Top Index Funds for Technology – PSCT, PSI and XSD

 

A performance review of the top index funds for technology paves the way for investing in a lively branch of the stock market. For this purpose, a robust and convenient vehicle for the earnest investor takes the form of an exchange traded fund (ETF).

The market sector dealing with technology tends to be volatile but vibrant; the companies in this category focus on information systems and their applications. Over the past 3 years ending in spring 2016, XSD snagged the best total return – namely, capital gain plus dividend yield; the runners-up were PSI and PSCT. All three bantam funds fared better than XLK which in turn trounced SPY. Over a longer spell, PSCT won the race in terms of capital gains over the past 5 years.

Note: This infographic available in a crisp (high definition) mode in PDF form at MintKit Gist.

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Top Index Funds for Consumer Staples

Performance Review of 

FXG, RHS and PSL

Versus SPY

A performance review of the top index funds for consumer staples paves the way for investing in a sturdy branch of the stock market. For this purpose, a handy vehicle for the earnest investor lies in an exchange traded fund (ETF).

Among the high flyers, FXG bagged the best total return over the past 3 years. Meanwhile RHS triumphed in terms of capital gain over half a decade. PSL placed third in the 5-year race but still outpaced SPY by a hefty margin.

All three dynamos fared better than SPY during the wobble and crash of the bourse in the second half of 2011. From a different angle, RHS advanced at a steady rate compared to its rivals and thus prevailed in terms of risk-adjusted gain over the 5-year stretch.


Note: A crisp (high definition) version of this poster is available in PDF form at MintKit Gist.

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Top 3 Index Funds for Technology – FDN, PNQI and SOXX

 

Triumph of Internet Stocks

A performance review of the top index funds for the technology sector paves the way for investing in a lively branch of the stock market. For this purpose, a robust and convenient vehicle for the earnest investor takes the form of an exchange traded fund (ETF).

In sizing up the performance of the pools, a lengthy timespan provides a wealth of data for a thorough survey. On the other hand, the turnout in recent years is likely to be a better guide to the prospects going forward than the results of the distant past. Given this backdrop, a window of three years seems like a fitting compromise between the contrasting concerns of ample data versus high relevance.

Based on the capital gains over the course of three years, the best index funds in the technology patch go by the ticker symbols of FDN, PNQI and SOXX. Among these vehicles, the first two entries outpaced by a huge margin the chief benchmark of the stock market in the form of SPY. By contrast, SOXX turned in a lackluster showing.

From a different angle, a graphic display of the price history can provide an intuitive grasp of the entrants in the race. The mindful investor has to consider the volatility of the vehicles during the appraisal window as well as the payoff over the entire stretch.

In order to obtain a balanced view of performance, the window of evaluation should cover a spell in which the market has witnessed a boom as well as a bust. For this purpose, a choice timespan is a window of 5 years ending in the late summer of 2014. This interval straddles the crash of the bourse in 2011 as well as the upswell and bounceback of the market that lie on either side of the smashup.

From the longer perspective of half a decade, the standard bearer in the world of index funds – namely, SPY – turned in a capital gain of 92.68%. Another touchstone lay in XLK, the primo within the technology sector, which chalked up a payoff of 97.78%.

Meanwhile the outturn was roughly similar for SOXX, whose return came out to 97.69%. In these ways, the semiconductor fund as well as the technology benchmark managed to edge out SPY by a small margin.

By contrast, FDN bagged a capital gain of nearly 192% over the entire stretch of half a decade. Better yet, PNQI won the derby by snagging a windfall of some 226% over the same period.


NOTE: The full report is a document in PDF form under the title of “Top 3 Index Funds for Technology”. The briefing may be viewed or downloaded here.


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Myths versus Mistakes in Investing

Riot of 

 Passive Muffs and Active Goofs 

 in Financial Markets

The financial markets abound with beguiling myths and wanton mistakes. The two kinds of stumblers – namely, fables and bungles – are distinct as well as entwined. The slew of snags act singly as well as jointly to trip up all manner of investors ranging from rank amateurs to badged professionals.

