touch the mutual fund fee

    Every mutual fund holder should pay the fee to the mutual fund company. Sometimes the fee incriminate the investors. The return is also decrease. One of the fee is 12b-1 fee or people name it “marketing”, or “distribution expenses”. SEC proposed a new rule that the company should disclose the fee. According to Kiplinger.com the government financial reform misses the mark. Unfortunately, the proposal misses how the mutual company pay the broker in their sales effort. The company should pay the broker but where the money come? Is the fund company get the compensation from company which the fund company invest in it? You can see further at the links
  • 11

    Aug

    Is leveraged ETF useful?

    Perhaps we just hear leveraged ETF. For Professional investor, this investment is very famous. The ETF must be different with other ETF. This ETF allow the investors to get outsized return. Unfortunately, not all people can use this investment. It is because this investment is very complicated. The new investor should learn about this investment first. This investment use some derivatives to get high return such as option, swap, and others. This ETF does not use long or short to achievement investment goal like other ETF does. For ordinary people like us, it is difficult to use derivatives tool. By using some derivatives, they have to pay other transaction fee. Certainly, It eat your investment return. Some leveraged index may produce negative index when the index it tracks moved up. Y
  • 31

    Mar

    Why Invets at Index Fund

    I remember that Warren Buffet has suggest to invest at index fund. This investment will give you high return if the economic condition is good. On the other hand, we can suffer loss if the economic is bad. Second reason is lowest fee. The average of index fund fee is lower than other mutual fund. For example, the average of mutual fund fee could reach 2% but the index fund is just 0.5%. Many investor does not belive the performance of fund manager. In 1990s, the average of mutual fund return yearly just 12.9% but the index fund could reach 17.3%.
  • 26

    Sep

    What is mutual fund?

    Mutual fund is a bunch portfolio that contains various investments. This investment is suitable with tiny investor. Investor can get variety stock, bond, index in one packet. Mutual fund is fits for short-term investor, medium-term investor, and long-term investor. There are two kinds of mutual fund. There is open-end and close-end mutual fund and open-end mutual fund. There is type mutual fund base on investment policy. There mutual funds are equity funds, fixed-income securities, balanced fund, index fund, money market fund, specialized sector, etc. These kind funds are suitable with different type investor. read more
  • 9

    Sep

    What you need to know before buy mutual fund

    Mutual fund offers some advantages to investor. Buying stock is expensive meanwhile you just have little money for investing. Buying mutual fund is alternative investment for tiny investment. Think what your investment goal. Why you need buy mutual fund? It will determine the mutual fund that fits on you. For example, money market fund is fits with investor who want fast profit. read more…
  • 30

    Aug

    Investment at precious metal ETF

    Exchange Trade of Fund or ETFs, is a bunch of investment that has similar liquidity like a stock. An investor can buy and sell ETFs anytime like stock. You may buy ETFs this day and sell it tomorrow. This will give you chance to gain profit at short time. Unlike mutual fund that can be sold after counting Net Asset Value (NAV). In high inflation condition, Gold ETF could give high return. Today dollar is relative weak to other currencies. Perhaps this time you buy some gold ETF. On the otherhand, the investment does not give you high return in boom economic. read more…
  • 18

    Aug

    Top ten question about mutual fund

    Mutual funds are most investment favorites in USA. In 2001, there are more than seven thousands mutual funds in USA. Today there is more than millions household who invest in mutual funds. Unfortunately, the crisis makes this investment become less popular. Sometimes, some investors do not understand mutual funds. I hope this hubs will give you some knowledge about mutual fund. Ten question or frequently asked questions (FAQ) are: read more
  • 17

    Jan

    Determining risk in mutual fund investing

    Investing in mutual fund is risky. The investor could loss money in a moment. Unlike certified deposit, mutual fund has no guarantee. You should be wise to invest your money. We are difficult to find any investment today because the global crisis occurs. On the other hand, some mutual fund has little bit return. You can invest at that investment too. The best way to recognize the risk is record of accomplishment. You can see they record year by year. You need they record at least ten year. You can use statistic software or excel to measure their risk. The best fund has well return record. Unfortunately, the best record does not guarantee you to get return. Perhaps next year the mutual fund will bankrupt. We do not know what happen next.
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