Assessing the Risk of a Mutual Fund
A shift in sector and industry classifications will impact exchange-traded funds (ETFs) and mutual funds that target the affected industries and sectors. The change could also result in the renaming of some funds in addition to the potential changes to holdings and the weightings of various stocks within those funds’ portfolios.
Our expanded annual guide covers 542 ETFs, providing detailed return information and data as well as an update on the ETF industry.
The U.S. Securities and Exchange Commission (SEC) approved a new rule allowing for mutual fund, ETF and other investment fund shareholder reports to be delivered electronically. This is a change from the current system where annual reports are sent through postal mail.
Often, it is all too tempting to evaluate a mutual fund solely based on its rate of return over some period of time. The part of the equation that some investors may ignore is risk. While there are also subjective factors to consider in evaluating a specific fund, all analysis should start with performance—both return and risk.
Our Member Question for this week is:
How much are your financial decisions influenced by the Global Financial Crisis of 2008–2009?
Vote to answer this week’s Special Question: What steps have you taken, if any, to make you feel that you will be better protected from the next financial downturn?
Poll results are as of 9 a.m. (Central) on Monday. 2,560 respondents.
Historically, stocks are the best-performing asset class for investors with a long-term perspective. Do our readers agree with that? We asked what they think is the best asset class to invest in for those with a time horizon of at least 10 years. Also, there are many reasons why investors choose not to use a financial adviser. We asked why our readers don’t use an adviser.
If you’re contemplating investing in mutual funds, you’ll want to arm yourself with some basic information. This AAII Investor Classroom, one of the many benefits of AAII membership, gives you all the tools you need to get started. The topics covered include: how to break a tie between two funds; what to look for when reading a mutual fund statement; how to research mutual funds; and much more.