All Indexes Are Not Created Equal
|
|
- Erick Watts
- 5 years ago
- Views:
Transcription
1 All Indexes Are Not Created Equal December 20, 2017 by Bob Kargenian of TABR Capital Management Some Indexes Matter, And Some Don t A little over two years ago, we decided the long term evidence of trying to select actively managed equity funds in comparison to their index peers was too compelling to pass up, and thus we switched virtually all equity exposure in client portfolios to ETFs (exchange traded funds) that represent various indexes and parts of the stock market. Mind you, we are still tactical in deciding how much exposure to have, but this was about WHAT we should own. Today, there are more indexes than stocks, and as you will see below, there is a lot of overlap in many areas (large cap, mid cap). We had to narrow the universe down to a manageable level and eliminate redundancy. So, we went about the process you will see below, essentially comparing the four largest providers of ETF indexes against one another in each category. Those providers are Blackrock, Vanguard and Schwab, but note that Blackrock has its own brand called ishares, which use both the Russell indexes as well as the S&P Indices (Standard & Poor s). As it turned out, Fidelity Investments, the custodian we use for clients, introduced a list of ETF s that advisors could trade on behalf of clients with no commissions. In former days, that might have been a really great incentive, but it is no longer, not when the vast majority of our clients are eligible to trade stocks and ETFs for as little as $4.95 per trade, as long as they are using electronic delivery for their documents. Nevertheless, if you have ETFs in a category that are the best performing AND you can buy or sell them with no commission, why not use them? We went about evaluating the choices by looking at just a few metrics, which included the expense ratio, intermediate and long term performance, and size. The data you will see below is current, and continues to confirm the choices we made in the summer of 2015 in terms of creating our custom matrix. A Little Bit About Composition Before we get into the comparisons of large company indexes and others, it is appropriate to talk about the differences in how some indexes are computed. Most indexes we will be discussing are capweighted, meaning that the stocks with the greatest capitalization have the greatest weight in the index. The most popular of the cap-weighted indexes is the S&P 500, which accounts for about 80% of the Page 1, 2018 Advisor Perspectives, Inc. All rights reserved.
2 market cap of U.S. stocks. In its case, the top 25 stocks, or 5% of the index, currently account for 32.5% of the index. Currently, the top five companies in the index and their respective weight are Apple (4.05%), Microsoft (2.87%), Amazon (2.07%), Facebook (1.92%) and Johnson & Johnson (1.65%). In contrast, the Dow Jones Industrial Average of 30 stocks is price weighted, so the highest priced stock in the index, Boeing at around 240, today has almost 8 times the weight of Cisco (32) and almost 10 times the weight of General Electric (25). In my view, this is a really dumb way to create an index, but there it is. Finally, there are equal-weighted indexes, where every stock in the index carries an equal weight. A great example is the RSP, an equal-weight version of the S&P 500, where each stock has a weight of 2/10th of 1%. A side note we ve owned this ETF in client accounts for over two years now, simply because it has remained at the top of the monthly rankings that we maintain. Large Company Indexes Below we summarize data on nine different ETFs, three of which track the S&P 500 Index. No matter how the indexes are created, though, there s been very little difference in performance for the past five years, with the exception of the Nasdaq 100. More on that below. Page 2, 2018 Advisor Perspectives, Inc. All rights reserved.
3 *represents compound annual returns A little bit about each index. The Russell 1000 Index is comprised of approximately 1000 of the largest companies in the U.S. equity market, and is a subset of the Russell 3000 Index. It represents about 90% of the total market cap of all listed U.S. stocks. The Schwab U.S. Large Cap ETF tracks the Dow Jones Total Stock Market Large Cap Index, which captures about 2/3 of the U.S. market. This index holds the top 750 companies by market cap and is rules based. In contrast, the S&P 500 Index is run by a committee and requires companies to be profitable along with needing at least 50% of their outstanding shares to be in public float (tradeable). The Schwab index requires just 10% of shares to be in public float. Then we have the Vanguard Large Cap ETF, which tracks the CRSP U.S. Large Cap Index, which captures the largest 85% of market cap in the U.S. CRSP stands for Center for Research in Security Prices. In contrast, the Vanguard Megacap 300 is composed of the largest 275 stocks which represent the largest 70% of the U.S. market. (Please don t ask why it is not called the Vanguard Megacap 275!). The Guggenheim Equal Weight S&P 500 (RSP), as noted above, gives every stock in the index an equal weight. As a result of this, it acts more like a midcap index than a large cap index. And, given its size, we felt compelled to include the Nasdaq 100 Index, also known as the QQQ. This index Page 3, 2018 Advisor Perspectives, Inc. All rights reserved.
