“It’s hard to define, but, you know, it probably means something on the order of around six months or that type of thing.” – Fed Chair Janet Yellen
That comment by the new chairwomen of the Federal Reserve sent shock waves through global financial markets. Janet Yellen was answering a question about when she estimated that interest rates would begin moving up. She said she expected the Fed’s bond-buying spree would end in October, and rates would start heading north a half year after that. I’m not exactly sure why that was so surprising. But for investors, that means we are about to enter a new reality, and a repositioning of investments is called for.
What should you do?
Flashback a year ago when all the “taper” talk started. It didn’t take long for bonds to get hammered, as the 10-year US Treasury bond yield jumped from 1.5
The large-cap growth style ranks fourth out of the twelve fund styles as detailed in my Style Rankings for ETFs and Mutual Funds report. It gets my Neutral rating, which is based on aggregation of ratings of 23 ETFs and 694 mutual funds in the large-cap growth style as of February 6th, 2013. Prior reports on the best & worst ETFs and mutual funds in every sector and style are here.
Figures 1 and 2 show the five best and worst-rated ETFs and mutual funds in the style. Not all large-cap growth style ETFs and mutual funds are created the same. The number of holdings varies widely (from 18 to 574), which creates drastically different investment implications and ratings. The best ETFs and mutual funds allocate more value to Attractive-or-better-rated stocks than the worst, which allocate too much value to Neutral-or-worse-rated stocks.
To identify the best and
New ETF creation activity picked up in September as 27 new products came on the market. New arrivals consisted of 25 ETFs and two ETNs. Vanguard was singularly responsible for the majority of new listings, launching 16 new ETFs in two separate waves. Particularly noteworthy about the Vanguard launches is the fact that all 16 ETFs follow the same indexes as existing ETFs from iShares and SPDRs. In all 16 cases Vanguard chose to differentiate itself on price and brand. Vanguard is not content with its current position of being the third largest ETF supplier.
Six ETFs were delisted during in September, leaving the net increase for the month at 21. The number of currently listed products stands at 1,067 (959 ETFs and 108 ETNs) as of September 30. A total of 173 products have been launched year-to-date and 31 have closed for a net increase of 142. Six