Read and review commentaries written by Morningstar experts. These observations and insights are specific to Exchange Traded Funds.
Fairholme Raises Minimum Investment
New T. Rowe Price fund, new indexing methodology patent, and more.
by Ryan Leggio | 2009-11-19 05:00:00
Fairholme Raises Minimum Investment Starting Dec. 1, new investors will need $10,000 instead of $2,500 to start regular and IRA accounts at Bruce Berkowitz'sFairholme fund. The fund's minimum for additional investments will remain $1,000.
Fairholme is imposing the new higher minimum in the wake of saying it will launch a new focused bond fund that also will have a $10,000 minimum. Berkowitz prefers a higher investment minimum because it helps keep the fund's total expense ratio lower for all investors. Smaller accounts are more costly for fund firms than bigger ones.
T. Rowe Price Launching Global Infrastructure Fund T. Rowe Price announced it will launch its Global Infrastructure fund in January 2010. The fund will invest in companies that … Full Story
Trading Tactics Matter with International ETFs
A closer look at international ETFs' bid-ask spreads and NAV premiums and discounts.
by Patricia Oey | 2009-11-18 05:00:00
For most investors, we recommend a 20% to 25% allocation in foreign equities, given their diversification benefits within a portfolio. Investing in foreign equities provides a hedge against a weakening United States dollar and allows for exposure to faster-growing economies. Passively managed ETFs that aim to cover a broad regional or country index are an easy way to invest in macroeconomic themes. Investors have enthusiastically embraced this asset class in 2009. For the year to date through October, net inflows into international stock ETFs reached almost $23 billion, accounting for almost 36% of total net flows into ETFs.
When investing abroad, obvious issues to consider include a country or region's outlook for GDP growth and the macroeconomic environment. And, before purchasing an ETF, investors should examine t… Full Story
Before investing in an ETF, be sure to carefully consider the fund's objectives, risks, charges, and expenses. For a prospectus containing this and other important information, please click the prospectus link. Please read the prospectus carefully before investing.
Leveraged and inverse ETFs entail unique risks, including but not limited to: use of leverage; aggressive and complex investment techniques; and use of derivatives. Leveraged ETFs seek to deliver multiples of the performance of a benchmark. Inverse ETFs seek to deliver the opposite of the performance of a benchmark. Both seek results over periods as short as a single day. Results of both strategies can be affected substantially by compounding. Returns over longer periods will likely differ in amount and even direction. These products require active monitoring and management, as frequently as daily. They are not suitable for all investors.
ETFs are subject to risk similar to those of their underlying securities, including, but not limited to, market, sector, or industry risks, and those regarding short-selling and margin account maintenance.
TDX Independence Funds, Inc. ETFs are distributed by ALPS Distributors, Inc. Amerivest Investment Management LLC serves as a sub-advisor to the Funds. TD AMERITRADE is not affiliated with TDX Independence Funds, Inc. or ALPS Distributors, Inc. Amerivest Investment Management LLC is a subsidiary of TD AMERITRADE Holding Corporation.
Research and planning tools are obtained by unaffiliated third party sources deemed reliable by TD AMERITRADE. However, TD AMERITRADE does not guarantee accuracy and completeness, and makes no warranties with respect to results to be obtained from their use. ETFs are baskets of securities that track recognized indexes and trade on an exchange like a stock. Commission fees apply.
Morningstar Associates, LLC is a registered investment advisor and wholly owned subsidiary of Morningstar, Inc. The information, data and opinions contained herein include proprietary information of Morningstar Associates and may not be copied or redistributed for any purpose. The mutual funds selected by Morningstar Associates for the Premier List have been derived from a universe of mutual funds made available through TD AMERITRADE. Both the universe of mutual funds defined by TD AMERITRADE and the Premier List are subject to change without notice. Morningstar Associates does not warrant this information to be accurate, complete or timely. Morningstar Associates is not responsible for any damages or losses arising from the use of this information. Particular mutual funds on the Premier List may not be appropriate investments for you under your circumstances, and there may be other mutual funds or investment options offered by TD AMERITRADE that are more suitable. Past performance is no guarantee of future results.
Fairholme Raises Minimum Investment
New T. Rowe Price fund, new indexing methodology patent, and more.
Starting Dec. 1, new investors will need $10,000 instead of $2,500 to start regular and IRA accounts at Bruce Berkowitz'sFairholme fund. The fund's minimum for additional investments will remain $1,000.
Fairholme is imposing the new higher minimum in the wake of saying it will launch a new focused bond fund that also will have a $10,000 minimum. Berkowitz prefers a higher investment minimum because it helps keep the fund's total expense ratio lower for all investors. Smaller accounts are more costly for fund firms than bigger ones.
T. Rowe Price Launching Global Infrastructure Fund
T. Rowe Price announced it will launch its Global Infrastructure fund in January 2010. The fund will invest in companies that … Full Story