Vanguard Will Let Investors Trade Its Rivals’ Funds Online For Free Investing |
- Vanguard Will Let Investors Trade Its Rivals’ Funds Online For Free
- Companies buying back their own shares is the only thing keeping the stock market afloat right now -- Companies set a record for share buybacks in the second quarter, while investors set their own record for selling stock-based funds in June.
- China Set for Record Defaults, and Downgrades Tip More Pain
- What are your biggest 3 holdings, and why?
- What books / resources helped you become financially literate?
- MoviePass Parent, Helios and Matheson Analytics (HMNY), to Raise $1.2 Billion in Bid to Keep Company Growing
- Tesla announces Q2 vehicle production/deliveries & reaffirms Q3 guidance
- What happened to securities held in custody by Lehman brothers?
- [DD] Disney is a buy at its current valuation
- How credible is James Rickards?
- Why Do Investors Sell Stocks of US Banks?
- Vietnam stock market world's worst performing in Q2 2018, and worst performance since 2008
- Thoughts on $SHOP?
- What are the best muni bond etfs?
- Why is "chasing yields" bad for stocks but okay for real estate investing?
- $TSLA production
- How will the tarrifs affect other companies and prices?
- Thoughts on AMD?
- Considering a leveraging strategy in my Roth IRA. Opinions/criticisms welcome.
- REITs with a lot of residential properties in Salt Lake
- What's the best move for a VMware stock holder at this point?
| Vanguard Will Let Investors Trade Its Rivals’ Funds Online For Free Posted: 02 Jul 2018 07:29 AM PDT Vanguard Group plans to eliminate online commissions on its rivals' exchange-traded funds, a move by the asset management giant to lure new assets and steer more customers to financial advice. Vanguard became the world's second-largest money manager by offering some of the lowest-cost products in the industry. Rivals have increasingly tried to match or beat Vanguard on fees, pushing the cost of investing toward zero for some basic portfolios of stocks and bonds as firms duel for customers. For years customers paid nothing to trade Vanguard's own funds. In August the manager will extend that same arrangement to customers that want to buy or sell online nearly 1,800 other ETFs offered by such competitors as BlackRock Inc., Charles Schwab Corp. and State Street Global Advisors. It will still charge commissions for phone trades of these rival ETFs. The plan is the first significant pricing change at Vanguard under new Chief Executive Mortimer J. 'Tim' Buckley, who took the helm earlier this year. The larger strategy is to attract new brokerage clients to Vanguard and offer them other services like financial advice where Vanguard can collect additional revenue. "If we attract new investors, we have an opportunity to offer them advice over time," said Karin Risi, head of Vanguard's retail investor group. Currently the amount Vanguard customers pay to trade other ETFs depends on a client's account size and, in some cases, trading frequency. For example, investors with $50,000 or less pay $7 per online trade on the first 25 trades, and then $20 thereafter. Those with $500,000 to $1 million pay $2 per online trade. Vanguard won't be the only firm allowing investors to trade rival funds without paying a commission. Fidelity Investments' brokerage unit allows clients to do the same thing with 95 ETFs run either by Fidelity or BlackRock's iShares commission free, according to its website. Fidelity last year lowered online trade commissions on U.S. stocks and exchange-traded funds to $4.95 from $7.95, a move that rival Charles Schwab Corp. quickly matched. Earlier this year, Fidelity shook up the way it charges clients for financial advice, making fees more transparent and cutting the cost of its robo adviser Fidelity Go. That service now costs investors 0.35%; they previously paid both management and underlying fund fees. Vanguard launched its financial advice business, Personal Advisor Services, in 2015. It caters to customers with at least $50,000 and charges 0.3% of assets under management for that advice. That is less than the 1% typically charged by traditional wealth advisers. Assets in that business have reached $106 billion, and roughly a tenth came from new clients, executives said. Vanguard has $1.5 trillion in its retail investor group, which includes brokerage accounts, and $5.1 trillion in assets across the entire firm. [link] [comments]  |
| Posted: 02 Jul 2018 02:38 PM PDT thing keeping the stock market afloat right now -- Companies set a record for share buybacks in the second quarter, while investors set their own record for selling stock-based funds in June. Certainly cause for pause? Market is only going up slightly and that based on record corporate buy backs? [link] [comments]  |
| China Set for Record Defaults, and Downgrades Tip More Pain Posted: 02 Jul 2018 08:40 PM PDT
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| What are your biggest 3 holdings, and why? Posted: 02 Jul 2018 04:42 PM PDT |
| What books / resources helped you become financially literate? Posted: 02 Jul 2018 09:03 PM PDT I am going to be graduating from post-secondary within a year and want to learn how to be smart with my money once I graduate. Are there any books or resources in particular that helped you gain financial literacy? I am interested in not only exploring different investments, but also learning different strategies for managing my savings. Thanks for your time everyone! :) [link] [comments]  |
