Tag Archives: Investing

ADRE vs. VWO

As far as emerging markets go, which is the best bet? This post looks at two exchange: traded funds ADRE and VWO.

BLDRS Emerging Markets 50 ADR Index ETF (ADRE) follows the Bank of New York’s Emerging Markets ADR Index.

American Deposit Receipts (ADR) represent ownership in the shares of foreign companies trading on US markets. This is how many foreign company stocks trade on US exchanges. ADR’s enable US investors to buy non-US shares without without going international and without switching currencies. The Bank of New York is the biggest issuer of ADR’s.

Vanguard Emerging Markets ETF (VWO) (VIPERs) follows the MSCI Emerging Markets Index. Maybe it’s the investing style or the turnover rate (3% for ADRE vs. 26% for Vanguard!) or the countries covered, but ADRE beat VWO over the last couple years. Vanguard is definitely more diversified (866 stocks) vs. 50, yet offers the same low expense ratio (.3%).

It’s a tough choice, the safety of (VWO) 866 stocks vs. the low turnover of BLDRS. Between the two, I’m leaning more towards ADRE, just because I like to hold onto good finds. Maybe I’m wrong, still new to this. Feel free to comment.


Index Funds vs. ETF’s

I’ve really been looking into ETF’s and Index Funds. If these guys can beat most professional investors, and do so at lower fees, why wouldn’t someone choose them? There are some index funds for real estate, international value stocks, and all sorts of domestic stocks.

My biggest question is whether to invest via mutual funds (index funds) or as a stock (ETF – exchage traded fund).

Taxes and commission fees are the greatest issues: index funds automatically reinvest dividends into the fund. Not sure if ETF’s do so. Other issue is taxes; does one have an advantage over the other? Not sure.

A few I’m looking at: JKL, JKF, JKI, EFV, ITF, VGSIX, and the DFA value group (like DTMIX)

Ideally I’m thinking of a split ratio of real estate, domestic value, and international value stocks. A bit aggressive? Maybe. I’d also like to put in a portion using the little blue book method as well. The two companies I chose 10 months ago, (fdg, and dlx), are up 50% so far. Running a few more sets over this month, to be sure.

Any answers/comments?

You Can Be A Stock Market Genius Even If You’re Not Too Smart

You Can Be a Stock Market Genius Even if You're Not Too Smart: Uncover the Secret Hiding Places of Stock Market Profits You Can Be a Stock Market Genius Even if You’re Not Too Smart: Uncover the Secret Hiding Places of Stock Market Profits is another common sense meets sophisticated investing book by Greenblatt. I love this guy. This book looks at certain situations where an individual investor has an advantage (if he does his research… or her research). He goes over the basics and then gives some case studies. This book is from the mid-90’s, but I think, as far as investing goes it’s really the most educational one I’ve read. Graham’s Security Analysis might have more details, but its very dense reading, very worthwhile but slow to sink in–at least for me. This book on the other hand reads faster than a motivational tape! It’s written in the same funny, no-nonesense, down-to-earth style as his little one. A major concept in this book is the win-to-loss ratio, ie. how much can you win vs. how much can you lose on an investment. He also goes through acquisitions, mergers, and all sorts of other situations that may at first be intimidating, but become fascinating after his hold-your-hand, pat-your-back walkthrough. I wish I could take some of his classes… maybe in a few years. By the way, the portfolio I started based on his website is in the double digits, even after the latest crash. Too bad it’s only a play one.