This week’s AAII Weekly Digest highlights these
“must-read” AAII articles:
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 latest update to AAII’s annual mutual fund guide includes 719 funds in the printed version and hundreds more in the expanded online data tables, covering nearly 1,600 funds in all. The guide provides performance and risk statistics for individual funds as well as index and category benchmarks.
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 U.S., as both institutional and individual investors have increasingly found their features appealing. Like mutual funds, ETFs are a way for investors to participate in the stock, bond and commodity markets; achieve a diversified portfolio; and gain access to a broad array of investment strategies.
Performance statistics are probably the single most scrutinized feature of any stock mutual fund. These figures are, of course, important indicators of how well a portfolio manager has performed in the past. As such, they can serve as useful flags of a possibly good manager or a possibly bad manager. But the question facing any prospective investor is: Will a stock fund manager with good past performance be able to sustain their track record?
Our Member Question for this week is:
Did you experience problems logging into your online brokerage account(s) this past week?
Vote to answer this week’s Special Question: There were reports of retail investors not being able to access their online brokerage accounts during the high-volatility periods this past week. Most brokerage firms feel they are not accountable for owners not being able to access their account or execute trades during high-volume, high-volatility trading sessions. What recourse should individual investors have for not being able to trade during these periods?
Last Week’s Results:
No matter the reason, organizing your personal financial files so you or your next of kin can find them and decipher them is something many individuals overlook. Last week’s survey question asked how well organized our readers think their personal financial files are. We then followed up with a special question that asked how they go about organizing their files for the beneficiaries.
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 an 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.