The exchange-traded fund (ETF) structure shares certain similarities with mutual funds, but also important differences that investors need to understand, especially if you’re used to investing through mutual funds. These differences can prove to be advantageous for investors in actively managed ETFs compared to other investors who hold their money in active mutual funds. Investing […]
Over the last decade, low cost index funds and ETFs have surged in popularity. These passive investment vehicles offer broad exposure to the underlying stocks and bonds of the indexes they follow, usually at a very attractive price. But just because these investment portfolios are passive doesn’t mean how you choose to allocate among index […]
In May 2010, ActiveETFs | InFocus spoke with Paul Weisbruch, who is the VP of ETF/Index Sales and Trading at Street One Financial. Street One Financial is an ETF liquidity provider and works with advisors in helping them access liquidity and trade ETFs efficiently. Paul chats with us about a fundamental misconception about ETF liquidity, […]
How Much Does Your ETF Really Cost? Let’s Discuss an Active ETF Expense Ratio vs. Index ETFs vs. Mutual Funds One of the most important factors to consider when analyzing and comparing ETF investment options is the expenses of the fund. The ETF arena now has so many investment options, that many areas in the […]
I’ve been investing in (mostly stock) mutual funds since 1994. As I wrote elsewhere, after a rocky start, I developed a method for picking mutual funds that’s worked pretty well for me. 2 Pieces of Accepted Investing Wisdom I Rarely Follow There are two commonly accepted pieces of investing wisdom that I mostly reject. First, […]
While low cost index mutual funds and ETFs have surged in popularity among do-it-yourself investors and financial advisors alike, investing directly in individual stocks and bonds could offer many potential benefits depending upon your unique circumstances. But investing in individual securities comes with additional risks and requires considerable time, knowledge and discipline to thoughtfully build […]
Active mutual funds faced their first stern challenge when indexing started gaining ground and investors started putting money into passive strategies through index ETFs and index mutual funds. However, that challenge came from another discipline of investing – from people who didn’t believe in active management. So as far as active mutual funds were concerned, […]
When comparisons are made between actively-managed ETFs and their competitors, they are often compared with their passive counterparts. The 4 pillars of the ETF structure that gives it such an advantage is their liquidity, tax efficiency, transparency and of course low cost. The argument is made that Active ETFs are deficient to Index ETFs because […]
Much has been made of disclosure issues relating to Actively-Managed ETFs. The disclosure related concerns were probably what made the SEC take 2-3 years before finally approving the first Active ETF in 2008, which was brought to market by Bear Stearns. The discussion of this issue usually revolves around Active ETFs being seemingly less […]