Rule of 240

Most investors are familiar with the Rule of 72, a formula for approximating the time it takes an investment to double at a given compounded annual return.  The Rule states that dividing 72 by the annual return equals the number of years to double.  Conversely, the Rule of 72 can also determine the... 

Anchored Momentum

When I started developing a mutual fund selection and trading system in the mid-1980s, I wanted to own the funds that were going up and avoid the ones going down.  Therefore, I quickly gravitated toward price momentum as an indicator and selection tool.  One of the first things I noticed was that typical... 

iPath Natural Gas ETN Is A Broken Product

ETF and ETN investors should avoid broken products.  I have repeated this caution numerous times over the years.  Upon hearing this warning, most investors want to know what a broken product is.  Once they understand the definition, they quickly grasp the danger. ETFs and ETNs are unique securities. ... 

Don’t Believe The Hype – New ETF Is Neither Free Nor First

Perhaps you’ve seen the hype.  Dressed up as “news” stories and industry insights in otherwise reputable media outlets and blogs, the true facts behind this new ETF contradict the headlines. A mash-up of the many headlines I observed this week might read “The First Free ETF Finally Arrives”... 

How To Play Alibaba With ETFs – Don’t

Unless you’ve been living under a rock, you are probably aware that Alibaba’s initial public offering (“IPO”) is slated for Friday.  Alibaba Group Holding Ltd. expects to raise about $23 billion, making it the largest IPO in the history of the world and valuing the company at more than $160... 

Bond Bubble Hasn’t Burst

Seems like everyone wants to label something a “bubble” these days.  There is a bubble in bubbles.  Interest rates have been falling for 32 years now.  As rates fall, bond prices rise, and vice versa.  It has been a multi-decade bull market for bonds.  Unlike stocks, which have no upper price... 

ETF Field Guide for 2013 Now On Sale

Today I am publishing my new 2013 edition of the ETF Field Guide.  This 72-page reference is an invaluable resource for every ETF investor and trader.  No other publication or website provides you with all the important ETF data found inside. The guide categorizes and provides detailed data for every... 

Five Steps to Avoid Disaster When Your ETF Closes

Nothing lasts forever, not even ETFs.  Fund closures are a fact of life.  Some ETF sponsors keep their product lineups healthy by regularly pruning the weaker offerings.  Others stubbornly ignore the warning signs, and by waiting too long to make adjustments, often find themselves forced to close... 

ETFs Are Going BATS … and Why You Should Care!

The ETF marketplace changed last month.  You didn’t notice?  Don’t worry, you’re not alone.  Today I’ll tell you all about it. You already know that “exchange traded funds” trade on an exchange.  That’s what distinguishes them from old-fashioned mutual funds.  But what exchange trades... 

ETN Holders: Do You Know To Whom You Are Lending?

Exchange Traded Funds (“ETFs”) and Exchange Traded Notes (“ETNs”) are similar in some ways but have major differences as well.  When you buy an ETF, you receive an ownership stake in a pooled investment, structured as an independent entity.  When you buy an ETN, you are essentially lending... 

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