david trainerFor U.S. equities, ETFs offer a higher percentage (10%) of attractive investment options than mutual funds (1%) at a lower cost. The radically higher number of US equity mutual funds (4,700+) versus ETFs (380+) is not indicative of better stock selection from active management. On the contrary, the vast majority of actively-managed funds do not justify the higher fees they charge.

dtrainer / Tag: AIG, ALV, AVB, BAC, C, CME, COF, COP, CPB, CVX, DELL, DISH, Do, DVN, EP, EQR, FCX, FRX, GE, GILD, GIS, GPS, INTC, JPM, LLY, LRCX, MSFT, NEM, NLY, PXD, T, TXN, UNH, VNO, WFC, WMT, XOM / 0 Comments
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david trainerHigh dividend yields are not enough to warrant investing in the utilities sector.

Too many investors put their hard-earned money in utility stocks with the assumption that relatively high-yielding dividends from stable business make a good investment.

The real question that investors in any equity security must ask is: does my expected return from a stock justify the risk of investing in it?

dtrainer / Tag: DPL, FUI, FXU, IDU, PEG, PSCU, PUI, RYU, UPW, VPU, XLU / 0 Comments

david trainerBefore I delve into the accounting loopholes used to prop 3rd-quarter earnings, I will start with pointing out the intimidating amount of ETF choices in the financial sector.

There are 25 financial sector ETFs.  These 25 ETFs have drastically different stock holdings and, therefore, allocations. The lowest number of holdings is 24 while the highest is 496, per figure 1.

dtrainer / Tag: BAC, C, JPM, KBE, KBWP, VFH, XLF / 0 Comments

david trainerThere are 36 “large cap value” ETFs.  Per Figure 1, these 36 ETFs have drastically different stock holdings and, therefore, allocations. The lowest number of holdings is 30 while the highest is 1178.

How do investors pick the ETF that will deliver the best performance?

Figure 1: Holdings Count of Large Cap Value ETFs

dtrainer / Tag: DIA, DVY, IVE, IWD, JNJ, SDY, T, VIG, VTV, VYM, XOM / 0 Comments

david trainerHaving too many choices can be intimidating. And there are definitely lots of choices when it comes to ETFs. For example, in the equity market alone, there 30+ technology sector ETFs, 35 "large cap value," and 20 financial ETFs. A very healthy selection abounds for every category of ETF.

dtrainer / Tag: AAPL, acn, FTQ, FXL, GOOG, IGM, IGN, IGV, iyw, MSFT, MTK, ORCL, PNQI, RYT, SKYY, SOXL, SOXX, TYH, USD, VGT, XLK, XSD / 0 Comments

david trainerIn his article on Fidelity’s Magellan Fund, MarketWatch’s Chuck Jaffe feature’s New Constructs mutual fund rating system, which has a “neutral” rating on the Magellan fund.

Here are the details for Mr. Jaffe’s article:

dtrainer / Tag: Fidelity, FMAGX, Magellan Fund / 0 Comments

david trainerThe financial sector is one of four sectors to earn our “dangerous” rating and is the worst-ranked sector in the our 3Q11 Sector Roadmap report according to my methodology at New Constructs.

dtrainer / Tag: AFL, C, FAS, FXO, IAK, IAT, IYF, IYG, KBE, KBWP, KCE, KIE, KRE, KRU, MS, PFI, PIC, PJB, RWW, RYF, TRV, UYG, VFH, XLF / 0 Comments

david trainerProShares Ultra Semiconductors (USD) is our top pick among the 25 ETFs we analyzed for our 3Q11 update on the “Best & Worst Tech Sector ETFs."

dtrainer / Tag: AAPL, FDN, FXL, GOOG, IGM, IGN, IGV, INTC, iyw, PSI, PSJ, PTF, PXQ, ROM, SKYY, SOXL, TYH, USD, VGT, XLK, XSD / 0 Comments