Are ETFs “Weapons of Mass Destruction”?

A Bloomberg article quoted a money manager as saying that exchange-traded funds (ETFs) are “‘weapons of mass destruction’ that have distorted stock prices and created the potential for a market selloff.” According to the managers of the FPA Capital Fund (FPPTX), ETFs (and index funds) allow investors to invest in equities without needing to rely…

 

Defined-Maturity Funds: A Bond Alternative With Compromises

This article originally appeared in the October 2013 issue of the AAII Journal. Interested in the benefits that individual bonds can offer, but not ready for the complications? The hybrid defined-maturity bond funds are one alternative. What are they and what do you need to know before investing? As the name implies, defined-maturity bonds cease…