Index Funds: An analysis of the best funds to buy in the US and International over the past year

closeup of a pen. blue toned

The following analysis will thoroughly explore the top index funds you can buy for your diversified portfolio based upon percentage winners over the past year. Moreover, we will break down this analysis by looking at the best index funds in the United States (US), internationally (intl), bonds funds, balanced funds, and finally alternative index fund options. As you’ll see, bond funds faired the best over the past year as investors flocked to safer investments, while international funds didn’t take quite the hit US funds did. Keep in mind this information is only indicative of past performance, future performance maybe completely different.

The best American or US index funds:

Ticker Name 1 Year
total return
MIIFX Monteagle Informed Investor Growth 52.42
PFSAX Dryden Financial Svcs A 36.44
CTVAX Catalyst Value A 30.39
RBCGX Reynolds Blue Chip Growth 29.18
ICMAX Intrepid Small Cap 21.94
DLHIX Delaware Healthcare I 21.86
TILDX Tilson Dividend 20.78
BMCGX Apex Mid Cap Growth 18.90
NTRGX Nuveen Tradewinds Global Resources I 17.79
YAFFX Yacktman Focused 17.08
SSUAX Rydex/SGI Small Cap Value A 16.58
VCVLX Vanguard Capital Value 15.77
FSELX Fidelity Select Electronics 15.53
NVORX Nuveen Tradewinds Value Opportunities I 15.48
YACKX Yacktman 15.34
APPLX Appleseed 14.84
TEFQX Firsthand e-Commerce 14.44
FELAX Fidelity Advisor Electronics A 14.04
FBRFX FBR Large Cap Financial 13.17
BURFX Burnham Financial Industries A 12.44
PAVAX ING Value Choice A 12.24
IXSBX ING Index Plus LargeCap Equity IX B 12.23
POGSX Pin Oak Aggressive Stock 12.04
MNNAX Munder Internet A 12.03
PVOYX Putnam Voyager A 11.94
PRGTX T. Rowe Price Global Technology 11.88
WWWFX Kinetics Internet No Load 11.40
DSCVX Dreyfus Small Company Value 10.90
IBIIX ING Index Plus LargeCap Equity VIII B 10.54
FBRSX FBR Small Cap Financial 9.87
MYIFX Monetta Young Investor 9.06
FADTX Fidelity Advisor Technology A 7.66
CAMAX Cambiar Aggressive Value Investor 7.64
PARWX Parnassus Workplace 7.61
PDFDX Perkins Discovery 7.49
CPFSX Counterpoint Select 6.92
JAMFX Jacob Internet 6.70
RSFDX Royce Select II Invmt 6.51
TGSCX TCW Small Cap Growth I 6.49
SRIAX Gabelli SRI Green A 6.42
Group average of 9715 funds -13.10

The best international index funds include:

Ticker Name 1 Year
total return
DPCAX Dreyfus Greater China A 62.75
DEAAX Dreyfus Emerging Asia A 48.36
AACFX AIM China A 31.99
OBCHX Oberweis China Opportunities 31.98
OSMAX Oppenheimer International Small Co A 30.32
FEAAX Fidelity Advisor Emerging Asia A 26.51
ICHKX Guinness Atkinson China & Hong Kong 23.87
JGPAX JHancock Global Opportunities A 23.73
OMNAX Old Mutual China A 23.50
MCHFX Matthews China 21.62
ENCPX Encompass 21.10
FHKCX Fidelity China Region 20.83
IPOAX Ivy Pacific Opportunities A 20.59
DNEMX Dunham Emerging Markets Stock N 20.49
NWGAX Nuveen Tradewinds Global All-Cap A 20.19
PRASX T. Rowe Price New Asia 20.14
EVCGX Eaton Vance Greater China Growth A 19.88
IASMX Guinness Atkinson Asia Focus 19.88
NGCAX Columbia Greater China A 19.69
NAWGX ING Global Value Choice A 19.57
JEMAX JHT Emerging Markets Value NAV 19.34
TCWAX Templeton China World A 19.26
IFCAX ING Greater China A 19.18
JCHSX JPMorgan China Region Select 18.84
JEVNX JHFunds2 Emerging Markets Value NAV 17.89
HFEAX Henderson European Focus A 17.88
OAKWX Oakmark Global Select I 17.39
WWWEX Kinetics Global No Load 16.99
DFJSX DFA Japanese Small Company I 16.85
MAPTX Matthews Pacific Tiger 16.45
SPJSX Hennessy Select SPARX Japan Smaller Coms 16.42
DEMSX DFA Emerging Markets Small Cap I 15.86
GOPAX Aberdeen China Opportunities A 14.61
EVASX Eaton Vance Asian Small Companies A 14.61
WAIOX Wasatch International Opportunities 14.47
TEMMX Templeton Emerging Markets Small Cap A 14.32
ABEMX Aberdeen Emerging Markets Instl 13.97
JAEAX JPMorgan Asia Equity A 13.51
SFILX Schwab Fdmtl Intl Sm Mid Co Idx Instl 13.33
DRFMX Dreyfus Emerging Markets A 13.15
Group average of 3073 funds -4.26

