On February 20, I wrote an article discussing how a number of ETFs were massively overweight Apple Inc. (AAPL), leaving investors with too much exposure to the world's largest company. While I believe Apple is a wonderful company to own, as I am a shareholder, unknowingly investors could very easily be overly exposed to just one company. If you are buying an ETF, mutual fund or index fund it is likely because that one purchase diversifies your investment. But because these funds are so overweight Apple, you may not be as diversified as you may think. Luckily though, the announcement that Apple will join the Dow Jones Industrial Average is sign that investors will have the ability to still buy index funds and not have to worry about being overly exposed to Apple.
Before we get into why Apple joining the Dow is a good thing, let's discuss why Apple is so overweight in different funds available.
The wide majority of mutual funds, ETFs, or simply investors in general, measure their yearly performance by comparing it to the performance of the S&P 500, I have even recommended this. For mutual fund or ETF managers the issue arises from this because they need to have their portfolios perform similar to the S&P 500, or clients will begin defecting from their fund to find greener pastures, in most cases a fund manager who has outperformed or at the very least matched the S&P 500 performance. Continue reading "Apple + Dow Jones = Better Apple Exposure (Part 1)"→
Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Friday, the 15th of November.
It has been quite a week! It's Friday and time to look for new 52-week highs in the markets. It was a strong week for the indices and several of the markets I am following, so after a quick recap of the major markets, I will show you how to find new 52-week highs and the rules you need to trade them.
Adam Hewison here and I've just finished a new video on the Dow Jones Industrial Index (DOW) that I'd like to share with you.
This may be a short video, but I think you'll get a lot out it. I'll analyze what's going on right now in the DOW, how it has developed over the last six months, and where I expect the DOW to go in the next six months.
As I've discussed before, perception is everything in the marketplace. I believe that perception is beginning to change in this market and the bears are back.