The multitude of pitfalls may be classified into a couple of broad groups. A myth conveys a false view of the marketplace while a mistake denotes a bum move harmful to the investor. The former is a passive flub while the latter is an active goof.

The two types of spoilers run riot in isolation or combination. For instance, a tall tale may bedevil an investor without giving rise to a costly mistake. On the flip side, a wrackful move could arise in the absence of a slippery myth. In other cases, the two forms of sinkers work together to foil the hapless investor, thus fouling their agenda to varying degrees ranging from patchy losses to complete wipeouts.

From a larger stance, the awesome complexity of the real and financial markets hamstrings any attempt to drum up a cogent program of investment. The actors floundering in the mire run the gamut from dewy-eyed tyros puttering in their spare time to wizen pros plying their trade the whole day long.

Whatever the scope of experience in the field, the mass of participants succumbs to both kinds of muck-ups. As a safeguard, the first task of the canny player is to recognize the welter of hidden traps along with the mordant wounds they inflict. In this treacherous environment, a solid grasp of the myths and mistakes is a basic requirement for avoiding the sinkholes and escaping the minefield.


NOTE:  The full article is available as a Web page at MintKit Core. As an alternative, the same material appears as a document in PDF form at Scribd. 

REVISED:  2021/4/11. 

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Top 5 Markets for ETF Investing in Europe – Ireland, Switzerland, Belgium, Britain and Nordics

 

Index Fund Performance

for

EIRL, EWL, EWK, EWU and GXF

A performance review of the top markets in Europe sets the stage for investing in a diverse region that includes budding countries as well as mature economies. For this purpose, a robust and convenient vehicle for the worldly investor lies in an exchange traded fund (ETF).

In sizing up the field of index funds, a straightforward tack is to begin with a list of the high flyers. Then other traits such as volatility and liquidity can be brought to bear on the subject in addition to the capital gains.

In order to obtain a balanced view of performance, the window of evaluation should cover a period in which the market has encountered a boom as well as a bust. On one hand, a longish timespan provides a wealth of data for a thorough survey of performance. On the other hand, the turnout in recent years is likely to be a better guide to the prospects going forward than the record of the remote past.

The vale of exchange traded funds has seen explosive growth around the turn of the millennium. Given the welter of saplings, an investor who insists on a long history will thereby rule out a raft of candidates. In this setting, a track record of three years seems like a fitting compromise in trading off the opposing factors of ample data versus plentiful candidates.

With these points in mind, the chosen window spans three years ending in spring 2014. From this standpoint, the front-runners take the form of index funds dealing with Ireland, Switzerland, Belgium, Britain and the Nordic region.

In addition to the return on investment over the entire stretch, a crucial issue concerns the volatility of each vehicle along the way. In gauging the extent of turbulence, a handy aid lies in a concurrent plot of the index funds. For this purpose, a suitable scheme involves a visual display spanning a stretch of 5 years ending in spring 2014.

Based on the capital gains over the past three years, the best vessels sport the ticker symbols of EIRL, EWL, EWK, EWU and GXF. Over this stretch, the index fund for Ireland (EIRL) outpaced the chief benchmark of the stock market – namely, SPY – by a solid margin. On the other hand, the other four vehicles lagged the latter beacon by varying degrees.

Meanwhile, over the longer span of half a decade, the Irish fund beat out SPY by a modest amount. During this period, the turnout for Switzerland (EWL) was comparable to the flagship benchmark of the stock market. By contrast, the remaining three contenders turned in worse results. In particular, Britain (EWU) brought up the rear amongst the top names in the European theater.


NOTE: The full briefing is a document in PDF form. The publication, titled “Top Markets for ETF Investing in Europe”, may be viewed or downloaded here.

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Top Index Funds for Biotech – IBB, PJP and XBI

Performance Review

of the Best 3 Index Funds

A performance review of the top index funds for the biotech industry paves the way for investing in one of the most dynamic branches of the stock market. For this purpose, a robust and convenient vehicle for investment lies in an exchange traded fund (ETF).