4 represents the 100 largest non-financial companies in the Nasdaq Composite, but it really is not representative of the overall large cap segment. Rather, the index is weighted 50% to technology stocks. This has paid off in recent years, but it likely will not always be the case. Finally, as noted above, we looked at three ETFs, all of which track the same index, that of the S&P 500. What is interesting is that SPY, which has an expense ratio of just over 9 basis points, more than double than the ishares or Vanguard versions, has nearly double the assets of IVV and over 3 times as much as Vanguard. Mathematically, it cannot do better than the other two because its expense ratio is higher, and one should note it is also organized as a unit investment trust which means it is restricted from reinvesting dividends and also cannot equitize cash with futures or use securities lending revenue to offset expenses. So, with all those disadvantages, why does SPY have most of the money? It has to be liquidity, as institutions feel they can move in and out with tens of millions of dollars to increase or decrease exposure, in a more efficient manner than they can in the other two products. For retail or advisory clients who are buying and mostly holding though, owning IVV or VOO makes more sense. For every $100,000, one would earn $70 more per year in owning IVV or VOO. That won t make you rich, but it will pay for 25 Venti Pike coffees at Starbucks! With all the subtle differences, you can see that in the past five years, there is very little variation in performance from top to bottom, at 15.55% for the Russell 1000 to 15.66% for the Vanguard 500 and the Vanguard MegaCap 300. The higher expense ratio of the Russell 1000 ETF explains virtually all of its lag. The RSP and QQQ aren t really large cap indexes in the broad sense, and they fall outside those ranges, so it really isn t an apples to apples comparison when looking at them. The Mid Cap Indexes We begin to see much more disparity in performance when we go down the scale in size. Below is the data on the four midcap ETFs we looked at. *represents compound annual returns Page 4, 2018 Advisor Perspectives, Inc. All rights reserved.
5 There are significant differences in all time frames, likely suggesting that as you move down in the size of market cap, there are fewer and fewer efficiencies. The Russell Mid Cap Index is created by taking the 800 smallest stocks from the Russell 1000 Index (see above). Meanwhile, the Schwab Midcap ETF owns about 500 names, which tracks the Dow Jones Total Stock Mid Cap Index. The Vanguard Midcap ETF owns 330 names, and tracks the CRSP U.S. Mid Cap Index, while the S&P Midcap 400 is determined by a committee, much like its large cap counterpart. One of the criteria, besides size, for the IJH is that the company must be profitable for the past 4 quarters. As you can see, there is considerable variability in YTD performance, with the Schwab ETF gaining over 300 basis points more than the S&P 400 Midcap. Though they have attracted considerable assets, both the Russell and Vanguard ETFs for midcap stocks have lagged the others over 3, 5 and 10 years, with the S&P 400 Midcap gaining nearly 1% more annually during the last 10 years. An edge like that over 1 year doesn t mean much, but over 10 years is quite significant. I can t prove this, but my hunch is that the screen for profitability that Standard & Poors uses may be the subtle difference in the results. After all, in the long run, stock prices are driven by earnings growth, so if a company is not earning a profit, why would you want to include it in an index? The Small Cap Indexes There are even bigger gaps in small cap index performance, and once again, it is the S&P Index leading the way, while the Russell Index shows the worst long term performance. Side note I don t think this is a coincidence as Barron s publishes long term rankings of mutual fund families each year, and in the most recent version earlier in 2017, Russell Investments was ranked # 52 out of 52 fund families. They were also # 52 out of 58 for the last five years. Yet, they continue to attract significant amounts of money. Why? I think it s because people (both investors and advisors) don t do their homework. They are lazy. *represents compound annual returns Again, a little bit about each index. The Russell 2000 Index is made up of the largest companies from # 1001 to # 3000, by market cap. In other words, the bottom 2000 of the Russell 3000 Index. It is Page 5, 2018 Advisor Perspectives, Inc. All rights reserved.
6 certainly broader than any of the other 3 we are looking at, but that hasn t helped its performance. The S&P 600 Small Cap is determined by committee, and the companies must have a market cap ranging between $450 million and $2.1 billion, and must be profitable. Higher free float and volume are also important considerations to make the cut. The Schwab ETF tracks the Dow Jones U.S. Small Cap Total Stock Index, which holds 1750 companies, while there are about 1400 holdings in the Vanguard Small Cap offering, which tracks the CRSP U.S. Small Cap Index. Those companies must be smaller than the largest 85% by market cap, but larger than the smallest 2% of companies. As for performance, nothing can come close to the S&P 600 Small Cap in any of the three time frames that matter 3 years, 5 years and 10 years. And, as noted above, not only does the Russell 2000 Index have the worst performance, it also has the highest expense ratio at 0.20%. A terrible combination. Yet, it has the most assets under management. And you thought institutions and advisors were smart?? International Indexes (Developed Markets) If you think trying to decide what exposure to have in U.S. stocks is difficult, adding foreign exposure just makes things more complicated. How broad should one be? For more accurate comparisons, we are breaking our analysis in this area into two parts Developed Markets and Emerging Markets. What are those? In investing, a developed market is a country that is most developed in terms of its economy and capital markets. The country must be high income, but this also includes openness to foreign ownership, ease of capital movement, and efficiency of market institutions. Examples would include most of Europe, Canada and Australia, to name a few. In contrast, an emerging market is a country that has some characteristics of a developed market, but does not meet the standards to be a developed market. The economies of China and India are considered to be the largest emerging markets. Page 6, 2018 Advisor Perspectives, Inc. All rights reserved.
