What a litany of “advisor” horror stories! I have two to add:
a 1% AUM advisor who insisted on using full service brokerage houses ($75 a trade), then put 20% of my net worth in a single junk bond (not a fund). The junk bond promptly dropped 75%. I fired him.
Reviewing my elderly parent’ statements, their AUM advisor was charging them $300 for any transactions as an “administrative fee”. I had my parents fire him.
Despite the above, I recently decided to utilize a flat fee CFP now that I’m in my decumulation years. Juggling IRMA, Roth conversions, SS taxation, tax brackets, creating a paycheck while rebalancing…convinced me to get a bit of help. I still keep the accounts and do the actual transactions, but follow what he recommends if it makes sense to me.
Calling AVUV an active ETF is really just semantics. All ETFs use some sort of weighting methodology, such as market capitalization. Value funds use a universe of stocks that fit this term, such as price to book ratio, profitability, price to earnings ratio, etc. AVUV is a small cap value fund, so its weightings reflect that. It happens to weight small size a bit more than other similar funds, so its market capitalization is lower than many otherwise similar funds. Very small size value funds are quite undervalued at this point.
All the banter and negativity over the word “active” seems misplaced. AVUV is a completely rules based small cap value fund. Surely there are more pressing issues to debate.
No victim here. This article melodramatically plays the victim card. What do you expect from a fund that buys options, distributes high income, and moderates losses? Does a bond fund participate in bull markets? You did not get "scammed"! You wanted a free lunch, and didn't get one.
Thank you for a thoughtful and illuminating viewpoint. I have one question about timing (I know, not thought of highly on H.D.). In looking at the discount history of CET, it looks like the current discount is a bit low now compared to the range of discounts seen with this closed end fund. Does that suggest anything to you as you considered this purchase?
Many thanks again!
My death should not be a burden to my descendants. So I try to make sure my wishes are written and known, I have a will, a POA and health care proxy. I have all assets with clear beneficiaries to avoid probate. My one uncertainty: what to do with a car so that it can be sold or transferred without probate.
Comments
What a litany of “advisor” horror stories! I have two to add:
- a 1% AUM advisor who insisted on using full service brokerage houses ($75 a trade), then put 20% of my net worth in a single junk bond (not a fund). The junk bond promptly dropped 75%. I fired him.
- Reviewing my elderly parent’ statements, their AUM advisor was charging them $300 for any transactions as an “administrative fee”. I had my parents fire him.
Despite the above, I recently decided to utilize a flat fee CFP now that I’m in my decumulation years. Juggling IRMA, Roth conversions, SS taxation, tax brackets, creating a paycheck while rebalancing…convinced me to get a bit of help. I still keep the accounts and do the actual transactions, but follow what he recommends if it makes sense to me.Post: Financial Advisor – NEVER AGAIN
Link to comment from May 10, 2025
Calling AVUV an active ETF is really just semantics. All ETFs use some sort of weighting methodology, such as market capitalization. Value funds use a universe of stocks that fit this term, such as price to book ratio, profitability, price to earnings ratio, etc. AVUV is a small cap value fund, so its weightings reflect that. It happens to weight small size a bit more than other similar funds, so its market capitalization is lower than many otherwise similar funds. Very small size value funds are quite undervalued at this point. All the banter and negativity over the word “active” seems misplaced. AVUV is a completely rules based small cap value fund. Surely there are more pressing issues to debate.
Post: Active ETFs: Get Ready ‘Cause Here They Come
Link to comment from March 22, 2025
No victim here. This article melodramatically plays the victim card. What do you expect from a fund that buys options, distributes high income, and moderates losses? Does a bond fund participate in bull markets? You did not get "scammed"! You wanted a free lunch, and didn't get one.
Post: A Foolish Option
Link to comment from August 24, 2024
Seems like an astoundingly self absorbed retirement.
Post: Retirement Ready
Link to comment from January 10, 2024
Thank you for a thoughtful and illuminating viewpoint. I have one question about timing (I know, not thought of highly on H.D.). In looking at the discount history of CET, it looks like the current discount is a bit low now compared to the range of discounts seen with this closed end fund. Does that suggest anything to you as you considered this purchase? Many thanks again!
Post: In Praise of Active
Link to comment from August 17, 2022
My death should not be a burden to my descendants. So I try to make sure my wishes are written and known, I have a will, a POA and health care proxy. I have all assets with clear beneficiaries to avoid probate. My one uncertainty: what to do with a car so that it can be sold or transferred without probate.
Post: What obligations do we have to our heirs?
Link to comment from January 22, 2022
How do you report interest to the IRS? Is there a 1098 issued? Is it considered interest in the usual sense? Thanks!
Post: Call of the Wild
Link to comment from January 19, 2022