- Growth ETF vs. Value ETF: Which Should You Invest In?
Choosing between a growth ETF vs. value ETF depends on several factors, including your investment style, time horizon and risk tolerance. However, there are some key differences. Growth ETFs typically focus on companies expected to expand faster than the broader market. This often includes sectors like technology and healthcare, although these are infamously volatile. Value… read more…
- Do Hedge Funds Beat the Market? Returns and Risks
Hedge funds are often associated with sophisticated strategies and the pursuit of outsized returns. But do hedge funds beat the market, or is that reputation overstated? These funds use tactics like short-selling, leverage and derivatives, yet their results vary widely based on market conditions, strategy and manager skill—and often fall short of index performance. A… read more…
- Bond Mutual Funds vs. Stock Mutual Funds
Bond mutual funds pool investors’ money to purchase various debt securities issued by governments, municipalities or corporations. They typically offer stable and regular income through interest payments, making them attractive for conservative investors or those nearing retirement. On the other hand, stock mutual funds invest in shares that provide ownership of individual companies. This approach… read more…
- Retention Ratio: What It Is and What It Tells Investors
The retention ratio measures the percentage of a company’s earnings that are reinvested rather than distributed as dividends. Investors use the retention ratio to assess how much profit a business retains for growth, debt reduction or operational improvements. A higher ratio suggests a focus on expansion, while a lower one indicates a commitment to returning… read more…
- How Does Angel Investing Work?
Angel investing is a form of funding where individuals, known as angel investors, provide capital to early-stage startups in exchange for equity or convertible debt. Unlike venture capitalists, who typically manage pooled funds, angel investors use their personal finances to back companies they believe have growth potential. This type of investing often occurs during the… read more…
- What Is an Emerging Market Investment Fund?
Emerging market investment funds provide investors with access to the financial markets of developing economies, often offering significant growth potential. These funds invest in countries that are transitioning from low-income to middle-income status, such as Brazil, India and China. Investors are drawn to emerging market funds because these regions tend to experience higher economic growth… read more…
- How to Invest in Brazil
In recent years, Brazil has started booming. According to the U.S. State Department, Brazil is the second largest economy in the western hemisphere, only after the United States itself. It’s the 12th largest economy in the entire world. This sheer size, combined with an equivalent diversity of investment opportunities, has made Brazil an increasingly attractive market… read more…
- What Will My Portfolio Be Worth in 10 Years?
Every investor wants to know where their money is going. The point of investing is for your money to grow. Sometimes, you’re trying to achieve a specific goal, such as to retire, buy a home, or take a big trip. Other times you just want to put your money somewhere more fruitful than a savings… read more…
- When to Utilize Value vs. Growth Investing
Value vs. growth investing both involve looking for stocks that are priced below the likely strength of the underlying company with the goal of capturing the asset’s eventual gains. But the key difference between value vs. growth investing is that value investing is a long-term strategy, while growth investing is a short-term strategy. A value strategy… read more…
- Everything to Know About Investing in Emerging Markets
As the world becomes more interconnected, investing internationally has turned into a favored avenue to diversify investment portfolios and seize the sunrise opportunities abroad. One region that has sparked investors’ interest globally is the emerging markets. This means investing in specific international markets that are in industrialization mode, which can lead to a lot of… read more…
- What Is the Dividend Growth Investing Strategy?
Dividend growth investing focuses on buying stocks in companies that regularly increase their dividends. Unlike strategies that prioritize high-yield stocks, this approach emphasizes the growth of dividends over time. It’s important to note that this strategy isn’t inherently “better” than others, but may align best with an investor’s financial goals or risk tolerance. A financial… read more…
- Index Funds vs. Actively Managed Funds: What’s the Difference?
Index funds and actively managed funds are two popular investment options that let investors acquire an ownership interest in a large and typically well-diversified basket of securities with a single purchase. Funds of both types also simplify recordkeeping and distribution of dividends and capital gains while accommodating money-saving tax strategies. Beyond these similarities, however, they… read more…
- What Are Unrealized Gains? Investment Guide
Like most investors, you’ve probably watched your investment account balance fluctuate depending on market conditions, company or fund performance and other factors. Of course, you’d likely prefer to see your account balance grow rather than shrink. It’s exciting to see… read more…
- What Is a Wide-Moat Stock?
The most successful companies in history don’t just have legendary profits. Generally, they build a substantial lead over their competitors, known as an economic moat. This scenario gives rise to wide-moat stock, a type of sustainable competitive advantage a business… read more…
- What Is a Stock Split and Why Do They Occur?
Companies use stock splits to reduce the price of their shares, which can help attract new investors. Reverse stock splits, which increase the price of shares on the market, can help keep a company from being delisted by a stock… read more…
- What Is a Reverse Stock Split?
If faced with the proposition of owning one share of company stock for $50 or two shares for $25, you might wonder what difference it makes. In a reverse stock split, the amount of shares decreases, but your investment doesn’t… read more…
- The Hidden Cost of Target Date Funds
If you’ve begun saving for retirement, there’s a good chance you’ve heard of target date funds. They’re a common investment vehicle, often used in employer-sponsored retirement plans like 401(k)s or 403(b)s. More specifically, target date funds are exchange-traded funds or mutual… read more…
- Limit Up-Limit Down: Investing Guide
Limit Up-Limit Down is a mechanism U.S. securities exchanges use to limit extreme changes in the prices of individual securities. It does this by stopping trades that would take place outside price bands. The bands range above and below a… read more…
- Transaction Exposure: International Investing
Transaction exposure describes the risk and level of uncertainty that an investor, typically a business, takes on due to fluctuating international exchange rates. More specifically, there is a risk that currency exchange rates will change or fluctuate after a firm… read more…
- How Does Compound Interest Work With Stocks?
Compound interest can be a saver’s best friend and it’s also a valuable tool for investors. In simple terms, it means the interest you earn on your interest. But how does compound interest work with stocks, mutual funds or other… read more…
- Morningstar Tells Investors This Metric Is More Important Than Stock Value or Growth
If you want to invest your money in a smart way, financial experts have recommended avoiding big, high-growth stocks in favor of value names that aren’t as popular. The basic strategy: identify opportunities while minimizing some risk. But the Chicago-based… read more…
- How Much Interest Can $1.5 Million Earn Per Year?
Whether you’re saving to retire, or have just come into a nice windfall, knowing where to put your money to grow it is essential. There are multiple ways money can build interest, but how much interest does $1.5 million earn per… read more…
- What Is the Momentum Investing Strategy?
While following trends isn’t always a good idea when it comes to investing, following trends is a way to maximize your returns without creating too much risk. One investing strategy that is hyper focused on market trends is momentum investing.… read more…
- Schwab: Here’s Are 3 Things Long-Term Investors Should Do Now
For most people, investing is a long-term game. You aren’t looking for a quick score to get an influx of cash you can spend on a new Sea-Doo; rather, you’re looking to slowly but surely build wealth so that you… read more…
- What Is a Follow-Through Day for Investing?
A follow-through day is a day of improved stock market performance after trading activity begins counteracting a slump. While it may not be a sure sign of sustained improvement, understanding a follow-through day and the market conditions surrounding it can… read more…