7 *represents compound annual returns Despite the almost identical names, there is a significant difference between EFA and IEFA. The former owns over 900 stocks in developed markets, and its large cap tilt steers it to large multi-national firms. The benchmark excludes South Korea and Canada, which accounts for about 8% of indexes in its peer group, and the most exposure is in Japan at 23% of the fund. The IEFA fund goes across 21 developed markets and owns more than 2500 stocks, so it is much more diversified. The Schwab entry owns 1100 stocks and does include South Korea and Canada. The Vanguard FTSE (Financial Times Stock Exchange) All World Ex-U.S. fund owns more than 3600 stocks and is 22% weighted in Japan. The Vanguard FTSE Developed Markets fund represents more than 86% of the market cap outside the United States and owns more than 2500 stocks. In an interesting twist, the index includes a 17% weight to Emerging Markets. Finally, the Vanguard Total International Index Fund owns stocks in over 40 countries. Regarding performance, first notice the 10 year numbers compared to the U.S. indexes above. Roughly, you are looking at about 9% compounded for domestic stocks versus just over 2% for international. We ve written about this topic in earlier newsletters, and won t delve further in this one, but we prefer to use relative strength comparisons to determine whether to own foreign equities (or not), not some fixed formula that says you should always own foreign in some certain percentage. Both the IEFA and VEA offer a combination of the lowest expenses and best long term performance, though the former does not yet have a 10-year track record. Emerging Markets Once again, when we look under the hood in this area, we find that the fund with the most assets has Page 7, 2018 Advisor Perspectives, Inc. All rights reserved.
8 produced the least return, in this case, the Vanguard MSCI Emerging Markets Fund (VWO). Its low expense ratio does not explain everything, since two of the other three competitors have similar ratios. The fund does own 3000 stocks, though South Korea is excluded. It would be quite easy to get confused, learning the difference between IEMG, the ishares Core MSCI Emerging Markets Fund, and EEM, simply the ishares MSCI Emerging Markets Fund. The former offering is the broadest of the choices here, owning 1800 stocks which cover 99% of the universe and spans 24 markets. China represents 28% of the fund. The EEM tracks the market cap weighted MSCI Emerging Markets Index, and owns 800 large and midcap stocks also spanning 24 markets. The two funds are almost identical in size, yet the EEM charges 0.69% annually in expenses, making one wonder why anyone would buy it over IEMG. Indeed, in the last 3 and 5 years, that difference in the expense ratio is what gives IEMG the edge in total return. Conclusions As hopefully the above has shown, there is a lot more to indexes than one would think. Being the cheapest isn t necessarily the best, and being the biggest doesn t always correlate with the best performance. Yet, when you have the highest expenses, such as with the Russell Indexes or the EEM, it has definitely contributed to lagging performance. Schwab has been a late entrant to this field, and they have tried to make up for that by having the lowest expenses across the board, but that hasn t really translated to assets yet. They have a really solid midcap offering, but apparently it is hard to get people to change. Overall, the ishares S&P Index offerings have several compelling choices in every area, and that is why we are using them for clients. It is just a bonus that many of them come with no trading commissions on the Fidelity platform. Vanguard is competitive in most areas except in Emerging Markets, yet they run the largest fund in that category. Go figure. All in all, it pays to do your homework. Bob Kargenian, CMT Page 8, 2018 Advisor Perspectives, Inc. All rights reserved.
9 President TABR Capital Management, LLC 500 N. State College Blvd, STE 1320 Orange, CA (714) Voice (714) Fax TABR Capital Management, LLC Page 9, 2018 Advisor Perspectives, Inc. All rights reserved.
The Effect of US Economy on SPY 10-13
SPY ETF Index Overview 3 Sectorial Analysis 3-4 Peers Comparison 5-8 SPY VS Dow Jones & Russell Index 8-9 The Effect of US Economy on SPY 10-13 Conclusion 14 Sources 14 2 Overview The SPY S&P 500 ETF tracks
More informationFinTech What is True Financial Innovation?
FinTech What is True Financial Innovation? DR. BRIAN J. ADAMS ASSOCIATE PROFESSOR & ASSOCIATE DEAN PAMPLIN SCHOOL OF BUSINESS UNIVERSITY OF PORTLAND FinTech Financial services (such as payments, lending,
More informationExchange Traded Funds ETFs
Exchange Traded Funds ETFs Table of Content: Topic Page Exchange Traded Funds Definition 3 Exchange Traded Funds Creation and Redemption 3 Exchange Traded Funds benefits 4 Exchange Traded Funds Types 6
More informationKeeping Up With Changes In Emerging Market ETFs
Keeping Up With Changes In Emerging Market ETFs March 19, 2013 by Jun Zhu of Leuthold Weeden Capital Management In this report, we highlight benchmark changes in a major player, a potential substitute
