Index funds became popular over the last four decades because they’re simple, conservative and low cost. A different kind of exchange-traded fund is drawing record cash by promoting better returns with the same stocks.
Rob Arnott, chairman of Research Affiliates LLC, favors emerging-market stocks. The price of options to protect against emerging market equity losses has climbed to its highest since 2009 relative to U.S. contracts. Bloomberg Radio's Catherine Cowdery reports on Exchange Traded Funds.
Bill Gross, the money manager known as “The Bond King,” misjudged the timing and impact of the Federal Reserve’s plan to scale back its asset purchases in 2013, spurring the Pimco Total Return Fund’s biggest decline in almost two decades.
How's this for an investment opportunity: a guaranteed yield of 3.27 percent, with an enormous potential downside. As risky as that sounds, millions of investors are moving money into Treasury bonds as a "safe haven." In early September, the yield on the 30-year Treasury bond sank to a new low of 3.27 percent, while the 10-year note fell to 1.9 percent. If the inflation rate stays anywhere close to its current modest 3.6 percent pace, long-term investors will be guaranteed to lose money after factoring in inflation's toll.
Pacific Investment Management Co. is becoming less dependent on Bill Gross, preparing for an eventual future without the world’s best-known bond investor and adding pressure on its rising stars to live up to his legacy.
John Hussman runs a $6.3 billion mutual fund with the flexibility to bet on rising and falling stock prices. His fees are a fraction of those charged by so- called long-short hedge funds that do the same thing, and he’s making more money for investors this year.
Stocks in developed nations took 17 months longer than emerging markets to erase losses spurred by Lehman Brothers Holdings Inc.’s 2008 bankruptcy, recovering after the Federal Reserve took steps to stimulate growth.
Pfizer Inc.’s Wyeth unit and Teva Pharmaceuticals USA Inc. were accused by a group of prescription drug retailers of illegally keeping a generic version of the Effexor XR antidepressant off the market.