In order to obtain a balanced view of performance, the window of evaluation should cover a period in which the market has encountered a boom as well as a bust. On one hand, a longish span provides a wealth of data for a thorough survey of performance. On the other hand, the turnout in recent years is likely to be a better guide to the prospects going forward than the experience of the distant past. Given this backdrop, a window of three years seems like a fitting compromise between the contrasting issues of ample data versus high relevance.

From a different angle, a graphic display of the price history can provide an intuitive grasp of the index funds under consideration. The earnest investor has to consider the volatility of the vehicles during the window of evaluation in tandem with the overall payoff over the entire stretch.

Based on the capital gains over the course of three years, the best index funds in the biotech patch go by the ticker symbols of IBB, PJP and XBI. Each of these vehicles trounced the chief benchmark of the stock market – namely, SPY – by a huge margin.


NOTE: The full report is a document in PDF form under the title of “Top 3 Index Funds for Biotech”. The briefing may be viewed or downloaded here.

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Midcap ETF Review for CSD, RPV and RYJ

 

Performance of Top Index Funds

Given the attractions of an exchange traded fund, a midcap ETF review for the stock market paves the way for investing in lusty firms of moderate size. For this purpose, the first order of business is to select a timespan for sizing up the returns on investment.

On one hand, a lengthy window of observation provides a heap of data for a thorough analysis of performance. On the other hand, the broad-based approach has its drawbacks as well. One stumper springs from the dynamism within the financial forum. Due to the explosive growth of index funds in the millennium, a prolonged timespan has the side effect of brushing aside numerous entrants that have stepped into the arena only in the recent past.

For this reason, the wily investor has to strike a balance between the conflicting factors in order to pick an apt window of evaluation. In striking a compromise, a time frame of three years seems like a fitting choice in general.

From a different stance, the financial crisis of 2008 was a watershed in the global economy. In recognition of the landmark, a duration of five years ending in spring 2013 has the advantage of spanning the epic blowup and its aftermath. For this reason, the longer window of half a decade can provide a host of pointers on the true nature of motley markets.

In addition to grasping the price action in the arena, the wise investor takes into account a number of additional factors relating to the short run as well as the long range. A case in point is a modicum of liquidity needed for the artful player to enter and exit a given market in a timely fashion.

A second hallmark of the savvy investor lies in an aversion for levered vehicles. The reason stems from the constant threat of sudden death and/or gradual demise that dogs any type of rickety scheme based on high gearing. Due to the specter of certain doom, only a heedless speculator lusts after shaky contraptions pumped up by the gimmicks of leverage. In other words, the wise investor relies only on sturdy rigs that move with the target market in a direct and forthright way.

In sifting through a database of index funds focused on midsize firms, a straightforward approach is to begin with a muster of the front-runners in the field. Then the other factors such as liquidity and risk can be brought to bear on the appraisal.

In line with this thrust, we begin with a tally of raw performance over the course of three years ending in the autumn of 2013. The resulting list of candidates can then be whittled down further by a couple of secondary screens. As we noted above, the first filter deals with the liquidity of the ETF in the marketplace. Meanwhile the second criterion concerns the directness of the setup; that is, the absence of leverage.

Based on this regimen, the top 3 index funds turned out to be CSD, RPV and RYJ. The purpose of these pools is to keep pace with their respective benchmarks: the Beacon Spin-off Index, the S&P Pure Value Total Return Index, and the Raymond James SB-1 Equity Index.

Among these pacers, CSD turned out to be the clear winner. Moreover the return on investment for the spearhead displayed a series of higher peaks as well as rising troughs over the span of half a decade.

Of the pair of runners-up, the average payoff for RPV over the past three years was comparable to that for RYJ. On the other hand, the former pool broke down more severely than the latter during the financial flap of 2008. After the smashup, though, RPV for the most part kept up with its rival and managed to eke out a slightly better performance in recent years.

To place the turnout of the high flyers in context, the eagles were compared against a couple of renowned benchmarks of the stock market. Looking at the big picture, the Standard & Poor’s index of 500 giants stands out as a popular proxy for the bourse as a whole. Meanwhile the S&P 400 Midcap Index is arguably the leading beacon within the vale of midsize stocks.

