Features and News

Prior to expiration, option prices reflect an expectation about future index volatility, because volatility affects the chance that the index will move above or below the exercise price at expiration.

Used judiciously, derivatives may help dampen risk and bring stability to portfolio returns. Author discusses use of a buy-write strategy.

The Spitzer investigation continues to provide fresh gunpowder for ETF marketers . . . but they've remained eerily silent.

The iShares Lehman TIPS Bond Fund (ticker: TIP) began trading on the New York Stock Exchange.

A study by Russell Indexes indicates assets are flowing into its style benchmarks.

Dow Jones Indexes inked a deal with Morgan Stanley and JPMorgan to take over the TRAC-X North America High Yield Index series.

Correlation analysis is important to designing and implementing efficient portfolios. However, investors should be aware that correlations between asset classes are not static.

The best advice for most investors is to ignore all claims, from whatever the source, about any ability to outperform on a risk-adjusted based on stock-selection or market timing skills.