Charles Booker said there were only seven basic plots in literature; turns out the same is true for ETF’s, they just have billions more to spend on advertising.
-The Yinzer Analyst.
If you’ve been beaten over the head with one investment theme in 2016, it’s that you need dividends. Some want the income stream and the low volatility, some want the capital gains from the first group buying up dividend stocks and others just want their annoying clients to go away and think buying yield is a good way to make that happen. We’ve already talked about why dividends aren’t likely to continue growing at the same rate in the future and what dividend payers are still “cheap” in this market but now comes the hard part, finding a good fund wrapper to buy them in. Unfortunately for many investors, that means buying an ETF and then forgetting it, but I haven’t come to either bury ETF’s or praise them. Instead I want to educate investors so they can avoid doing the one thing that will guarantee them a spot in the next Dalbar study; buying something that’s already expensive because they’re afraid and think it’ll solve all their problems. Continue reading