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Added on the 10/05/2016 17:12:13 - Copyright : Reuters EN
Mutual funds and exchange-traded funds, or ETFs, are valuable parts of a long-term investment stock portfolio. Managed by professionals, they allow you to buy into companies and securities that you may not have been able to on your own. But while both mutual funds and ETFs are considered low-cost investment products, they do cost money. So before you sign up for any of them, the most important thing to look at is the expense ratio--an umbrella term that covers all sorts of costs and fees. It's usually a percentage of the annual net assets in the fund and is deducted directly from the fund's gross assets. Even a small difference in a fund's expense ratios can result in significantly more fees paid or saved over time. For example, take $20,000 invested for twenty years at a 5% rate of annual, compounded growth. A fund with an expense ratio of 0.25% would return $50,595 at the end of twenty years. But a fund with an expense ratio of 1% would return just $43,822!
New research suggests that Warren Buffett's Apple investment might not payoff over the next decade. Dimensional Fund Advisors tracked the largest 10 US stocks at the start of each decade since 1930. Business Insider reports that DFA found that on average, they underperformed the market by 1.1% over the next five years and 1.5% over 10 years. Apple is the most valuable US stock with a $2-Trillion market capitalization. Buffett's Berkshire Hathaway counts Apple as the biggest holding in its equity portfolio. The investor's company has more than tripled its money on Apple in less than five years. The company might not gain significantly more for a long time.
California biotech company Vaxart is under federal investigation and is being sued by a number of investors. According to CNN, Vaxart was served with a grand jury subpoena in July from the US District Court for the Northern District of California. It's under fire for exaggerating its involvement in the US government's Operation Warp Speed program for developing COVID-19 vaccines and treatments. Vaxart issued a June press release saying 'Vaxart's Covid-19 Vaccine Selected for the US Government's Operation Warp Speed.' The news pumped Vaxart's stock price from $3 to $17. Hedge fund Armistice Capital, which partly controlled Vaxart, sold its shares, profiting more than $200m. A few weeks before it announced its supposed inclusion in the Operation Warp Speed program, Vaxart granted amendments to its warrants agreements. That allowed Armistice to sell almost all of their stock, which they did once the stock price skyrocketed. In July, the HHS said it had neither entered into a funding agreement nor negotiations with Vaxart.
'The Morning Show' leads Jennifer Aniston and Reese Witherpoon are reportedly earning $2 million per episode as they double the respective paydays they received for 'Friends' and 'Big Little Lies'.
Thomas Gilbert Jr. appeares in court on charges that he shot and killed his father. Police say the two had argued over the son's allowance. Jennifer Davis reports.
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