A.I.M. Users Bulletin Board

[OldAIMGuy]

Hi Allen, Re: AIM and Sector ETFs............

AIMing sector ETFs is more trend following than "volatility capture". As
you've mentioned there's not a great deal of frequency or amplitude of
weekly or monthly price change for AIM to be busy. However, there's
price appreciation and in some cases there are dividends to be captured.

So, while not ideal AIM vehicles, sector ETFs aren't bad investments.
AIM acts to enhance sector ETF performance over time with its nominal
activity. It will still do the right thing at the right time.

Here's where my ETFs fall in a broad brush review:

Sector          Position in Lichello Band 
 Large Cap US        Nearer Sell 
 Healthcare          Nearer Sell 
 Biotech             Nearer Sell 
 Info Tech           Nearer Sell 
 Financials          Nearer Sell 
 Cons Discr          Nearer Middle 
 Cons Staples        Nearer Middle 
 Energy              Nearer Middle 
 Industrials         Nearer Middle 
 Utilities           Nearer Middle 
 Gold                Nearer Middle 
 Materials           Nearer Middle 
 Region 
 Japan               Nearer Sell 
 Pacific Rim         Nearer Sell 
 Emerging Mkts       Nearer Middle 
 Euro Zone           Nearer Middle 
 Latin America       Nearer Buy

(The Lichello band is the "Hold Zone" by a different name.)

Of thse ETF, only one is showing a 12 month loss (energy) and that one
only a small loss. Two are about break-even. All the rest are in
positive territory for the year-over year. In all there were 22 AIM
directed transactions in the last 12 months with a tilt toward buying
(accumulating). In the last six months there have been no buys, and
several sells (distribution). The last two months have been essentially
"hold" only.

Hope this helps!