Tag: risk tolerance

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ETFs to Mitigate Volatility and Enhance Diversification

Last week’s Wall Street Journal noted that Charles Schwab Corp. and Fidelity Investments have doubled the number of commission-free ETFs they offer.

This is good news for individual investors! More investment options can help enhance diversification and consequently, mitigate volatility.

Here at ETFMathGuy, we build portfolios to do just that…minimize volatility using our proprietary software. In fact, our approach addresses the exact point made by Ben Johnson’s quote, director of fund research at Morningstar. In the article, he states:

“As people stop obsessing over fees, they’re coming to realize that what matters most is portfolio construction. “

Quote from Ben Johnson, Director of Fund Research at Morningstar

We hope you enjoy reading this WSJ article!

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ETFMathGuy is a subscription-based education service for investors interested in using commission-free ETFs in efficient portfolios.


ETFMathGuy is a subscription-based education service for investors interested in using commission-free ETFs in efficient portfolios.
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2018 ETF Performance Review

Welcome to the 2018 ETF performance review.

It was a difficult year for a number of asset classes. The figure here shows that only a few ETFs had positive returns in 2018, using commission-free ETFs available from Fidelity. Based on broad indices for the stock, bond and cash asset classes, and including dividends, stocks lost 4.5%. Bonds barely broke even, returning 0.1% for the 2018 calendar year. The best performing broad market index was cash, which returned 1.7% for the year.

Fidelity-2018

Download here

Here is your 2018 ETF performance review. It was a difficult year for a number of asset classes, with only a few with positive returns.