- Types of Alternative Investments for the Wealthy to Consider
For some people, “wealthy” can mean simply meeting their household needs. For others, maybe it’s holding enough money and assets to be considered a sophisticated investor. Whatever your definition of wealth, once you have your future secured through steady, long-term assets, you can choose to explore alternative investments for your investment portfolio. Alternative investments encompass anything… read more…
- What Are Safe Haven Assets?
Investing in safe haven assets can help investors protect their wealth during times of economic uncertainty and market volatility. These assets, which include defensive stocks, government bonds, currencies, gold and cash, are sought after for their ability to provide stability and security when other investments experience significant downturns or increased risk. By allocating a portion… read more…
- What Are the Average ETF Fees?
Exchange-traded funds (ETFs) have gained popularity among investors due to their ease of use, diversification benefits and lower costs when compared with traditional mutual funds. However, understanding the different fees associated with ETFs is important for investors to make informed decisions and maximize their long-term returns. Average ETF fees can vary significantly, depending on the… read more…
- Differences of Investing vs. Speculating
Traditional investing takes a strategic approach to building wealth by focusing on long-term growth, risk management and diversification. Speculative investments, on the other hand, are often considered more alternative types of investing, such as collecting artwork. Let’s take a look at how you could incorporate both into a diversified portfolio. For personalized help with your own… read more…
- What Is a Regulated Investment Company (RIC)?
A regulated investment company (RIC) can offer you a unique investment opportunity by pooling resources together from numerous individuals to invest in a diversified portfolio of assets. These entities are designed to mitigate risk and potentially enhance returns through professional management. They are governed by specific tax laws and regulations. The advantages of RICs, which… read more…
- Exchange Traded Product (ETP) vs. Exchange Traded Fund (ETF)
Exchange-traded products (ETPs) are a broad category of investments that are listed on stock exchanges and trade like stocks. ETPs comprise various products, including exchange-traded funds (ETFs), exchange-traded notes (ETNs) and exchange-traded commodities (ETCs). In other words, ETFs are a type of ETP – not an alternative to them. A financial advisor can help you… read more…
- What Is an Exchange-Traded Product (ETP)?
Exchange-traded products (ETPs) are investment vehicles traded on major stock exchanges, offering investors exposure to a diverse range of assets without directly owning them. While exchange-traded funds (ETFs) are the most common variety of ETP, they aren’t the only kind. Exchange-traded commodities (ETCs) invest in precious metals and other resources, while exchange-traded notes (ETNs) are… read more…
- How to Choose an ETF for Your Portfolio
Exchange-traded funds (ETFs) have gained immense popularity among investors for their simplicity, diversification and low fees. Like individual stocks, ETFs are traded on stock exchanges. But unlike individual investments, ETFs provide investors with exposure to diversified portfolios without the need to buy assets individually. However, with a vast array of ETFs available, selecting the right… read more…
- Mutual Funds Converting to ETFs: How This Affects Your Retirement Portfolio
From time to time the markets will do something that seems both significant and inconsequential at the same time. Significant in that it is potentially very important, and to some investors it will matter quite a lot. Inconsequential in that, to most investors, the event likely won’t change their financial position or outcomes. This duality… read more…
- Can This Asset Predict a Recession, and Should It Affect Your Portfolio?
For the last year or more, many economists and financial analysts have been forecasting a recession, based on bond rates falling into an inverted yield curve. But instead of slowing down, the U.S. economy has shown indications of a recovery, with strong employment figures, decreasing inflation and overall growth. This has some analysts saying the yield… read more…
- What Is a DRIP Investment Strategy?
