On our most recent radio broadcast, we discussed an article from the Wall Street Journal by Ian Salisbury titled “10 Things that Mutual Fund Companies Won’t Say”. As the title suggests, this excellent piece lays out ten key points that the author believes mutual fund companies won’t tell investors about their products. On the show, we walked through each of these points and more importantly, explained how Exchange Traded Funds, or ETFs, avoid many of the issues highlighted in the article. If you’re still investing in actively managed mutual funds, this article will no doubt have you rethinking your position and taking a hard look at switching to low cost, index-based investments such as ETFs.
In our weekly market update, we provided the latest on the looming “fiscal cliff” and discussed how the financial markets could react if lawmakers fail to reach some form of a productive deal. In our ETF spotlight segment, we examined a dividend focused ETF (ticker SDY) and explained how in this historically low interest rate environment, high dividend paying equities can be an excellent way to generate income in a portfolio. We also discussed the impact that the dividend tax rate increase might have on this type of ETF. Listen to the full show here.