Dollar cost averaging refers to making investment purchases at regular intervals of time.� The purpose is to average out the price (cost) of the investment by buying investment shares at different prices over time.� This strategy reduces the risk of making a large lump sum investment and then watching the market fall shortly after, which […]
December 2008
One question that often comes up when deciding on how to invest is the choice of investment vehicles.� If you want to buy low cost investments then index funds and exchange traded funds (ETFs) are the best choices. Most investors are better off with index funds for a number of reasons – however it really […]
If you own a mutual fund, index fund or exchange traded fund (ETF) then you pay a fee called the management expense ratio (MER) or “expense ratio”.� This money goes to pay for the cost of running the fund.� It’s important to note that this fee is not directly charged to the investor but rather […]
An important part of investing is to occasionally rebalance your investment portfolio.� In a previous post we talked about portfolio asset allocation.� Your portfolio will be made up of different asset classes such as stocks, bonds, cash etc and the amount of each is your asset allocation. Portfolio rebalancing is accomplished by occasionally resetting the […]
Many investments can pay dividends – stocks, mutual funds, index funds, exchange traded funds to name a few.� Owners of these investments have to make a choice as to what will happen to the dividends.� Dividends can be taken in cash or reinvested. Cash dividend option Dividends can be taken in cash which leads to […]
Does a �market cap� sound like fashion wear to you?� If so, then make sure you read this post to the very end! Market capitalization or �Market cap� refers to the total market value of all the publicly traded shares of that company.� Basically you take the number of shares available for a company, multiply […]
An exchange traded fund or ETF is an investment that contains the same stocks of a stock market index, in the same proportion as the stock index. If you are thinking this sounds a lot like index funds, you would be correct! How ETFs are priced The price of an ETF is determined by the […]
