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A.I.M. For Exchange Traded Funds (ETFs)

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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
#1104   Hi Cindy, Re: Interesting Posts................... OldAIMGuy 02/01/09 04:43:18 PM
#1103   Tom, I have spent hours reading all CindyH 02/01/09 11:11:10 AM
#1102   Hi CindyH, Re: 2x Funds - both bear OldAIMGuy 01/31/09 03:17:10 PM
#1101   Hi Cindy. ls7550 01/30/09 04:45:12 PM
#1100   Thank you very much, Tom and Clive. CindyH 01/30/09 01:12:36 PM
#1099   Hi Cindy. ls7550 01/29/09 08:57:36 PM
#1098   Re: Benefits of diversified investments vs benefits of OldAIMGuy 01/26/09 06:06:23 PM
#1097   I am new to AIM and have read CindyH 01/23/09 11:03:23 AM
#1096   Hi Lisa, Re: Corp paper and the future............... OldAIMGuy 12/27/08 10:59:47 AM
#1095   Hello Tom, LisaAu 12/26/08 06:55:17 PM
#1094   Tom, I did some additional testing of my jmp 12/04/08 08:42:38 AM
#1093   Hi J, Re: Inverse funds............... OldAIMGuy 12/04/08 07:55:09 AM
#1092   Blended account using inverse ETF's. jmp 12/03/08 09:47:49 PM
#1091   Hi jmp Toofuzzy 11/28/08 05:53:26 PM
#1090   Thanks for the reply. I just got the jmp 11/26/08 06:04:27 PM
#1089   >>>>I have recently discoverer AIM and have a Toofuzzy 11/26/08 05:19:37 PM
#1088   I have recently discoverer AIM and have a jmp 11/26/08 07:51:41 AM
#1087   Re: Calamos CEF Dividend Cuts............. OldAIMGuy 11/04/08 05:22:33 PM
#1086   Calamos reduces monthly dividend for closed-end funds (CHI, LisaAu 11/04/08 05:16:02 PM
#1084   Hi Lisa, It's been a beautiful Fall here OldAIMGuy 10/20/08 06:30:12 PM
#1083   Well, Tom, CHY was up nearly 13% today! LisaAu 10/17/08 06:04:14 PM
#1082   Thanks Bob, Those are a good start. OldAIMGuy 10/11/08 11:49:15 AM
#1081   Tom, Here are some I look at. BowlerBob 10/11/08 02:00:54 AM
#1080   I found Proshares has some bull and bear OldAIMGuy 10/07/08 11:24:36 AM
#1079   Hi ALL, Re: Leveraged "Bull" ETFs; 1.5X or 2.0X?............ OldAIMGuy 10/07/08 11:21:46 AM
#1078   Hi Tom Re Riskgrades Toofuzzy 09/30/08 02:57:26 PM
#1077   Hi Toof, Re: Riskgrades for my IRA.................. OldAIMGuy 09/30/08 02:24:16 PM
#1076   RE RISKGRADES Toofuzzy 09/26/08 12:53:08 PM
#1075   Hi Tom Toofuzzy 09/26/08 10:43:48 AM
#1074   Hi TF, Re: Owning both CHI and CHY.............. OldAIMGuy 09/26/08 10:14:02 AM
#1073   Hi Tom Toofuzzy 09/25/08 10:42:42 AM
#1072   Hi Toof, My retirement account is now fully OldAIMGuy 09/25/08 05:15:35 AM
#1071   Purchase today Toofuzzy 09/24/08 11:18:22 AM
#1070   Hi Tickettoride Toofuzzy 09/23/08 11:39:52 AM
#1069   Hi Ticket, Re: Swiss ETF............... OldAIMGuy 09/23/08 09:06:24 AM
#1068   thanks yes it is tickettoride 09/23/08 05:25:44 AM
#1067   Hi tickettoride Toofuzzy 09/22/08 09:11:37 PM
#1066   hello tickettoride 09/22/08 06:09:36 PM
#1065   Hi Tom Toofuzzy 09/22/08 05:59:24 PM
#1064   Hi Toof, Yes, I did add to my OldAIMGuy 09/22/08 05:12:50 PM
#1063   Hi Tom Toofuzzy 09/22/08 04:56:07 PM
#1062   Hi TF, Re: NRO.............. OldAIMGuy 07/01/08 11:55:02 AM
#1061   Hi Tom Re NRO Toofuzzy 07/01/08 11:41:48 AM
#1060   Hi Toof, Re: NRO............... OldAIMGuy 07/01/08 11:04:37 AM
#1059   Hi TF, Re: NRO NAV...................... OldAIMGuy 07/01/08 10:26:29 AM
#1058   Hi TF, Re: NRO................. OldAIMGuy 07/01/08 10:14:01 AM
#1057   Hi Tom Another thought Toofuzzy 07/01/08 09:33:52 AM
#1056   Hi Tom Re NRO Toofuzzy 07/01/08 08:16:03 AM
#1055   Neuberger Berman Real Estate Securities - NRO - OldAIMGuy 06/30/08 03:44:06 PM
#1054   Hi Enrico Toofuzzy 06/26/08 10:58:40 AM
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