Sentences with phrase «drag on portfolio returns»

Institutional investors often avoid these stocks despite the potential upside beyond 12 months as non-movement can drag on portfolio returns.

Not exact matches

Cash is a drag on long - term returns, but if you're incapable of being fully invested in a balanced portfolio, then the drag from cash is nothing compared to the drag on selling into a decline.

I have no view on the direction of currency movements, but I do prefer unhedged equity ETFs, because currency diversification can lower the volatility of a portfolio, and the cost of hedging is a long - term drag on returns.

Hedging worked well in the mid-2000s and other periods when the Canadian dollar rose dramatically, but over the long term it causes a drag on equity returns and may even increase a portfolio's volatility.

This could have skewed the asset allocation in the overall portfolios of its investors and also created a drag on returns.

A DRIP can be a great way to have your investments compound over time and ensure cash doesn't provide a low - return drag on your portfolio.

Just don't fill up on too many cookies because that can drag down the overall return of a portfolio.

But as the equity gilt shows, if you withdraw dividends from the portfolio then their effective rate of return is minus 100 percent, and that's a big drag on future growth.