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Moderator: OldAIMGuy Assistants: Toofuzzy
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Last Post: 12/9/2014 2:58:48 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
#1053   Good Day, My name is Enrico I am enricojenko 06/26/08 10:25:16 AM
#1052   Tom, Do you know of an ETF or MSGI 03/21/08 09:56:13 AM
#1051   CHI Anybody have any thoughts on the below article Toofuzzy 03/11/08 01:31:37 AM
#1050   My retirement account's holdings are starting to make OldAIMGuy 02/08/08 12:37:36 PM
#1049   Hope it helps! I've been adding significant amounts OldAIMGuy 01/26/08 03:12:24 PM
#1048   Thanks for the reply Tom. MSGI 01/26/08 03:08:46 PM
#1047   Hi eM, Re: Stability and High Yield.............. OldAIMGuy 01/26/08 02:51:43 PM
#1046   Tom, I noticed that your CHY and JGG MSGI 01/26/08 11:44:31 AM
#1045   I've updated the web page on my retirement OldAIMGuy 01/24/08 01:09:01 PM
#1044   Hi Toof, Re: High Income components............... OldAIMGuy 12/26/07 08:57:10 PM
#1043   Writing Options Toofuzzy 12/26/07 12:17:33 PM
#1042   Hi Tom Toofuzzy 12/26/07 11:17:28 AM
#1041   Hi Toof, Re: Style vs Industry................... OldAIMGuy 11/09/07 02:52:00 PM
#1040   Hi Tom Toofuzzy 11/09/07 01:58:10 PM
#1039   Re: Retirement Account Diversification..................... OldAIMGuy 11/09/07 12:53:00 PM
#1038   Hi AH, Re: Non U.S. ETFs.......................... OldAIMGuy 09/24/07 07:47:05 AM
#1037   Hi AH, Re: Homebuilders ETF................... OldAIMGuy 09/24/07 07:42:02 AM
#1036   Were they more exhuberant, or does lower U.S. aim hier 09/23/07 11:50:52 AM
#1035   I think it may look even more washed aim hier 09/23/07 11:46:42 AM
#1034   A look at the nonUS ETFs certainly makes OldAIMGuy 09/19/07 12:42:44 PM
#1033   Hi TF, Re: Homebuilder start point............... OldAIMGuy 09/19/07 12:34:14 PM
#1032   ITB and KRE entry point Toofuzzy 09/07/07 11:32:56 AM
#1031   Interesting article on ETFs and Asset Allocation Toofuzzy 07/16/07 10:38:30 AM
#1030   Hi Jack, The email address is here, just OldAIMGuy 06/21/07 10:24:13 PM
#1029   Don't have your email. Seems to have changed. jackpark 06/21/07 04:31:04 PM
#1028   Hey Jack, It's been quite a while, good OldAIMGuy 06/19/07 08:26:38 PM
#1027   Hi Tom, jackpark 06/19/07 06:22:21 PM
#1026   Another sale in the Mexico ETF: OldAIMGuy 05/08/07 11:56:59 AM
#1025   Which is more valuable Bricks and Mortar or OldAIMGuy 05/07/07 04:03:59 PM
#1024   Another new 52 Week High generated by EWW OldAIMGuy 05/04/07 05:26:45 PM
#1023   EPP tripped a sale yesterday after almost a OldAIMGuy 04/11/07 12:04:22 PM
#1022   Non-US ETFs back near their 52 week highs. OldAIMGuy 04/05/07 12:11:22 PM
#1021   I've swapped my PIV shares for another PowerShares OldAIMGuy 03/14/07 02:05:39 PM
#1020   FXI has trimmed a bit of its excess OldAIMGuy 02/27/07 12:38:18 PM
#1019   Non-U.S. ETF model portfolio results as of this OldAIMGuy 02/15/07 12:11:33 PM
#1018   Hi Extel, Firebird400 02/11/07 03:41:24 PM
#1017   Tks Don. I noticed recently Profunds (I believe) extelecom 02/08/07 08:13:42 AM
#1016   tom, don, QuillandPenn 02/08/07 07:59:57 AM
#1015   Hi Don, Thanks for the article. It's not OldAIMGuy 02/07/07 04:17:38 PM
#1014   ETF "Pair" strategy...........interesting concept. DonCarlson 02/07/07 11:04:06 AM
#1013   Hi Q&P, Re: IBB.............. OldAIMGuy 01/23/07 09:17:21 AM
#1012   Yo! tom, QuillandPenn 01/23/07 08:44:26 AM
#1011   Hi Q&P, IBB's been good for me over OldAIMGuy 01/22/07 01:23:54 PM
#1010   re: IBB, the come back kid. QuillandPenn 01/17/07 07:26:44 AM
#1009   Hi AH, A Nag ETF........ OldAIMGuy 01/02/07 12:54:46 PM
#1008   Probably just a matter of time before a aim hier 01/02/07 12:47:35 PM
#1007   Thank you Q, OldAIMGuy 12/30/06 06:56:04 AM
#1006   Tom, kewl stuff to peruse at your leisure QuillandPenn 12/29/06 11:28:22 PM
#1005   re: Cockroach Theory QuillandPenn 12/29/06 09:33:22 AM
#1004   QuillandPenn; Thanks for your opinion, it looks like there mokew 12/24/06 05:25:12 PM
PostSubject