This week’s AAII Weekly Digest highlights these “must-read” AAII articles:
Target date funds offer the premise of a one-stop solution for investors seeking professional allocation strategies. They are commonplace in 401(k) and other similar employer-sponsored retirement plans (aka, defined-contribution plans). The simplicity of target date funds’ premise is one reason why. A second significant factor is that these funds are default options in many workplace retirement plans. However, there remains confusion about how to use target date funds. This article aims to clear up some of that confusion.
John “Jack” Bogle, founder of the Vanguard Group of mutual funds, chats with AAII Journal editor Charles Rotblut about why he favors broad market index funds, as well as his thoughts about exchange-traded funds and portfolio allocations.
The first quarter exposed investors to dramatic ups and downs. However, many funds managed to end the first quarter modestly higher as the U.S. markets rebounded from their February lows. Precious metals were the top-performing funds overall during the first quarter, reversing the trend of the last several years.
An overview of an Investment Company Institute paper explaining how ETFs are created, what determines their price and how taxes on ETFs are treated. In addition, there is a discussion of the similarities and differences between mutual funds and ETFs.
Our Member Question for this week is:
In general, how would your best friend describe you as a risk taker?
Last Week’s Results:
How would you rate the job being done by the Federal Reserve Board?
Click here to learn about the results of last week’s AAII Special Question.
One of the advantages of mutual fund investing is the wealth of information that mutual funds provide to fund investors and prospective investors. Taken together, the various reports provide investors with vital information concerning financial matters and how the fund is managed—both key elements in the selection process. In fact, mutual fund prospectuses, annual reports and performance statistics are key sources of information most investors will need in the selection and monitoring process. However, to new mutual fund investors, the information may seem overwhelming. This AAII Investor Classroom will help show you what to look for when reading a mutual fund statement, as well as where to look for specific information.