As mutual fund investors brace for a likely double whammy of negative performance, coupled with above-average income and capital gains distributions, financial advisers are homing in on all manner of tax management to try to cushion the blow and add some value in a dismal market environment.
A strong dollar could mean weak returns for investors in overseas stocks.
Main Street investors poured billions into international stock funds during the past several years as the tumbling dollar turbocharged returns. Now that the dollar appears to be on the rebound, those investors face tough choices about whether to sell, hedge their bets or just stick it out.
Marco Polo Network Inc., an electronic exchange which bills itself as the biggest platform for emerging markets stocks in the world, says it has purchased exchange-traded funds researcher and advisor XTF Global Asset Management LLC.
Analysts say financial, builder ETFs signaling buy
by Greg Morcroft and John Spence
NEW YORK (MarketWatch) -- Some financial advisers and analysts specializing in exchange-traded funds say the financials and home-builder sectors are a screaming buy right now. Despite a barrage of negative headlines last month, the financials sector managed to post a slight gain while the broad market shed 6%, leading some to recommend the Financial Select Sector SPDR /quotes/comstock/13*!xlf/quotes/nls/xlf (XLF 14.53, -0.05, -0.31%) and others.
Buying a low-priced index fund isn't always as straightforward as it might seem. At least 221 distinct varieties of index mutual funds are available today with five-year track records. Throw in some 500-plus exchange-traded funds, most of which are considered passive investing vehicles, and how do you sort through the maze of offerings? Start by being cheap, veteran investing pros advise.
Default rates on corporate bonds hit a 25-year low last year. Meanwhile, the extra yield paid by junk bonds over the rates of ultra-safe U.S. Treasury securities, the yield premium, hit an all-time low this year. And now you have some investors pointing to similarities between lax underwriting standards for subprime mortgages and the easy credit terms available to leveraged buyout borrowers. With the economy slowing and long-term interest rates ticking up, companies that borrowed too much will have trouble repaying their debt.