Sentences with phrase «drag on returns»

That's a huge drag on returns when compounded over many years.

Not so long ago, you rarely heard anyone discussing this hidden drag on returns.

In some cases, poor asset location will be a bigger drag on returns than the fees you pay for your funds.

Investors in a closet index fund housed at a discount broker were still seeing a 1 % + drag on their returns.

However, market volatility is a constant drag on your returns, and over a long period these small losses compound.

Idea being to reduce drag on returns with higher equity allocation.

Fees are a constant, real drag on returns.

Now let's model in a behavioural drag on returns.

Over five years, both Canadian and global REITs had tax cost ratios over 1.6 %, which would cause a huge drag on returns.

- The Horizon S&P / TSX 60 ETF (HXT) is performing «exceptionally well,» with an annualized drag on returns of 0.08 of a percentage point.

Investors seem to be falling out of love with currency hedging, which causes a long - term drag on returns for Canadians who invest in US equities, and ETF providers are responding.

The result was a huge drag on returns for investors who measure their returns in greenbacks.

My spider sense always makes me suspicious of consistent predictable drags on returns such as MERs and currency - hedging costs.

Similarly, you may want to consider unloading funds with high annual expenses, as annual charges that may have seemed insignificant while the market was soaring may represent an unacceptable drag on returns when the market stalls or declines.

@Michael: I don't disagree that 2 % is a very high cost and is likely to be a significant drag on returns.

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.

It seems that comparing tracking error of index ETFs to their MERs is a good way to see if there are any hidden drags on returns.

While such a basket has historically been a drag on returns during disinflationary periods, it has provided increased inflation protection when investors have needed it most.

Although the greenbacks can serve as a drag on returns when the markets are exploding, they can offer very large benefits when stock prices begin to fall.

With a declining equity risk premium, investors should be diligent in minimizing the drags on returns from taxes, transaction fees and mutual fund management fees.

Second, hedging emerging market currencies can be impractical or prohibitively expensive, creating a drag on returns.

While most well managed index funds follow their benchmarks closely, it's not unusual for tracking errors to be a drag on returns.

(Over the long run, Claymore estimates that hedging will cause a drag on returns of about — 1 %.)

There are a host of other factors that can be a drag on returns, too, as I've discussed in several recent posts.

That was a lucky accident: over the long term one should expect currency hedging to cause a drag on returns because of its significant cost.

Specifically, these funds offer investors exposure to key markets while seeking to reduce the risk of a drag on returns if the local currency depreciates.

They maintain full exposure to credit risk as a primary source of return, while the built - in hedges are designed to alleviate the drag on returns caused by rising interest rates.

The built - in hedges are designed to alleviate the drag on returns caused by rising interest rates.

Implementation of alternative strategies in «40 Act» formats requires higher balances of cash and liquid assets — particularly for the pari passu offerings — which is a drag on returns.

This drives up the price of high - risk stocks, causing a drag on returns, while leaving low - risk stocks underpriced.

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

My point is that for a long term investor, bonds are nothing more than a drag on returns.

That will save a couple of $ 10 commissions, but the uninvested cash also causes a drag on returns.

If using the ETFs listed on the Toronto Stock Exchange, the back - and - forth conversion between USD and CAD can be a drag on returns.

The portfolio's hedge is designed to alleviate the drag on return when interest rates rise.

The index maintains exposure to credit opportunities as a primary source of return, while the hedge is designed to alleviate the drag on return when interest rates rise.

The weighted average expense ratio was ~ 0.67 plus an AUM fee of 0.73 = 1.4 % drag on returns.

The management fee for these ETFs is 0.30 per cent, which is a drag on returns.

Unfortunately, when a factor analysis shows negative alpha we know something is causing a drag on returns, but we can never be sure what that is.

Another drag on returns is the fact that socially responsible investment products typically have higher expense ratios.

High Fees Are A Drag on Returns 2.

Many retail options traders lose money because they don't know how to overcome the drag on returns that is caused by time decay.

This was a drag on my returns, but not necessarily the cause of my egregious underperformance.