Comments on: How ETF investors fare http://blogs.reuters.com/felix-salmon/2009/06/18/how-etf-investors-fare/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: fred http://blogs.reuters.com/felix-salmon/2009/06/18/how-etf-investors-fare/comment-page-1/#comment-2945 Fri, 19 Jun 2009 16:45:24 +0000 http://blogs.reuters.com/felix-salmon/2009/06/18/how-etf-investors-fare/#comment-2945 Broad-market index funds/ETFs can outperform the underlying index by lending securities to short-sellers, since gains from this can outweigh their negligible trading costs. For example, Vanguard’s total stock market index has 7% turnover, and much of that can be handled either by trading with other Vanguard funds (or via ultra-low-cost dark pool transactions. Thus their trading costs are probably within spitting distance of zero, and most of what they call expenses has to do with account management (toll-free numbers, printing and postage costs, etc).

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By: Logan Bowers http://blogs.reuters.com/felix-salmon/2009/06/18/how-etf-investors-fare/comment-page-1/#comment-2941 Fri, 19 Jun 2009 15:54:45 +0000 http://blogs.reuters.com/felix-salmon/2009/06/18/how-etf-investors-fare/#comment-2941 DCA has really boosted my portfolio in the last year. The importance of DCA during a volatile market cannot be overstated. Even though the S&P is down ~40% this year, my overall portfolio is quite positive on account of my weekly purchases picking up a LOT of shares on the cheap during, e.g., March.

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By: Max http://blogs.reuters.com/felix-salmon/2009/06/18/how-etf-investors-fare/comment-page-1/#comment-2927 Fri, 19 Jun 2009 00:34:27 +0000 http://blogs.reuters.com/felix-salmon/2009/06/18/how-etf-investors-fare/#comment-2927 Pay no attention to “investor returns”, it’s a completely bogus concept when applied to individual funds, especially market index funds.

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By: peatey http://blogs.reuters.com/felix-salmon/2009/06/18/how-etf-investors-fare/comment-page-1/#comment-2917 Thu, 18 Jun 2009 20:58:30 +0000 http://blogs.reuters.com/felix-salmon/2009/06/18/how-etf-investors-fare/#comment-2917 Felix, there is a index analytics that advises on capturing alpha over S&P (adds, deletes, and so forth; I know Lehman/Barclays had a thriving practice group in that) because the herd just follows after the fact and a lot of the index changes are pretty formulaic and to a degree predictable. That’s why they could outperform the underlying.

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