Welcome to the ETF Prime Podcast

Is an Investment Advisor Right For You?

Listen to The ETF Store Show every Tuesday at 9am on ESPN 1510 as we cover everything you need to know about Exchange Traded Funds and the world of investing.

Click here to listen to The ETF Store Show now.

For many investors, particularly those invested in the markets over the past 15 years or so, there is certainly some apprehension when the stock market hits new highs.  After all, many of these investors experienced the bursting of the dotcom bubble and watched as stocks were chopped in half during the Great Recession – in both cases, after a tremendous stock market run-up.  As the market eclipses new highs and investors try to determine whether it’s an illusion created by a determined Federal Reserve or grounded in real economic growth, the specter of the last two market debacles seems to be generating a healthy dose of fear.  Toss-in rapidly rising interest rates after a 30-year bull market in bonds and it certainly makes for a scary time for investors.  On our most recent radio broadcast, ETF Store Sr. Investment Advisor Jason Lank appeared on the show to share some concerns he’s hearing from investors regarding the current financial markets and offer some thoughts on whether you need an investment advisor to help navigate them.  For investors who have decided to seek professional advice, Jason also gave his take on the key decision points to consider before hiring an advisor – and that begins with understanding whether your “advisor” operates as a broker or registered investment advisor.

In our weekly market update, we discussed the recent fear that seems to be permeating the financial markets and examined some of the potential headwinds that stocks could face.  We also explained how focusing on diversification and having a sound investment plan are two simple, but often times ignored, approaches that can help investors sleep better at night.  In our ETF Spotlight segment, we delved into the lowest cost international equity fund on the market, the Schwab International Equity ETF (ticker SCHF).  It’s our belief that international stocks have a place in a well-diversified portfolio and we explained how an ETF such as SCHF compares to an actively managed mutual fund with a very similar investment approach.  Learn more about SCHF by visiting www.etfbuzz.com.

MCEE’s Mike English Discusses Importance of Financial Literacy

Listen to The ETF Store Show every Tuesday at 9am on ESPN 1510 as we cover everything you need to know about Exchange Traded Funds and the world of investing.

Click here to listen to The ETF Store Show now.

Before reading any further, we think it would be well worth your time to do the following:  1) Watch the brief segment below from the Council for Economic Education titled “Spotlight On:  Financial Literacy” which is currently airing on PBS, and 2) Take this short financial literacy quiz from FINRA.

The PBS segment highlights some absolutely alarming statistics.  Only 14 states currently require high school students to take a course in personal finance.  Of those 14 states, only 20% of teachers report that they’re even competent enough to teach those courses.  A third of parents say that they’re more comfortable talking with their children about drugs, than about money!  Regarding the FINRA quiz, believe it or not, only 14% of Americans were able to correctly answer all five of these basic financial concept questions correctly!

On our most recent radio broadcast, Mike English, President & CEO of the Missouri Council on Economic Education, joined us in studio to discuss this issue of financial literacy and offer some thoughts on what can be done to help fix the problem.  In addition, we explained how a lack of personal financial literacy can cost you big-time when it comes to your investments.  A recent US News & World Report article titled “15 Ways Our Financial Decisions Cost Us” laid out powerful research on how low levels of financial literacy can lead investors to pay higher investment fees & expenses, lose a substantial amount of investment income, and ultimately cost them a meaningful chunk of their wealth.  The article found that financial literacy can explain more than half the wealth inequality observed in US data.

In our weekly market update, we spent a few minutes discussing how to think about approaching risk management in your investment portfolio and in our ETF Spotlight segment, we examined an ETF that can offer protection in a rising interest rate environment (PowerShares Senior Loan Portfolio ETF – ticker BKLN).  Learn more about BKLN by visiting www.etfbuzz.com.