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March 27, 2015
Successful ETF Investing

Successful ETF Investing
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March 27, 2015
Weekly ETF Report

Bogle’s Bad Views on ETFs John “Jack” Bogle is an icon in the investing industry. The founder of Vanguard and the “father” of index mutual fund investing has had a lot of good ideas over the years. Unfortunately, the ideas in his recent editorial in the Financial Times are not among those good ideas. According to Mr. Bogle, exchange-traded funds (ETFs) are something that investors should “beware” of. As Bogle writes, “Mark me as a member of a small group of cohorts who are dubious about the utility of ETFs for long-term investors.” Bogle goes on to express some rather bad views about ETFs as merely a great “marketing innovation” where the “only sure winners are the brokers and dealers of Wall Street.” At the crux of Bogle’s criticism is that ETFs are too tradable, and that the ability to buy and sell ETFs so easily, and at any time of the day, makes them too tempting for investors to do the wrong thing by being too active with their money. Now, let’s put aside the obvious paternalistic patronizing going on here, which basically insults your intelligence as someone able to make your own decisions. Rather, Bogle assumes that the only proper way to invest is to buy and hold for the very long term. Well, not all investors do that with their money, and I don’t think investors should do this. Now, I’m admittedly biased here, as I have been employing a trend-following strategy for nearly four decades that’s […]

March 20, 2015
Successful ETF Investing

Successful ETF Investing
Subscribe Today

March 20, 2015
Weekly ETF Report

The Bull Stampedes in the China Shop This week’s market action was dominated by the Federal Reserve’s Federal Open Market Committee (FOMC) statement and the subsequent press conference by Fed Chair Janet Yellen. The key term “patient” was removed from the Fed’s statement, and that was the first step toward setting the table for the first interest rate hike in more than seven years. The Fed also expressed a bit of concern about U.S. economic growth, and that actually caused traders to interpret the Fed statement as a bit more “dovish” than was previously thought. That means there won’t likely be a rate hike until at least the September FOMC meeting — and maybe even longer. Now, while stocks in the United States enjoyed a strong week of Fed-induced upside, there was a much bigger bullish move this week in China. In fact, the bull is stampeding through the China shop right now, and that has been a decided trend since the beginning of the year. The table here of the top 10 performing China ETFs in 2015 tells the tale of a bull in stampede mode. Ticker Name YTD% Assets ($MLN) CNXT MARKET VECTORS CHINA AMC SME 41.79 33.601 ASHS DEUTSCHE X-TRACKERS HARVEST 30.86 38.227 PEK MARKET VECTORS CHINA ETF 10.95 97.421 KBA KRANESH BOSERA MSCI CHINA A 10.36 25.399 ASHR DB HARVEST CSI 300 CHINA A 8.92 1,095.455 CQQQ Claymore/AlphaShares China Technology 7.84 93.459 CN DEUTSCHE X-TRACKERS MSCI ALL 7.22 9.318 MCHI ISHARES MSCI CHINA INDEX FD 5.30 […]

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What Investing Icon Jack Bogle Gets Wrong about ETFs

March 27, 2015

Bogle’s Bad Views on ETFs John “Jack” Bogle is an icon in the investing industry. The founder of Vanguard and the “father” of index mutual fund investing has had a lot of good ideas over the years. Unfortunately, the ideas in his recent editorial in the Financial Times are not among those good ideas. According to Mr. Bogle, exchange-traded funds (ETFs) are something that investors should “beware” of. As Bogle writes, “Mark me as a member of a small group of cohorts who are dubious about the utility of ETFs for long-term investors.” Bogle goes on to express some rather bad views about ETFs as merely a great “marketing innovation” where the “only sure winners are the brokers and dealers of Wall Street.” At the crux of Bogle’s criticism is that ETFs are too tradable, and that the ability to buy and sell ETFs so easily, and at any time of the day, makes them too tempting for investors to do the wrong thing by being too active with their money. Now, let’s put aside the obvious paternalistic patronizing going on here, which basically insults your intelligence as someone able to make your own decisions. Rather, Bogle assumes that the only proper way...

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Investors have become complacent. Stocks are near all-time highs. Volatility is low. It's almost like investors are blind to the three coming catastrophes that can crash the market 30% or more in 2013:...
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Fund Allocation
abc
25%
def
25%
ghi
25%
jkl
25%
Name Ticker Date Buy Price Stop Price
number 1 abc 08/30/2009 19.74 17.74
number 2 def 10/13/2009 19.72 17.72
number 3 ghi 05/15/2009 19.35 17.35
number 4 jkl 03/30/2009 20.08 17.08