A Zero-Cost ETF?

This MRI could save your life I've never seen anything like this... Experimental doctors treating a former gold medalist with terminal cancer got the shock of their lives when they held his MRI up to the light. What they saw could be hailed as the biggest cancer breakthrough in history. And after 7 years, their unbelievable discovery is finally being revealed in this free video. If you're suffering from cancer or even if you just want to see something astonishing... You need to watch it now. The government has kept this rare footage quiet over the last 7 years for fear it will topple the billion dollar cancer industry... I can't guarantee how long it will be available, so watch now! Photo credit Thinkstock © 2014 Friday, May 9, 2014 | Issue #2288 How to Get Your Money Managed for Free Alexander Green, Chief Investment Strategist, The Oxford Club Read the polls and you'll see that people are sick and tired of Wall Street's self-dealing and their big, fat fees. Indeed, there is much to dislike about the big investment banks. Some of my friends in the industry were appalled at the way I portrayed them in my New York Times best-seller The Gone Fishin' Portfolio. "Man, I thought your portrayal was really harsh," one broker told me. "Really?" I said. "What did you think was inaccurate?" "Oh, it was accurate," he replied. "I just thought it was harsh." Yet despite the industry's minefield of conflicting interests, in many ways the investment landscape has never been tilted more favorably toward the individual investor. You can thank deregulation, technological innovation and the Internet. U.S. financial markets have never been deeper, more liquid or more transparent. When I first got into the money management business 29 years ago, many stocks had bid/ask spreads of an eighth of a point or a quarter. Today the spread is usually a penny or two. Commissions - even at Charles Schwab - often ran a few hundred dollars. Now ordinary investors routinely execute trades at $5 a transaction. Trade confirmations that took several minutes are now confirmed online in seconds. And there has never been a wider selection of no-load funds and low-cost exchange-traded funds (ETFs). This is the heyday for ordinary investors. Expenses have dropped so low, in fact, that in many cases you can get your money managed for free. Why Are Goliaths of High Tech Courting This Mystery "David" Company? Consumer electronics giants including Apple and Samsung are now partnering with a small tech company in the Midwest. When you find out why, I think you'll be quite surprised. It could send this company's bargain $9 stock soaring in the coming months. The faster you move, the more you stand to make. Go here now for our brand-new report. Expenses Are Zero How is this possible? Because the expense ratio on some ETFs has dropped to a negative number, making shareholders' costs effectively zero. The secret is securities lending. Funds often lend out their shares to short sellers (investors betting stocks will go down) for a fee. This income can offset not only a fund's management fees but all of its overhead. For example, BlackRock's iShares Russell 2000 Growth ETF (NYSE: IWO) took in $15.5 million in securities lending revenue last year. That was 0.35% of assets, more than covering BlackRock's quarter of a point fee for running the fund. Schwab U.S. Small Cap (Nasdaq: SCHA), SPDR S&P Biotech (NYSE: XBI) and Vanguard Small Cap Growth (NYSE: VBK) also had zero expenses. It just doesn't get much better than this. Because, all things being equal, the lower your costs, the higher your net returns. Small Cap Advantage Why are so many of these ETFs with zero costs small cap funds? Because the lending premiums are greater on small companies. That means they generate more annual revenue. For instance, BlackRock has more than $4 trillion in assets under management. Its securities loan department takes in more than $1 billion in lending fees annually. This money finds its way back into the hands of iShare funds... and their shareholders. This isn't just a positive for you. It can also be a plus for your registered investment advisor, if you're using one. After all, he isn't getting a piece of ultra-low ETF expenses anyway. And since he wants you to earn the highest return possible (net of his fees), these funds make perfect sense for him too. In fact, you might forward this to him... because he probably doesn't know. Good investing, Alex Editor's Note: Most people don't know it yet, but America is soon to go through a huge revolution. It will change the way everything is bought and paid for, and has big implications for your portfolio. Those in the know can take advantage. Those caught unaware will be taken advantage of. To learn more, click here. Click here to post a comment on InvestmentU.com A Gold Rush-Style Boom "The place went from desolate to booming. There are quite a few millionaires now." "It's been the opportunity of a lifetime." "It's unexpected. A blessing." That's just a few of the things being said about a gold rush-style boom generating "overnight millionaires" across the country. Even Warren Buffett is benefiting from it. He generated a "record high stock price" thanks to this boom. To find out how you can get in on it and bring in profits as high as $127K per year, go here. Recent Articles: Investment U Amazon Web Services Floating on Cloud Nine by Karen Canella Friday, May 9, 2014 So far, the public cloud industry seems to have sidestepped what analysts thought would amount to billions and billions of lost dollars after the National Security Administration (NSA) got caught sticking its nose in other countries' affairs via the Internet. Read On... Yahoo's Stake in Alibaba: What It's Really Worth by Rachel Gearhart Thursday, May 8, 2014 This week, Chinese e-commerce company Alibaba Group Holding Ltd. officially filed for its initial public offering in the U.S. Analysts project that Alibaba's IPO has the potential to topple Facebook's $16 billion IPO in 2012 - making it the largest technology stock offering in history. Read On... Why the Market Could Rise 74% in the Next Three Years by Marc Lichtenfeld Thursday, May 8, 2014 We had a bit of a scare in the markets last month. At one point, the S&P 500 fell more than 4%, causing some permabears to proudly proclaim that the "bubble" had burst. Of course, they're not quite so vocal now that the market has rebounded. Read On... You are receiving this email because you subscribed to Investment U. To unsubscribe from Investment U or to manage your account, click here To cancel by mail or for any other subscription issues, write us at: Investment U Attn: Member Services 105 West Monument Street Baltimore, MD 21201 Keep the emails you value from falling into your spam folder. Whitelist Investment U. Email: CustomerService@InvestmentUInfo.com Website: www.investmentu.com | North America: 855 402 3939; International: +1 443 353 4057 © 2014 The Oxford Club, LLC All Rights Reserved The Oxford Club | 105 West Monument Street | Baltimore, MD 21201 North America: 1 866 237 0436; Fax: 1 410 329 1923 International: +1 443 353 4540; Fax: +1 410 329 1923 Email: customerservice@oxfordclubinfo.com Privacy Policy | Whitelist The Oxford Club The Oxford Club is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that although our track record is highly rated by an independent analysis, investment markets have inherent risks and our past performance does not assure the same future results. The stated returns may also include option trades. Protected by copyright laws of the United States and international treaties. This newsletter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), in whole or in part, is strictly prohibited without the express written permission of The Oxford Club 105 W. Monument Street, Baltimore MD 21201.