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The ETF Store is a fee-based, registered investment advisor based in Kansas City, Missouri. We believe that superior investment returns can best be achieved by investing in a globally diversified portfolio of equities, fixed income securities, commodities and real estate, and that ETFs are the... More
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  • Is Your Mutual Fund Manager “Eating Their Own Cooking”? 0 comments
    Apr 10, 2013 5:09 PM | about stocks: IAU

    Listen to The ETF Store Show every Tuesday at 9am on ESPN 1510 as we cover everything you need to know about Exchange Traded Funds and the world of investing.

    Click here to listen to The ETF Store Show now.

    If you're still investing in mutual funds, have you ever wondered whether your mutual fund manager is actually investing their own money into the same mutual fund that you've put your hard earned money into? In other words, is your mutual fund manager eating their own cooking so to speak? Morningstar, one of the largest third party evaluators of investment products, recently delved into just this very subject and what they found may surprise you. Looking at all of the mutual funds in the U.S., Morningstar found that an alarming 49% do not have a manager with even a single dollar invested in their own mutual funds! If you're a mutual fund investor, this should give you pause. Does your mutual fund manager not believe strongly enough in their own abilities to invest in the fund that they're managing on your behalf? Or, do they know something that you might not about how difficult it is to outperform the market? We discussed this in detail on our most recent radio broadcast and also explained why we believe focusing on asset allocation and minimizing investment costs though Exchange Traded Funds is a better way to invest than by trying to find the next hot mutual fund manager who may or may not be able to beat their benchmark (and who may or may not even be investing in their own fund).

    In our weekly market update, we discussed the latest market turmoil and why investors should be careful not to overreact. We also looked at the most recent jobs report. In our ETF Spotlight segment, we highlighted a physical gold ETF (iShares Gold Trust - ticker IAU) and explained the various roles of gold in a well-diversified portfolio. We also debated whether the continued race to devalue currencies by countries around the globe is bullish for gold long-term.

    Stocks: IAU
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