Finding the next Apple or Microsoft is like looking for a needle in a haystack. And even though most people will never find either, none of it keeps them from trying.
Take for example, America’s mutual fund managers. They’re charged with the responsibility of discovering tomorrow’s blue chip stocks. Yet, according to Standard & Poor’s research, over the past five years an astonishing 79.1% and 85.8% of mid and small company stock funds were outperformed by dull mid and small cap stock indexes. Put another way, professional money managers have been buying the wrong stocks!
What about individual investors? It seems like they too are having difficulty in making the right investment decisions.
In its 15th annual survey of investor behavior Dalbar found that 58% of investors bought and sold their investments at the wrong time last year. As a result, many of these same investors experienced substantially worse performance of their investments compared to stock index funds.
The mistake of buying the wrong stocks could’ve easily been avoided if investors just trusted in the indexes and the financial products following them instead of the fund managers that try to beat them and fail.
Let’s evaluate 4 exchange-traded funds or ETFs that can help you to capture the big opportunities in small stocks.
iShares Russell 2000 Index Fund (NYSEArca: IWM)
SPDR Dow Jones Small Cap ETF (NYSEArca: DSC)
Vanguard Extended Market ETF (NYSEArca: VXF)
WisdomTree Small Cap Dividend Fund (NYSEArca: DES)
May 4, 2009: SEI (Nasdaq: SEIC) today announced that it has been selected by Global X Management Company to provide a fully integrated, turnkey solution to support the firm's global exchange traded funds (ETFs). SEI's integrated ETF solution is designed to help investment managers meet the emerging market demand for launching new ETF products, while supporting greater transparency and efficiency. It also provides an efficient way for managers to enter the market quickly with limited investment.
Under the terms of the agreement, SEI will provide a complete outsourcing solution that includes fund administration, accounting, investor servicing, distribution and authorized participant (AP) processing for Global X's ETFs in a straight-through electronic processing environment. SEI was selected following a thorough search process that included the major providers in the ETF space. The company's best-in-class approach, scalability, and straight-through processing environment were pointed to as key factors in the decision.
"SEI's fully integrated solution provides a comprehensive, single source environment that isn't possible when working with multiple vendors," said Bruno del Ama, CEO of Global X Management. "We are launching funds in different countries and SEI's experience and knowledge in the ETF business is a big advantage for us. We know that they have the depth to service us now and, more importantly, they have the ability to scale this offering with us as we grow - and that's critical." SEI is the leading processor for ETF trades for authorized participants. With the first family of ETFs, Global X is launching global ETFs focusing on the Nordic region, Colombia, Argentina, Peru, Philippines, and Egypt.
Full Story: http://www.cnbc.com/id/30558284/site/14081545