It’s no secret that we love exchanged-traded funds. From retail investors to Mondo-sized pension funds, ETFs have taken the investment world by storm. Low costs, intraday tradability and the ability to access a wide variety of asset classes are ETFs hallmarks. But they do have some downside — namely, they can hold some pretty exotic and downright dangerous stuff. Eric Balchunas at Bloomberg offers a sensible solution to warning retail investors about the danger: movie ratings.
FT.com (Chris Flood): Investors in the U.S. have enjoyed ETFs’ low expenses for years. The rest of the world is starting to catch up. First stop: Europe.
New York Times (Neil Irwin): Although, low fees are one thing. Negative interest rates for European savers is a whole other ball of wax.
Bloomberg (Sree Vidya Bhaktavatsalam and Elizabeth Stanton): I love a good grilled ham-and-cheese as much as the next guy, but you have to wonder what the heck is going on at PIMCO.
AdvisorShares Blog (Roger Nusbaum): Just because a sound investment strategy isn’t “working” this year, doesn’t mean it’s time to bail. Stay the course for the long haul.
Pragmatic Capitalism (Cullen Roche): Or you could just automate the whole thing. The pros/cons of robo-advisers.
Calculated Risk Blog (Bill McBride): Housing continues to stink. Mortgage applications drop to their lowest levels in a year — despite recent interest-rate drops.
Nasdaq (Martin Tillier): On the bright side, auto sales are returning. U.S. car manufacturers are rocking.