More informationIWB ishares Russell 1000 ETF
ishares Russell 1000 ETF ETF.com segment: Equity: U.S. - Large Cap Competing ETFs: VONE, SPY, IVV, VOO, SCHX Related ETF Channels: North America, Large Cap, U.S., Broad-based, Vanilla, Equity, Size and
More informationSCHK 4.32% 12.67% 17.08% 11.08% SCHK (NAV) 4.28% 12.68% 17.05% 11.03% Schwab 1000 Index
Schwab 1000 Index ETF ETF.com segment: Equity: U.S. - Large Cap Competing ETFs: SPY, IVV, VOO, IWB, SCHX Related ETF Channels: U.S., Large Cap, Equity, rth America, Vanilla, Size and Style, Broad-based
More informationInvesco third quarter 2017 results
Invesco third quarter 2017 results Martin L. Flanagan President and Chief Executive Officer Dan Draper Global Head of ETFs Loren M. Starr Chief Financial Officer October 26, 2017 Forward-looking statements
More informationURTH ishares MSCI World ETF
ishares MSCI World ETF ETF.com segment: Equity: Developed Markets - Total Market Competing ETFs: BOTZ, SNSR, RFDI, FDRR, JPGE Related ETF Channels: Total Market, Broad-based, Vanilla, Equity, Size and
More informationInflows, indexes, and the future: Trends in active and passive. Key takeaways
August 2017 Inflows, indexes, and the future: Trends in active and passive PANELISTS 1 2 3 Key takeaways We believe global monetary easing has been the primary driver behind the closer stock-to-stock correlations,
More informationIVV ishares Core S&P 500 ETF
ishares Core S&P 500 ETF ETF.com segment: Equity: U.S. - Large Cap Competing ETFs: SPY, VOO, IWB, SCHX, VV Related ETF Channels: North America, S&P 500, Large Cap, U.S., Broad-based, Vanilla, Equity, Size
More informationFACTOR INVESTING: Targeting your investment needs. Seek to enhance returns Manage risk Focused outcomes
FACTOR INVESTING: Targeting your investment needs Seek to enhance returns Manage risk Focused outcomes 1 Table of Contents Introduction What is factor investing? How to use factors in a portfolio Fidelity
More informationREDISCOVER THE POWER OF DIVIDENDS
REDISCOVER THE POWER OF DIVIDENDS A NEW PATH TO INCOME Generating income is a universal challenge that impacts most investors. And while it used to be fairly simple to do, today it is more challenging
More information2016 January Financial Market Update
Charles Sherry Director, Institutional Education Group Blue Ocean Global Wealth 51 Monroe St., Plaza West 06 Rockville, MD 20850 Tel: 720.308.4560 csherry@blueoceanglobalwealth.com 2016 January Financial
More informationVOO Vanguard S&P 500 ETF
Vanguard S&P 500 ETF ETF.com segment: Equity: U.S. - Large Cap Competing ETFs: SPY, IVV, IWB, SCHX, VV Related ETF Channels: North America, S&P 500, Large Cap, U.S., Broad-based, Vanilla, Equity, Size
More informationAre you better off with commission-free ETFs?
Are you better off with commission-free ETFs? James DiLellio, PhD Pepperdine University Phil Goldfeder, PhD Northwestern University Introduction Competition amongst discount brokers continues to reduce
More informationSycamore Market Analysis
Sycamore Market Analysis September 30, 2015 The third quarter came to an end with big gains for stocks. The rally did not quite reverse the effect of selling on Monday though with the S&P 500 still down
More informationAn Introduction to Factor Investing: Understanding the increasingly popular strategy
A quarterly publication of CLS Investments FALL 2015 An Introduction to Factor Investing: Understanding the increasingly popular strategy Factors have engrossed the investing world in recent years. Strategies
More informationLongRun Monthly Strategy Summary (6/30/2013) Commentary
Commentary June was a take-no-prisoners month in the markets. All 14 ETFs that we track for our strategies were down, ranging from -0.8% for US Small Cap Equity (IWM) to -11.5% for Metals & Mining (XME).
More informationTactical Stocks-Bonds Strategy
Tactical Stocks-Bonds Strategy FACT SHEET December 31, 2017 60 State Street, Suite 700 Boston, Massachusetts 02109 team@modelcapital.com 617-854-7417 http://modelcapital.com/ FIRM S INVESTMENT PHILOSOPHY
More informationRELY ON SPY THE LIQUIDITY LEADER LET S START
RELY ON SPY THE LIQUIDITY LEADER LET S START WHY DOES LIQUIDITY MATTER? For ETF investors, liquidity directly influences trading costs. Driven by trading volume, liquidity manifests itself in the bid/ask
More informationChuck Akre on the Akre Focus Fund
Chuck Akre on the Akre Focus Fund February 2, 2010 by Robert Huebscher Chuck Akre is the Managing Member and Chief Executive Officer of Akre Capital Management, which he founded in 1989. For a time, his
More informationLongRun Monthly Strategy Summary (4/30/2014) Commentary
Commentary As I mentioned in last month s commentary, April was set up to be a dog fight with ARv2 fully invested in US equities and Aggressive Growth and original AR positioned defensively with 67% bonds
More informationThrough March, the 2012
Model Mutual Fund and ETF Portfolios: Choosing a Benchmark Isn t Easy By James B. Cloonan Through March, the 2012 equity market has been a friendlier place than we have seen for a while. The S&P 500 index
More informationDo market-cap differences translate into performance variations?