| Posted: 02 Jul 2018 09:25 AM PDT The controversial movie subscription service filed a shelf registration Monday that will offer institutional investors equity and debt. Despite plenty of speculation to the contrary, MoviePass isn't going away anytime soon and, in fact, parent company Helios and Matheson Analytics filed on Monday to raise $1.2 billion to make sure the subscription service that famously sells 30 tickets for the price of one thrives for years to come. The company filed a shelf registration that will offer institutional investors equity and debt, and Helios and Matheson CEO Ted Farnsworth tells The Hollywood Reporter that he'll likely access the $1.2 billion over the course of a year or two. A portion of the windfall will be used to make acquisitions, and Farnsworth says he is in final negotiations on a few already, though he declines to name the companies he will purchase. If Helios and Matheson is successful in gaining access to such a large sum of money when the company sports only a $69 million market capitalization on Wall Street, it will represent a huge vote of confidence for its MoviePass asset. Farnsworth, in fact, has been down this road before, having raised $400 million last year, also several times what the company's market cap was at the time. "They've been predicting our demise for eight months and we're still standing," says Farnsworth. "Now we'll have a big war chest behind us." MoviePass says it may reverse-split its stock both in order to raise money more easily and to make sure its shares are not delisted from Nasdaq, given they trade at less than a buck apiece, which is under Nasdaq's listing threshold. Farnsworth says MoviePass will have 5 million subscribers by year's end and will generate $600 million in annual revenue. Doubters say MoviePass is basically selling dollar bills for 50 cents apiece, though Farnsworth recalls that the same was once said of Amazon.com. "I was at a conference with Amazon CEO Jeff Bezos in around 1999 when a headline referred to the company as 'Amazon.bomb.' Well, look who's laughing now," says Farnsworth. MoviePass intends to make a profit by marketing films and other items, selling data and striking concession and ticketing relationships with theater chains that crave the traffic the service can generate — as it has been known to drive as much as 50 percent of the box office on certain titles, especially smaller ones where subscribers might otherwise balk at buying a full-price ticket. MoviePass faces some new competition from AMC, as the nation's largest movie exhibitor launched its own service where subscribers get three movies tickets a week for $20 a month, but Farnsworth says that MoviePass has seen a 25 percent surge in new subs since then, probably because every news article noted that MoviePass was much cheaper — $10 a month for a ticket per day. Farnsworth also says much of the $1.2 billion will go to its production company, MoviePass Films, as well as its film investment asset, MoviePass Ventures, which has thrown money behind American Animals and Gotti thus far. "This is a game changer," says Farnsworth. "Now they know that we are not going away." [link] [comments]  |
| Tesla announces Q2 vehicle production/deliveries & reaffirms Q3 guidance Posted: 02 Jul 2018 06:31 AM PDT Interesting bits:
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| What happened to securities held in custody by Lehman brothers? Posted: 02 Jul 2018 06:20 PM PDT After the bank collapsed, were the securities transferred to another custodian? [link] [comments]  |
| [DD] Disney is a buy at its current valuation Posted: 02 Jul 2018 10:50 AM PDT Disney is a great company with shareholder-oriented management. It has great economics with above average returns on capital employed and returns on equity. The stability of these metrics over the years signifies their entrenched competitive advantage (which we all already knew). Their debt is also very manageable with a debt-to-equity ratio of 0.43 this past quarter. In addition, Disney is still continuing their share buyback program of $6bn in 2018 which seems like icing on the cake for shareholders given its current valuation in comparison with the market. There is also growth potential with their streaming service coming down the pipeline, their brand growth in China as signified by the explosive attendance numbers at their new Shanghai Disneyland and the overall growing Chinese box office. Also, the acquisition of FOX's assets will not only add to their already growing market share but will be greater than the sum of the parts when utilized with their new/existing platform(s), distribution systems, theme parks, etc. If I had to guess on why it has been moving sideways, it would be because of fear on this deal not passing or other potential anti-trust regulations. But the speed at which this deal has been going forward with gives it favorable odds that it will pass through. In addition, the passing of the AT&T-Time Warner deal is also a major sign that the courts will also be lax with consolidation in the media industry as well. Looking at their average EBIT/EV of 8.1% over the past year, along with the factors mentioned above, there's a sufficient margin of safety over any conservative risk-free rate you might choose (whether the deal passes through or not). And if the deal does not pass, it will be an even better buying opportunity from the inevitable overreaction. All investors are advised to conduct their own independent research into individual stocks before making a purchase decision. Please do your own research. [link] [comments]  |
| How credible is James Rickards? Posted: 03 Jul 2018 01:25 AM PDT |
