Financial Sector ETF provides investors dedicated exposure to the financial service sector. Sub sector in the financial service sector includes: Banks (Dominated by largest banks listed in the US) Insurance (Life Insurance, Property Casualty Insurer and Re Insurance) Real Estate (REITs, Mortgage REIT, Real Estate Developers and Management) Capital Markets (Investment Banks) Diversified Financial Services […]
Here is a list of ETF for investors looking to add banking exposure to the portfolio. It is no secret the current financial structure favors the moral hazard of too big to fail. Investing in individual behemoths like JP Morgan and Citibank are exposed to significant regulatory risks, diseconomies of scale where the organization can […]
Small Cap ETF are for investors that want small cap stock exposure without the headaches from large shocks of individual small cap stocks. It can provide a diversified exposure to a basket of small cap stocks which can be considered a lower risk approach in investing. The tradeoff of using a ETF rather than direct […]
Total expenditure in the health care industry amount to $1.6 trillion a year and annual growth has been consistently above inflation. Along with favorable demographics momentum it could pay off for investors to allocated portion of the portfolio to the healthcare sector. Just like the Energy ETFs not all ETF in healthcare sector is the same. The […]
Domestic Chinese stock market has been on its best bull run since 2007. For US investors there are limited options wanting to invest in the Chinese equity market due to capital inflow restrictions. With the number of China ETFs option available it is important to note not all China ETF funds are created equal. ETF providers […]
Insurance ETF is one of the great ways of gaining exposure to the insurance sector while at the same time eliminate individual event risks (examples like hurricanes, earthquake or floods). Insurers derive income from a combination of policy income (the insurance premium received being higher than cost of the policy over its lifetime) and investment […]
Investors can use Index Funds or Exchange Traded Funds to track the performance of the Dow Jones Index. The Dow Jones ETF is one of the cheapest option for investors to gain exposure to a group of mature and blue chip stocks compared to actively managed funds. Dow Jones Index History Dow Jones Industrial Average index […]
Best Dividend ETF for 2015 Dividends is one of the most powerful factors in investment results over the long. The compounding factor of dividends overtime can be a significant portion of overall results. Chart below from WisdomTree show buying the highest dividend paying stocks can outperform the broader market by a large margin and also […]
Interest rates has been in secular decline for last decade. Federal reserve’s response to the financial crises has kept rates lower and far longer than anyone would have thought. As with everything in life, nothing lasts forever. The Fed will eventually raise rates from the current multi decade lows and as rates rise (which imply […]
Inverse ETFs provides investors a positive return when the market declines. To use these index ETF to the maximum effect. Investors should be aware the underlying sector breakdown of the asset or market of each ETF. There are also sector inverse ETFs that move inverse to energy or financial sector ETFs. Prior bear markets saw the […]
High Yield Bond ETF (or Junk Bonds ETF) can be an important part of the investment portfolio by providing attractive risk adjusted yield, diversification and capital return. Unlike dividend ETFs which focus on dividend income stocks. High yield index funds provide a mix of equity and bond. The characteristics of high yield bond returns include a mix of capital […]