The Next Generation of Socially Responsible Investing

It is getting easier for investors to incorporate their personal values into their portfolios and to do so in a diversified, low-cost and tax-efficient manner. This approach, traditionally known as socially responsible investing, is increasingly being referred to as environmental, social and governance investing—or by its acronym, ESG investing. As its name suggests, ESG investing…

 

Do the Top ETFs Continue to Outperform?

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Recent Performance Influences Fund Choices A mutual fund’s recent returns and its relative performance significantly influence whether investors choose to buy or hold onto the fund. The magnitude of these returns and whether the fund is already owned also plays a role. Data shows…

 

AAII Survey: Environmental, Social and Governance (ESG) Issues Not Overly Important to Individual Investors

According to Wikipedia, environmental, social and governance (ESG) refers to the three central factors in measuring the sustainability and ethical impact of an investment in a company or business. These criteria help to better determine the future financial performance of companies (return and risk). ESG investing focuses on companies that support environmental protection, social justice, and ethical…

 

SEC to End Five-Cent Spreads on Small-Company Stocks

It didn’t receive much in the way of attention, but last week the U.S. Securities and Exchange Commission (SEC) announced its intention to end the pilot program testing five-cent bid/ask spreads. The program mandated minimum quotations and trading increments for stocks of certain smaller companies. It was originally scheduled to expire on October 2, 2018….

 

The Five Questions to Ask a Financial Adviser

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   Seven Steps to Protect Against Cognitive Aging One of the first signs of cognitive aging is problems managing one’s own finances. Even in the absence of disease, it can become progressively more difficult to balance a checkbook, properly review a credit card statement or…

 

For Bucket Portfolios, the Devil Is in the Details

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   The Trinity Portfolio: Combining Diversification, Tilts and Trend-Following Cambria Investment Management’s Trinity Portfolio is named for the portfolio’s three core elements: 1) assets diversified across a global investment set; 2) tilts toward investments exhibiting value and momentum traits; and 3) exposure to trend-following. In…

 

AAII Survey: Readers Weigh in on Socially Responsible Investing

Socially responsible investing (SRI) is where investors attempt to align their investment strategies with their social values. Another form of SRI—sustainable, responsible and impact investing—is an investment discipline that considers environmental, social and corporate governance (ESG) criteria to generate long-term competitive financial returns and positive societal impact. Examples of ESG criteria include clean technology, pollution, water use and…

 

Power Your Portfolio With Value

This week’s AAII Weekly Digest highlights these “must-read” AAII articles:   The Trinity Portfolio: Combining Diversification, Tilts and Trend-Following Cambria Investment Management’s Trinity Portfolio is named for the portfolio’s three core elements: 1) assets diversified across a global investment set, 2) tilts toward investments exhibiting value and momentum traits, and 3) exposure to trend-following. In…

 

March AAII Journal Update

The March 2017 AAII Journal is Now Available Online.   Feature Article: The Top Mutual Funds Over Five Years: Health Care’s Dominance Is Weakening Four of the 10-best performing funds are from the health care category, but this number is down from seven last year. In This Issue: Mutual Funds » Tracking the S&P 500…

 

9 Rules for Better Stock Investing

This week’s AAII Weekly Digest highlights these “must-read” AAII articles: Why Value Beats Growth: A Brief Explanation The various characteristics of stocks that generate higher returns than what the capital asset pricing model (CAPM) would predict are known as “stock market anomalies.” Two of the most famous anomalies are size and value. This article sets out…