Member News 2013

Member News 2013 Splash image

Model Portfolio Combines Mutual Funds, ETFs

AAII members trying to decide whether to invest in mutual funds or exchange-traded funds (ETFs) can now look to the Model Fund Portfolio for guidance. This portfolio has been revised to take advantage of the strengths of both, by combining mutual funds and ETFs.

As AAII Founder and Chairman James Cloonan explained, ETFs offer the advantages of generally lower expenses, the ability to both get updated pricing information and buy and sell shares any time the market is open and the ability to tax-manage them according to individual requirements. What ETFs cannot do, however, is exploit the significant inefficiencies that currently exist.

Actively managed mutual funds, which are not tied to an index, can exploit these inefficiencies. Mutual funds add value when the investment approach used provides a post-expense return advantage or reduces risk for the portfolio.

Assets   Liabilities and Fund Balance
Current Assets $728,406 Accounts Payable $285,530
Investments 6,583,842 Deferred Membership Revenue 4,241,933
Net Fixed Assets 10,508 Deferred Life Membership Revenue 12,768,061
    Fund Balance -9,972,768
 Total Assets $7,322,756  Total Liabilities and Fund Balance $7,322,756
Note: Deferred membership revenue is recognized periodically as income over the membership period. Deferred life membership is recognized periodically as income over a 25-year period. This accrual method of accounting reflects the Association’s long-term obligation to its members.

AAII Investor Conference 2013:Keynote Speakers This Fall in Orlando

This November, AAII will be hosting our Investor Conference in Orlando, Florida, and we are pleased to announce that we’ve arranged for two well-respected and prominent investment professionals to provide their view of the markets to our members.

Opening Session




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