Assessing the Risk of a Mutual Fund

Sector Classification Change Could Alter Some ETFs 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…

 

Selecting Stocks From a Screen

I’ve long been a fan of stock screens. They filter a database to identify stocks with specific traits. A value screen may identify stocks trading at low price-earnings (P/E) ratios with above-average levels of return on equity (ROE). A growth screen can find stocks that consistently grow profits and are projected to continue doing so…

 

The August 2018 AAII Journal is Now Available Online

Feature Article: The Individual Investor’s Guide to Exchange-Traded Funds 2018 by Jaclyn N. McClellan Our expanded guide covers 542 exchange-traded funds, providing detailed return information and data as well as an update on the ETF industry.       Portfolio Strategies » Observations From Decades of Tracking Investment Newsletters by John Bajkowski , Charles Rotblut,…

 

Successful Investing Requires Coping With Some Discomfort

“Super investors take pain better than everybody else.” Wesley Gray, CEO and CIO of Alpha Architect, made this observation at last week’s Financial Analysts Seminar, an annual CFA Institute event hosted with CFA Society Chicago. He was referencing the ability of successful investors to stick with a strategy. Gray raised the point as part of…

 

Taking on Risk and Hoping the Strategy Doesn’t Backfire

Oh boy. There’s something new to be filed under the category of, “Well, it seemed like a good idea at the time.” It is cash secured puts on the S&P 500. According to The Wall Street Journal, pension funds in Hawaii and South Carolina are using the strategy to generate income. It is a strategy…

 

A Request to Parents of Gen Xers and Baby Boomers

To parents of my fellow Generation X members, as well as parents of Baby Boomers, we—your adult sons and daughters—want to hear from you. We want to know how your health is. We want to know how financially stable you are. We want to hear about any potential problems as soon as they occur, not…