Balanced funds or diversified funds are very popular among long term or short term investors. Dow Jones stock list above clearly shows how a high priced stock like Goldman Sachs gets more weight while Cisco Systems gets least weightage because it has the lowest price. That is, when the Dow trades in negative territory, the ETF trades higher, therefore it is not required to sell short, if one has a bearish goal in mind. In the case of 2x performance, the ETF increases the buying power by leveraging money without using margin. The above post will help in tracking the movement of Dow Jones Industrial Average in real time. Questions like how DJIA is calculated and how Dow Jones stock weightage is assigned has been discussed.
Tracking the index will help to get a bird’s eye view of the market sentiment, leading to better planning of trades and management of overnight open position. A large cap index fund is going to outperform 80 percent of the managed funds in the large cap category. Another method for investing in the large cap market are exchange traded funds The most commonly traded is the SPY which is a proxy for the Standard and Poors 500 index which has an expense ratio of 0.09 percent. Small growth mutual fund investment will focus on faster-growing companies with lower capitalization range (i.e. less than 2 billion).
These portfolios tend to favor companies in up-and-coming and young industries in their early growth stages. These companies will have high growth rates in term of earnings, cash flow, book value, and sales. During the economic recovery, most of the growth companies can provide great return in your investment. The goal of this Lord Abbett Developing Growth fund is to achieve a long-term capital growth by investing in stocks of small U.S. companies.
At least 65% of the net assets are invested in equity securities of small companies with market capitalization at the time of purchase that falls within the market capitalization range of companies in the Russell 2000 Index. The Wasatch Small Cap Growth Fund pursues long-term growth of capital by mainly investing in small companies and to provide income. The majority of asset (>80%) is invested in the equity securities of small companies with market capitalization of less than $2.5 billion.
Portfolio Manager Jeff Cardon seeks the World’s Best Growth Companies since his joining in 1986. During the fourth quarter of 2010, Federated Kaufmann Small Cap Fund advanced 12.9%, while its benchmark, the Russell 2000 Growth Index has the advancement of 17.11%. Most of the fund’s net assets are invested in the stock of small companies that are traded on national security exchanges such as NASDAQ, OTC, Russell 2000 Index or the S&P Small Cap 600 Index.