Welcome to the ETF Prime Podcast

Asset Allocation and the Rise in the Popularity of ETFs

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.

On our most recent radio broadcast, we focused on a subject that sounds complex, but is rooted in a very basic practice – asset allocation.  Asset allocation is the process of getting the right mix of investments in your portfolio given your particular situation.  You take into account factors such as your age, risk tolerance, and financial goals and then work to invest in the right asset classes in a manner which will ideally allow you to meet those financial goals.  At The ETF Store, it’s our belief that the performance of your investment portfolio, over the long-run, isn’t determined by picking the next hot mutual fund manager or some high flying tech stock, but instead, your returns are based on proper asset allocation decisions – you want the right mix of stocks, bonds, alternative assets, and even cash in your portfolio.  There was a landmark study that concluded over 90% of the variability of long-term investor returns can be attributed to asset allocation.  So while the concept of asset allocation is fairly straightforward, its importance cannot be overstated.

On our show, we explained how ETFs have completely changed the game for investors by allowing them to invest in a wide range of asset classes that were previously unavailable or difficult to access – investments like gold, commodities, real estate, and emerging market stocks and bonds.  ETFs have provided investors a way to easily and cost effectively express asset allocation decisions.  We also delved into how investors can attempt to optimize returns and reduce risk through proper asset allocation in their investment portfolios.

In our weekly market update, we looked at the top 10 ETF asset gainers so far in 2013 and offered some thoughts on why these ETFs have attracted investor dollars.  In our weekly ETF Spotlight segment, we examined a broad based US Real Estate Investment Trust, or REIT, ETF (Vanguard REIT Index ETF – ticker symbol VNQ) and explained how real estate investments can offer yield, an inflation hedge, and some diversification benefits.  Learn more about VNQ at etfbuzz.com.

Estate Planning Not Just For the Wealthy

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.

On our most recent radio broadcast, Jason Salinardi, estate planning attorney and co-founder of BridgeBuilder-Plans for Life, joined us to discuss the importance of developing a proper estate plan so that both your family and financial goals are met after you pass away.  While this can, without a doubt, be an uncomfortable subject to discuss, there are potentially significant negative ramifications to your surviving family if you fail to put an appropriate plan in place.  On the show, we discussed what an estate plan looks like, why it’s important, and what you can do now to start putting your own plan in place.  We also explained why estate planning is not just for wealthy individuals – it’s something that is applicable to anyone with assets or a family to consider.  At The ETF Store, we work with some of the best and brightest partners to ensure that our clients have access to the right professional services – whether that’s professional accounting, mortgage or real estate needs, or estate planning.  The ETF Store is completely independent and just like with our investment selection, we’re free to select what we believe is best for our clients to help them reach their financial goals.

In our weekly ETF Spotlight segment, we discussed a broad based commodity Exchange Traded Note (the ELEMENTS Rogers International Commodity ETN – ticker RJI) and explained the role of commodities in a well-diversified portfolio.  In our opinion, far too many investors do not have enough uncorrelated assets in their investment portfolio.  They simply have a cookie-cutter portfolio containing stocks and bonds.  We believe this lack of uncorrelated assets can increase the volatility, and therefore risk, of a portfolio.  Alternative assets such as commodities can offer diversification benefits and also serve as an inflation hedge.  Learn more about RJI at etfbuzz.com.

PBS’ “The Retirement Gamble” Must-See TV

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.

If you currently participate in a company 401k plan or even if you have an old 401k account sitting with a previous employer, PBS’ new documentary “The Retirement Gamble” could have you second-guessing whether your 401k account is a benefit to you or to the mutual fund industry.  From high fees, to broker kickbacks, to underperformance – this documentary takes a candid look at how mutual funds made their way into your 401k and more importantly, it examines the potential negative impact these funds can have on your retirement.  At The ETF Store, we believe that low cost, index-based ETFs are the best way to build an investment portfolio and we receive no kickbacks for using these ETFs.  We simply select what we believe to be the best ETF for the asset class we want exposure to.  Unfortunately, 401k plan participants are, often times, stuck with high cost, actively managed mutual funds that pay a nice commission to the broker who sold them to your plan.  On our most recent radio show, we discussed PBS’ new documentary in detail and explained why it’s critical that you understand exactly what you’re getting from your 401k.  Watch the full documentary below – and thank us later.