The best bond funds include:

Ticker Name 1 Year
total return
DIBAX Dreyfus International Bond A 24.94
ODHYX Old Mutual Dwight High Yield Intl 21.68
IGBIX ING Global Bond I 20.73
ESICX Evergreen International Bond Instl 20.31
FRTRX Frontegra Columbus Core Plus 19.05
MYHIX MainStay 130/30 High Yield I 18.86
DEEAX Delaware Extended Duration Bond A 18.30
THOPX Thompson Plumb Bond 18.02
LSIYX Loomis Sayles International Bond Y 17.77
IFUNX Iron Strategic Income 17.48
LIFNX Laudus Mondrian Intl Fixed Income 17.32
PFUIX PIMCO Foreign Bond (Unhedged) I 17.20
TPINX Templeton Global Bond A 17.18
LCMAX Driehaus Active Income 16.83
TGEIX TCW Emerging Markets Income I 16.81
ISCPX ING SPorts International Fixed Income 16.38
PPSIX Principal Preferred Securities Inst 16.37
FTIIX Federated International Bond A 16.17
DPIFX Delaware Pooled International Fxd-Inc 15.93
SDGIX Dreyfus/Standish Global Fixed Income I 15.82
FFXIX Forward International Fixed Income Intl 15.64
OBIMX Old Mutual International Bond Instl 15.58
CLDAX Calvert Long Term Income 15.54
PCGLX UBS PACE Global Fixed-Income P 15.47
GTRAX Dryden Global Total Return A 15.45
TBOAX Templeton International Bond A 15.39
FRIGX Frontegra Columbus Core 15.26
PLRIX PIMCO Long Duration Total Return Instl 15.24
SDIFX Dreyfus/Standish International Fxd-Inc I 15.15
PGGIX Putnam Global Income A 14.97
DGCAX Delaware Corporate Bond A 14.94
GEDZX GuideStone Funds Extended-Dur Bond GS4 14.87
PPBAX PL Managed Bond A 14.86
EAIIX Eaton Vance International Income A 14.79
PIGIX PIMCO Investment Grade Corp Bd Instl 14.76
MMNSX MassMutual Premier International Bond S 14.67
DPGIX Delaware Pooled Global Fixed-Income 14.62
TGLMX TCW Total Return Bond I 14.59
TGCFX TCW Core Fixed-Income I 14.34
MSFIX Morgan Stanley Inst Long Dur Fix Inc I 14.26
Group average of 5758 funds 4.36

The best balanced funds include:

Ticker Name 1 Year
total return
INTLX Forester Discovery 24.48
SIRRX Sierra Core Retirement R 22.38
APIUX API Efficient Frontier Income A 21.14
SFHYX Direxion Spectrum Select Alternative Svc 17.16
MXIIX Fifth Third Strategic Inc Instl 15.93
BRUFX Bruce 11.41
CNWIX Calamos Evolving World Growth I 10.24
RNCOX RiverNorth Core Opportunity 9.51
BERIX Berwyn Income 9.50
DFIAX Delaware Conservative Allocation A 8.82
HSTRX Hussman Strategic Total Return 8.46
PRPFX Permanent Portfolio 8.05
MCFAX Miller Convertible A 8.03
SCCBX RidgeWorth Conservative Allc Strat B 6.46
JABLX Janus Aspen Balanced Instl 6.40
STWRX Wells Fargo Advantage DJ Target Today A 6.12
TGPCX TCW Conservative Allocation I 6.01
MLLAX MFS Lifetime Retirement Income A 5.92
JABAX Janus Balanced J 5.85
PAUIX PIMCO All Asset All Authority Inst 5.72
GBMFX GMO Benchmark-Free Allocation III 5.55
RESIX Russell 2027 Extended Distribution S 5.47
JSPCX Janus Smart Portfolio Conservative J 5.24
WICAX Waddell & Reed InvestEd Cnsrv A 5.03
URTNX USAA Target Retirement 2020 4.65
DGTSX DFA Global 25/75 I 4.53
DGPAX Dreyfus Global Absolute Return A 4.15
POACX PL Portfolio Optimization Conservative C 4.11
VGLSX VALIC Company I Global Strategy 4.08
DFBAX Delaware Moderate Allocation A 4.03
OTCDX Old Mutual 2011-2020 Conservative Instl 4.02
RADSX Russell 2017 Accelerated Distribution S 4.02
MALOX BlackRock Global Allocation I 3.90
AACNX AARP Conservative 3.88
OMCCX Old Mutual Asset Allocation Cnsrv C 3.87
MFSNX MFS Lifetime 2010 R2 3.83
CCVIX Calamos Convertible A 3.82
GFIYX GuideStone Funds Cnsrv Allocation I GS2 3.73
LMOAX Legg Mason Partners Eq Inc Bldr A 3.68
FTCIX Franklin Templeton Cnsrv Target A 3.63
Group average of 3528 funds -4.86

