by Zack Miller on March 23, 2011
If you’re not subscribed to my weekly podcast, Tradestreaming Radio, what are you waiting for? It’s available on iTunes as well. Mutual funds have introduced millions of Americans to investing in the stock market. While their popularity and usage may have changed throughout the last 30 years,mutual funds still play a critical role in many [...]
by Zack Miller on March 7, 2011
Fee-only advisors, investment advisors who don’t charge commissions, are leading the way Americans are investing. Instead of buying mutual funds with sales loads, more and more investors are turning to pros selling low cost exchange traded funds (ETFs). According to Bloomberg, ETFs are certainly benefiting from this shift away from the brokerage industry: The advisers [...]
We’ve spoken a lot about piggyback investing (mimicking the moves of top fund managers) and crowdsourcing ideas (using crowd sentiment to generate trading ideas) as two ‘new ways’ investors can devise profitable strategies. The Internet is producing tons of information – the tradestream – that investors can plug into to get at this type of [...]
by Zack Miller on February 15, 2010
We’ve written for a while that for certain purposes, Exchange Traded Funds (ETFs) are a better mousetrap. As Mutual Funds 2.0, ETFs have introduced: new ways to implement investing ideas (eg. country exposure to Poland, Chile, etc.) made existing ideas easier to trade (leveraged long and short funds, buy-write strategies) provided continuous pricing (unlike Mutual [...]
Just doing some thinking about the growth and future of the ETF industry: In my eyes, ETFs began as a second-generation of mutual funds with the following characteristics: Passively managed: ETFs were passively managed (though that’s changing), building upon Jack Bogle’s success at Vanguard. Most research at the time clung to the Efficient Market Hypothesis [...]
Summary Regulators have their sights set on restructuring the market for leveraged, inverse(short) and commodity ETFs. Increased scrutiny for these index shorts and leveraged bets have the ETF industry running for cover and it’s already impacting existing shares in common ETFs tracking commodities and sectors, like Oil and Financials. Advisers commonly use these products for [...]
Dow Jones is reporting that investors in exchange traded funds (ETFs) that use leverage to achieve 2x and 3x of certain indices and inverse ETFs, funds that attempt to perform -1x certain index, are going to face higher margin requirements in the months to come. In an article published yesterday, Ian Salisbury of Dow Jones [...]
Financial institutions filed nearly 13% more reports of fraud compared with 2007 (The Economist) Value stock screen for potential activist targets (The Manual of Ideas) Comparison of All-World ETFs (ETF Trends) I think this recession (and sluggish recovery) will continue to make history, and that most of these forecasts are actually too optimistic (Calculated Risk) [...]
Only firms that have significant scale, or those that are small enough to be niche providers with differentiated product strategies, will be able to thrive in this new world. (kasina) Open source financial modeling: We remain somewhat skeptical that professional investors and analysts will be eager to share their proprietary models in this manner. (Integrity [...]