Each of the foregoing yardsticks has spawned an index fund of its own. The offsprings carry the ticker symbols of SPY and MDY respectively. On the upside, the trio of winning funds for midcap stocks – namely, CSD, RPV and RYJ – trumped the popular benchmarks of the bourse by a solid margin.

NOTE: The full report is a document in PDF form. The publication, listed under the title of “Midcap ETF Review for Investing in Top Markets”, may be downloaded here.  

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ETF Review of Top 3 Picks for Consumer Cyclical Stocks – XRT, PEJ and XHB

 

Comparison of Fund Performance

for

XRT, PEJ and XHB 

A review of the top performers is a springboard for sound investing in consumer cyclical stocks by way of an exchange tradedf fund (ETF). To pick out the best choice of index fund, the first step is to round up the front-runners. In sizing up the firebrands, the key gauges include the speed of capital gains and the extent of price volatility

To this end, a basic criterion involves the rate of return over the past few years. On the other hand, a lot of index funds are relative newcomers to the field. For this reason, a prober who insists on a lengthy history will exclude a raft of candidates. At this early stage in the upgrowth of exchange traded funds, a fitting compromise between the length of the track record and the size of the candidate pool is a life span of 3 years.

For our purpose here, the period of evaluation straddled three years ending in the summer of 2013. During this stretch, the best performance was turned in by an exchange traded fund based on the S&P Retail Select Industry Index. The communal pool, which sports the ticker symbol of XRT, chalked up a gain of 30.92 percent a year on average.

The runner-up in the sweepstakes was a vehicle tied to the S&P Homebuilders Select Industry Index. The dynamo, which flies under the banner of XHB, managed to snag an average return of 29.73% per year.

Meanwhile the bronze metal in the race went to the PowerShares Dynamic Leisure & Entertainment fund. The hustler, branded as PEJ, snapped up a yearly gain of 28.46%.

In order to obtain a better sense of the performance figures, we need to put the results into a larger context. For this purpose, the benchmark of choice among professional investors lies in the Standard & Poor’s index of 500 titans listed on the stock market.

The latter yardstick is tracked with remarkable accuracy by an exchange traded fund that runs under the banner of SPY. The tracking vehicle turned in a bounty of 18.87% a year on average over the course of three years.

To sum up, the third place in the rankings was claimed by PEJ which surpassed the chief benchmark of the market by nearly 10% a year. By contrast, the outcome for XHB turned out to be a mite better by about 1%. Finally, the payoff for XRT was higher still by another percent or so.


NOTE: The full report is a document in PDF form. The resource is available here: Top ETF Review for Consumer Cyclical Stocks.


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Smallcap ETF Review – Top 3 Index Funds for Healthcare, Energy and Growth Stocks

 

 Index Fund Performance 

 for 

 PSCH, PSCE and IJT 

Given the drawcards of an exchange traded fund, a smallcap ETF review for the stock market lays the groundwork for investing with finesse in bantam firms. To this end, the first order of business is to select a suitable timespan for sizing up the candidates.

On one hand, a lengthy window of observation provides a heap of data for a thorough analysis of performance. On the other hand, the broad-based approach has its drawbacks as well. One stumper springs from the dynamism within the financial forum. Due to the explosive growth of index funds in the millennium, a prolonged timespan has the side effect of casting aside numerous entrants that have stepped into the arena only in the recent past.

For this reason, the wily investor has to strike a balance between the conflicting factors in order to pick an apt window of evaluation. In striking a compromise, a time frame of three years seems like a fitting choice in most cases.

From a different stance, the financial crisis of 2008 was a watershed in the global economy. In recognition of the landmark, a duration of five years ending in spring 2013 has the advantage of spanning the epic fiasco and its aftermath. For this reason, the longer window of half a decade can provide a host of pointers on the true nature of motley markets.

In addition to grokking the price action in the arena, the deft investor takes into account a number of additional factors relating to the short run as well as the long range. A case in point is a minimal level of liquidity needed for the artful player to enter and exit a given market in a timely fashion.

