The number of ETFs with dividend or yield in their name makes it hard to narrow down your choices. So-called “active” mutual funds may in reality be closet indexers. How to get past a fund’s name to meet your investment objectives.
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Comparing and Contrasting Dividend-Focused ETFs |
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By Derek J. Hageman
There are currently more than 40 domestic dividend-paying exchange-traded funds (ETFs) that explicitly list “dividend,” “income” or “yield” in their name. With this number of available funds, choosing which fund to invest in is a challenge for investors who seek dividend income. The decision depends on both the characteristics being sought and the willingness to look closely at the strategy a fund is designed to follow. In “Comparing and Contrasting Dividend-Focused ETFs,” Derek Hageman discusses some of the basic differences between the various dividend-centric ETFs out there.
Some of the topics covered in the article include:
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How to search the universe of U.S.-listed ETFs with dividends in mind
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Finding a balance between potential dividend growth and higher-than-average yield
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Incorporating specialty sector funds
Given the growing popularity of dividend-paying funds and stocks in the current market, investors have more options than ever for income. If you are thinking about dividend-paying ETFs, we hope this article provides some guidance on how to narrow down the growing sea of funds.
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Selecting Active Equity Mutual Funds: Don’t Get Caught in the Middle |
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By Thomas Howard
About 70% of active equity mutual funds are closet indexers that generally fail to beat the market after fees. Mutual funds with market-beating performance tend to be highly active, hold relatively fewer stocks and are of smaller size. The article “Selecting Active Equity Mutual Funds: Don’t Get Caught in the Middle” highlights how to weed out closet indexers and identify truly active funds.
Some of the highlights of the article include:
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How to identify truly active funds
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The importance of remembering that past performance isn’t predictive of future returns
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Which behavioral factors influence mutual funds
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How to be wary of “value-destroying” portfolio tax
By investing in funds with desirable attributes, a portfolio of truly active equity funds can be built. We hope this article prevents you from getting caught in the middle between truly active funds and the value-destroying closet indexers.
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Investor Classroom: Breaking a Tie Between Funds |
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 What do you do when your mutual fund research ends with two funds that are very similar? Quickly resolve a stalemate with the Investor Classroom “Breaking a Tie Between Funds.” It gives a series of simple steps that will lead you to a clear decision. Take advantage of this AAII Member Benefit to become a better decision-maker with your fund investments. More » |
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