A Dividend Reinvestment Plan, commonly referred to as a DRIP, is an investment strategy that allows investors to reinvest their cash dividends into additional shares or fractional shares of the underlying security on the dividend payment date. To explain this “reinvestment mechanism” in layman’s terms, it’s very similar to rolling a snowball down a hill… read more…
- How to Prepare Your Investment Portfolio for Climate Change
How will climate change impact your finances? It’s likely a question you have pondered, especially as the effects of climate change continue to escalate. While we grapple with this global issue, climate change should also compel us to reconsider our investment strategies. This guide is designed to help you prepare your portfolio by explaining climate… read more…
- Types of Portfolio Management Strategies
Just as a seasoned captain navigates his ship through turbulent seas, a wise investor needs to steer his portfolio through volatile financial markets. Portfolio management is the process of overseeing and directing a group of investments to meet financial objectives. There are myriad ways a portfolio can be managed using active, passive and factor-based styles,… read more…
- What Are Investment Diversification Strategies?
Investing can be a complex and sometimes intimidating venture. Diversification strategies involve investing in multiple types of assets so that you can better protect your overall financial plans. By understanding and implementing investment diversification strategies, you can manage risk, optimize returns and build a strong financial future. The key is to choose the right strategy… read more…
- Even With High Interest Rates, Should You Hold Cash in Your Portfolio?
With some bank CDs paying more than a 5% APY and some savings and money market accounts yielding around that figure too (as of June 2023), no one can blame investors if they’ve become tempted to keep a healthy chunk of their retirement savings in cash and cash equivalents. But if you’re not careful those… read more…
- The 60/40 Portfolio: Alive, Dead or Somewhere In Between?
The 60/40 portfolio is a staple among savvy investors. Made up of 60% stocks and 40% bonds, it tends to deliver solid returns while attenuating risk. But after the 60/40 portfolio’s dismal 2022 returns, investors can’t be blamed if they’re… read more…
- How Often Should You Rebalance Your Portfolio?
Choosing the right asset allocation matters for achieving your investment goals. But it isn’t just set-it-and-forget-it. Rebalancing your portfolio from time to time is necessary to ensure that you have the right mix of investments, based on your goals and… read more…
- Here’s How Often You Should Rebalance Your Portfolio, According to Vanguard
Portfolio shifts are a common occurrence for investors, especially active ones. Over time, assets shift out of balance from their original assigned portions and could take you out of your comfort zone. Rebalancing your portfolio realigns your assets to meet… read more…
- How This ‘Do Nothing Portfolio’ Can Beat the S&P 500
A hypothetical stock portfolio has taken hands-off investing to a whole new level. Jeffrey Ptak, a chartered financial analyst (CFA) for Morningstar, recently devised a passive investment portfolio that’s based on the composition of the S&P 500. But instead of… read more…
- Why Schwab Believes Short-Duration Stocks Belong in Your Portfolio
As the Federal Reserve has aggressively raised interest rates over the last year to fight inflation, shorter-duration bonds have offered higher yields than their longer-duration counterparts. Surprisingly, a similar dynamic has existed for equities, according to financial services giant, Schwab.… read more…
- Have Apple and Microsoft Made Portfolio Diversification Impossible?
While the volatility of a single stock can lead to big winnings if the company takes off, your portfolio can suffer just as easily if that firm has a bad day. Diversification can help you smooth out those lows. At… read more…
- These Stocks Fell at Least 38% Last Quarter. Are They in Your Portfolio?
The first quarter of 2023 was a mixed bag for many stocks. And five, in particular, were among the worst performers. According to Morningstar, First Republic Bank (FRC), Bed Bath & Beyond (BBBY), Groupon (GRPN), Lumen Technologies (LUMN) and Zions Bancorp… read more…
- Morningstar Says These Two Assets Can Protect Your Portfolio From Inflation
Let’s face it: the past few years have been pretty scary for investors. From the pandemic to the bear market and inflation, it seems like most people aren’t as concerned with making huge gains as they are with simply protecting… read more…
- Vanguard Says Don’t Give Up on the 60/40 Portfolio
Of all the choices an investor has to make, asset allocation could be the most important. Deciding how to split up the money you invest among different asset classes requires clarity of purpose and an understanding of each category’s advantages… read more…
- 5 Things to Invest in When a Recession Hits
When the market is soaring, it’s easy to forget that what goes up can also come down. But economic slowdowns tend to be cyclical, which means that another recession is in the future. Whether it’s fast-approaching or still a ways off, it’s… read more…