Do market-cap differences translate into performance variations? November 20, 2017 by Rich Powers of Vanguard U.S. equity benchmarks are more alike than different. Still, those distinctions can lead to
More informationWhat Matters Most. The Case for Active. Risk Management
What Matters Most The Case for Active Risk Management Investors Know Their Priorities The first priority is usually I don t want to lose my money. This would probably explain why risk management featured
More informationBring More to Your Clients. Active and passive investing: Uncover the power of AND
Bring More to Your Clients Active and passive investing: Uncover the power of AND Today, advisors face many challenges in growing their business. Cost-conscious investors Market volatility How do I cope
More informationTaking Stock Third quarter 2010
Turner s Growth Investing Team sizes up a market issue Taking Stock Third quarter 2010 Smid-cap stocks: the Goldilocks asset class Jason Schrotberger, senior portfolio manager/ security analyst and lead
More informationUS STOCK MARKET TRADED ETF PORTFOLIO
Index Investing is a great thing to do you when you are starting to invest or you want to have part of your portfolio holding something safe. I wrote safe on quotes because there's nothing safe in the
More informationDynamic Asset Allocation for Practitioners Part 1: Universe Selection
Dynamic Asset Allocation for Practitioners Part 1: Universe Selection July 26, 2017 by Adam Butler of ReSolve Asset Management In 2012 we published a whitepaper entitled Adaptive Asset Allocation: A Primer
More information15 Years of SPIVA, the De Facto Scorekeeper of the Active vs. Passive Debate
15 Years of SPIVA, the De Facto Scorekeeper of the Active vs. Passive Debate Aye Soe Managing Director Research & Design S&P Dow Jones Indices Few people know the ins and outs of the SPIVA (S&P Indices
More informationMicrocap as an Alternative to Private Equity
osamresearch.com osam.com Microcap as an Alternative to Private Equity BY CHRIS MEREDITH, CFA & PATRICK O SHAUGHNESSY, CFA: 2017 Private equity (PE) has become a central component of many institutional
More informationNavigator Global Equity ETF
CCM-17-12-3 As of 12/31/2017 Navigator Global Equity ETF Navigate Global Equity with a Dynamic Approach The world s financial markets offer a variety of growth opportunities, but identifying the right
More informationTax Loss Harvesting at Vanguard A Primer
Tax Loss Harvesting at Vanguard A Primer In June of this year, there was a period of time where stocks dropped for about 6 days straight. In fact, if you look carefully at the chart, there were similar
More informationDecember 2018 Report
MCG Capit al Management LLC December 2018 Report December 20, 2018 MCG Capital Management LLC is the adviser to investment partnership entities available to accredited investors. The firm also manages
More informationLPL RESEARCH PRIVATE CLIENT INSTITUTIONAL INSIGHTS THOUGHT LEADERSHIP. August 2016 DIVERSIFICATION MAY BE POISED FOR A COMEBACK MEMBER FINRA/SIPC
LPL RESEARCH PRIVATE CLIENT THOUGHT LEADERSHIP INSTITUTIONAL INSIGHTS August 2016 DIVERSIFICATION MAY BE POISED FOR A COMEBACK MEMBER FINRA/SIPC During the first half of 2016, diversification has provided
More informationMulti-Select Securities Puerto Rico Fund Portfolios
Multi-Select Securities Puerto Rico Fund Portfolios Fourth quarter 2016 UBS Financial Services Incorporated of Puerto Rico Table of contents U.S. Large Cap ETF...2 Large Cap Value I...4 Large Cap Core
More informationVanguard ETF strategic model portfolios. September 30, 2018
strategic model portfolios September 30, 2018 Broadly diversified, low-cost index portfolios from a company you know and trust Vanguard exchange-traded fund (ETF) strategic model portfolios offer: Broad-market
More informationWhat Works. Our time-tested approach to investing is very straightforward. And we re ready to make it work for you. Three important steps.
What Works Our time-tested approach to investing is very straightforward. And we re ready to make it work for you. Three important steps. Ten effective principles. Three important steps. Ten effective
More informationPRODUCT FACT SHEET. Bronze
Vanguard Australian Shares Index VAS VAS S&P / ASX 300 0.15% p.a. Vanguard Australian Shares Index Fund Index Information Aims to track the S&P / ASX 300 Index; The above index gives investors mid and
More informationLazard Insights. Mind the Gap: The Risks of Passive in EM. A Global Shift to Passive? Summary
Lazard Insights Mind the Gap: The Risks of Passive in EM Kim Tilley, CIMA, Senior Vice President, Portfolio Manager/Analyst Summary Passive funds continue to gain market share, but investor preferences
More informationishares Core ETFs Build a strong foundation ICRMH0119U /10
ishares Core ETFs Build a strong foundation ICRMH0119U-726651-1/10 What are ETFs? ETFs offer a low cost, tax efficient way to invest STOCK TRADABLE DURING THE DAY ETFs DIVERSIFIED FUNDS THAT TRADE LIKE
More informationMonthly Investment Compass Charting The Course Of The Markets
Monthly Investment Compass Charting The Course Of The Markets April 22 nd, 2016 Monthly Investment Compass Executive Summary: April 22 nd 2016 U.S. Stock Market: The most important takeaway from the latest
More informationIt s Déjà Vu All Over Again Yogi Berra
December 9, 2015 It s Déjà Vu All Over Again Yogi Berra In a client letter I penned on January 10, 1998, I wrote, As was the case in 1995 and 1996, large capitalization stocks (S&P 500) outperformed their
More informationVANGUARD DIVIDEND APPREC ETF (VIG)
VANGUARD DIVIDEND APPREC ETF (VIG) $112.45 USD Risk: Med Zacks ETF Rank 3 - Hold Fund Type Issuer Benchmark Index Large Cap ETFs VANGUARD NASDAQ US DIVIDEND ACHIEVERS SELECT INDX VIG Sector Weights Date
More informationIntroduction. What exactly is the statement of cash flows? Composing the statement
Introduction The course about the statement of cash flows (also statement hereinafter to keep the text simple) is aiming to help you in preparing one of the apparently most complicated statements. Most
