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Moderator: OldAIMGuy Assistants: Toofuzzy
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Last Post: 5/8/2014 10:26:13 PM - Followers: 72 - Board type: Free - Posts Today: 0

The advent of Exchange Traded Funds (ETFs) has brought a new way to use AIM on various Market Sectors. They offer an easy way to own and trade entire sector indexes without the expense and inconvenience of the typical open end mutual fund. Closed End ETFs (CEFs) offer yet another interesting alternative and some extra BETA because of their Premium/Discount range.

With AIM, we like to make our trades when the price/per share meets our requirements. With traditional mutual funds we never know exactly what the end of the day will bring - but that's what the basis of our our trade price will be. Using ETFs we can use "Good 'til Cancelled" Limit Orders to trade when our price is met, or trade any time during the day at the current bid/ask prices.

Diversified mutual funds usually don't have the ingredients that AIM likes - Frequency and Amplitude of price change. This is because their money is spread over many different business sectors of the economy all moving in their own directions. Individual sector funds look as though they will give us many more opportunities to capture volatility than do traditional diversified mutual funds. As this graphic shows, individual sectors perform well at different times in the economic and market cycles.

 


ETFs can be selected from a wide variety of industrial sectors, individual country funds and also from "value" or "growth" by size of capitalization. This offers us the chance to build a portfolio of our own that is easily as diversified as any mutual fund. If we use ETFs we preserve much of the frequency and amplitude of each sector that AIM uses for creating trading profits. Each sector seeks its own level while AIM adjusts properly for the changes. Overall the portfolio benefits from extensive diversification while also improving AIM trade related returns.

An interesting article on building the "ultimate buy-and-hold" portfolio can be read at:

http://www.fundadvice.com/articles/buy-hold/the-ultimate-buy-and-hold-strategy.html 

Constructing an ETF portfolio using the component ideas mentioned in the article would give an individual a very well diversified portfolio. Here is my account compared to similar indexes over a year's time:

[chart]www.aim-users.com/UBH_vs_Index.gif[/chart]

GENERAL INFORMATION ON ETFs
http://quotes.nasdaq.com/asp/ETFsHome.asp

LOOK UP SPECIFIC INDUSTRIAL SECTORS AS ETFs
http://quotes.nasdaq.com/asp/ETFsSector.asp

POWERSHARES ETF SITE
http://www.powershares.com/

INFORMATION ON ETFs
http://www.etfguide.com/etftickerguide.php

MOST POPULARLY TRADED
http://money.cnn.com/funds/etf/mostpop/

HEATMAP OF ETFs
http://screening.nasdaq.com/Heatmaps/Heatmap_ETF.asp

SPECIFIC INFORMATION ON CLOSED END ETFs (CEFs)
http://www.etfconnect.com/

TOM'S RETIREMENT ACCOUNT BUILT WITH ETFs
http://www.aim-users.com/etfunds.htm

EXAMPLE OF NON-U.S. ETF PORTFOLIO
http://www.aim-users.com/exusetf.htm

MORE ON A.I.M. (Automatic Investment Management)
IHub - http://www.investorshub.com/boards/board.asp?board_id=949
Web Site - http://www.aim-users.com/

