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  • Why ETF Research Is Important Before Buying In?

    Unlimited options that the broader equity markets offers today are best harnessed when coupled with sound research, preferably through professional ETF Consulting services. A niche area, which is gaining popularity as it simplifies the complex world of equity traded products that sprawl across the highest dividend paying Canadian securities to the very dynamic Chinese consumer stocks. ETF Research is executed by professionals and is often customized as per the need of the client and most reputed firms today boast of their trademark analytical software's that will infer the data to investor's maximum advantage whatever the need may be.

    The robust onset of equity traded funds post 2008 and the increasing investor interest for them exists for a reason. Participants today have varied choices to suit their risk appetite, sector preferences and investment durations, the biggest enticement here is a fairly liquid asset that enables a wide spectrum portfolio diversification and most definitely scores over direct equity buying due to the basket methodology that the fund issuers practice while picking assets. Hence whether it your retirement corpus you are worried about or your child's education expense, an ETF investment

    can enable you in realizing your life goal provided your entry was well researched and best suited to your needs and especially keeping in mind the timelines when you may actually require to withdraw the earned gains.

    Equity Traded Product [ETP] v/s Equity:

    The most visible benefit with ETPs is maximum diversification, a standardized exposure in contrast to a stock specific one will not only eliminate the need for a company wise study, it will significantly reduce the risks attached without hampering the overall return in long term. Moreover with the ready choices to invest in foreign lands as exotic as the frontier economies of the Latin America or the ASEAN bloc, investment in ETPs provide options that are otherwise difficult to acquire through direct investments, even if you had a large amount of money. Relaxed tax norms and effectively lower brokerages is another deciding factor here.

    Vis-à-vis Mutual Funds - The Market Showdown

    Although broadly both are aiming towards one goal which is a balanced portfolio diversification but the ETF scores over a mutual fund or an actively managed fund simply because of the higher liquidity feature. ETFs are exchange listed, hence one can buy/sell during market hours and even provisions like shorting and intraday trading exist. Additionally there is higher transparency and no minimum investment criteria as it is with Mutual funds but the availability of a bona fide benchmark to track your investments is available with both thus giving you the best of both the worlds.

    Using professional help while foraying into the asset is strongly recommended, because everybody has different needs that may be under the influence of your personal goals, the wants of your family or simply your age that may define a different set of financial needs. A professional will assist you not only through the right guidance but simultaneously an ETF consultant will also make sure that your money is directed to give the desired gains with in a specific time period. That simply means that you get your money when you need it the most.

    The biggest plus for these equity linked vehicles is the rising risk appetite for them. ETFs are getting bigger with some even managing billions of dollars of assets under management [AUM]; the simplicity of this concept is even attracting Institutional investors like Pension funds managers and Venture Capitalists who have a sure ability to decide the market sway. The prevalence will catapult into sound gains for somebody who is long on investments decisions derived from well researched data that will put you in the same league with Big Boys of the capital markets. The idea is simple, if you can't beat them; you join them but do so through relevant and effective research.

    Feb 20 4:30 AM | Link | Comment!
  • Is Your ETF Portfolio Delivering As Per Your Need?

    A Neo - Consumerist breed of investment solutions has penetrated the American lives with ease and without much notice. The American ETF universe, which has exploded since 2007 can give exposures as broad as the top 100 global dividend paying stocks or as intrinsic as a direct focus on the frontier markets of the far-east like the Vietnamese Stock Exchange. Good returns on investments and a sound regulatory environ has further boosted the popularity of the Equity Traded Products [ETPs], which collectively hold about $1500 billion of investors' hard earned money in USA.

    The sector which was pegged at 532 billion dollars during Q4 of 2008 rapidly bloated to $786 billion in about a year and the annual asset growth has been robust ever since. A stable weight age of 10%-15% among the foreign equities seems to be trend in an average US portfolio triggering a brand new service which is in the offing from the Wall street whiz kids as ETF Model Management or the ETF Portfolio Consultancy, which simply means a 360 degree assistance on Investing in the ETPs; whatever your risk appetite, diversification choice or investment time horizon may be.

    If new to this side of the financial world, state is nothing less of confusion as there are more than 1200 ETFs available through various issuers in the United States. Being listed on the direct exchanges, ETPs are liquid enough to be traded as per the spot prices and even extend a freedom for shorting or a similar inverse strategy that are popular among active traders. Furthermore the diversification that an ETF can provide is the biggest support for their case. Most exchange funds use a very systematic approach often in tune with the benchmark that they follow.

    Which ETF? Rather what kind of ETF Pool? Is most apt for your financial needs? This is where the professionals enter the building and impart investment guidance that is best as per your fund corpus, your financial needs and most importantly the time lines when you may need the money to appreciate your existence and lifestyle.

    A Variety of ETF Models are being exercised, but to start smart, the biggest thing to keep in mind is a bona fide benchmark with proven past performance as most of these funds have been launched recently in the past couple of years and have no historical data about their deliverance abilities and stability in a risky environ. Even the research and analysis differs due to lack of nodal points.

    Some popular strategies regarding creating a Model ETF Portfolio include being heavy on the emerging economies like that of China, BRIC and even the upcoming exchanges from the ASEAN Bloc. The operating expenses may range between 0.65% - 0.83% but the offerings will give you choices to suit all kind of sector-wise and income preferences. However, the overall volatility which one experiences with the emerging markets is higher than usual and repelling to a conventional investor, especially the ones working towards their retirement corpus.

    Alternative popular Models include dependence on small caps as it provides a multi-bagger chance or even a demographic preference for a particular entity like a Senior Gold Miners fund or an ETF dedicated entirely to the Social Media and the Internet industry. Although a major chunk of investors in fact keep it simple by dabbling only in the funds that track valid global benchmarks depicting median trends in the Global stock markets or World Bond Markets.

    Amid all the positivity, there are timing issues when entering this territory as most of the acquired equity through this channel is listed on foreign exchanges and are sensitive to the Geo-Political causes that are unfathomable by average investors. Market professionals can provide solace to this and design your ETF Model that best suits you through their trademark software, whose algorithms are designed exclusively to benefit the investors and is strongly recommended for the both first timers and existing players alike.

    Toroso Investments is a SEC recognized, Investment Advisory firm based out of New York. Under the united leadership of some of the Industry veterans, the company claims that it's USP lies in designing the best ETF models for their clients and in providing the continuous assistance in ETF Portfolio creation by its trained professionals and a branded analytical program designed around to provide the best investment choices depending on the factors such as the investor's risk tolerance and his current financials. Their experts even advise as to how much returns will actually suffice their client's cash needs during the working years and post retirement.

    Toroso Investment's current catalogue divides their services under the following categories:

    • Portfolio Advisors
    • Retirement Solutions.
    • Services for Institutional investors
    • Private Wealth Management

    Feb 14 2:07 AM | Link | Comment!
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