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ETF Alternatives To The World’s Largest Mutual Funds

Michael Johnston — Mon, 06 Dec 2010 15:00:38 +0000

It may be premature to hit the print button for the death certificate of active management, but changes to the investing landscape over the last several years have forced a reassessment of the value proposition this strategy offers. Research suggesting that active managers fail to add value is, of course, nothing new. Over the last several decades, a number of academic studies have suggested that on the whole, active managers fail to consistently beat the market, and that the majority of mutual funds fail to beat their benchmark after costs are taken into consideration. This frustration with the costs of active management paved the way for the rise of indexing as an investment strategy, as many investors have preferred to own the market through a low cost vehicle rather than pay hefty fees to a manager to occasionally beat the market. ETFs have become tremendously popular among active traders implementing [...]

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ETF Bargain Hunting: Low P/E Ratio ETFs

Michael Johnston — Mon, 23 Nov 2009 16:48:36 +0000

When domestic and international equity markets tumbled in the first three months of this year, bargain hunters were overwhelmed with possibilities. As price-to-earnings ratios plunged into the single digits, those who follow the Buffett mantra “be fearful when others are greedy and greedy when others are fearful” were presented with one of the best buying opportunities in recent memory. But since March, equity markets have staged impressive recoveries, making good values hard to come by. In fact, many well-respected investors with sound track records believe U.S. markets have become significantly overvalued, with only a matter of time before a downward correction erases some of the gains posted over the last six months. Last month Jeremy Grantham estimated that the stock market is 25% overvalued, making two dismal predictions for the first half of 2010. “First, the disappointing economic and financial data that will begin to show the intractably long-term nature [...]

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Who Else Wants Ex-U.S. ETFs?

Michael Johnston — Thu, 16 Jul 2009 06:05:51 +0000

After decades of flying high and shrugging off crises around the world, U.S. equity markets have fallen on some tough times. The epicenter of the mortgage crisis that evolved into a global recession has scared away many investors away from the U.S. markets, afraid that the worst is yet to come and that the “glory days” of America have passed. Investor reluctance to jump back into the U.S. markets is perhaps best evidenced by the increase in popularity of “ex-U.S.” ETFs, funds that offer exposure to a well-diversified basket of global securities but avoid any investments in the States. Over the last year, many of these funds have experienced strong fund inflows, and have significantly outperformed major U.S. benchmarks. As unemployment remains high, banks continue to close, credit markets are yet to thaw, and the future of the dollar as the world’s reserve currency sits in serious jeopardy, many investors, both [...]

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ETF Database » CWI

ETF Alternatives To The World’s Largest Mutual Funds

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ETF Bargain Hunting: Low P/E Ratio ETFs

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Who Else Wants Ex-U.S. ETFs?

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