The best alternative funds include:

Ticker Name 1 Year
total return
TGLDX Tocqueville Gold 72.81
OCMGX OCM Gold 71.63
INIVX Van Eck Intl Investors Gold A 70.02
USAGX USAA Precious Metals and Minerals 69.06
FKRCX Franklin Gold and Precious Metals A 68.78
FSAGX Fidelity Select Gold 66.78
BGEIX American Century Global Gold Inv 65.48
EKWBX Evergreen Precious Metals B 64.44
SGGDX First Eagle Gold A 62.87
GOLDX GAMCO Gold AAA 62.85
INPMX RiverSource Precious Metals & Mining A 56.88
OPGSX Oppenheimer Gold & Special Minerals A 53.19
FGLDX AIM Gold & Precious Metals Inv 51.92
RYPMX Rydex Precious Metals Inv 51.08
SCGDX DWS Gold & Precious Metals S 46.57
UNWPX U.S. Global Investors Wld Prec Minerals 44.49
USERX U.S. Global Investors Gold and Prec Mtls 43.31
BPLSX Robeco Long/Short Eq I 34.51
PMPIX ProFunds Precious Metals UltraSector Inv 33.67
MIDSX Midas 24.74
FLSRX Forward Long/Short Credit Analysis Inv 18.22
PFATX PIMCO Fundamental Advtg Total Ret Instl 15.78
PSTIX PIMCO StocksPLUS TR Short Strat Instl 15.66
KCMTX KCM Macro Trends R-1 12.36
JPMNX JPMorgan Market Neutral Instl 12.20
MERKX Merk Hard Currency Inv 10.83
TFSMX TFS Market Neutral 8.92
AARFX Akros Absolute Return 7.61
DXDDX Direxion Dollar Bear 2.5X Inv 7.48
IQHOX IQ Alpha Hedge Strategy Inv 7.48
BEARX Federated Prudent Bear 7.26
RYWBX Rydex Weakening Dollar 2x Strategy H 6.77
DRCVX Comstock Capital Value A 6.59
ARBFX Arbitrage R 6.42
ICPHX Franklin Templeton Hard Currency A 6.14
EMNAX Virtus Market Neutral A 6.12
DXCTX Direxion Commodity Trends Strat Inv 5.88
RYMFX Rydex/SGI Managed Futures Strategy H 5.08
MFLDX Marketfield 4.76
HEOAX Highland Long/Short Equity A 4.58
Group average of 383 funds 2.99
-4.86

Data sourced from here.


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Buying mutual funds is easy with these tips

mutualfunds

Buying Mutual Funds is Easy

Mutual Funds, An Overview. If you’re interesting in buying mutual funds listen up to this great article:

Mutual funds are very specialized savings accounts. In these accounts are a number of different money investment vehicles but largely stocks. Stocks are certificates of ownership of shares in any of the companies quoted on the stock markets.

People all over America have money in their IRA, Individual Retirement Account that is invested in mutual funds. The aim of course is to grow the money with dividends, interest and bonus earnings so that retirement payouts are enough for people to live on in retirement.

Mutual fund managers take the investment funds and deal in stocks. Mutual funds are in their turn traded in their own right as stocks. You can buy mutual funds from 5 different sources and each of these has pros and cons. If you are thinking about investing in mutual funds the best advice is to shop around for the deal that meets your individual requirements with regard to risk, reward and of course costs.

