One of the reasons ETFs have exploded in popularity recently is because ETFs are more tax efficient compared to mutual funds. Why are do ETFs have better tax efficiency, and when does this difference even matter?[continue reading…]
Why ETF Tax Efficiency Makes Them Better Than Mutual Funds
Chart of the Week: Dimensional Fund Advisors vs. Benchmarks
This week we are looking at one fund company with a stellar track record and looking at the ins and outs of their investment philosophy. The company is Dimensional Fund Advisors (DFA for short), which is one of the fastest growing large fund managers out there today.
Yesterday we looked at a quote from their founder and CEO about his first key to successful investing.
Now today in our chart of the week we look at how his company as applied that philosophy and how they (and their investors) have benefited. [continue reading…]
Want the Active Manager Without the Expense Ratio? Here’s How to Use Motif Investing to Copy Your Favorite Investor’s Portfolio
Investment fees – the bane of every individual investor. Everyone has seen the numbers on how even moderate expense ratios lead to investors losing out on tens of thousands of dollars over the course of their investments. Just yesterday we highlighted a quote from Meb Faber on how just average fees can ruin a successful investment strategy.
But these fees seem impossible to avoid for investors looking for any specific concentrations or active forms of management.
But for investors in a select number of ETFs and Mutual Funds, there is a simple way to reduce those fees to a level much closer to 0 – Here’s how: [continue reading…]
Want to Make Your Own ETF? Now You Can With Motif Investing – Here’s Our Review
Long time readers know my usual thought on choosing a stock broker – it hardly matters.
Most are almost all the same.
I typically recommend something along the lines of Vanguard or Fidelity, because of the access to commission free, low cost ETFs that those brokers provide.
I have been mostly invested with Vanguard for a few reasons: They provide a ton of lost cost mutual funds and ETFs that account holders can buy commission free, which makes small monthly investment feasible without commission taking huge chunks out. Vanguard also offers dividend reinvestment and partial share ownership for individual stocks and ETFs. Vanguard is still an excellent broker – and I will certainly continue to use them, But…
There is a new player in town which is a game changer for investors, whether you are a stock picker OR pure indexer.
And what’s best? New investors can take advantage of a special offer – up to $150 for those who create a new account today. Offer details are at the bottom of this post!
My Mistakes: Here’s The First Mutual Fund I Ever Bought – And How It Cost Me $8,000
The whole point of Begin To Invest is to help pass on lessons I learned when I started investing to investors today.
Here was one of my first and most painful.
2012 Mutual Fund and Hedge Fund Returns
The numbers from 2012 are in. How do the returns from Wall Street’s “Best and Brightest” compare to the returns of the major stock indexes?