More informationDIA SPDR Dow Jones Industrial Average ETF Trust
SPDR Dow Jones Industrial Average ETF Trust ETF.com segment: Equity: U.S. - Large Cap Competing ETFs: SPY, IVV, VOO, IWB, SCHX Related ETF Channels: North America, Large Cap, U.S., Broad-based, DJ Industrial
More informationTACTICAL INVESTMENT STRATEGIES TRADE DECISIONS AND RATIONALE December 5, 2017
EQUITY TICKER ACTION QA Global Equity QA International Equity QA US Equity QA US Sector ishares U.S. Technology ETF IYW Trimmed QA Global Style The information provided in this report should not be considered
More informationWESTMINSTER CONSULTING. The Death of Active Management
WESTMINSTER CONSULTING The Death of Active Management The reports of my death have been greatly exaggerated. - Mark Twain Broadly speaking, there are two schools of thought for investment managers: active
More informationMorningstar Direct SM Asset Flows Commentary: United States
? Morningstar Direct SM Asset Flows Commentary: United States Morningstar Research May 2018 Data through April 30, 2018 U.S. Mutual Funds and Exchange- Traded Products Kevin McDevitt Senior Analyst +1
More informationP V G A S S E T M A N A G E M E N T L O S S A V E R S E I N V E S T I N G WWW. P V G A S S E T M A N A G E M E N T. C O M DYNAMIC CORE STRATEGY
P V G A S S E T M A N A G E M E N T L O S S A V E R S E I N V E S T I N G WWW. P V G A S S E T M A N A G E M E N T. C O M DYNAMIC CORE STRATEGY DYNAMIC CORE OVERVIEW CREATED FROM TECHNICAL ANALYSIS Technical
More informationMGC Vanguard Mega Cap ETF
Vanguard Mega Cap ETF ETF.com segment: Equity: U.S. - Large Cap Competing ETFs: SPY, IVV, VOO, IWB, SCHX Related ETF Channels: North America, U.S., Broad-based, Large Cap, Vanilla, Equity, Size and Style
More informationQUARTERLY MARKET UPDATE January 2019
Year-End Market Reversal Symbol Name 2018 Return (%) AGG ishares Core US Aggregate Bond ETF 0.0 HYG ishares iboxx $ High Yield Corp Bd ETF -1.9 LQD ishares iboxx $ Invmt Grade Corp Bd ETF -3.8 SPY SPDR
More informationTIME TARGETED EQUITY PORTFOLIOS
TIME TARGETED EQUITY PORTFOLIOS 1 3 Year 4 6 Year Equity 7 15 Year 15+ Year Global Diversification Exposure to a large number of securities around the world reduces the risk that any one stock or any one
More informationThe Emerging Market Conundrum
T H E M A G A Z I N E F O R E T F INVESTORS ////////////////////////////////////////////////////////////// MAY 2016 The Emerging Market Conundrum P U B L I S H E D BY SMART-BETA CORNER By Heather Bell
More informationMonthly Investment Compass Charting The Course Of The Markets
Monthly Investment Compass Charting The Course Of The Markets September 21st, 2017 Monthly Investment Compass 1) Executive Summary: September 21 st, 2017 U.S. Stock Market: Virtually all of our near term
More informationTwo Style Boxes Can Be Better than One: The Case for Small-Mid Cap Equities
Investment Focus Two Style Boxes Can Be Better than One: The Case for Small-Mid Cap Equities Within US equities, investors have long used small cap stocks to diversify their large cap holdings, but we
More informationIWD ishares Russell 1000 Value ETF
ishares Russell 1000 Value ETF ETF.com segment: Equity: U.S. - Large Cap Value Competing ETFs: VONV, VTV, SCHV, MGV, PWV Related ETF Channels: North America, Smart-Beta ETFs, Large Cap, U.S., Value, Equity,
More informationThe New Asset Allocation
Published on AdviceIQ (http://www.adviceiq.com) Home > The New Asset Allocation The New Asset Allocation Submitted by Matthew Tuttle on Tue, 07/17/2012-9:00am Time was, everyone thought the best asset
More informationIsn t the stock market too high?
November 2017 Written by: Philip C Benedict, CFP 2017 Benedict Financial Advisors, Inc. OUR OFFICE: Philip C Benedict, CFP Travis M James, CFP Mark A Beaver, CFP Ashley A Thompson, CFP Jackie Thompson
More informationStructured Portfolios: Solving the Problems with Indexing
Structured Portfolios: Solving the Problems with Indexing May 27, 2014 by Larry Swedroe An overwhelming body of evidence demonstrates that the majority of investors would be better off by adopting indexed
More informationSchwab Diversified Growth Allocation Trust Fund (Closed to new investors) Institutional Unit Class As of June 30, 2017
Fund Facts Trustee Fund Type Charles Schwab Bank Collective Trust Fund Morningstar Category Allocation - 50-70% Equity Benchmark Global Growth Custom Index 1 Unit Class Inception Date 3/7/2012 Fund Inception
More informationTax-Managed SMAs: Better Than ETFs?
June 2018 Tax-Managed SMAs: Better Than ETFs? Rey Santodomingo, CFA Managing Director of Investment Strategy Tim Atwill, PhD, CFA Head of Investment Strategy Exchange-traded funds, or ETFs, are popular
More informationOctober 12, Dow 23,000 Target Achieved What Next? By Scott P. Noyes, CFA CFP
October 12, 2017 Dow 23,000 Target Achieved What Next? By Scott P. Noyes, CFA CFP It is time to celebrate as the Dow approaches a multi-year target of 23,000. On October 5 th, the Dow reached 22,775, effectively
More informationFactor Investing: Smart Beta Pursuing Alpha TM
In the spectrum of investing from passive (index based) to active management there are no shortage of considerations. Passive tends to be cheaper and should deliver returns very close to the index it tracks,
More informationQUAL ishares Edge MSCI U.S.A. Quality Factor ETF
ishares Edge MSCI U.S.A. Quality Factor ETF ETF.com segment: Equity: U.S. - Total Market Competing ETFs: DGRO, MOAT, PKW, FNDB, RYJ Related ETF Channels: North America, Smart-Beta ETFs, Total Market, U.S.,
More information2012 Study of Indexing in DC plans
2012 Study of Indexing in DC plans By Neil Plein INVESTn RETIRE Summary Despite the popularity of index funds and their accompanying perception of being low cost, small plans are paying quite a premium
More informationYear-End Market Commentary
Page 1 of 6 Year-End Market Commentary The Markets: As 2015 ends, we reflect on the turmoil that we witnessed throughout the year. There were many swings this year and volatility at year-end has been formidable.
