Advanced ETF Strategies

This strategy is a blend of index and active investing. Index investments, such as ETFs become the foundation of the portfolio’s construction and actively managed investments are added as satellite positions. With this approach, investors index their core holdings to more efficient asset classes and limit their selection to active managers that deliver consistent alpha or outperformance for other categories. Today, most large pension plans use a core/satellite approach in their investment policy and many individual investors are beginning to do the same. Read full article »

Fundamental vs. Traditional Index Investing

The rapid expansion of the exchange-traded fund (ETF) marketplace has spurred innovation along with conflicting philosophies about the best way to assemble and manage stock and bond market indexes. Read full article »

Organizing the ETF Universe with Index Strategy Boxes

ETFguide’s Index Strategy Boxes categorize exchange-traded funds (ETFs) and related products into nine grid shapes with each shape representing a specific index strategy. Read full article »

Understanding Leveraged and Short ETFs

Leveraged and short ETFs attempt to magnify their gains and to provide inverse market performance to various stock, bond and commodity indexes on a daily basis. Because they aim to achieve investment results that usually target the daily returns of their underlying benchmarks, they’re probably best suited for investors with a short-term investment time horizon. Since leveraged and short ETFs are principally designed to achieve daily returns, their long-term performance is likely to deviate from the long-term performance of their respective underlying indexes. Read full article »