ETFs

Got a theory that healthcare stocks are going to take off? Forecasting that a rise in oil prices will send money scrambling into the energy industry? Or maybe you’re bullish on biotechnology shares?

Americans have traded and invested in foreign securities for years, either through domestic receipts on foreign stocks or U.S. mutual funds that invest outside U.S. borders.

Traditional index mutual funds pose three problems for the active investor or the trader.

Mutual funds have existed in the U.S. since 1924. But it’s been in the last
two decades that the industry has undergone its greatest growth as
retirement-minded baby boomers developed their voracious appetite for these
investing vehicles.

One of the keys to sound investing is avoiding false choices. Take this tired old debate about investing in mutual funds for the long term.

When a stock makes a big advance or suffers a harsh decline, most people tend to blame or credit the move on one of two factors: the general market or the quality of individual company.

When most people think of stock funds, they think of mutual funds. But a new class of
stock funds are growing in popularity, thanks to powerful advantages that deserve your attention.

If you put your money to work in stock funds vs. stocks, the promise of diversification no doubt played a big part in your decision.