Exchange Traded Funds, Pros & Cons --Investor Thread April 19, 2015

Weekly investment & finance thread ^ | 04/19/2015 | Freeper Investors

[expat_panama]

[from IBD: Should ETFs Be In Your Investment Portfolio?] While ETFs have existed for several decades, their popularity and diversity have exploded in recent years. But many investors are just learning about them. Those looking for tips on how to invest in ETFs just need some basic information to get started. In basic terms, ETFs can be thought of as mutual funds that trade like stocks. But their portfolios can contain U.S. and foreign stocks, bonds, futures, physical commodities or currencies. And ETFs choose the securities for their portfolios with an investment objective in mind. These investment goals include growth of capital through price appreciation and income generation through stock dividends or bond interest. And ETFs pursue these objectives in a variety of ways. These include exposure to the broad stock market through such ETFs as SPDR S&P 500 (ARCA:SPY) and PowerShares QQQ (NASDAQ:QQQ). Or they can focus on narrow segments of the market, like high-yielding stock funds. That's an area covered by Vanguard High Dividend Yield (ARCA:VYM). ETFs tend to have lower fees and better tax efficiency compared with mutual funds. They have the flexibility to be traded on a short-term, even intraday basis, but can also be held for the long term as part of an asset allocation plan. How can you find the best ETFs for your portfolio? "We like to use ETFs to track a broad-based index or sector, and will typically use mutual funds when we feel that an active manager can provide a benefit either from a performance, risk reduction or strategy standpoint over what we expect from the index," says Michael Ball, lead portfolio manager of Weatherstone Capital Management. With thousands of ETFs to choose from, it can seem overwhelming to pick ones out that are right for you. How to cope? Start with the end in mind. ... [snip]
--and: Exchange-Traded Funds (ETF) Center - Yahoo Finance Exchange-Traded Fund (ETF) - Investopedia Best ETFs (Exchange Traded Funds) | US News Best Funds --and from our leaders always there to help us: What is an ETF?... ...Like mutual funds, ETFs offer investors a way to pool their money in a fund that makes investments in stocks, bonds, or other assets and, in return, to receive an interest in that investment pool.  Unlike mutual funds, however, ETF shares are traded on a national stock exchange and at market prices that may or may not be the same as the net asset value (“NAV”) of the shares, that is, the value of the ETF’s assets minus its liabilities divided by the number of shares outstanding. Things to Consider before Investing in ETFs ETFs are not mutual funds.  Generally, ETFs combine features of a mutual fund, which can be purchased or redeemed at the end of each trading day at its NAV per share, with the intraday trading feature of a closed-end fund, whose shares trade throughout the trading day at market prices... [snip]		That was the pros, here's the con's side: Should Mutual Funds Be Made Illegal? - Matt Levine, Bloomberg Why Hillary Clinton is going after hedge funds ETFs May Be Moving Stocks in Unseen Ways The Hidden Risks and Costs of ETFs - US News Exchange-traded funds: Too much of a good thing ... *    *    *    *    *    *    *    *    *    * This is the thread where folks swap ideas on savings and investment --here's a list of popular investing links that freepers have posted here and tomorrow morning we'll go on with our-- Open invitation continues always for idea-input for the thread, this being a joint effort works well.   Keywords: financial, WallStreet, stockmarket, economy.

[abb]

Looking for this one.

Preferably, filled with coffee...

[aposiopetic]

That is impressive. Hope you’re enjoying your time away.

[expat_panama]

Right, cup'n'handle --that's one I like to check for.  In fact here's my watch list:

ticker	handle	current	% over
CMPR	86.88	87.15	0.3%
HAR	145.1	146.31	0.8%
AMCX	74.74	75.41	0.9%
EA	58.97	59.68	1.2%
AYI	164.23	166.31	1.3%
DIS	106.08	108.155	1.9%
KMX	68.81	70.89	2.9%
ZTS	45.34	46.85	3.2%
AFSI	57.09	59.31	3.7%
CYBR	63.08	65.95	4.4%
OZRK	38.06	39.80	4.4%
ZBRA	92.58	97.27	4.8%

IBD says to buy when it's within 5% over the handle buypoint, but I'm waiting also for a solid market uptrend.

[abb]

Told you all CAT was a screaming buy anywhere below 80.

[Lurkina.n.Learnin]

LOL, “ a gret big ole TOLDJASO “

[expat_panama]

Good morning, happy Friday to ya, and the UPTREND RESUMES!   Seems our chronically sideways stock market has finally seeped up into a new high forcing us to admit that we've been clearly in an uptrend.  For decades this has historically it signaled a buying opportunity, though for all of this past year they've been false and contrary market timing's ruled.  Humph. 

Just the same, these sideways/false-sigs are still uptrending (futures +0.17%), not like metals that have been sideways/downtrending:  gold'n'silver now @ $1,193.4 and $15.92 w/ futures negative.  Durable goods orders posted in a half hour.

News:

Nasdaq hits a new all-time high San Jose Mercury News - 5:02am With the Nasdaq on Thursday breaking its former record high close set in the dot-com days of 2000, here's one thing to remember: That was then, and this is now.

China, Japan stocks fall on data, Nasdaq boosts some markets TriCities.com - 3 hours ago Market data is displayed on the screens at the Nasdaq MarketSite in New York, Thursday, April 23, 2015. The Nasdaq composite has closed at a record high for the first time since the dot-com bubble of 2000.

Patience running short in Greek bailout negotiations MarketWatch - 4 hours ago RIGA, Latvia - Eurozone finance ministers urged Greece to move faster in presenting its overhaul plans Friday, as some of them expressed annoyance with the lack of progress in bailout negotiations.
Have We Seen the End of 8-Hour Work Day? - Nathan Schneider, Nation

Doomsayers Were Wrong About BP Spill - Steve Moore & Joel Griffith, NR
Saudi Arabia Intends to Pump Even More Crude - Grant Smith, Bloomberg

[bert]

-——Involuntary part-time is becoming the new norm for low-wage workers-——

The concept of part time is archaic. There is no part time any more, there is only time. Further, time for many can not exceed thirty hours per week. The union goal of a thirty hour week has been accomplished.

The problem is that people can’t live on the proceeds from merely working thirty hours.

[expat_panama]

...people can’t live on the proceeds from merely working thirty hours

Through out this whole history of labor leaders calling for a shorter workday, somehow the union bosses always assumed that the paycheck would stay big while work hours got small.  They never saw a problem w/ that and were always dismissive of concerns over production and business' labor costs.

Ignore reality and it bites.

[tacticalogic]

Through out this whole history of labor leaders calling for a shorter workday, somehow the union bosses always assumed that the paycheck would stay big while work hours got small.

I don't think they really gave a rat's ass about the paychecks. They were assuming the union dues would stay the same, and the companies would have to hire more workers, so there'd be more of them.

[expat_panama]

Union bosses caring more about dues than paychecks? I'm shocked. Shocked!