Tag: Trading Exchange Traded Funds

Nick Murray, one of the most prolific scholars in our industry, states in his book Behavioral Investment Counseling that “your family’s financial well-being in later life, and its ability to leave significant legacies to its children, will depend largely on what percentage of its income it manages to save – perhaps the ultimate behavioral variable.” If Nick Murray is right – that the most important factor in a financial plan is the percentage of income saved – we would do well to listen. Now, to be clear, the purpose of…

The US economy is facing some headwinds. The inversion of the yield curve and the moderation in the economic growth in the second quarter have mounted recession fears. I think this might be a good time for investors to consider increasing exposure to high-quality stocks which have a solid track record of consistently rewarding investors with dividend hikes. With the SPDR S&P Dividend ETF (SDY), investors can gain exposure to more than a hundred such stocks. The ETF outperformed in recent past when Wall Street tumbled and I believe it…

Assets under management in passively managed U.S. Diversified Equity (USDE) funds have surpassed those of actively managed funds as of August 31, 2019. The USDE funds universe excludes sector equity funds, world equity funds, and mixed-assets funds. At the end of August, passively managed USDE funds’ assets under management summed to $4.269 trillion, while their actively managed counterparts’ AUM came in slightly less than $4.172 trillion. Two classifications within the USDE macro-group account for slightly more than half of the passively managed AUM: passively managed Multi-Cap Core Funds have grown…

For the fourth week in a row, investors were overall net purchasers of fund assets (including those of conventional funds and ETFs), injecting $27.3 billion for Lipper’s fund-flows week ended September 25, 2019. Fund investors were net purchasers of money market funds (+$37.8 billion), municipal bond funds (+$1.6 billion), and taxable fixed income funds (+$427 million). However, they were net redeemers of equity funds (-$12.6 billion). Market Wrap-Up For the fund-flows week ended September 25, 2019, stocks generally suffered negative returns. Even after the Federal Open Market Committee voted to…

Quick Facts on DGRO In today’s low-rate environment, many investors have flocked to dividends as a (hopefully) stable source of income. Of course, investors care not only about the current yield, but also on the trajectory of the payout. iShares Not one to miss an opportunity to create a new product, iShares created the Core Dividend Growth ETF (NYSEARCA:DGRO). According to iShares, the main reasons that investors might want to own shares of DGRO is the low-cost access to US companies that have in the past consistently grown their dividend…