Fixed Income ETFs for the Win
Today’s chart comes from VettaFi. Fixed income exchange traded funds (aka ETFs) have taken in over $1 trillion in assets over the last seven years, and only had three months of outflows.
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Today’s chart comes from VettaFi. Fixed income exchange traded funds (aka ETFs) have taken in over $1 trillion in assets over the last seven years, and only had three months of outflows.
This chart comes from the Visual Capitalist. Since 1950, the average economic expansion lasts 67 months. The average recession, though painful, only lasts 11 months.
As of today, small- and mid-cap stocks on a year-to-date basis are performing better than their large-cap counterparts by 3% and 2%, respectively.
There is an ebb and flow but going all the way back to 1994 small- and mid-cap stocks have outperformed large-cap stocks by an annual 0.66% and 1.49%, respectively. Financial theory supports, and so far this year it is also true, that when you add them to your portfolio they lower your risk due to the additional diversification.
Since this follows our motto of obtaining the “highest returns, for the least amount of risk,” we include small- and mid-cap stocks in all our portfolios.
One of our clients calls this the “Chiclets Chart” because of its resemblance to that classic brand of candy-coated chewing gum.
Today’s chart from Morningstar shows annual net flows into passive funds (in purple) vs. active funds (in orange), and their dominance for the last 11 years.
Today’s chart from BlackRock shows that from 1940 to 2015 life expectancy went up 15 years and the average years spent in retirement went from six to 37.
This chart is from today’s Wall Street Journal. Because of their heavy weights in the S&P 500 index, eight companies make up half of the stock market’s 14% decline year to date. It is notable that the value index was only down 3%, while the technology-heavy growth indexes are down 25%. As usual, the S&P 500, which includes both, splits the difference.
The Russell 3000 Index is made up of the largest 2,750 stocks in the United States.
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