A second hallmark of the savvy investor is an aversion for levered vehicles. The reason lies in the constant threat of sudden death and/or gradual demise that besets any type of rickety scheme based on high gearing. Due to the specter of certain doom, only a heedless speculator lusts after shaky contraptions pumped up by the gimmicks of leverage. In other words, the sober investor relies only on sturdy rigs that move with the target market in a direct and forthright way.

In sifting through a database of index funds focused on smallish firms, a straightforward approach is to begin with a muster of the front-runners in the field. Then the other factors such as liquidity and risk can be brought to bear on the appraisal.

In line with this thrust, our search begins with a tally of raw performance over the course of three years ending in spring 2013. The resulting list of candidates is then whittled down by the duo of secondary screens. As we noted above, the first filter deals with the liquidity of the asset in the marketplace. Meanwhile the second criterion concerns the directness of the setup; that is, the absence of leverage.

Based on this routine, the top 3 index funds turned out to be PSCH, PSCE and IJT. These pools focus respectively on the healthcare sector, energy market, and growth stocks.

Within the ranks of acceptable funds based on bantam stocks, PSCH turned out to be the clear winner. The return on investment for the spearhead displayed a series of higher peaks as well as rising troughs over the span of three years following its debut in the stock market in spring 2010.

Of the pair of runners-up, the average payoff for PSCE was comparable to the turnout for IJT. On the other hand, the latter vehicle was a lot less volatile compared to the former. For this reason, IJT was the better choice for the genuine investor.

To place the performance of the high flyers in context, the eagles were compared against a couple of renowned benchmarks of the bourse. Looking at the big picture, the Standard & Poor’s index of 500 giants stands out as a popular proxy for the stock market as a whole. Meanwhile the Russell 2000 Index is arguably the leading beacon within the vale of bantam stocks.

Each of the foregoing yardsticks has spawned an index fund of its own. The offshoot vehicles carry the ticker symbols of SPY and IWM respectively. On the bright side, the trio of winning funds for smallcap stocks – namely, PSCH, PSCE and IJT – trounced the standard benchmarks of the bourse by a comfortable margin.


 NOTE: The full briefing is a document in PDF form. The publication, titled “Smallcap ETF Review for Investing in Top Markets”, may be viewed or downloaded here.

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Market Timing via Monthly and Holiday Patterns

 

A Free Lunch in the Stock Market 

The stock market displays a medley of patterns that can serve as the crux of a timing strategy. A showcase lies in the oft-seen surge of the market around the turn of the month as well as the run-up to a holiday.

As with all things, the timing strategy does have its shortcomings. An example involves the need to dart in and out of the market more than a dozen times a year in order to take full advantage of the patterns.

Another drawback stems from the higher rate of income tax on short-term profits as opposed to long-run gains in the stock market. The precise impact will of course depend on the specific circumstances such as the trader’s country of residence.

Despite of the hassles, though, trading with the calendar can deliver a higher payoff at less risk than the humdrum policy of buying stocks and holding them indefinitely. For this reason, a timing strategy based on monthly cycles and market holidays represents a free lunch on Wall Street.

Read more on Market Timing via Monthly and Holiday Patterns.

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Top 3 Exchange Traded Funds for the Middle East

 

ETF Comparison 

for Egypt, Israel and Turkey 

Against the USA

For the worldly investor, a handy way to access the Middle East – including the frontier markets of Egypt, Israel and Turkey – is to take up the corresponding exchange traded funds (ETFs) listed in the USA. In this article, we examine the performance of the index funds in the context of the American market which serves as the bellwether for the bourses of the world.

The ETFs are compared in terms of growth along with the risk entailed. For a balanced view of performance, the period of evaluation should cover a stretch in which the market has experienced a boom as well as a bust. The index funds can then be weighed in view of the return on investment coupled with the degree of volatility.

These factors are examined for the index funds dealing with Egypt, Israel and Turkey; namely, EGPT, EIS and TUR respectively. Moreover, the three pools are compared against the behavior of SPY, the flagship fund for the American bourse.

