This week's Mutual Funds and ETF stories
- How to know if you really beat the market
- 5 game changers for small-cap stocks
- Forget Dow 13,000; the real story is Wilshire 5000
- What to do when your fund manager retires
- Think you're a smart investor? Test your DNA
Trouble is, most mutual fund managers don't beat "the market" year-after-year — if the market in question is the Standard & Poor's 500-stock index. For that matter, most investors don't beat the market either, since their portfolios tend to be a mix of U.S. and international large- and smaller-cap stocks, bonds, and perhaps a smattering of commodities and real estate.
On that basis, the 500-biggest U.S.-based companies, ranked by market value, is just a piece of the entire market, not the pinnacle.
For a better way to gauge performance, check out the inaugural ETF Adviser column, and see what columnist Mark Hulbert has to say on the topic.
— Jonathan Burton , Money & Investing editor
Active investing is a loser's game, says Mitch Tuchman, co-founder of ETF investors' service MarketRiders. But if you insist on owning actively-managed funds, ETF returns can provide a true picture of portfolio results.
Read more: How to know if you really beat the market.
The worst bear market since the 1930s is on the verge of being erased in just three years' time.
Read more: Forget Dow 13,000; the real story is Wilshire 5000.
Small-cap stocks' strong rebound just may continue, writes Rachel Koning Beals. Here's a short list of economic and stock sectors where improved conditions should bode well for small-caps.
Read more: 5 game changers for small-cap stocks.
Managed futures funds may have a place in a portfolio, but buyers need sophistication and knowledge — not just an adviser's sales pitch, writes Chuck Jaffe.
Read more: Managed futures fund isn't for all investors.
Some people are afraid of making a mistake by taking on risk, while others take risks that lead to mistakes, says Chuck Jaffe.
Read more: Risk and return are joined at the head.
Many investors are paralyzed by this environment, which is unlike anything they have seen in their adult lives. However, as is often the case, investors can look to the past and find potential guideposts for building a portfolio for today's markets.
Read more: Investing lessons from the 1950s.
When a top fund manager calls it quits, mutual-fund investors are faced with a decision: Do they hang around for the next act? MarketWatch columnist Chuck Jaffe talks to Jonathan Burton.
Watch: What to do when your fund manager retires.
Wall Street Journal columnist Jason Zweig discusses a new research study that suggests one's ability to make smart or risky investment decisions could be traced to his or her DNA.
Watch: Think you're a smart investor? Test your DNA.