ETFs: strategies for beginners

ETFs: strategies for beginners
News from Emerging Money:

Last week we looked at investing in Exchange Traded Funds, commonly known as ETFs. Now I want to review a couple of strategies for ETFs to hopefully spark some more ideas. ETFs are a valuable tool in a retail investor’s toolbox, especially for those just starting out. Many readers may be familiar with mutual funds from their 401ks or other investments. There are a lot of great mutual funds out there, but I think with just a little work you can beat these funds.

One issue with mutual funds you do not find in the ETF world, is that a mutual fund is typically actively managed. What can happen over time is the fund manager shifts their focus in the fund or even reduces the amount of stock owned with the fund. The industry calls this ‘style drift’. 

The term says it all: the fund manager’s investing style may drift and the problem is you never know until it’s too late that your mutual fund drifted from a non-aggressive fund to an aggressive fund. The other big issue is a buyer of the fund has little visibility of which stocks are actually being purchased. This can be a big problem in large market corrections.

I kno…………… continues on Emerging Money

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Apple Investing Income Strategy For Retirees
News from Seeking Alpha:

I believe in making money. This requires avoiding the naysayer noise. Apple (AAPL) continues to lead the market in smart phones and tablets. Contrarians suggest Apple’s growth days are over. The stock has increased from $ 20 to $ 600 over the past 12 years. Retirement income investors, based upon Apple’s blue chip status, clearly have a vested interest in holding a reasonable allocation to Apple shares. The question is how to generate a monthly income with Apple’s growth story. A reasonable allocation of retirement funds can generate a positive income stream. I’ll highlight this method referred to as a synthetic covered call investing income strategy.

If making money was easy, then everybody would be a millionaire living in the Bahamas. Retirees can still assess if a synthetic covered call strategy is appropriate for their retirement account.

Anticipated Earnings and Revenue Growth

Analysts, per the below ta…………… continues on Seeking Alpha

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