Read more on Top 3 Exchange Traded Funds for the Middle East.

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Performance of Energy ETFs

 

Comparison of Top Exchange Traded Funds
for Equity and Commodity Markets

 

The exchange traded funds (ETFs) for the energy sector include vehicles for tracking the price of crude oil in the commercial market as well as the equities of operating companies listed in the stock market. Among the index funds in this sector, a stalwart lies in United States Oil; the exchange traded fund is listed on the U.S. bourse under the ticker symbol of USO. On the other hand, the primo focused on the equity market is found in the Energy Select Sector SPDR, which flies under the banner of XLE.

This articles examines the performance of the two beacons over the span of 5 years ending in spring 2012. On one hand, the energy branch of the stock market has a bunch of unique properties due to its heavy reliance on the fortunes of crude oil in the real economy. Despite the close linkage to the physical market, though, every exchange traded fund is also an equity traded on a stock exchange.

For this reason, a vital question for the worldly investor is the performance of USO and XLE compared to the stock market at large. In the latter case, the flagship fund for the equity market as a whole lies in the tracking vehicle for the S&P 500 index; the exchange traded fund goes by the symbol of SPY.

Given this backdrop, we examine the performance of USO and XLE and compare the results against the turnout for SPY. In the appraisal, the key criteria take the form of volatility, payoff, and risk-adjusted gain.

 

Read more on Performance of Energy ETFs.

 

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Top 3 Index Funds for North America

 

Performance Review for Canada, Mexico and USA

In choosing a robust vehicle for investing in North America, a good place to start is to prepare a list of the top index funds for Canada, Mexico and USA. For each country, an apt choice is an exchange traded fund with a proven track record among those listed on the leading stock market in the world: namely, the U.S. bourse.

The next step is to examine the candidates in terms of growth as well as risk. For a rounded view of performance, the period of evaluation has to cover a stretch in which the market has experienced a boom as well as a bust. The funds can then be compared in terms of the return on investment as well as the level of volatility.

Another vital gauge lies in a hybrid measure of risk-adjusted gain that takes into account the overall payoff as well as the characteristic turbulence along the way. These factors are examined for the top index funds dealing with Canada, Mexico and USA; namely, EWC, EWW and SPY.

ONLINE  RESOURCES

A primer on “Cruddy Information on Exchange Traded Funds” is available under the section on Investment Funds at MintKit – http://www.mintkit.com/investment-funds.

An article on “Financial Risk” talks about obvious as well as elusive hazards for investors – http://www.mintkit.com/risk.

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Forecasting the Next Crash of the Stock Market

Timeline for the 2010s

For the wordly investor, the main event of 2011 so far has been the crash of the stock market in the U.S. and elsewhere, along with the bedlam in kindred fields such as commodities and currencies. As is often the case, the mayhem caused by the actors – be they part-time amateurs or full-time professionals – was for the most part a premature and avoidable ordeal for the entire community.

The smashup of the markets was prompted by the specter of a full-blown recession in the global economy in the near future. One reason for the jitters stemmed from the fitful progress of the industrial nations such as the United States, Britain and Japan. Another factor lay in the brouhaha over the debt crisis in Europe, along with widespread fears of a breakup of the euro plus the collapse of the regional economy.

For a number of years, the politicians in the developed world went out of their way to prop up the distortions in the marketplace that emerged during the run-up to the financial crisis of 2008. Instead of prolonging the malady, the politicos should have allowed the economy to heal itself. Better yet, public policy could have helped to undo the damage throughout the entire meshwork of production and distribution. Thanks to the counterproductive moves of the pols, however, the economy was doomed to struggle and flounder.

On a positive note, the crash of the stock market this year popped up in sync with the long-range schedule of meltdowns. As a result, the sequence of bombshells appears to be back on track despite the partial derailing linked to financial crisis of 2008. As things stand, the next crackup of the bourse is likely to occur around 2017 in line with the running sequence of flaps in the modern era.

Read more on Forecasting the Next Crash of the Stock Market.


