Today’s Talk Your Book is brought to you by F/m Investments:
To learn more about F/m Investments click here: fminvest.com
On today’s show, we discuss:
- The rise of after-tax investing and how F/m’s Compounder series aims to defer income by avoiding dividends
- The hidden costs of traditional dividend reinvestment programs compared to market orders
- How the ETF structure compares to private credit and BDCs, and the liquidity mismatch investors should understand
- What a failed Treasury auction would look like and why the bond vigilantes haven’t arrived despite rising government debt
- F/m’s product development philosophy: every new ETF must solve a real problem, not just be an interesting idea
Listen here:
https://podcasts.thecompoundnews.com/show/animalspirits/
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Nothing in this blog constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Any opinions expressed herein do not constitute or imply endorsement, sponsorship, or recommendation by Ritholtz Wealth Management or its employees.
The Compound Media, Inc., an affiliate of Ritholtz Wealth Management, received compensation from the sponsor of this advertisement. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investing in speculative securities involves the risk of loss. Nothing on this website should be construed as, and may not be used in connection with, an offer to sell, or a solicitation of an offer to buy or hold, an interest in any security or investment product.
Definitions and Disclosure from F/m Investments:
AG Index: Evaluates the performance of agricultural sectors across different regions
Basis point: is used to indicate changes in the interest rates of a financial instrument
SALT Deduction: SALT stands for State and Local Taxes. The SALT deduction allows taxpayers to deduct these taxes from their deferral taxable income
AG Index: Evaluates the performance of agricultural sectors across different regions
Basis point: is used to indicate changes in the interest rates of a financial instrument
SALT Deduction: SALT stands for State and Local Taxes. The SALT deduction allows taxpayers to deduct these taxes from their deferral taxable income
Alpha: measures an investment’s performance relative to a benchmark index
Coupon: a periodic interest payment made to bondholders
Russell 2000: is a stock market index that measures the performance of 2,000 small cap companies in the U.S.
Options: financial derivatives that give the holder the right, but not the obligation, to buy or sell an asset
BDCs: stands for Business Development Company, a type of investment firm. BDCs primarily invest in small and mid-sized businesses
REITs: stands for Real Estate Investment Trust, a company that owns, operates, or finances income-producing real estate.
Par: stated or face value of a financial instrument, primarily bonds and stocks
GFC: Stands for Global Financial Crisis, which refers to the severe worldwide economic crisis that occurred in 2007-2008
AGG: iShares Core U.S. Aggregate Bond ETF, which tracks the performance of the U.S. investment-grade bond market
Tax Alpha: The difference between a portfolio’s after-tax return and the after-tax return of benchmark.
Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 1-800-617-0004. Read the prospectus or summary prospectus carefully before investing.
TBIL Fund Risks: The US Treasury 3 Month Bill Fund may be susceptible to an increased risk of loss, including losses due to adverse events that affect the UST 3 Month Bill Fund’s investments more than the market as a whole, to the extent that the UST 3 Month Bill Fund’s investments are concentrated in a particular issue, issuer or issuers, country, market segment, or asset class. While U.S. Treasury obligations are backed by the “full faith and credit” of the U.S. Government, such securities are nonetheless subject to credit risk (i.e., the risk that the U.S. Government may be, or be perceived to be, unable or unwilling to honor its financial obligations, such as making payments).
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted. Short term performance, in particular, is not a good indication of the fund’s future performance, and an investment should not be made based solely on returns. Market price is the price at which shares in the ETF can be bought or sold on the exchanges during trading hours, while the net asset value (NAV) represents the value of each share’s portion of the fund’s underlying assets and cash at the end of the trading day. Performance to the most recent month end can be obtain from https://www.fminvest.com/etfs/tbil-fm-us-treasury-3-month-bill-etf
Investments involve risk. Principal loss is possible. Diversification does not ensure a profit or protect against loss.
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