This week’s AAII Weekly Digest highlights these
“must-read” AAII articles:
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 exchange-traded funds (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).
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 Ellis’ 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.
While it may be hard to believe, the universe of mutual funds and ETFs is actually much more expansive than that of stocks. In fact, there are over 30,000 mutual funds and over 1,500 U.S.-based ETFs from which to choose. Fund screeners are an excellent way to winnow down the investable universe of funds to a select few that match your personal criteria. The following are the top fund screeners available for individual investors.
Some of what follows distills the collective experience of mutual fund investing; some of it has empirical evidence pointing its way. But most is simply common sense that investors often set aside or forget in the heat of making an investment decision.
Our Member Question for this week is:
What do you think will be the top-performing sector in 2018?
Vote to answer this week’s Special Question: What do you think will be the biggest financial story of 2018?
Last Week’s Results:
What is your prediction for the S&P 500 in 2018?
Poll results are as of 9 a.m. (Central) on Monday. 2,678 respondents.
After posting some of their best returns in years, many AAII readers believe the major U.S. stock indexes will cool off in 2018. This week’s blog post highlights where our readers think the S&P 500 index will go in 2018 as well as readers’ biggest financial wishes for the New Year.
Selecting a mutual fund, while less time-consuming than investing in individual securities, does require some homework. AAII’s Individual Investor’s Guide to the Top Mutual Funds covers nearly 1,600 funds and lists the total return performance of common index benchmarks; summarizes average performance and risk of the fund categories used in this guide; allows you to compare the performance of the 50 most widely held funds; lists the 50 best-and worst-performing funds of 2016; and much more.