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Analysis of Financial Markets

Fundamental and Technical Methods
for Gauging Assets

The analysis of financial markets can be divided into two broad types: fundamental and technical. The former approach explores the prospects for an enterprise in the real economy in order to gauge the outlook for its securities such as stocks and bonds. Meanwhile, the latter scheme examines the past and current behavior of a security in the financial arena as a way to divine the future.

To many folks, these two methods appear to be diametrical opposites. For this reason, along with personal tastes, investors tend to concentrate on one methodology or the other with scant regard for the competing scheme.

On the other hand, each approach has its strengths as well as limitations. For this reason, there is no need for anyone to rely solely on one or the other. In fact, a number of wily investors do take up both types of analysis to a greater or lesser degree. A case in point is the gamer who selects a stock based on the prospects for the underlying company, then draws on technical cues in order to pinpoint the best times to buy or sell the security.

Read more on Analysis of Financial Markets.


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Volatility Slams the Return on Index Funds

 The Return on Index Funds  

 Rises with the Aloofness of the Investor  

 and Falls with the Volatility of the Market 

A high level of volatility in the market prods investors into fiddling with their portfolios, thereby slashing the return on investment for index funds. By trading in and out of the stock market at precisely the wrong times, the fidgety players end up shooting themselves in the foot.

Over the long haul, the sprightly segments of the market are apt to outpace the other branches. The dynamic niches include bantam firms, technology ventures, and emerging regions. On the downside, though, the spry markets tend to be more roily than the rest.

Unfortunately, the investing public has a way of dashing in and out of the market at just the wrong moments. As a result, the punters give up a great deal of the gains on offer in the lusty domains. The higher the volatility, the greater in general is the lag of the investor behind the target index.

On the upside, though, there is a straightforward way for the mass of investors to boost their earnings by a significant amount. The gamers could enjoy a plump increase in profits if they would stop meddling with their portfolios and simply ignore the goings-on in the marketplace. Moreover, the benefits of a laissez-faire policy grows with the turbulence of the market, along with the flightiness of the corresponding index fund.

Read more on Volatility Slams the Return on Index Funds.

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Top 10 ETF List for Growth – Performance, Risk and Cost

In order to pick out a promising exchange traded fund (ETF) in an orderly way, the first task of the investor is to compile a list of the top performers. For this purpose, the crucial factors include the pace of capital gains, the level of price volatility, and the burden of maintenance charges.

In certain cases, additional features may come to the fore. A case in point is the yield due to the dividends thrown off by the ETF.

For the most part, the traits noted above are interlinked rather than independent. As an example, an exchange traded fund on a growth streak is apt to be more volatile than a sluggish one which plods along at a modest pace. Another sample is the cost structure; whatever the performance in the past, an index fund with a heavy load is more likely than not in the future to lag behind its rivals with leaner structures.

In tackling these issues, a sensible step is to begin with a muster of the top 10 funds by way of growth. Then the other factors such as risk and cost can be brought to bear on the evaluation.

Read more on Top 10 ETF List for Growth – Performance, Risk and Cost.

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How to Beat the Investment Funds: Outshine Most Mutual Funds and Hedge Funds plus Earn a Bonus

If you’re like many investors, you must think that the title of this article is just a joke, and there’s no way for you to beat the full-time pros that run mutual funds and hedge funds. Or you might expect to read here that you should go back to school and earn a graduate degree in investment finance. Or maybe you ought to go out into the financial forum and spend a couple of decades learning the trade at the feet of renowned wizards of the marketplace.

If your thoughts ran along these lines, then you were mistaken. In reality, the title shown above is dead serious. Really it is.

There is actually a simple way to outshine the mass of mutual funds and hedge funds as well as private investors. The reason is that the objective is not daunting or even demanding.

Before we get down to brass tacks, though, we ought to spell out exactly what the goal is. Also, it’s helpful to get a good grasp of the nature of the competition. That way you’ll have a better appreciation for the what, why and how of the gambit for trumping the mass of players in the arena.

