Thu, 23 Oct 2014
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PIMCO's Vineer Bhansali says investors should consider active ETFs over traditional indexed vehicles because the latter are carrying very low yields and few prospects for price gains.
Sage's Rob Williams says such income strategies offer the benefits of investing outside the bond market altogether and into REITs, MLPs, and dividend-paying stocks.
Although investors may remain broadly skeptical of equity markets, asset flow data suggest they could be taking more risk than expected in other asset classes.
Eye-popping yields are scarce for many bond ETFs , but Morningstar's Sam Lee points out some attractive funds that focus on corporates, emerging markets, and Europe.
Vanguard principal and ETF strategist Joel Dickson responds to worries that increased passive investing has led to more market volatility and that ETFs cause investors to gamble with their portfolios.
And not in the good way, as Morningstar's Eric Jacobson cautions that numerous portfolios in the category have proved to be more volatile and have lower returns than some might think.
Vanguard's Joel Dickson weighs the similarities and differences between the two vehicles, commenting on tax advantages, trading flexibility, dividend reinvestment, and more.
ETFs can be great vehicles for accessing core, liquid areas of the market, but they have more issues in MLPs and illiquid underlying assets, like high - yield bonds .
The views expressed do not necessarily represent the views of Acropolis Investment Management, LLC. or its members.
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