One ETF Betting On High Customer Satisfaction

Matt Thalman - Contributor - ETFs -ETF Betting High Customer Satisfaction

The American Customer Satisfaction ETF (ACSI) is an Exchange Traded Fund that is built around the idea that companies who have high customer satisfaction, will perform well in the long run, and here is a hint, but there is a lot of evidence to prove this thinking right.

Let's review some of this evidence before we go any further.

  • According to a 2011 American Express Survey, 78% of consumers have bailed on a transaction or not made an intended purchase because of poor service experience.
  • According to a White House Office of Consumer Affairs report, on average, loyal customers are worth up to 10 times as much as their first purchase.
  • Marketing Metrics reports tells us that you have a 5-20% probability of selling to a new prospect but a 60-70% probability of selling to an existing customer.
  • “Understanding Customers” by Ruby Newell-Legner says it takes 12 positive experiences to make up for one unresolved negative experience.
  • According to a White House Office of Consumer Affairs report, It is 6-7 times more expensive to acquire a new customer than it is to keep a current one.
  • According to a 2011 American Express Survey, 3 in 5 Americans (59%) would try a new brand or company for the better service experience.
  • According to a White House Office of Consumer Affairs report, News of lousy customer service reaches more than twice as many ears as praise for the good customer service experience.
  • According to a 2011 American Express Survey, in 2011, 7 in 10 Americans said they were willing to spend more with companies they believe provide excellent customer service.
  • According to Lee Resources, 91% of unhappy customers will not willingly do business with you again.
  • A report from the Customer Experience Impact Report by Harris Interactive/RightNow, 2010, found almost 9 out of 10 U.S. consumers say they would pay more to ensure a superior customer experience.

The list could go on and on, but I think you are getting the point. Now think about the list above and think about this list of companies; Inc (AMZN), Apple Inc (AAPL), Vonage Holdings Corp (VG), Alphabet Inc (GOOG), Humana Inc (HUM), FedEx Corp (FDX), JetBlue Airways Corp (JBLU), The Hershey Co (HSY), Coca-Cola Co (KO). Continue reading "One ETF Betting On High Customer Satisfaction"

Invest Alongside The Pros With These ETFs

Matt Thalman - Contributor - Exchange Traded Funds ETFs

As the popularity of Exchange Traded Funds has grown with investors, so have the options investors have when it comes to the type and style of ETF they want to own. Not only can an ETF investor buy specific asset class ETFs, but they can buy ETFs designed by specific investors.

Just like how different asset classes have different risks, different investors have different beliefs about what makes a good stock. Each investor, professional or retail, has different metrics they look at, have different investment timeframes, have different investment goals, and just approach the market and investing in a different manner. These differences often make one investor successful while another fail. Following alongside well known, successful investors can help teach you what works and perhaps what you have been missing in the past.

So even if you decide not to buy an ETF that is based on your favorite investor, at least take a look at it, you may learn something. With that in mind, let’s take a look at a few ETFs I have found that track the pro’s, and see what we can learn. Continue reading "Invest Alongside The Pros With These ETFs"

Socially Responsible Investing Isn't Cut and Dry

Matt Thalman - Contributor - ETFs - Socially Responsible Investing

When it comes to investing in socially responsible companies, a lot depends on what values and principles you hold in high regard when you are trying to find the right fund for you.

Socially responsible or ethical investing encompasses a wide range of sub-sectors which you need to sift through before just jumping into an “ethically responsible” fund. For example, there are environmentally focused funds, funds that concentrate their efforts on finding companies who have sound corporate governance policies, others that look at the impact a business has on society as a whole, and this is just to name a few.

One fund that may be “ethical” and may not be would be the Inspire Global Hope Large-Cap ETF (BLES). The fund tries to find companies which the fund manager believes to line-up with “biblical values” and even has a proprietary scoring system which measures a company’s level of participation in abortion, gambling, alcohol, pornography, “the LGBT lifestyle,” just to name some of the big topics. But while some people may find some “biblical-values” ethical, others may not find them to be, one, in particular, being the “LGBT lifestyle” metric. Continue reading "Socially Responsible Investing Isn't Cut and Dry"

Facebook's Decline Has Hurt These ETFs

Matt Thalman - Contributor - ETFs - Facebook

When a major company such as Facebook Inc. (NASDAQ:FB) is caught in a scandal, the declining share price doesn’t just hurt investors who knowingly bought shares of the company. It also hurts all those unsuspecting shareholders who may own part of the company through different Exchange Traded Funds.

On March 16th, shares of Facebook were trading at $185.09. The news broke that 50 million customers had their data taken from Facebook by a company called Cambridge Analytica and used to persuade American’s to vote for President Donald Trump. By March 27th Facebook shares had bottomed out at $152, a nearly 18% decline from the day before the story broke. As of this writing, shares of the social media giant have recovered a little, and now they trade at $160 per share, still a 13.5% decline.

Anyone that knowingly owned shares of Facebook before this story breaking has decided to either ride this rough patch out or jumped ship. But, some investors own shares of Facebook and have likely taken a beating because of the situation and may not even have known what was causing their portfolios to fall. Continue reading "Facebook's Decline Has Hurt These ETFs"

Why Rebalancing Your Portfolio Is Important

Matt Thalman - Contributor - ETFs - Rebalancing

Despite only being three months into 2018, investors have been on quite a wild ride. The market started off the year as it ended 2017, on a tear higher, then the brief crash in early February, which led to a nice calm recovery during the remainder of the month just to run into what I’m calling “Whipsaw March” with the market jumping higher and lower by more than 1% nearly every other day. Not only have the major indexes been extremely volatile, but some of 2017’s biggest winners, big technology and especially the FANG stocks have seen their prices fall more than 10% in 2018.

Big pops that reverse fortune and the big drops that follow always cause investors to wonder what they could have done to protect themselves from the decline without completely abandoning their position.

The most straightforward and most effective answer to that situation is to rebalance your portfolio. Rebalancing is when you bring the percentage of your holdings back in line with each other.

For example, if you have a portfolio made up of 10 stocks and each represents roughly 10% of your portfolio, you would have a ‘balanced portfolio.’ Now if one of your stocks outperformed the others and ended up representing say 25% of your portfolio, instead of just 10%, then you would rebalance by selling some of your shares in that company until it represented 10% of your total portfolio. Continue reading "Why Rebalancing Your Portfolio Is Important"