Featured Articles
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Five Things to Know About Commodity ETFs
February 12th at 6:00am by Tom Lydon
Commodity exchange traded funds have been a boon to individual investors because they give exposure to certain areas of the market that were once hard to reach. These ETFs are also one of the best ways an investor can diversify their portfolio. Up until a few years ago, the average individual...
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ETFs or Mutual Funds: Your Strategy is Key
February 11th at 6:00am by Tom Lydon
When comparing exchange traded funds and mutual funds, switching entirely from one to another is not necessary. Investors should educate themselves on the nature of both funds and decide which one will better suit their investment strategy. The first thing to figure out when choosing a fund is...
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Financial ETFs are Money in the Banks
February 10th at 11:01am by Tom Lydon
Financial exchange traded funds are outperforming the market on strength in bank stocks and hopes the economic recovery is hitting escape velocity. Financial Select Sector SPDR (NYSEArca: XLF) followed the broader market lower on Friday but is up about 13% so far this year, compared with a gain...
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What is an ETF? — The Arbitrage Mechanism
February 10th at 10:43am by Tom Lydon
Exchange traded funds have a so-called arbitrage mechanism that helps keep share prices in line with the value of the underlying securities or assets. Arbitrage is the practice of taking advantage of a price difference between two or more markets. Three points about ETFs and the arbitrage...
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What are ETFs? — The Benefits of Transparency
February 10th at 9:51am by Tom Lydon
In the aftermath of the credit meltdown and the more recent implosion of MF Global, many investors are putting a premium on transparency. They want to know exactly what they own. Transparency in an exchange traded fund involves the disclosure of the funds' holdings every day, unlike mutual...
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VIX ETFs Bounce on Greek Jitters as Stocks Near 2011 High
February 10th at 8:30am by John Spence
VIX-linked exchange traded funds have been moving higher along with stocks all week, so something probably had to give. The usual relationship between Wall Street’s “fear gauge” and stocks was back in place on Friday with the S&P 500 set for a lower open as the Greek drama drags...
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Why Are ETFs Cheaper Than Mutual Funds?
February 8th at 2:39pm by Tom Lydon
Exchange traded funds and mutual funds have differences when it comes to the costs associated with overseeing the fund and tax efficiency. The reason there are cost differences is due to the differences in structure of these tools and the way they are managed. The management fees are the main...
