This week’s AAII Weekly Digest highlights these
“must-read” AAII articles:
Unlike returns, fund volatility can be persistent. Actively managed funds with high levels of volatility (as measured by the variance in returns) are likely to stay highly volatile. Actively managed funds with low volatility are likely to continue to experience low volatility.
Technology funds lead this year’s list of the top funds, though two non-sector funds are also on the top-10 list.
New research shows that, contrary to economic theory, more competition in the mutual fund industry doesn’t lead to lower prices. Expense ratios for U.S. domestic equity funds operating in more competitive market segments “charge significantly higher annual expense ratios than funds operating in less competitive market segments.”
Dipping into the AAII archive, in this 1986 interview with Vanguard founder John “Jack” Bogle he talks about the index fund concept.
Our Member Question for this week is:
In his first press conference since taking over as chairman of the Federal Reserve, Jerome Powell advised investors against reading too much into the central bank’s dot-plot projection for interest rates in 2020, saying policy makers “don’t have the ability to see that far into the future.” How much weight do the Fed’s interest rate projections carry in regard to how you invest or what you invest in?
Vote to answer this week’s Special Question: How confident are you in the Federal Reserve’s ability to assess the economy and the forces affecting it?
Last Week’s Results:
Poll results are as of 9 a.m. (Central) on Monday. 2,538 respondents.
In the aftermath of the 5th Circuit Court of Appeals ruling that the Labor Department overstepped its authority by creating the “fiduciary rule,” and the subsequent announcement by the Labor Department that it will no longer enforce the 2016 fiduciary rule, we asked our readers whether they agreed with the court’s decision. In addition, we asked what they think is the best way to ensure that financial professionals act in their clients’ best interest.
AAII’s annual guide to the top mutual funds offers total return performance of common index benchmarks; average performance and risk of common fund categories; the performance of the 50 most widely held mutual funds; and the best and worst performing funds of 2017. In all, the guide covers more than 1,600 mutual funds.