Category: Investing

The Performance Gap

5.03% That figure is the difference between the annualized return of the U.S. stock market versus the average return of all investors in United States stock mutual funds, over a twenty year period ending in December 2009. The number comes from an annual study conducted by financial research firm Dalbar. The study found that while U.S. stocks returned 8.20 percent… [more]  

Using correlation analysis to find the best commission-free ETFs

Over an investing lifetime, expenses add up. Using commission-free ETFs and tax-loss harvesting are just two of the ways that DIY investors can keep their investment expenses in check. To use these techniques, you need to first identify investments that are more or less equivalent to the index that you're trying to track, or the specific fund or ETF that you seek a replacement for. In math-speak,... [more]  

ETFs and Asset classes used in our Adaptive Portfolios

U.S. stocks and bonds are the most familiar asset classes to most investors, but there are many other types of investments worthy of your consideration. All our Adaptive Portfolios choose from a broad basket of 9 different Exchange Traded Funds (ETFs), representing all major asset classes such as U.S., European and Emerging Markets stocks, medium and long term bonds, domestic and international... [more]  

Risk less and prosper

The majority of popular investment advice follows a predictable recipe: adopt a diversified portfolio of low-cost index funds and determine your asset allocations. Buy and hold the funds, and regularly add to your savings. Rebalance your portfolio at the end of each year, and repeat until you’re 65. Retire happily. This advice is often accompanied by long-term charts that show the impressive returns of stocks and bonds over many decades. Looks great, right? But unfortunately for many... [more]