In Plus episode 520, we examine why a greater percentage of bond managers outperform a passive index compared to active stock managers. We review why Treasury Inflation Protection Securities exhibit day-to-day price volatility. Finally, we review the new DoubleLine Asset-backed Securities ETF (DABS). … [Read more...]
467: Unraveling the Truth About ETFs: Benefits, Analysis, and the Indexing Bubble Myth
How the ETF market is changing, why ETFs should be your preferred investment vehicle, and how to analyze ETFs to generate better investment performance. Topics covered include: How large have fund flows been away from active mutual funds and into ETFs How big are the largest ETF families and how has their market share grown Why the rise of active ETFs blurs the distinction between active and passive investing Why there doesn't appear to be an indexing price bubble, but the … [Read more...]
447 Plus: The Tax Impact of Active Stock Funds, Municipal Bonds, and Balancing Cash and Longer-term Bonds
In Plus episode 447, we discuss how to calculate the performance impact of capital gains tax distributions for an active stock mutual fund. We answer a member's question on what to do with a portfolio of individual municipal bonds selected by their previous investment advisor. Finally, we explore the decision between holding high-yielding cash or locking in higher coupon rates on longer-term bonds. … [Read more...]
426: Which is Best – Active or Passive, ETFs or Funds?
David has a fascinating discussion with Kristof Gleich about active management, indexing, and how ETFs and mutual funds really work. Topics covered include: Should individual investors even try to select active mutual funds Is there an indexing bubble Why are there so many new ETFs Should we be worried about an ETF flash crash What do ETF market makers and authorized participants do Do SEC yields for international equity mutual funds and ETFs reflect the impact of … [Read more...]
300 Plus: Buying Tail Risk Protection, Active Management, and Trading Oil Sentiment
In Plus episode 300, we review the Cambria Tail Risk ETF (TAIL) to buying puts directly and consider the overall cost of a stock portfolio hedging strategy. We review the performance disparity between stocks as it relates to the pandemic and whether now is the time to shifts some assets to active management strategies. Finally, we explore a member's strategy for trading in and out of the DB Energy ETF (DBE) … [Read more...]
277: How ETFs are Changing
How regulatory changes could lead to a boom in new ETFs, including actively managed ETFs. Why ETFs continue to be one of the most innovative, cost-effective and tax-efficient investment vehicles. “Exchange-traded products are among the most significant financial innovations in recent decades and have shaped financial markets as we know them today,” said Michael S. Piwowar, former Commissioner of the U.S. Securities and Exchange Commission. The growth in exchange-traded products … [Read more...]
Use of Active Mutual Funds versus Passive Index Funds and ETFs
I use both active bond and equity funds and passive bond and equity index funds and ETFs in my portfolio. I generally prefer passive index vehicles because the fees are lower and they are more tax efficient. … [Read more...]
Use of Active Bond Funds
This audio lesson shares why I generally use active funds for bonds but passive funds and ETFs for stocks. The episode length is 6 minutes. … [Read more...]
