Sentences with phrase «diversification than an index»

An active fund has greater diversification than an index product, even if the fee is slightly more.

Not exact matches

They fail to appreciate that even 30 or 40 individual companies provides less diversification than even one broad - market index fund.

I wonder if an ETF like Canadian Fundamental Index Fund (CRQ) may be a better choice for the Canadian market since it has a little more diversification across sectors and not quite as much in Energy / Materials than say XIU?

These multinational funds don't have long return histories, but the experts who follow them believe that combining U.S. and international real - estate investments will produce higher returns than the S&P 500 index, along with currency diversification.

By weighting securities in broad market indices based on revenue rather than market capitalization, the fundamentally weighted strategies offer the opportunity to reduce overexposure to potentially overpriced sectors and stocks while still providing the broad diversification of an index.

True diversification requires more than just stock investing: remember that index funds only go up when the entire economy goes up — and we have happened to enjoy a 25 year joyride of amazing overall market returns.

Only 10 real estate investment trusts (REITs) account for more than 1/3 of the capitalization - weighted MSCI US REIT Index, potentially resulting in higher risk and inadequate diversification relative to RORE's diversified approach.

For these reasons, I suggest that RESP investors use index funds rather than ETFs: something simple like the Global Couch Potato (assembled with TD e-Series funds) is all the diversification you need.

The result is that market participants may achieve more diversification and inflation protection than with just equities or with any single asset inside the index.

It turns out that this finer - grained diversification across entirely separate independent holdings is also less risky than a single index holding.

However, for investors willing to do the work, investing in individual stocks can lead to much higher returns than broad diversification into index funds.

This is one of the main arguments for index funds — if diversification is good, then more diversification must be better than less diversification.

Optimizing using the S&P 500 index to represent U.S. stocks, and then actually using a growth mutual fund (that owns 75 stocks) would result in much less diversification than the report stated.