More informationInvestment Process. The Filla Latzke Group at Morgan Stanley. 2 Active or Passive. 3 Navigating Today s Markets. 4 Choosing Investment Managers
2 Active or Passive 3 Navigating Today s Markets 4 Choosing Investment Managers 5 Retirement Income Strategy The Filla Latzke Group at Morgan Stanley Investment Process Active or Passive? We Prefer Active
More informationITOT ishares Core S&P Total U.S. Stock Market ETF
ishares Core S&P Total U.S. Stock Market ETF ETF.com segment: Equity: U.S. - Total Market Competing ETFs: VTI, SCHB, IWV, SPTM, IYY Related ETF Channels: North America, U.S., Total Market, Broad-based,
More informationValue Equity Q Commentary. Market Review: Performance Analysis:
S C H A F E R C U L L E N C A P I T A L M A N A G E M E N T Value Equity Q3 2018 Commentary Market Review: US equities surged in the 3rd quarter of 2018, with the S&P 500 advancing 7.7% and the Russell
More informationGeoff Considine, Ph.D.
Accounting for Total Portfolio Diversification Geoff Considine, Ph.D. Copyright Quantext, Inc. 2006 1 Understanding Diversification One of the most central, but misunderstood, topics in asset allocation
More informationVanguard ETF strategic model portfolios. September 30, 2017
strategic model portfolios September 30, 2017 Broadly diversified, low-cost index portfolios from a company you know and trust Vanguard exchange-traded fund (ETF) strategic model portfolios offer: Broad-market
More informationIWR ishares Russell Mid-Cap ETF
ishares Russell Mid-Cap ETF ETF.com segment: Equity: U.S. - Mid Cap Competing ETFs: IJH, VO, MDY, SCHM, IVOO Related ETF Channels: North America, U.S., Broad-based, Vanilla, Midcap, Equity, Size and Style
More informationThe MarketGrader China A-Shares Size Indexes:
The MarketGrader China A-Shares Size Indexes: Tools for Strategic & Tactical Asset Allocation Part 2 December 2015 Francis Gupta, Ph.D. Francis Gupta joined in 2015 as Senior Advisor to lead intellectual
More informationTHE CASE AGAINST MID CAP STOCK FUNDS
THE CASE AGAINST MID CAP STOCK FUNDS WHITE PAPER JULY 2010 Scott Cameron, CFA PRINCIPAL INTRODUCTION As investment consultants, one of our critical responsibilities is helping clients construct their investment
More informationThe Power of Mid-Caps: Investing in a Sweet Spot of the Market
Mid-Cap White Paper The Power of Mid-Caps: Investing in a Sweet Spot of the Market We believe U.S. mid-cap companies offer untapped potential for investors. In this paper, we discuss the merits of allocating
More informationSPXE ProShares S&P 500 Ex-Energy ETF
ProShares S&P 500 Ex-Energy ETF ETF.com segment: Equity: U.S. - Large Cap Competing ETFs: SPY, IVV, VOO, IWB, SCHX Related ETF Channels: North America, U.S., Large Cap, Vanilla, Equity, Size and Style,
More informationImportant information on BlackRock U.S. Debt Index Fund
Important information on BlackRock U.S. Debt Index Fund The information provided on the following pages has been provided by BlackRock, Inc. Neither TIAA nor its affiliates has independently verified the
More informationOEF ishares S&P 100 A 93. The ishares S&P 100 Index Fund tracks a market-cap-weighted index of 100 largecap companies selected by the S&P Committee.
