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  • ETF's Are Here To Dominate The Investment Industry

    An ideal ETF portfolio is a range of asset allocations consistent with your chosen risk profiles. ETF's are beneficial in the following ways; They give instant diversification. So you can consider ETF over stocks for this very reason. They are passively managed. These investors can play the future markets and Forex markets at the same time and their management fees are comparatively low.

    Implementing your purchase plans for selecting ETF Portfolios should be spread across a certain period of time. Proper research and updates of the charts are advisable as it is always recommended to purchase when the price is at the lowest. The best reward- to -risk ratio should be analyzed every quarter. You can always change your ETF Model according to the positions on the charts. Move on to cash or buy a new potential ETF. So the best way to protect your Portfolio is to be able to access when to sell before the market sees a slump period. Access the equity capitalizations that are anticipated to perform badly in the market and avoid those sectors. Make sure that the market forces don't make an impact on the investment decisions taken. There are too many factors responsible for threatening your investment policies such as State Level Policies and Economic Reforms. Keeping track of these trends and decisions can help you further allocate your desired portfolio. If we follow the rotation of industry sectors based on economic cycles, we would be able to reposition our portfolios in a better place and adapt accordingly to the market flow and trends. According to Sam Stovell's the business cycles is a series of changes in the GDP which have a certain pattern i.e. the expansion, prosperity, contraction & the recession period. This last phase is followed by the first again. He stated that each sector has its own strength at the various points of business cycles; the investors have to invest according to the collective reports of these trends keeping in mind the area of strength for each sector. This gives them an opportunity to be able to redirect their investment strategies and invest in those ETF's which have the capacity and capability of outperforming in a down market. An example of such markets is the consumer staples sector. This sector deals with those goods that are essential and cannot be lived without, and are obligatory in the budgets regardless of the financial situation. Or there are sectors such as the Health Care Industry which is a safe and potential area of investment. Such sectors will be mostly outperformed during a downward market scenario. ETF's were invented 20 years ago and the idea behind this invention was that this form of investment was to enable investors to hold a fixed basket of stock temporarily. For example the 500 S&P Index, which tracks the stocks of small, large and mid-cap companies. Today S&P Index holds $1.5 trillion in assets in the U.S. and has achieved this success beyond everyone's expectations. Before 2004 there was no easy way to invest in Gold. The Gold ETF's changed the whole scenario. You could suddenly invest in Oil and Natural Resources with easily accessible Exchange Trade Funds Portfolios. What is more important is that ETF's have managed to attract the best and potential players with hot pockets. Secondly they are easier to use than their competitive counterparts- Mutual Funds. They can be bought or sold outside the exchange hours. It is important to know that like any other investment vehicle you have to be able to understand how to make full use of the ETF's which are appropriate according to your investment plans. If the investment is targeted towards the U.S. equity market then the option is driven towards the S&P 1500.

    Toroso Investments is a SEC recognized; New York based Investment Advisory Firm. The company claims that their services and research work are the best winners for their clients. They provide the appropriate investment solutions and offer services in designing ETF Models for Private Wealth Management, advisors and Institutional Investors and ETF Portfolios that focus on Retirement solutions.

    Jul 23 5:36 AM | Link | Comment!
  • Why ETF Consultancy Is Vital For Investors

    Exchange Traded Funds have become a major cause for bringing a revolution in the investment Industry. There is an increase in the number of financial brand wagons available in the Global market that tracks all types of Industries. ETF Consulting is becoming increasingly important only due to the impact of this financial trend. A large number of ETF's are now finding a place as investor's basket of Portfolios. There are numerous of these available in this industry sector at the disposal of the investors and it becomes all the more necessary to help the investor choose from the available financial vehicles. ETF consulting helps to choose and create a tailor made portfolio according to the performances and ensures that they live up to the financial needs and expectancy ratio of the investor. Consulting requires the proper analysis of the project dimensions of the Portfolios in question. Combining the relevant inputs and data and drawing conclusions with methodological accuracy to harmonize with the investors' expectations, as the swarming markets of the ETF's require a proper vigilance.

    It is seen that though these exchange funds are the most popular among the investors, the net investments are concentrated thickly among the top most in the ETF Industry. The reputation of this industry stands robust due to its low cost and intra-day trading facilities. Most importantly with a high efficiency in tax. They are simple and easily attract. An example of this attraction is seen with the contribution of the Institutional investors like the Pension Funds Managers and Capitalists who contribute to the economic activities of the laws of supply and demand.

    As a means for Short term Investments these funds are quite tricky and hence consulting services are mandatory. They provide proper education of the portfolio under consideration. If you are looking for a Short term investment and a highly liquid portfolio then these investments may not be the right decision.

