But if you are feeling uncertain about the market — the trade standoff, Brexit, the health of the European Union, the threat of a recession and years of unprecedented stimulus by central banks — it may be time for you to diversify or consider a value-oriented strategy.
Cap-weighted vs. equal-weighted Most coverage of the broad U.S. stock market centers on the S&P 500 Index SPX, -0.07%, which has performed well, aside from some short declines, since the post-financial-crisis bottom on March 9, 2009. This explains the incredible shift in assets into index funds and away from actively managed funds. But the S&P 500 is weighted by market capitalization, which means it is not really as diversified as you might expect it to be.
You can reduce your risk when investing in the entire S&P 500 by going with an equal-weighted index fund, such as the Invesco S&P 500 Equal Weight ETF RSP, +0.02%. With several rapidly growing tech companies dominating the S&P 500, it’s reasonable to expect historical performance of the equal-weighted ETF to trail the cap-weighted index and SPY, but it’s worth taking a second look:
FTSE Russell divides the Russell 1000 into two overlapping groups: The Russell 1000 Value Index RLV, +0.12% which includes 760 companies in the Russell 1000 that have lower price-to-book ratios and lower expected growth rates, while companies with a combination of lower composite value score and higher expected growth rates are included in the Russell 1000 Growth Index RLG, -0.32%, which has 526 companies. There are 288 companies that are in both the value and growth indexes.
Мы обобщили эту новость, чтобы вы могли ее быстро прочитать.Если новость вам интересна, вы можете прочитать полный текст здесь Прочитайте больше:
Россия Последние новости, Россия Последние новости
Similar News:Вы также можете прочитать подобные новости, которые мы собрали из других источников новостей
Why this overlooked ‘black swan’ poses a ‘monstrous’ risk to the stock marketThe market’s been looking fairly strong lately, with the Dow Jones Industrial Average rallying for the sixth session in a row. But with each uptick, there... More imagination gone wild than black swan or similar crap! NCheron_bourse You don t even understand what a black swan is. ‘black swans’ are unknowable in advance. they are unknown unknowns. this is not a black swan.
Источник: MarketWatch - 🏆 3. / 97 Прочитайте больше »
Yes, stocks are up again. No, recession worries aren't goneThe U.S. economy is sending some worrying signals about a possible recession, yet the stock market has gone on a what-me-worry ride toward record heights. Only the media promotes a recession. Did you see the retail sales report? Guess not. The major players in the market know 'who' controls trump, that he is playing/gaming/floating all markets for personal gain. Alot of those preselected and willing to play along are making a fortune. One reason only..the President want it that way. But some of us know that you can’t fake the economy
Источник: ABC - 🏆 471. / 51 Прочитайте больше »
Three ways to start investing when you know nothing about the stock marketNo matter your salary or how young you are, everyone can invest. Leaving your savings in the market garners a higher return in the long-run versus stashing it in the bank. That means the longer you wait to dive in, the more money you lose. Investing is full of unfamiliar terms, and many are scared away before they even start. Watch this video to find out the three things you need to know before you start to invest. acorns Now Jon the Con is getting mad when someone else says something negative about Trump. Jon the Con couldn't get any further up Trump's butt; most corrupt so-called President, most corrupt market, the options market. They have a lot in common.
Источник: CNBC - 🏆 12. / 72 Прочитайте больше »
For Chinese Companies, Hong Kong Is Hard to ReplaceHeard on the Street: Hong Kong’s stock market meets the needs of China’s corporate sector in a way rivals cannot And now... HongKong is asking the US to cancel its waivers because it is no longer free. We can help, do it now. Harry needs supervision
Источник: WSJ - 🏆 98. / 63 Прочитайте больше »