ishares S&P 100 ETF.com segment: Equity: U.S. - Large Cap Competing ETFs: SPY, IVV, VOO, IWB, SCHX Related ETF Channels: North America, U.S., Large Cap, Broad-based, Vanilla, Equity, Size and Style Find
More informationQuarterly Investment Update
Quarterly Investment Update Second Quarter 2017 Dimensional Fund Advisors Canada ULC ( DFA Canada ) is not affiliated with The CM Group DFA Canada is a separate and distinct company Market Update: A Quarter
More informationHarvesting Losses Making lemonade out of lemons
SCHWAB CENTER FOR INVESTMENT RESEARCH MARCH 2004 Harvesting Losses Making lemonade out of lemons The Schwab Center for Investment Research The Schwab Center for Investment, Research a division of Charles
More informationSmart Beta: Index Investing, Evolved
Franklin LibertyShares TM Topic Paper November 2017 Smart Beta: Index Investing, Evolved Global investing literally and figuratively is foreign to many US investors. That s why some have taken a passive
More informationThe purpose of this paper is to briefly review some key tools used in the. The Basics of Performance Reporting An Investor s Guide
Briefing The Basics of Performance Reporting An Investor s Guide Performance reporting is a critical part of any investment program. Accurate, timely information can help investors better evaluate the
More informationNOT WORTH BEING CUTE SELLING OUT OF EXPENSIVE MARKETS HASN T ADDED VALUE HISTORICALLY
INVESTMENT STRATEGY COMMENTARY NOT WORTH BEING CUTE SELLING OUT OF EXPENSIVE MARKETS HASN T ADDED VALUE HISTORICALLY October 27, 2017 Some investors are expressing concern about stock market valuations
More informationMIDSIZED COMPANIES. OUTSIZED POTENTIAL. DISCOVER THE POTENTIAL OF MID-CAPS
MIDSIZED COMPANIES. OUTSIZED POTENTIAL. DISCOVER THE POTENTIAL OF MID-CAPS EQUITY S MIDDLE CHILD Whether you are one, have one, or know one, chances are you have heard the term middle child syndrome. And
More informationAdditional series available. Morningstar TM Rating. Funds in category 797. Fixed income % of fixed income allocation
Sun Life Granite Growth Portfolio Investment objective Series A $14.1960 CAD Net asset value per security (NAVPS) as of September 14, 2018 $0.0440 0.31% Benchmark Blended benchmark Fund category Global
More informationWith Rates Retreating, Bonds Back in Fashion
Defensive ETFs: December U.S. ETF 2011 Flows: Performance May 2014 FINANCIAL PRODUCTS RESEARCH ETF RESEARCH January & STRATEGY 9, 2011 U.S. ETF flows were $12.7 billion in May representing 0.7% of assets
More informationEEMV ishares Edge MSCI Min Vol Emerging Markets ETF
ishares Edge MSCI Min Vol Emerging Markets ETF ETF.com segment: Equity: Emerging Markets - Total Market Competing ETFs: EELV, RNEM, HEMV, VWO, IEMG Related ETF Channels: Emerging Markets, Smart-Beta ETFs,
More informationWhat s included in your fees and how are they calculated and presented?
OCIO provider fees What s included in your fees and how are they calculated and presented? What s included in your fees? The fiduciaries we talk to are continually telling us that one of the most confusing
More informationGLOBAL EQUITY MARKET OUTLOOK: FAVOR U.S.; STICK WITH EM
LPL RESEARCH WEEKLY MARKET COMMENTARY KEY TAKEAWAYS U.S. economic and earnings growth continue to stand out globally and support our positive view of U.S. equities. We continue to see upside potential
More informationKXI ishares Global Consumer Staples ETF
ishares Global Consumer Staples ETF ETF.com segment: Equity: Global Consumer Non-cyclicals Competing ETFs: ORG Related ETF Channels: Broad-based, Vanilla, Global, Consumer non-cyclicals, Equity, Sectors
More informationTop 10 Reasons This Remains A Misunderstood and Underutilized Asset Class. Please see last page for important disclosures.
18 INTERNATIONAL SMALL CAP Top 10 Reasons This Remains A Misunderstood and Underutilized Asset Class Please see last page for important disclosures. 1 INTERNATIONAL INVESTING IS RISKY. 2 INTERNATIONAL
More informationInvesting with a View of Significant Inflation By Bob Kargenian July 26, 2011
Investing with a View of Significant Inflation By Bob Kargenian July 26, 2011 Advisor Perspectives welcomes guest contributions. The views presented here do not necessarily represent those of Advisor Perspectives.
More informationLazard Insights. China A-Shares: A New Chapter for EM Investors. Summary. John Burge, Director, Product Manager
Lazard Insights China A-Shares: A New Chapter for EM Investors John Burge, Director, Product Manager Summary MSCI s recent announcement regarding A-share inclusion in the Emerging Markets Index opens a
More informationCost-Benefit Analysis of Retirement Plans
University of Arkansas, Fayetteville ScholarWorks@UARK Finance Undergraduate Honors Theses Finance 5-2018 Cost-Benefit Analysis of Retirement Plans Hunter Rhea Follow this and additional works at: http://scholarworks.uark.edu/finnuht
More informationMDY SPDR S&P Midcap 400 ETF Trust
SPDR S&P Midcap 400 ETF Trust ETF.com segment: Equity: U.S. - Mid Cap Competing ETFs: IJH, IVOO, VO, IWR, SCHM Related ETF Channels: North America, U.S., Broad-based, Vanilla, S&P Mid Cap 400, Midcap,
More informationThe Stock Market. What Is It? =Md9BqukZQUc
The Stock Market What Is It? https://www.youtube.com/watch?v =Md9BqukZQUc Introduction Why do people start businesses? Profit When you make money in business, it is called a profit. Mathematically: Profit
More informationSTYLUS Asset Management. Investments: What You Need to Know
STYLUS Asset Management Investments: What You Need to Know Agenda 1. Setting Investment Goals 2. Investment ABC s Asset Classes Return & Risk 3. Investment Vehicles 4. Investment Accounts 5. Taxation 6.
More informationWith the Portfolio Manager. Gordon Johnson, Ph.D, CFA Co-Portfolio Manager. Shannon Ericson, CFA Co-Portfolio Manager
Gordon Johnson, Ph.D, CFA Co-Portfolio Manager Shannon Ericson, CFA Co-Portfolio Manager for the LMCG International Small Cap Fund ISMIX, ISMRX Endeavour Investment Partners, LLC 781-749-6040 Partnering
More informationNavigating the ETF Landscape
Navigating the ETF Landscape Daniel Prince, CFA Director, Head of ishares Product Consulting May 3, 2017 Agenda What are Exchange Traded Funds (ETFs) What is driving ETF usage ETF trends and innovation
More information