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...]
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...]
406 Plus: More on SVOL, Active Bond Funds, Vanguard Risk Rates, and Purchasing Real Estate in IRAs
In Plus Episode 406, David provides more detail on why he sold the Simplify Volatility Premium ETF. We discuss how all bond investing involves some active decisions and why an investor would consider an active bond mutual fund. We compare two Vanguard mutual funds with different risk ratings. Does a conservative fund losing more money this year than a more aggressive fund signify Vanguard's risk ratings are wrong? Finally, we explore how to purchase real estate using the funds in an … [Read more...]
234: Index But Don’t Herd
How and when to use passive indexing strategies without following the crowd. Photo by Davide Ragusa In this episode you’ll learn: How big is indexing and why has it taken so long to catch on.What areas has active management done well.What are ways we can index without following the crowd. Show Notes Jeffrey Gundlach says passive investing has reached a 'mania' – investors should avoid index funds - CNBC Passive investing continues to captivate global audience - … [Read more...]
163: Is There An Indexing Bubble?
How an indexing bubble is manifest, why most active managers underperform and how individuals can structure their own quasi index fund that outperforms the market. Photo by Sebastian Pichler In this episode you’ll learn: How popular is indexing.Why mathematically do active managers underperform.How to outperform a capitalization weighted index.How to build your own quasi index fund. Show Notes The 25 Largest Mutual Funds and ETFs - MarketWatch The Makeup of the S&P 500 … [Read more...]
135 Plus: Investing Cash, Active Versus Passive, and SEC Yields
This week December 3, 2016 on Money For the Rest of Us Plus we look at why the model portfolios are a jumping off point to investing rather than a one size fits all solution. We discuss using actively managed funds to complement passive ETFs. We explore how SEC yields are calculated and how yield to maturity assumes reinvestment of interest/dividends. Finally, we look at where cash should be invested. Audio duration: 18:44 … [Read more...]
