A.I.M. Users Bulletin Board

[SFSecurity]

Hi Alton, Great idea! A sector ETF is dragged down by the low performers and, it seems to me, having so many stocks inside the ETF reduces volatility.

If I read you correctly you are selecting stocks within an ETF that are at the bottom of gain list expecting that they will go up rather than down, and you group them as they all have the same sector, or do they?

I don't have an example for the ETFs you mention but here is IYR top three and bottom three:

IYR REAL ESTATE INDEX RANKED BY PERFORMANCE 6/30/16

DIGITAL REALTY TRUST INC DLR 8.7% 1
VENTAS INC VTR 7.4% 2
REALTY INCOME CORP O 6.9% 3

JONES LANG LASALLE INC JLL -6.6% 64
CBL&ASSOCIATES PROPERTIES CBL -6.7% 65
Forestar Group Inc FOR -12.7% 66

Are the bottom 3 (if they meet other criteria) what you would use?

In any case, how do you weight them in your created ETF, by market value or by equal weight? Am I correct that you are treating the combination as a single AIM portfolio or do you run them individually?

BTW, I love your typo, "...run with the heard,...." The whole investment world seems to run on what people think they have heard where the profits will by. Following people like Cramer is just one example.

Best,

Allen