Key Takeaways ETFs are inherently safe as an investment because they diversify risk and are highly regulated. Safety varies by fund type, index method, and structure, with broad-market funds being less risky than leveraged or synthetic products. Expenses remain low due to slender expense ratios, and reporting brings transparency. Risks still include market swings, tracking … Read more
Key Takeaways Among the longest bull markets in history are the 2009–2020 U.S. Rally, the 1987–2000 U.S. Expansion, and Japan’s 2012–2018 run. The 2009 cycle lasted around 131 months, with the S&P 500 increasing approximately 400 percent. The 1987 one ran 150 months, with returns of approximately 580 percent on the S&P 500. Japan’s Abenomics … Read more
Key Takeaways Safest ETFs as a beginner are broad, low-cost index funds and high-quality bond ETFs with long records and large asset bases. Broad market equity funds distribute risk among hundreds of companies. Short-duration Treasury or investment-grade bond funds reduce price volatility. Good indicators are expense ratios below 0.10%, high volume, tight spreads, and low … Read more
Key Takeaways Bull markets last four to six years on average, depending on the time period measured. Since 1926, a number of studies place the average around seven years, while post-1950 numbers run closer to four to five years. The 2009–2020 U.S. Run was approximately 11 years, while 1982–1987 ran for only five. Short bursts … Read more
Key Takeaways Buying your first ETF is simple. Open a brokerage account, fund it, select a low-cost fund by ticker, and enter a market or limit order. See expense ratio, bid-ask spread, and tracking error. Start with a broad index ETF for sector mix. Mind account fees, tax rules, and local market hours. Many brokers … Read more
Key Takeaways What is an ETF? ETF is a pooled investment fund that trades on an exchange and holds a basket of assets like stocks, bonds, or commodities. Generally, they track an index, provide intraday pricing, and have lower fees than many mutual funds. Shares trade at market prices that may be somewhat above or … Read more
Key Takeaways Stocks vs ETFs for beginners contrasts purchasing individual company stocks versus purchasing funds that contain multiple investments and trade like a stock. Stocks provide direct ownership, greater upside, and greater risk from one company’s actions. In contrast, ETFs diversify risk across industry sectors or an entire index, and they have an annual fee … Read more
Key Takeaways ETFs vs. mutual funds trading, costs, taxes and access. ETFs trade on exchanges all day and their market prices move in real time. Mutual funds trade once per day at net asset value after market close. Expense ratios are lower for broad index ETFs, but large index mutual funds can match them. Bid-ask … Read more
Key Takeaways ETFs for beginners are inexpensive funds that buy a basket of stocks or bonds and trade on exchanges in a single share. They follow an index like the S&P 500, a sector, or a combination. Fees remain lean, typically 0.03% to 0.20% a year, which supports long-term returns. Buyers can start with a … Read more
Key Takeaways A tenet is a central principle or belief that members of a group or field accept as true. We use many tenets as compasses, directing decisions and lifestyles. For example, honesty is a tenet in a lot of families and cultures. Tenets may evolve as time or perspectives shift, yet they frequently remain … Read more