1. Insurance companies: You can buy shares in mutual funds indirectly via your insurance company. Insurance companies frequently combine mutual funds with other insurance products. These are called ‘unit-linked’ products. The ‘sales load’ or costs of buying mutual funds is largely commission paid to brokers and can be as high as 8% of your investment sum.
2. Banks: Mutual funds can be bought through your bank. As with insurance companies the sales load can be high when you buy through the bank. Banks are limited in the range of mutual funds on offer, preferring to sell them as loaded funds. You will have to pay either the entry load when you buy or the exit load when you sell. Banks are also not known as expert financial advisors giving only sketchy information about the mutual funds they offer to customers.
3. Stockbrokers and investment advisors: As with all intermediaries between you and your mutual fund these people will charge heavy fees for their financial services. You can of course have a brokers’ account and deal in mutual funds on your own behalf.
4. Discount stockbrokers: These organizations are a good source of mutual funds because they are registered with various mutual fund companies without excessive sales loads. Discounted stock brokers are primarily preferred more than mutual fund companies due to their valuable expertise in this sector and also the advice they offer to customers is usually based on their investment needs.
5. Mutual fund companies: Buying direct is the best and cheapest way to get hold of mutual fund shares. Mutual fund companies do not charge transaction fees to customers who come to them directly.

The more you can do for yourself when it comes to buying mutual funds or any other investment activity the more you will save in fees and commissions etc. It is vital to do the research about mutual funds in general and shop around for the right fund for you.


Best mutual funds for a Traditional or Roth IRA

It really means going back to basic principles and shopping around when choosing the mutual funds for a ‘Roth’ IRA, or indeed a traditional IRA. An IRA is of course an Individual Retirement Account. It is the money that you invest in order to provide an income throughout your sunset years.

The money in mutual American funds comes every month from the salary accounts of individual workers everywhere and is also contributed to by the employers of those workers. While the money is taken automatically from pay the individual still has some discretion over how their retirement fund is invested. So ‘which are the best funds for your IRA’? is an important question.

The obvious answer to the question is; the mutual American funds that perform best in terms of earnings and capital growth are the best funds for an IRA. But how do you know the future performance of the funds will be as good as the past performance. There are many league tables of mutual fund performance and indeed the funds themselves and advertisements push one year and three year performance figures to attract new investors.

While past performance is important when looking for the best funds for your IRA there are seven other things to look out for:

1. Check out the fees charged for the various fund services. Never put your money into a mutual American fund that charges more than the average in its category. Morningstar’s web site compares all of the fund’s expenses with the average. Past expenses are a good indicator of future fees. There are many good low-cost mutual funds.
2. Check out turnover rates. The lower the turnover rate the better because dealing in shares is expensive. For example the Mairs & Power Growth fund has turnover rate of 2% per annum but it also has a 10-year average annual return of 17.5%.
3. Don’t fall for the hype. Advertising is an expense out of the current fund. They are using your money to attract new investors.
4. The best funds for an IRA over the long term will be the funds that have continued to produce results over the long term and in particular over the extraordinary times as in1999. How did they perform then? It shows how the managers cope with the market fluctuations. The Morningstar website gives full historical returns for all mutual American funds.
5. Are they well balanced in terms of size. The best funds for a Roth IRA are those most committed to managing funds rather than going all out for growth. Look for those that close the doors when they have the optimal fund dollars.
6. Index funds are those that simply follow a particular stock market index such as the Standard and Poor 500. Some mutual funds are index funds in disguise and charge more for the privilege. Avoid them, they are not the best fund for your IRA.
7. Finally the best funds for an IRA are those that have a stake in the investment along with the IRA contributors. They aren’t simply paid professional managers but they also win when the fund wins and lose when it loses.


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What are the best mutual funds on the market today?

The best mutual funds now are the same best mutual funds that were around twenty years ago. Longevity is the second key criteria by which to judge the best mutual fund. There isn’t just one but rather many ‘best’ mutual funds. The first key criterion when looking for the best mutual funds is performance. The positive percentage return above money invested.

Visit the website of any best mutual fund right at this moment and you will see on the landing page, in big bold headlines, their current rate of return. These are dire economic times and those websites may well be showing zero returns. Do not be discouraged because mutual funds performance tracks the performance of the stock market and no stock market anywhere is doing well at this moment in time.

