Why a portfolio of “passive” ETFs requires active management by you–announcing my new ETF portfolio to do just that

Why a portfolio of “passive” ETFs requires active management by you–announcing my new ETF portfolio to do just that

Can I clear up one bit of confusion? ETFs are indeed passively managed investment vehicles. Their portfolios passively follow indexes rather than allocating money into the picks of a fund manager. But portfolios of ETFs put together by investors aren’t–and indeed can’t be–passively managed. And that’s why, this week, I’m launching my new Perfect 5 Active Passive ETF portfolio.

Lessons from my bad trade in INCY call options in my Volatility Portfolio

Lessons from my bad trade in INCY call options in my Volatility Portfolio

Wow. That sure didn’t work the way I intended. Back on May 23 I added the July 21 $140 calls on Incyte (INCY) to my Volatility Portfolio. Those calls traded at $7.10 that day. As I wrote in my post that day, to make money on these options, I’d need to get a move of $4 or so to move the share price above $140 and to move the options into the money. My logic at the time was pretty simple.