    Similarly investing in the new emerging markets requires a proper study and research before investing. If the ETF has more than fifty percent exposure to the foreign equity it becomes all the more necessary to guide your investors properly of the risks involved. But all the same, it gives you the exposure to a very potential market, and adds a tinge of diversity to your present basket. The investee get exposed to a whole new horizon and foreign experience like the China consumer Funds and the Uranium mining funds. The list of these preferred funds is enormous.

    Then there are some investors which only want to invest for the purpose of hedging against the inflation. Commonly noticed by everyone, the prices of the precious metals have only risen in the years, as far as historical researches certify. These precious metals have never seen any decline in their prices. Such investments leave an impression of safety and security.

    The ETF Research used by a large number of advisors have helped to develop investment programmes which are used to help deliver effective asset management programmes and also to help cost savings for the investors. These researchers are handled by professionals who customize the requirement of their customers.

    Most exchange traded funds have the authority to implement marketing fees but these fees are quite nominal as compared to the conventional funds.The Equity Markets are at present flooded with various offers that are easily accessible. Professional Consulting services are becoming mandatory for the vigilant investors. Some of these instruments are managing huge funds of the assets under management (AUM).A good consultant will help you manage your resources by analyzing your rate of risk tolerance and build strategies according to the client's preference. A balanced risk profile is drawn which in turn helps in generating solid returns.

    Toroso Investments is a New York Based ETP Consultancy firm. It is registered under the Securities and Exchange Control [SEC] and operates under the combined supervision of Industry veterans like Larry Medin, Dan Carlson and Michael Venuto. The goal of these portfolios would be to target a specific yield while returning principal at a target date. The officials at Toroso Investments claim that their USP lies in extensive ETF Research work and the Point of View Investing which they believe will radically change the existing norms of dialogue process between investors and advisors.

    Jul 22 7:54 AM | Link | Comment!
  • Are Your ETF Investments, At Your Disposal?

    Job of a good ETF consultant is to ensure desired deliverance of the money even under an adverse economy and to command the investments per say that the availability of the returns procured are as per the Investors point of view and not the market conditions, which if nothing else, are organically volatile in nature.

    Behind all the economics jargon and infinite data analysis, the pure objective of an ETF Research is singular; to create an all ETP Portfolio containing asset classes that try to generate maximum alpha with a moderate or no risk and amid all the parallel realities must suffice the actual needs of the investors as and when he may require it.

    Markets peak out and crash, but the true investment objective is to ensure security of the principal. Making money is of utmost importance and is equally confusing in a market where more than 1400 ETFs are listed on their corresponding indices. The exotic exposures that these funds enable is due to their basket like methodology that will en capsule every aspect of the desired investment area but mostly includes equity and bonds that are listed on foreign exchanges, as the basic idea for market traded funds is to cover the best of the world equity from each sector and of every investment focus.

    The ETF Industry does rake in billions of dollars in term of daily volumes and AUMs [assets under management] but still more than 75% of wealth of this sector is concentrated in less than 25 ETFs. Read more on Best ETFs.

    The thumb rule here is to get coupled with the funds that have heavier AUMs as bigger corpuses increase investor confidence and to an extent provide higher probability of gains.

    The trend however does not restrict the choices for the participants as just because the fund has a close to $ 10 billion as an asset corpus will not appeal to all investors and likewise many ETFs with as little as $5 million have delivered double digit returns in 2012 which was supposedly a dull year.

    Most ETF Asset Managers when asked would rightly admit that their clients approach them for at least one of the reasons given below and let us also take an individual snapshot:

    Private Wealth Management: This is basically the investor realm with high aspirations and is also the most comprehensive when it comes to individual preferences.

    Retirement Solutions: Although this is one of the busiest areas, but applies a simple logic that regular small savings go a long way when touched with the magic wand of compounding.

    Institutional Investment Management: Being the big boys with big money, the needs and the investment objectives of an institutional investor are most exclusive. The terrain may include pension funds, charitable trusts and in some cases even HNIs [high net-worth investors].

    Advisory Solutions: Professional advisors, who are working on a micro level, often seek help from the research firms to obtain trade-marked solutions from ETF consultants. The firms in turn guide their clients towards success of their investments.

    The advice is good only if it meets the Target Income of the client although each of the above clientele is also influenced by a number of other factors such as individual risk appetite, investment horizon and market sentiment, just to name a few.

    The biggest lure to date is the unique investment focus that the ETF Universe offers. From the exotic frontier economies to the world bond markets, equity traded products enable exposures that were traditionally unavailable to American investors and even if, were simply falling in high risk high reward category.

    A pre investment ETF research is also vital simply because too many choices are available among products that have literally no historical data to compare with and in fact the very youth of these funds kept a sizable chunk of street skeptics at bay when they were first introduced in the March of 2008.

    Apr 20 9:15 AM | Link | Comment!
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