International Investments SLP - Essay Example

International Investments SLP In Module 5 of the Session Long Project, we should be able to study the various exchange traded funds (ETF) available in the stock market and to ascertain which of them can make a good choice in investing. In the AMEX International Indices, I searched and analysed which of the ETF would be worth the money. Trading in ETFs is at some degree different to trading in a particular stock and even to mutual funds. An ETF is like an umbrella that scopes a group of stocks in specific investing theme, as opposed to a mutual fund that is merely some group of stocks decided upon a presumably trusted fund management team.

So after deliberating at the list of funds in Yahoo! Finance, I decided to spend approximately $95,000 for seven select funds which I deem will give me financial glory. The table below shows the name of the fund, its ticker, the number of shares I decided to buy, the recent share price and the total investment money needed. Table 1. Imaginary ETF PortfolioCompany NameTickerNo. of SharesShare priceNet PriceVanguard Growth ETFVUG25064.6616165First Trust NASDAQ-100 Equal Weight IndexQQEW100024.

7724770SPDR S&P 500 Growth ETFSPYG25060.2415060Columbia Growth Equity StrategyRPX40032.6113044EG Shares Emerging Markets Metal & Mining TitansEMT40021.458580Vanguard Index Trust 500 IndexVFINX100120.3112031The Charles Schwab CorporationSCHW35014.925222TOTAL PRICE94872 Table 1 lists my selected funds namely, VUG, QQEW, SPYG, RPX, EMT, VFINX, and SCHW which selected according to James Gardner’s core principle in investing – best growth stocks. In any type of investment, it is absolutely important to determine what kind of investor you are and of course what sort of investor do you aim to be.

For this instance I can say that I am the type of investor who does not wish to trade each and every single day like a full time job. So long term growth is the best type of investment style that suits me. The ETFs VUG, QQEW, SPYG, and RPX are in the large growth category and I have allotted a considerable number of shares in them. VUG and SPYG have only 250 shares each because they have relatively higher share prices compared to the others. RPX and EMT have 400 shares each because they’re basically cheaper.

I have allotted a solid 1000 shares in QQEW because of my big confidence in the NASDAQ-100 and in the even greater potential of the international technology industry. The fifth on the list is EMT, which is a compendium of the “largest publicly-traded mining companies involved in industrial and precious metals exploration, extraction and production within the emerging world.” EMT plays a significant role in the mining industry, so I placed 400 shares to it. The two last items in my list are VFINX and SCHW.

VFINX does not fail to be included at the top performing index fund; however it has an expensive share price so I just allocated 100 shares for it. SCHW is also one of the frequent top performers and it is relatively cheap so 350 shares were allocated for it.However the members in the list above are not the only original contenders. In my initial list, I have also included JP Morgan Chase Capital XVI JP M (AMJ) and IShares Diversified Alternatives Trust (ALT). Other ETF products of JP Morgan Chase and IShares were also considered.

In fact ALT was one of the top performing ETFs for the closed day. It was for the reason that AMJ and ALT have negative yield-to-date (YTD) values compared to the other seven. Furthermore, IShares was described by Anspach (n.d.) as a hybrid of a mutual fund (MF) and an ETF. ETFs have a higher force or pull over its performance compared to MFs so I just decided to look for other ETFs that would suit my preference are also good performers. In this activity, I have successfully apportioned roughly $95,000 to the different exchange traded funds which I deem would be greatly remunerative in the future.

I have chosen ETFs over MFs because of their great profitability and studied their numerous categories before finally deciding which of them I should invest in. After the scrupulous comparison of some ETFs, I have selected seven which I firmly believe will bring me considerable profits in the long run. However during the process of doing this activity, I have also realized that there is no perfect approach in investing. Nevertheless, as long as the investment goals are still met or at times be compromised, it is in the investor’s perspective where his success truly lies.

ReferencesAnspach, D. (n.d.). Best Index Funds. Retrieved from http://moneyover55.about.com/od/howtoinvest/tp/bestindexfunds.htmExchange Traded Funds (n.d.).Retrieved from http://www.fool.com/investing/etf/index.aspx EMT ETF Research - Dow Jones Emerging Mrkts Metals & Mining Titans. (n.d.) Retrieved from http://www.wikiwealth.com/etf-fund-research:emt Gardner D, & Gardner, T. (1997). The Motley Fool Investment Guide. New York, USA:Simon and Schuster: Mutual Funds Vs. ETFs (n.d.). Retrieved from http://www.fool.com/investing/etf/mutual-funds-v-etfs.

aspx Yahoo Finance! (2011) Retrieved from http://finance.yahoo.com/p?k=pf_2&d=e