Von Aldo

Why So Many Active Mutual Funds When Most Stink?

I am pleased to announce that Registered Rep. has partnered with New Constructs to provide detailed reports assessing the risks/rewards of 3,000+ stocks, 400+ ETFs and 4,700+ mutual funds. Subscribe now to view the very latest in profitability and valuation.

What I like about David Trainer, the founder of New Contructs, a boutique research house, is that his research gets "under the hood" of companies, ETFs and mutual funds.

His mission is to figure out what a company's economic earnings are ---- as opposed to the accounting fiction that is reported net income. His intention is to understand a company's real economic value (cash flow) to determine if the stock is dangerous (a sell) or a buy. He also analyzes the holdings of mutual funds and ETFs. (He thinks financial ETFs are dangerous. He thinks financial institutions use trickery to inflate their earnings.)

Please look for New Contructs research on our home page and David Trainer's new column, The Intelligent Investor, found under the investing tab.

Here is an example of a recent research report: "For US equities, ETFs offer a higher percentage (10%) of attractive investment options than mutual funds (1%) at a lower cost. The radically higher number of US equity mutual funds (4,700+) versus ETFs (380+) is not indicative of better stock selection from active management. On the contrary, the vast majority of actively-managed funds do not justify the higher fees they charge. They do not, in terms of stock selection and expected returns, add value versus passively managed benchmarks ..."

To view the full report CLICK HERE to register now.

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