mutual funds

I recently ran across an interesting article by Burton Malkiel in The Journal of Economic Perspectives. In it, he examined the growth of the financial services industry since 1980. Care to guess what he learned? Well, for starters… As a fraction of the GDP, the size of the financial services […]

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This is a bit random, but I was recently looking at our bond holdings and noticed something that I thought was worth mentioning… As it turns out, our tax-exempt municipal bonds are currently paying more than our taxable bonds. The absolute difference is slight, but it’s still somewhat unexpected. For […]

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A reader named Max recently e-mailed to ask a question about Vanguard’s frequent trading policy. In his message, he wrote the following: Hi. I have a quick question. I was just rebalancing some of our Vanguard mutual funds when I ran into a warning about their frequent trading policy. Apparently […]

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At the risk of preaching to the choir, I’d like to discuss investment expenses and how they affect the growth of your portfolio. The other day, I covered expense ratios — what they are and how they work. Today, we’ll be talking about why they matter. As you’re likely aware, […]

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How Mutual Fund Expense Ratios Work

by Michael on Jul 29, 2013 · 3 comments

The other day, while perusing the Bogleheads investing forum, I ran across a misunderstanding of how mutual fund expense ratios work. In short, someone was holding three different all-in-one mutual funds and was thinking of combining them all into one to avoid “avoid paying the expense ratios” on two of […]

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Today I want to expand on my previous article about the relationship between interest rates and bond prices. You should now be well aware that interest rates and bond prices move in opposition. When rates fall, bond prices increase. And when rates increase, bond prices fall. But how big is […]

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Interest Rates and Bond Prices

by Michael on Jul 22, 2013 · 2 comments

The FINRA Investor Education Foundation recently released some troubling poll results about the “financial capability” of members of the American public. A key aspect of their poll, which was conducted in 2012 and followed a similar survey in 2009, was a five question quiz covering everyday aspects of finance and […]

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The first exchange traded fund (ETF) was launched 20 years ago, in 1993. Since then, ETFs have gained a great deal of popularity. So, if given the choice between an old school (open-end) mutual fund and an equivalent ETF, which would you choose and why? Personally, I remain partial to […]

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