Best regards, Tom

PostSubject
#1158  Sticky Note Risk and Diversification Toofuzzy 12/11/12 12:43:17 AM
#1126  Sticky Note Exchange Traded Funds Toofuzzy 11/13/09 12:27:51 AM
#1172   Hi Toof, One has about 10 different ETFs OldAIMGuy 04/30/13 09:06:43 PM
#1171   >>>Two different portfolio strategies. Hence two different holdings.<<< Toofuzzy 04/30/13 03:11:37 PM
#1170   Hi Toof, Re: Why own both............ OldAIMGuy 04/30/13 12:13:18 PM
#1169   Hi Tom Toofuzzy 04/28/13 11:16:19 PM
#1168   Hi Toof, I'll capture some histograms on Monday OldAIMGuy 04/28/13 12:50:11 PM
#1167   Thanks Tom Toofuzzy 04/27/13 11:05:40 PM
#1165   Hi Toof, RE: Corp Income ETFs................ OldAIMGuy 04/27/13 02:49:26 PM
#1164   HYG or JNK Toofuzzy 04/26/13 03:32:49 PM
#1163   Update: All ETFs aren't created Equal.................. OldAIMGuy 02/21/13 04:22:34 PM
#1162   Long thread about the UBHS Tom that you ls7550 12/17/12 11:39:25 AM
#1161   Hi Tom ls7550 12/15/12 01:25:40 PM
#1160   Hi Tom Toofuzzy 12/11/12 11:02:49 PM
#1159   Hi Toof, Re: Diversification by "Style"....................... OldAIMGuy 12/11/12 01:36:47 PM
#1158   Risk and Diversification Toofuzzy 12/11/12 12:43:17 AM
#1157   I have been thinking about this post for Toofuzzy 12/08/12 05:06:37 PM
#1156   Well after doing some considerable nail biting I Toofuzzy 01/17/12 11:13:54 AM
#1155   Re: All ETFs aren't created Equal.................. OldAIMGuy 11/18/11 12:36:12 PM
#1154   ETFs have now been around and widely available OldAIMGuy 10/24/11 04:55:09 PM
#1153   Hi Karw Toofuzzy 09/19/11 10:31:48 AM
#1152   Hi toofuzzy, karw 09/19/11 03:35:44 AM
#1151   Hi Karw Toofuzzy 09/18/11 05:50:38 PM
#1150   Hi K, Re: ETFs and who's profiting........ OldAIMGuy 09/18/11 01:11:22 PM
#1149   Hi Tom, karw 09/18/11 04:23:59 AM
#1148   This article sounds scarier than the reality of OldAIMGuy 09/15/11 09:14:35 AM
#1147   Reviewing your ETF holdings for Upside and Downside OldAIMGuy 05/10/11 01:13:05 PM
#1146   Hi Lisa, Re: FVL and history with the OldAIMGuy 03/03/11 04:23:00 PM
#1145   Nice analysis, Tom! LisaAu 03/03/11 03:18:50 PM
#1144   Re: PYH vs FVL................ OldAIMGuy 03/03/11 12:52:08 PM
#1143   Hi Doug, Re: SPY back testing...................... OldAIMGuy 03/03/11 12:44:36 PM
#1142   Just updated the back-test through 12/2010. Here dougburkeaz 01/21/11 07:06:17 PM
#1141   Sorry message posted to wrong thread. OLD NO.7 11/30/10 05:53:01 PM
#1140   I have been giving a lot of thought OLD NO.7 11/30/10 05:22:13 PM
#1139   Hi Lisa, Re: CHY.................... OldAIMGuy 07/14/10 02:04:07 PM
#1138   Hi Tom, LisaAu 07/14/10 01:05:23 PM
#1137   PYH - Powershares Value Line Timely Stocks in OldAIMGuy 07/14/10 12:49:24 PM
#1136   OT when a company issues more shares Toofuzzy 07/14/10 12:01:13 PM
#1135   Another on ETF's and retirement asset allocation byculla 07/09/10 03:07:00 AM
#1134   Good article on asset allocation Toofuzzy 07/08/10 09:17:19 AM
#1133   Tom, ETF setups for retirement and investment accts. Here byculla 07/06/10 05:01:14 PM
#1131   Thanks Tom Toofuzzy 05/08/10 11:15:51 PM
#1130   Hi Toof, Re: Structure of retirement account......... OldAIMGuy 05/08/10 03:55:22 PM
#1129   Tom RE IRA Portfolio Toofuzzy 05/08/10 02:23:31 PM
#1127   Capitalization weighted or equal weighted? Toofuzzy 11/13/09 01:22:02 PM
#1126   Exchange Traded Funds Toofuzzy 11/13/09 12:27:51 AM
#1125   Hi Tom RE Wisdomtree Funds Toofuzzy 11/06/09 03:30:12 PM
#1124   I posted this on the Haiku board Toofuzzy 10/29/09 03:40:29 PM
#1123   Just published a 10-year back-test of Lichello's AIM dougburkeaz 10/28/09 11:56:09 AM
#1122   Hi Tom101 Toofuzzy 08/03/09 10:50:40 PM
#1121   Is anyone using the 3xETFs with the AIM system? tom101 08/02/09 05:11:21 PM
#1120   Hi Toof, Re: getting one's MoJo back......... OldAIMGuy 05/29/09 12:44:45 PM
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