NEW YORK (AP) — The past year felt dismal for investors. Even worse, the gloom was all-encompassing. Mutual funds of all types sank. Even those funds that are typically steadier during turbulent markets struggled through what became the worst year since the Great Recession for many investors. Stock, bond and commodity markets all succumbed to worries about rising interest rates, a predicted slowdown in economic growth and the potentially painful effects of the global trade war. That meant losses not only for investors who went all-in on U.S. stock funds, which looked unstoppable after notching their best January in two decades, but also for those who hewed to the traditional advice and diversified their 401(k) accounts across many different markets. The largest stock fund, Vanguard's Total Stock Market Index fund, lost 5.3 percent for the year, including dividends, its first loss since the financial crisis crushed the global economy in 2008. At the same time, the largest bond … [Read more...] about No refuge for investors: Even “safe” funds fell in 2018
Vanguard total stock market index fund
At Facebook, public funds join push to remove Zuckerberg as chairman
By Arjun Panchadar and Ross Kerber(Reuters) - Four major U.S. public funds that hold shares in Facebook Inc on Wednesday proposed removing Chief Executive Officer Mark Zuckerberg as chairman following several high-profile scandals and said they hoped to gain backing from larger asset managers.State treasurers from Illinois, Rhode Island and Pennsylvania, and New York City Comptroller Scott Stringer, co-filed the proposal. They oversee money including pension funds and joined activist and original filer Trillium Asset Management.A similar shareholder proposal seeking an independent chair was defeated in 2017 at Facebook, where Zuckerberg's majority control makes outsider resolutions effectively symbolic. Rhode Island State Treasurer Seth Magaziner said that the latest proposal was still worth filing as a way of drawing attention to Facebook's problems and how to solve them."This will allow us to force a conversation at the annual meeting, and from now until then in the court of … [Read more...] about At Facebook, public funds join push to remove Zuckerberg as chairman
Fidelity fires fee salvo vs. Vanguard, launching two new mutual funds with zero fees
The mutual fund giant Vanguard has led the way in cutting costs for retail investors — until last week. Now, it’s Fidelity’s turn to take on Vanguard — and Fidelity just went to zero fees first. As of Friday, Fidelity launched two mutual funds with no fees. Fidelity ZERO Total Market Index Fund (FZROX) and Fidelity ZERO International Index Fund (FZILX) are now available with no fees to individual retail investors who purchase shares through a Fidelity brokerage account. The Boston investment giant also slashed fees on some existing index-based stock and bond funds, according to a news release. Publicity stunt? Yes, but competitors such as the robo-adviser Betterment said these fee wars will continue raging. “There has been a consistent march toward lower fees between fund providers, and Vanguard has always been competitive,” Betterment senior portfolio researcher Adam Grealish said in response to questions about the Fidelity … [Read more...] about Fidelity fires fee salvo vs. Vanguard, launching two new mutual funds with zero fees
Index Funds: Dow Stocks Hold Solid Gains, But Small Caps Weaken
Key index funds pared some of their gains Tuesday as small caps, financials and some energy stocks pulled back. X SPDR Dow Jones Industrial Average (DIA) continued to hold solid gains, thanks to big moves by Procter & Gamble (PG), Boeing (BA) and Chevron (CVX). The blue-chip index, which recovered its 50-day moving average Monday, is on track for a fourth straight advance. PowerShares QQQ Trust (QQQ) was flirting with the flat line as the underlying Nasdaq 100 index staged a downward reversal. But it's still outperforming small caps and emerging-market ETFs: iShares MSCI Emerging Markets (EEM) and iShares Russell 2000 (IWM) were off 0.8% and 0.7%, respectively. Utilities, oil services and semiconductors led the upside among sector funds. Utilities Select Sector SPDR (XLU) shook off early weakness to rise 1.5% as it tries to hold above its 200-day line. Shares are 8% below their November peak. IBD Newsletters Get exclusive IBD analysis and action news daily. SIGN UP NOW! … [Read more...] about Index Funds: Dow Stocks Hold Solid Gains, But Small Caps Weaken
Index Funds: This Sector Races Ahead As Top Stock Biogen Soars
Trade war fears continue to persist, but you wouldn't know it by looking at the stock market as exchange traded funds staged a broad rally. X Key market index funds rose Friday despite tariffs on $34 billion in China goods that went into effect. China then imposed tariffs on $34 billion in U.S. goods. A better-than-expected jobs report overshadowed the tariff news and boosted U.S. stocks. The tech-heavy Invesco QQQ Trust (QQQ) led with a 1.4% gain, while SPDR S&P 500 (SPY) and SPDR Dow Jones Industrial Average (DIA) followed with 0.9% and 0.6%, respectively. Emerging markets rallied too: iShares Core MSCI Emerging Markets (IEMG) advanced 1.4%. Biotech, energy and semiconductors led the upside among sector funds. IShares Nasdaq Biotechnology (IBB) gapped up and surged 3.5%. Biogen (BIIB) soared 19% after announcing positive trial results for its Alzheimer's treatment with Japanese biotech partner Eisai. The drug slowed progression of the disease in 856 patients. Health Care Select … [Read more...] about Index Funds: This Sector Races Ahead As Top Stock Biogen Soars