Prices for copper, gold, wheat, corn and oil are soaring. But how can small investors can take advantage of this growth without taking on way too much risk? That's a good question, indeed. And here are some good answers.
The investment world's love affair with ETFs continued in 2010, as more than 1,000 funds managed assets of $940 billion. Here's a review of the best and the worst performers, and a few reminders about how to use these investment vehicles safely.
A good deal of gold's meteoric gains over the last five years can be attributed to the gargantuan success of an exchange-traded fund that made it easy for investors to pile into the precious metal. If the tide turns, though, they could easily pile out.
Active exchange-traded funds -- a sort of hybrid between a regular ETF and a mutual fund -- were supposed to give investors the best of both worlds. But these newfangled ETFs have so struggled to find their place. Some pros, however, still see a bright future.
The Equity Precious Metals category of ETFs has attracted substantial investment inflow over the last year. That has fueled the creation of new funds, including one that gives investors access four precious metals in one trade.
Shares of silver are up 40% this year, compared to just over 20% for gold. But a statement from the Commodity Futures Trading Commission on Tuesday could rattle prices and investors considering adding silver to their portfolios.
Yields on emerging-market debt funds and ETFs are certainly enticing these days, especially compared to U.S. Treasurys. Also attractive are the added benefits of portfolio diversification and currency appreciation. But the risks can't be overlooked.
Amid all the whining about residential and commercial real estate markets, exchange-traded funds comprising real estate investment trusts have quietly been kicking butt. They're up 22% year-to-date through Sept. 21, compared to 3.71% for the the S&P 500 stock index.
The big attraction of master limited partnerships is tax-favored dividends. MLPs can be generous -- now around 6% to 10% -- because they don't have to pay federal income taxes if they pay out most of their cash flow to shareholders. But, alas, they're not for everyone.
The first half of 2010 has been anything but dull for exchange-traded fund investors. ETF assets in the U.S. decreased 0.4% to $772 billion as of June 30, but that actually indicates a serious inflow of cash: Equity markets, as measured by the S&P 500, fell 8.9% during the period.
With nearly 900 exchange-traded funds holding more than $780 billion in assets, life in the ETF arena is a matter of survival of the fittest. With all these niche products, how can you tell if your ETF is a survivor or a soon-to-be financial failure?
Exchange-traded funds are lauded for their low cost, tax efficiency, and transparency, their popularity shows no signs of ebbing. But even a good thing can be misused. Read on for five ways that bad strategies can turn a good ETF into a bad investment.
Investors choose socially responsible ETFs because they want their portfolios to support their values. But do all of these funds really justify their label? For example, some include stocks like Transocean and Haliburton, of Gulf oil spill fame.
Closed-end funds have been around since 1893. So how do the granddaddies of the investment fund world stack up beside the new kid on the block -- the exchange-traded fund? Here's your ETF vs. CEF guide.