Tag: ETF Investing

Exchange Traded Funds Are Becoming More Popular Because of This One Undeniable Benefit

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


The vast majority of American investors do so through mutual funds, but that trend seems to be changing for the better because investing for the masses is getting a lot cheaper.

Data from 2016 indicated that over half of U.S. households invested in mutual funds and the industries total assets under management were $16.34 trillion at the end of the year. Over the past few years net cash inflows to mutual funds have been shrinking and even turned negative in 2015. In 2007 cash inflows to mutual funds hit an all-time high at $879 billion, which makes sense because this was the peak of the market before the crash caused by the housing crisis. In 2009, 2010, and 2011 cash inflows were negative, -$146 billion, -$282 billion and -$96 billion respectively.

In 2012 cash in-flows returned positive and hit $200 billion, but the industry has seen declining in-flow ever since; $177 billion in 2013, $104 billion in 2014, a negative $101 billion in 2015 and even worse a negative $229 billion in 2016.

It was easy to see and understand why mutual funds experienced cash flow decline in 2008, 2009, and 2010 as the market was falling and investors were scared. But the fact that less money is moving into mutual funds while the stock market in general has increased the past few year's means there is likely a larger force at play. Continue reading "Exchange Traded Funds Are Becoming More Popular Because of This One Undeniable Benefit" →

Another Big Cyber-Security Hack, When Should You Buy The HACK ETF

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


The world of Exchange Traded Funds is massive and growing every day. Whether it’s a simple index fund to a specialty fund that focuses on a very niche industry, you can most likely find an ETF that is right for you. I often tout the S&P 500 index funds for their low cost and how easy they are for a non-financial savvy investor to get into the market and start investing.

But, for those who have a solid understanding of the markets, the risks, and enjoy finding new investments, I love highlighting the niche ETF's I find. One of my favorite specialty ETF's is the PureFunds ISE Cyber Security ETF (HACK). HACK tracks an equal-weighted index of companies that are actively involved in the cyber security industry.

With the recent global hack that locked users out of their computers and demanded a ransom be paid, the HACK ETF received little attention, while the companies it owns received a lot. That attack once again highlighted the importance of cyber-security and how cyber-attacks are here to stay and will only likely become more prevalent with time. Continue reading "Another Big Cyber-Security Hack, When Should You Buy The HACK ETF" →

Quadruple Leveraged ETF Approved and I Am Terrified

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


At the beginning of May 2017 the wise, an all knowing Securities & Exchange Commission approved a new leveraged Exchange Traded Fund. While SEC approvals for new funds don’t often make headlines, the reason this was did because of the amount of leverage the new ETF offers and what it means for the future of investing.

On May 2, 2017, the SEC approved the ForceShares Daily 4x US Markets Futures Long Fund which will have the ticker "UP" and the ForceShares Daily 4x US Markets Futures Short Fund which will have the ticker "DOWN."

Yes, you did read that correctly, these are 4X funds which will deliver 400% the daily performance of the S&P 500. Previously investors had access to 3X funds, which offered 300% the daily moves of the indexes they track, but with this move, 400% may now seem to be the benchmark. Continue reading "Quadruple Leveraged ETF Approved and I Am Terrified" →

First Ever Cannabis ETF: Friend or Foe?

Posted on by The INO.com Team

Analysis originally distributed on May 10, 2017 By: Michael Vodicka of Cannabis Stock Trades

If you like getting a good deal then once again the time has come to take a look at cannabis stocks.

The cannabis sector has fallen into a bear market. A bear market happens when a stock falls 20% or more from its 52-week high.

After posting massive gains in 2016 and early 2017 – the MJIC Index North American Cannabis Index is down 25% from its 52-week high. Take a look.

North American Marijuana Index

I don’t see any fundamental reason for the pullback. As always there has been plenty of good news coming out of the cannabis industry. Continue reading "First Ever Cannabis ETF: Friend or Foe?" →

ETFs For Those In Their 50s

Posted on by Matt Thalman

Matt Thalman - INO.com Contributor - ETFs


So you are now just a decade or so from retirement and don’t want another 2008 market crash to wipe out our nest egg, forcing you to work for longer than you are planning. Finding safe investment options is a goal, but at the same time you don’t want to be too conservative because you do need to continue realizing capital appreciation so your nest egg can support you during your 'golden years'.

The balance between safety and growth is more difficult than one may think. If you get too safe, the growth will lag and you may not have a large enough retirement account. If you get too focused on growth, you may be taking on more risk than you should, which could leave you vulnerable to a big market crash.

While Exchange Traded Funds offer diversity, I personally don’t like very many of the mixed portfolio options available today (a fund that holds a combination of investment options such as stocks, bonds, RIETS, MLP's, currency, futures, etc.) and especially don’t like the 'age-based target funds' offer through many 401(k) plans and other mutual fund companies. Now I want to make it clear I am always a proponent of a well-diversified portfolio and I believe that idea holds true more so for those in this age group than investors who are younger.

With that being said, investors in their 50's should be thinking more about buying a few different ETFs, as opposed to the one-stop shops. I have found that the one-stop-shop ETFs typically tend to be either too conservative or too aggressive and this causes them dramatically trail the market returns or be way too exposed to a market pull-back. Continue reading "ETFs For Those In Their 50s" →