Using ETFs in a Tough, Sideways-to-Bear Market


This week’s AAII Weekly Digest highlights these “must-read” AAII articles:


Using ETFs in a Tough, Sideways-to-Bear MarketUsing ETFs in a Tough, Sideways-to-Bear Market

Over the last 100-plus years, there have been more bear markets than bull markets. Since there are usually more bear market years than bull market years, you have to get the best return you can during bear market years. Instead of using broad-based ETFs, you might use specialized ETFs such as sector ETFs, foreign country ETFs, non-stock-market-correlated ETFs, inverse ETFs (which enable you to short the market) and enhanced ETFs (which enable you to leverage a position).

Competition Has Made Indexing a Winner’s Game

Charles D. Ellis

AAII Journal editor Charles Rotblut talks with Charles Ellis, an investing consultant to some of the world’s largest pension and endowment funds. The two discuss Charley’s latest book, “The Index Revolution,” and how competition for ideas has changed investing. Better analysis, more trading and more professional investors have made it even easier to lose at active investing, and win by indexing.

Mutual Fund & ETF Ratings & RecommendationsMutual Fund & ETF Ratings & Recommendations

Trying to sift through exchange-traded funds (ETFs) or mutual funds on your own can be an overwhelming experience for individual investors. Fortunately, there are many websites that do the hard work of identifying, rating and recommending funds of various types. AAII’s Computerized Investing has picked out the best of those websites for you. These four websites selected as the best for fund ratings and recommendations offer a mix of free and premium services, although much of the analytical services for fund research is free.

A Second Look at How Target Date Funds Change Their Allocations

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. However, there remains confusion about how to use target date funds. This article offers an overview of target date funds, the allocation strategies they use and how these strategies change over time, and how investors can go about selecting target date funds.

Our Member Question for this week is:

What is your primary reason for investing in mutual funds or exchange-traded funds (ETFs)?


Vote to answer this week’s Special Question:
If you invest in mutual funds or ETFs, how do you go about choosing them?


Last Week’s Results:

AAII Readers Not Swayed By Prospects of Rising Interest Rates

With the Federal Open Market Committee raising rates in December and estimating at least three interest rate hikes in 2017, we asked our readers how they think higher rates will impact the stock market. Additionally, we asked whether the prospects of higher interest rates are impacting their own investment strategies. This blog post summarizes those responses.

Introducing the Level3 Passive Portfolio

AAII’s founder James Cloonan distills a lifetime of research, insight and history to show why individuals are better off using a new and straightforward approach that is tailor-made for today’s longer-term investor. Investing at Level3 offers insights into how individual investors can beat actively managed investments with a passive approach; why conventional investment approaches rob most investors of half their potential retirement wealth; the real nature of investment risk and how it can be used to your advantage; why time diversification and stock diversification are your friends; and how to implement your own personal Level3 approach.

The AAII Weekly Digest is one of the many benefits of AAII membership. To learn more, consider a risk-free 30-day Trial AAII Membership to start becoming an effective manager of your own assets.


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