In Plus Episode 329, we review why Robinhood and other brokers suspended trading in certain stock shares this past week. We walk through a numerical example of how a home mortgage fits into an overall asset allocation and how the portfolio mix could be adjusted if the mortgage is paid off to maintain a similar risk profile. Finally, review the difference between transparent and non-transparent ETFs for actively managed ETFs such as those by Ark Invest. 329 Plus View and Listen To … [Read more...]
321 Plus: More On Hedged Equity and When to Sell Company Stock
In Plus Episode 321, we take a deeper look at hedged equity and outcome based ETFs like the JP Morgan Hedged Equity Fund and the Innovator ETF series. We also answer a member's question about selling his employer's stock that now comprises 75% of his portfolio. Finally, David discusses his recent trade to increase his allocation to the WisdomTree CBOE S&P 500 PutWrite Strategy ETF (PUTW). … [Read more...]
321: How to Analyze Complex Investments
How to determine whether you should invest in a complex investment such as an actively managed ETF that uses option strategies. Topics covered include: A recent investment David made that he shouldn't have What is the volatility risk premium and how to invest in it Why there have been over 200 new ETFs and ETNs launched in the U.S. in 2020 Why some ETF sponsors launch lower cost versions of ETFs that compete with their existing offerings. What questions to answer as part … [Read more...]
311: Did ETFs Pass the 2020 Market Collapse Stress Test?
How did ETFs function during the 2020 market sell-off and did the indexing bubble burst? which ETF structures failed the stress test and which passed? Topics covered include: Why were some investors, like Michael Burry, concerned about an indexing bubble What are ETF risks such as flash crashes How did equity ETFs function during the spring 2020 sell-off and how they can act as shock absorbers What were some of the challenges that bond ETFs faced in March 2020 How the rise … [Read more...]
303 Plus: Broken Assets, Impact Investing ETF, and a Venture Capital Fund for Individuals
In Plus Episode 303, we review a recent article on underperforming assets by Research Affiliates. We analyze the iShares MSCI Global Impact ETF and use it as an example for how to analyze an ETF. Finally, we consider the Alumni Ventures Group as an option for individuals to invest in venture capital. … [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...]
275 Plus: Deciding Between ETFs, Investing in Nuclear Energy, and a Member Portfolio Review
In Plus episode 275 for the week of November 2, 2019 we look at the criteria for deciding to invest in an ETF sponsored by Vanguard, iShares, Schwab or some other platform. We look at the difference between investing and supporting a particular social cause particular as it relates to nuclear energy. We analyze two nuclear energy related ETFs. Finally, we analyze a member's asset allocation to see if it is too aggressive or too conservative and discuss why there isn't an absolute correct … [Read more...]
268 Plus: More on the Indexing Bubble, ETF Flash Crashes and Tax Efficiency
In Plus episode 268 for the week of September 14, 2019 we continue our discussion on a potential indexing bubble and how indexes can push up the price of certain securities. We also look at why it is so difficult to determine what percentage of the stock market is indexed. We review what can cause a flash crash in ETF shares, including for gold ETFs. Finally, we look at the mechanism that allows ETFs to be more tax efficient than index mutual funds. … [Read more...]
247: More Indexes, ETFs and Manager Skill, but Less Alpha
How the increase in indexing is leading to the creation of more stock indexes, most of which are used by active managers. How more indexing makes it more difficult for active managers to outperform even though managers are getting more skilled. In this episode you’ll learn: Why there are so many more stock indexes than stocks.Who are the major index players and how do they decide what to include in an index.Why it is important to understand how an index is constructed.Why more … [Read more...]
223 Plus: ETFs vs Index Funds, Vanguard vs Others and Collateralized Fund Obligations
This week September 29, 2018, we compare investing in ETFs to index mutual funds. We also look at whether Vanguard is a better choice than other brokerage options. Finally, we explore a collateralized fund obligation that is backed by private equity cashflows. … [Read more...]
