Several years ago, I started adding ETFs to my own portfolio. As the number of ETFs has grown, so has my personal use of them.

Don't get me wrong, I still own individual stocks and mutual funds, but an increasingly greater proportion of my portfolio is allocated to ETFs. The reason is that there are several advantages that make ETFs very attractive.

ETFs Are Less Expensive Than Mutual Funds

The majority of mutual funds are actively managed, which means investors not only have to pay for a fund manager, but also a staff of analysts.

These expenses hurt your return. This wouldn't be a problem if the performance was spectacular, but it's not. According to Standard & Poor's, 71.9% of actively managed large-cap funds underperform the S&P 500. So while there are some funds that are worth paying extra for (and the Zacks Mutual Fund Rank will help you

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Several years ago, I started adding ETFs to my own portfolio. As the number of ETFs has grown, so has my personal use of them.

Don't get me wrong, I still own individual stocks and mutual funds, but increasingly, a greater proportion of my portfolio is allocated to ETFs. The reason is that there are several advantages that make ETFs very attractive.

ETFs Are Less Expensive Than Mutual Funds

The majority of mutual funds are actively managed, which means investors not only have to pay for a fund manager, but also a staff of analysts

These expenses hurt your return. This wouldn't be a problem if the performance was spectacular, but it's not. According to Standard & Poor's, 71.9% of actively managed large cap funds underperform the S&P 500. So while there are some funds that are worth paying extra for (and the Zacks Mutual Fund Rank will help

...

Gold Bug Ted Peroulakis of Investors Daily Edge suggests that “you should own some gold in your portfolio as an insurance policy, just in case the economy gets worse.” He recommends this Gold EFT as a safe haven during the global financial crisis, because no matter what happens with the markets, gold will always shine.

This from Ted:

As you know, I’m a gold bug. I’m quite bullish on the yellow metal. I have been recommending gold since 2001 and I expect gold to run much higher. You should own some gold in your portfolio as an insurance policy, just in case the economy gets worse.

Gold is a safe haven in times of financial and geopolitical instability. Gold has often been nicknamed the “crisis commodity” since it tends to outperform other investments during periods of market distress and world tensions.

I mentioned in previous articles that a great way to

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Hedge Fund Manager Einhorn Buying Gold

Despite years of resisting the yellow metal, famed hedge fund manager David Einhorn is finally joining the ranks of gold bugs worldwide and plunging into the market.

As John Spence notes in his MarketWatch.com blog citing a Bloomberg News article, the hedge fund Einhorn controls is buying the SPDR Gold Shares (NYSE: GLD).

You can read his blog here.

 

Invesco Revamps With PowerShares

This interesting look at the rebound by asset manager Invesco, parent of PowerShares, includes comments by its chief executive about why the mutual fund giant decided to get into the exchange-traded funds market.

The excellent piece, written by MarketWatch.com’s Sam Mamudi, also appears this morning in the sister Wall Street Journal. You can read the story here.

 

Dollar Gaining Momentum?

In this article in the Chicago Tribune, Andrew Leckey notes that an index tracking the U.S. dollar against

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Firm U.S. dollar weighs on sentiment… Slips from 1-week high as oil prices ease…

Gold rose to its highest in a week on Monday before trimming gains as the dollar strengthened against the euro and oil prices eased, analysts said.

“It is mostly a story about the U.S. dollar, equity markets and inflation at the moment,” analyst Eugen Weinberg at Commerzbank said.

Gold had little incentive to move higher, with oil prices sliding, but firm buying once prices moved towards $800 an ounce created a floor, he said.

Gold rose as high as $845.55 an ounce, its highest level since Jan. 12, before trading at $831.85 an ounce by 1516 GMT, down 1.2 percent from $841.85 in New York late on Friday, as oil prices reversed course and slipped.

Demand from the jewelry industry was seen weak this year, accounting for 70 percent of total

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There’s a fine line between a stimulated economy and a destroyed currency, says Adam Lass. And the world’s central bankers are in a race to the bottom. Japan’s latest rate cut has given the US dollar a short-term lift versus the yen. But the greenback will soon plummet again. Adam says investors should take up a short dollar/long gold position for 20-30% gains in the coming months.

This from Taipan Daily:

Japan’s absurd 0.2% rate cut is offering American “Dollar Shorts” a second chance at doubling their money.

Welcome to the World Banking Limbo competition, wherein central bankers around the world try to calculate that fine line between a stimulated economy and a destroyed currency.

Last Tuesday, U.S. Fed Chairman “Helicopter Ben” Bernanke re-earned that moniker when he announced that the U.S. central bank would move rates below 1% for the first time in history. What’s

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As the financial crisis continues, investors are searching for safety anywhere they can get it. Real estate is obviously out. Equities are getting hit. The currency markets are roiling.

Throughout history, gold has acted as a safe haven in times of economic stress.

Should you be investing in it?

Investors around the world are flocking to the yellow metal. The South African Rand Refinery which manufactures the popular Krugerrand coin, is now operating its plant 7 days a week to keep up with demand for its gold coins. Similarly, the Austrian mint has added weekend production.

In Perth, Australia, the Perth Mint has hired more staff and has doubled its coin production. About 80% of its business is done outside of Australia in North America, Europe and Asia.

The U.S. Mint recently announced it was temporarily suspending all sales of the 24-karat American Buffalo gold coins

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