It is important to understand what mutual funds are and how they operate in order to select the best place to put your precious retirement money. The best mutual funds now are like large baskets. In the basket are a variety of finance products but mostly stocks. Stocks are certificates of ownership of parts of all the companies quoted on the stock markets of the World.

People all over America see money taken from their pay packet each week or month at source. That money is transferred into their IRA, Individual Retirement Account. It is then invested in ways to make it grow by more than it would if it were simply deposited in savings account. One of those investment products is the mutual fund.

Mutual fund managers take the investment funds and buy and sell stocks making the money work hard to build the maximum retirement payouts for the fund members. While mutual funds hold stocks in their basket on behalf of fund contributors the units of the fund themselves become financial products and are then traded in their own right.

The essence of the best mutual funds is their ability to pick the best performing stocks. Best performing stocks are those in companies that pay good dividends from consistently growing profits. In this way the individual IRA investor builds a cash generating fund for the time when retire.

It is only by picking the best stocks consistently that the best funds can grow the IRAs of their investors. It costs a lot of money to operate a mutual fund. They have to pay their fund managers; they have to pay the stock market costs every time they buy or sell stocks and they have all the other costs associated with a commercial operation. They, in short have to be moneymaking machines.


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The Best mutual funds actively managed for your 401k

What are the best actively managed mutual funds for your 401k? See below.

Ticker

Fund name

1-yr
return

3-yr
return

5-yr
return

Exp.
ratio

Min.
inv.