Getting a Fix on Mutual Funds

A raft of studies over the decades has shown that mutual funds as a group trail behind the stock market at large. Although the specific numbers may vary somewhat from one probe to another, a representative result is that the annual return from mutual funds is on average half percent lower than the benchmarks of the bourse.

One reason is that mutual funds have a habit of charging a maintenance fee based on the total value of the assets under management. In the past, the fee has ranged anywhere up to a couple of percent – or even higher – of the average value of the portfolio over the course of the year. In a hypothetical world, if the administrative load were waived, then the average fund might for the most part keep up with the market averages.

What can we infer from these observations? Based on the data, the pack of mutual funds as a whole adds no value to the task of picking stocks for investment. In spite of all their efforts to the contrary, professional managers as a group make moves that are equivalent to picking stocks at random.

Removing the Veil from Hedge Funds

In a raft of ways, the performance of hedge funds is even worse than that of mutual funds. According to impartial studies, the top tier of hedge funds ekes out a gross profit that is comparable to the average performance of mutual funds.

On the other hand, the net return to the investors is a lot less for a bunch of reasons. One big stumper lies in the practice of taking a big cut out of the profits.

The performance fee tends to range from 20 to 50 percent of the returns for any period in which the portfolio happens to turn in a profit. Due to the hefty bite, patrons end up with a significantly smaller piece of the pie.

On top of all this, the investors have to pay a fixed fee for administrative expenses regardless of performance. The usual charge comes out to a couple of percent each year of the total value of the assets under management.

Against this backdrop, the larger community of investors subscribes to a host of feckless practices. As an example, myriads of punters squander their money on mutual funds that levy a fixed fee of a couple of percent each year for holding onto their assets. The savers could easily secure better results through cost-effective pools that charge a pittance for their services.

A second curio lies in the fact that so many investors hanker after hedge funds when they could do much better on average with other vehicles including even mutual funds. Apparently the clients are unable or unwilling to ferret out the facts needed to make a cogent decision.

A third stunner involves the fact that the average investor earns even less than the average mutual fund. The crux of the problem springs from the custom of giving in to excess through alternating bouts of mania followed by panic.

During the extreme stages of the market cycle, the punters load up on stocks precisely when they ought to selling, then dump their holdings exactly when they should be buying. The upshot of the ditsy practice is to give up the profits and lock in the losses.

A fourth irony is that investors as a group spend so much time and effort trying to beat the market but end up lagging the benchmarks by a hefty margin. The results could be much better if the gamesters were to take a simpler tack then ignore the market completely. In that case, the demure investors could for the most part stay abreast of the market averages without wasting any time on trading or putting up with the headache of thrashing prices.

In fact, the players could beat the market over the course of a price cycle if they were to use a technique known as dollar cost averaging. To add icing on the cake, the scheme can be set up easily then left alone to run on autopilot.

At this juncture, however, we should note that the goal of beating the market averages is a topic best left to a separate article. Getting back on track, our purpose here is to trump the average pool in the marketplace, whether in the form of a mutual fund or a hedge fund.

Paying Yourself a Bonus for Beating Your Rivals

If you can keep up with the stock market at large, then you are outpacing the average pool managed by professional caretakers. That outcome will also ensure that you beat out the mass of individual investors by a comfortable margin..

In fact, you could pay yourself a management fee of nearly half a percent a year on the total value of your portfolio. In that case, you would of course trail behind the market benchmarks by a similar amount. Even so, you would still beat the bulk of the competition in the form of mutual funds, hedge funds, and lone investors.

So what’s the best way to achieve this exceptional feat? All you need to do is to take up the following procedure.

More on How to Beat the Investment Funds: Outshine Most Mutual Funds and Hedge Funds plus Earn a Bonus.

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Mirage of the Stock Market: Track Records for Investment Funds Can Be Misleading

In ironing out an investment strategy for managed accounts, a standard procedure is to examine the prior performance of the investment funds. Contrary to popular belief, however, a track record in the financial markets proves nothing of substance. As a case in point, a superior portfolio that outpaces the stock market can be constructed in a systematic fashion as explained in this article. The method adopted here may be viewed as an instance of proof by demonstration.

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