ETF assets grew $5.7 billion or 1% in June according to State Street Global Advisors. ETF assets now total $593 billion across 740 ETFs.
Asset allocation, the practice of spreading a portfolio across different investments to diversify risk, failed miserably in 2008 when almost all asset classes fell together. So is asset allocation dead? Yes, and no.
You may be looking over the jaw-dropping discounts and dividend yields for closed-end funds and be tempted to jump in with both feet.
According to the Wall Street Journal, who quotes Morgan Stanley Research, the weighted average discount for the 650 U.S.-listed closed-end funds has widened from 6.2% to 15.6%.
Continuing nervousness over banks drove stocks down and caused investors to flee to the relative safety of gold and US treasuries in trading on Wednesday, September 17.
Income investors looking to generate cash flow with ETFs can choose from fixed income, dividend and international funds.
To preserve wealth and generate some income, Jim moved a healthy portion of his portfolio to Long Term Treasury Bonds. However, the improving economy combined with the Fed’s massive monetary response to the financial crisis has Jim concerned about the potential for a rising interest rate environment within the next 12 to 18 months.