| Why Do Investors Sell Stocks of US Banks? Posted: 03 Jul 2018 12:46 AM PDT Investments in U.S. banks ' stocks are declining for two weeks in a row — the longest decline in 20 years. What worries investors and why bankers lose customers? As a result of the investments slump in investment funds specializing in banks, The KBW index (a benchmark stock index for the banking sector in the US) for three months "lost 11%. The KBW Bank Index, developed by financial sector specialist investment bank Keefe, Bruyette and Woods, includes 24 banking stocks. The total capitalization of the US financial sector players for six months fell by almost a quarter. Investors Sell Stocks of US Banks [link] [comments]  |
| Vietnam stock market world's worst performing in Q2 2018, and worst performance since 2008 Posted: 02 Jul 2018 09:53 AM PDT Frontier emerging market squeezed between both Chinese and US trade war responses, with a highly volatile stock market. Overreacting or a taste of things to come? [link] [comments]  |
| Posted: 02 Jul 2018 07:10 PM PDT It's been quite beaten down lately. What are your thoughts on it? [link] [comments]  |
| What are the best muni bond etfs? Posted: 02 Jul 2018 04:27 PM PDT |
| Why is "chasing yields" bad for stocks but okay for real estate investing? Posted: 02 Jul 2018 07:43 AM PDT If I buy funds that yield over 10% people say to watch out because I'll get burned by chasing risky funds just to get a high yield. However, if I buy real estate and get a 10% cap rate people will say how good it is and how real estate is a path to wealth. Why are high yield funds "bad" but high yield real estate "good"? [link] [comments]  |
| Posted: 02 Jul 2018 09:15 PM PDT Anyone know when TSLA is planning to move production back fully into the factory. I know it's all hands on deck at the moment with the need to boost production of the model 3 and reach the goal of profitability by Q3 but is there any update on factory conditions?? [link] [comments]  |
| How will the tarrifs affect other companies and prices? Posted: 02 Jul 2018 05:09 PM PDT "This year we launched into these countries with redistribution, and we're really ready to just go, go, go, and then—almost right away—these tariffs come on," said co-founder and general manager Scott Harris. "If the tariffs hold up for a longer time, we're going to have to refocus our growth objectives, sell more in the U.S. and basically wait on anything going into Europe—which is really a shame." -wa [link] [comments]  |
| Posted: 02 Jul 2018 08:38 PM PDT |
| Considering a leveraging strategy in my Roth IRA. Opinions/criticisms welcome. Posted: 02 Jul 2018 06:20 AM PDT Traditionally I've been a simple 3 fund Boglehead type of investor, but after reading this sub and other material for the past several years I'm considering transitioning my Roth into a strategy that implements leverage and modern portfolio theory. This post by u/hydrocyanide really started to change my view of risk and return along with following other professionals that post on this board, mainly u/MasterCookSwag, u/hedgefundaspirations, u/hydrocyanide and u/cb_hanson_III, so before I start I'd like to thank you guys for contributing to this board and making it a wonderful place to learn. I am not an investment professional and therefore don't recommend anyone following the strategies that I talk about without consulting someone who actually knows what they are doing. The portfolio would be constructed similar to Larry Swedroe's "no fat tails" portfolio. This portfolio invests 30% into equity asset classes that have a very high systemic risk (small cap US stocks and international emerging markets) and the remaining 70% into something like treasury notes or bills that would be inversely correlated to equities during times of crisis. By doing so you hope to eliminate the extreme left and right tail return events, both good and bad, and achieve a very reliable sequence of returns. Historically you would have achieved a very high sharpe ratio and even unleveraged would have a decent compound annual growth rate. The idea of leverage always seemed distant because as a small investor it seemed too expensive. However, I recently came across the Direxion mutual funds that offer leveraged funds for these asset classes with monthly resetting (to avoid leveraged decay of daily funds) and an expense ratio (1.49%) far below what it would normally cost to use leverage normally. I was surprised to see that these funds were implemented before the financial crisis, so we can test this strategy through that very volatile period.. We see that over the past 12 years, using 2x leverage with these funds and annual rebalancing this strategy beat the S&P 500 with significantly less risk. Caveats:
Pitfalls as I see them:
So there you have it. I'd like to elicit the thoughts and criticisms of reddit. What am I missing? Thanks everyone. [link] [comments]  |
| REITs with a lot of residential properties in Salt Lake Posted: 02 Jul 2018 03:22 PM PDT I'm interested in Salt Lakes housing market. Do any REITs own a lot of residential property in the Salt Lake Valley area? Thanks [link] [comments]  |
| What's the best move for a VMware stock holder at this point? Posted: 02 Jul 2018 09:08 AM PDT The news is reporting that VMware stocks will either be traded out for Dell stock at a 1.3665:1 ratio (currently worth ~$124.58) or $109, but the VMware stock is currently at $161/share?! I'm not at all an investor, I have these stocks because I am a VMware employee and either had them granted to me or bought them through ESPP. I feel like I should sell at this high price since the trade/forced sell to Dell will tremendously undervalue my stock, but the price of VMW keeps climbing this morning, so what am I missing? [link] [comments]  |
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