Why Hire ETF Consulting Services

Among so many financial vehicles prevailing in the market today, the highly preferred choice of investors always remains the Exchange Traded Funds or ETFs, instead of conventional vehicles. It is being traded globally today owing to the profits and rewards that are guaranteed with this financial vehicle. However, it is essential for the investors to have a clear picture of their required portfolio before investing. They must create their portfolio according to the requirements they have in their mind. ETF is not actually recommended to investors who are looking for short term investments. It really doesn’t suffice the situation. Moreover, the investors need to conduct proper research about all the financial reports pertaining to the respective funds. This is actually not possible with the assistance of ETF researchers or ETF consulting services.

Harry Browne is the leading ETF consultant who developed the idea of constructing investment portfolio with similar weightings of 4 different asset classes that perform well in all economic climates. Consultation before investment is required to view the entire market scenario and to analyze the financial reports. The financial reports must be screened aptly by keep the mind the proposals offered by the ETF consultants. The consultants actually play a crucial role in selecting the best financial vehicle for you. They utilize the best stock picking strategies and techniques that provide you with the ups and downs of the financial markets. The techniques are used on all the ETFs in view and these are the most commonly used tools of ETF consultants. The consultants also work on providing you the modern portfolio theory alternative by considering your specific needs and investment budget. They help you to find the best possible alternative to modern portfolio theory style portfolios that meet the expectations of the clients.

Apart from this the consultants assess the proven assets of desired funds by scrutinizing the Management Discussion Reports and Fundamental Data Reports. Moreover, the ETF consultants also focus on assessing the Balance Sheets and Cash Flow Tables along with your Income statements. So, when it comes to invest in such funds it is always better to hire the services of EF consultants.

Source : http://modernportfoliotheory.blog.com/2015/06/15/why-hire-etf-consulting-services/

Why You Should Prefer Adding Your ETFs in 401k Plan

Owing to its tax efficiency and low costs, ETFs are really becoming the most famous investment vehicle for taxable accounts. Most of the ETF providers are now looking forward to make a big push to get their products into 401k and other contributions plans, especially because of the success of ETFs in 401k and taxable accounts.

For economic point of view, if you are deciding to add ETFs to your present 401k plan, then it is very essential for you to know what your record-keeper will charge you for utilizing those assets in your present plan. You need to understand that the record-keeper usually charge extra fee for the ETFs, over the use of mutual funds. They usually charge you in two different ways – Asset-based fee and Transaction commissions per share.

Before you add ETFs into your existing 401k plan it is necessary for you to understand the record-keeper charges as well as the ETF fundamentals properly. Before you consider the overall charges to the participant, it is essential to know the additional fee that a plan may be charged for using the ETFs, over the use of mutual funds. The asset-based fee is very simple and transparent way for the plans that enable you to determine the extra fee of using ETFs, while the transaction based fees are little trickier because they totally depend on the per-share cost of the trades as well as to the trading frequency of the plan’s participants. Moreover, the frequent traders will experience higher transaction costs compared to the “Buy and Hold investors.

Today, more and more investors are engaged in buying and selling the ETFs and are looking forward to add their ETFs into their present 401k plan. Even mutual fund investors are also adding their ETFs into the 401k plan, owing to the profit and security offered by this investment vehicle. In summary, it is undeniable fact that by adding ETFs into your existing 401k plan you can easily decrease the overall plan cost, but it is necessary for you to consider the additional asset based fee or transactions fees charged by the record-keeper in any cost analysis.

Source : http://modernportfoliotheory.jimdo.com/2015/06/10/why-you-should-prefer-adding-your-etfs-in-401k-plan/