Style

LARGE-CAP

AMCPX

American Funds Amcap A

-23.5%

-0.9%

3.5%

0.7%

$250

Growth

AMRMX

American Funds American Mutual A

-20.4%

1.1%

5.2%

0.6%

$250

Value

FMIHX

FMI Large Cap

-13.9%

3.9%

8.7%

1.0%

$1,000

Blend

JENSX

Jensen J

-11.3%

3.6%

4.6%

0.8%

$2,500

Growth

MAVFX

Matrix Advisors Value

-25.0%

-0.2%

2.5%

1.0%

$1,000

Blend

SLASX

Selected American Shares S

-22.4%

0.2%

6.0%

0.9%

$1,000

Blend

SSHFX

Sound Shore

-19.1%

0.8%

7.0%

0.9%

$10,000

Value

TRBCX

T. Rowe Price Blue Chip Growth

-26.7%

-0.8%

3.4%

0.8%

$2,500

Growth

PRFDX

T. Rowe Price Equity Income

-20.9%

1.2%

6.3%

0.7%

$2,500

Value

VWNFX

Vanguard Windsor II

-25.1%

-0.8%

6.7%

0.3%

$10,000

Value

MIDCAP

FAMVX

FAM Value Inv

-14.4%

-0.2%

5.4%

1.2%

$500

Blend

FPPFX

FPA Perennial

-14.4%

-0.1%

6.3%

1.0%

$1,500

Blend

FAIRX

Fairholme

-10.5%

7.6%

13.8%

1.0%

$2,500

Blend

FDVLX

Fidelity Value

-28.4%

-1.5%

7.3%

0.7%

$2,500

Value

JMCVX

Janus Mid Cap Value Investor

-13.4%

4.3%

10.4%

0.8%

$2,500

Value

MERDX

Meridian Growth

-17.3%

3.2%

6.8%

0.8%

$1,000

Growth

POAGX

PRIMECAP Odyssey Aggressive Growth

-27.8%

0.5%

N/A%

0.8%

$2,000

Growth

SMALL-CAP

BRSVX

Bridgeway Small-Cap Value N

-29.8%

-3.0%

N/A%

0.9%

$2,000

Value

PENNX

Royce Pennsylvania Mutual Invt

-17.6%

2.2%

9.2%

0.9%

$2,000

Blend

RYVPX

Royce Value Plus Svc

-24.5%

2.4%

11.3%

1.3%

$2,000

Growth

PRNHX

T. Rowe Price New Horizons

-23.8%

-1.6%

6.4%

0.8%

$2,500

Growth

MULTI-CAP

BRAIX

Bridgeway Aggressive Investors 2

-32.6%

-2.7%

6.2%

1.2%

$2,000

MUHLX

Muhlenkamp

-31.6%

-10.6%

1.5%

1.1%

$1,500

WEHIX

Weitz Hickory

-26.8%

-4.0%

3.7%

1.2%

$2,500

SPECIALTY

CSRSX

Cohen & Steers Realty Shares

-17.5%

4.2%

13.8%

0.9%

$10,000

Real estate

PRNEX

T. Rowe Price New Era

-23.4%

7.3%

19.0%

0.6%

$2,500

Natural resources

TAREX

Third Avenue Real Estate Value

-27.5%

-0.9%

9.0%

1.1%

$10,000

Real Estate

FOREIGN

AEPGX

American Funds EuroPacific Gr A

-26.9%

4.3%

11.3%

0.7%

$250

Large Blend

NEWFX

American Funds New World A

-24.0%

10.2%

16.5%

1.0%

$250

Large Growth

ARTIX

Artisan International Inv

N/A%

N/A%

N/A%

1.2%

$1,000

Large Growth

DODFX

Dodge & Cox International Stock

-29.4%

2.5%

12.6%

0.7%

$2,500

Large Value

OAKIX

Oakmark International I

-29.2%

-0.2%

8.5%

1.1%

$1,000

Large Value

PRMSX

T. Rowe Price Emerging Markets Stock

-38.2%

6.2%

18.1%

1.2%

$2,500

Emerging markets

PRIDX

T. Rowe Price International Discovery

-35.1%

2.2%

12.4%

1.2%

$2,500

Small-cap, Midcap

TAVIX

Third Avenue International Value

-26.1%

-0.4%

11.0%

1.4%

$10,000

Value

VWIGX

Vanguard International Growth

-29.7%

3.1%

10.0%

0.5%

$3,000

Large Blend

CORE BOND

DODIX

Dodge & Cox Income

N/A%

N/A%

N/A%

0.4%

$2,500

Core

FPNIX

FPA New Income

3.9%

4.6%

3.8%

0.6%

$1,500

Core

HABDX

Harbor Bond Instl

2.3%

3.7%

3.9%

0.6%

$1,000

Core

VIPSX

Vanguard Inflation-Protected Secs

6.5%

4.4%

5.1%

0.2%

$3,000

Core

SPECIALTY BOND

AHITX

American Funds American Hi Inc Tr A

-12.3%

0.9%

4.0%

0.7%

$250

Specialty

RPIBX

T. Rowe Price International Bond

0.3%

4.0%

4.5%

0.8%

$2,500

N/A

VWITX

Vanguard Interm-Term Tax-Ex

-0.5%

2.2%

2.5%

0.1%

$3,000

Specialty

Data as of: October 1, 2008

Source CNN Money


Target date retirement funds make investing simple at a price.

What are these Target date retirement funds you’ve heard about (or never heard about)? In the last 12 years or so, a couple of companies began (such as Fidelity) introducing these Target funds. Basically, you pick the date you are going to or want to retire, and there is a mutual fund setup that you would buy that changes over the course of the life of the fund to accommodate your risk tolerance. So, let’s say I’m 30 right now in 2008, and I want to retire at age 62 (or 32 years from now), I would pick a target fund of 2040. Initially, the fund would invest more aggressively as I am younger, and then scale back to a more conservative approach as I hit my late 40’s and early 50’s.

A couple of good things about the funds are:

They guarantee to return at minimum your principal investment (your initial investment of money) as long as you keep the fund until maturity (in my case the year 2040).

They manage your assets based upon your age, so all you do is provide the money and sit back.

Now, for the bad:

Their management of your funds comes at a price, which means you will pay much more to have this type of fund, which lowers your return.

This fund will act much more conservative towards the end, then you may have, in order to guarantee less risk and increase liquidity (liquidity here means ability to convert your fund to cash).

What funds do I recommend?

Those offered through T. Rowe Price, Vanguard, and Fidelity.


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ETF’s, a mutual funds cute sister

In 2008 the SEC (Securities and Exchange Commision) started to allow actively managed ETFs, or exchange traded funds (which act like stocks and bonds with regards to options and trading), hence the reason for my writing this article. Without the opportunity for investment managers to make money off you, those same managers probably wouldn’t talk about this fund that has been available since the early ninties. More or less, ETF’s are the exact same thing as mutual funds, however, ETFs have the ability to be traded anytime during the trading day, while mutual funds can only trade at the end of the day.

Here are a few key reasons ETF’s are cuter than mutual funds:

1. They are less costly than mutual funds (less fees generally)
2. They give you the ability to trade in live time, instead of having to wait until the end of the day like mutual funds.
3. They provide lower taxes because of lower turnover.
4. They provide more transparency so you know what you are actually investing in.

Here is a list of ETFs.


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