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Charles Rotblut (CR): I’d like to discuss allocation, starting with rebalancing. A lot of people either psychologically have a problem doing it or just won’t do it. What are your thoughts? William Sharpe (WS): I think, by and large, people probably shouldn’t do it. In particular,...

Exchange-traded funds (ETFs) have been one of the most successful financial innovations in recent years. Since the introduction of ETFs in the early 1990s, demand for these funds has grown markedly in the United States, as both institutional and individual investors have increasingly...

For many years, I conducted an AAII Stock Analysis seminar in which I presented a variety of techniques for analyzing and valuing stocks. Beyond presenting specific techniques, I also discussed ways to remove emotions from a decision process. Now that I manage money professionally...

I once interviewed a successful exchange-traded fund (ETF) sponsor and had the temerity to offer some suggestions where some ETFs were needed. The response from this person was: “Look, we’re not interested in filling needs as much as we are in building a business.” This...

Whether or not a person contributes to a 401(k) plan may influence his or her health. Commenting on their study of employees with access to company-sponsored wellness testing, Timothy Gubler and Lamar Pierce of Washington University said they found that “retirement savings and...

There are eight tried-and-true key fundamental factors that drive stellar stock price performance and have stood the test of time. Read more »  ...

The liquidity composition of a fund’s underlying assets, the historical tracking error and fees are important characteristics to consider when investing in an ETF. ETFs are one of the fastest-growing investment vehicles, with total assets reaching $1.4 trillion in 2012 (Figure...

Stocks are good hedges against inflation, preserve purchasing power, and, over long periods, are less risky than bonds. Read more »  ...

An explanation of the so-called “fear gauge” and insight into how it is used. The VIX is a measure of the implied or expected volatility of S&P 500 options over the next 30 days. Implied volatility is the market’s estimated future volatility and is reflected in the premiums...

Detailed return information and data on 446 ETFs and ETNs, including an overview of the current trends in the ETF industry. Read more »  ...