SureTrader Advertisement Advertisement
Home > Boards > Free Zone > A.I.M. > A.I.M. For Exchange Traded Funds (ETFs)

Hi Clive, Re: High Yielders...................

Public Reply | Private Reply | Keep | Last ReadPost New MsgReplies (1) | Next 10 | Previous | Next
OldAIMGuy Member Profile
Member Level 
Followed By 90
Posts 12,006
Boards Moderated 5
Alias Born 01/29/02
160x600 placeholder
Stocks Inch Higher As Data Keep December Rate Hike On Table
Hewlett-Packard shares tumble after weak quarterly sales U.S. stocks inched higher Wednesday as a pre-Thanksgiving round of U.S. economic...
Top Equities Stories Of The Day
Correction to Barron's Friday Blog Item on Pfizer-Allergan
With Merger Looming, Pfizer Weighs Plan To Split In Two
Airbus Gains Regulatory Approval for New A320neo Plane
Prescription Skin Drugs Explode in Costs, Study Shows
Turing to Discount Anti-Parasitic Drug as Much as 50%
Intel Taps Rival For Chip Talent
Cisco to Buy Collaboration Company Acano for $700 Million -- Update
Microsoft Lumia 950 Review: Can a Smartphone Be Your PC?
OldAIMGuy Member Level  Tuesday, 02/03/09 09:33:43 AM
Re: ls7550 post# 1111
Post # of 1175 
Hi Clive, Re: High Yielders...................

Well, these new ETFs are a long way from being "individual company stocks." These ETFs are formulated with an emphasis on dividends no matter where their location.

For instance, I switched from IJJ (Barra Mid Cap Value Index) with a yield around 5% to DON (Mid Cap Dividend Fund) with a yield of around 7%.

Industry Diversification As of 09/30/2008
          DON                          IJJ 


Both are diversified and therefore possibly less risky than selecting individual company stocks for their specific yield. There's been more than enough price movement in essentially all of these holdings for future return added from volatility capture. Most are, as the graphs show, well below their near term "sell" thresholds. That's a symptom of getting this new strategy started just as the markets started to unwind in late 2007. I never got as much of the one bond fund sold to properly fund the rest of the account and the cash reserve.

Going foreward, if AIM continues to generate "buy" signals, I'll use the dividends to accumulate more shares (not much more than "dollar cost averaging") in those segments that are furthest from their Portfolio Control values. Eventually all will be more reasonably balanced with regard to the original design targets of UBHS.

So, while not the same funds, there's a lot of "value" decision making that is included in selecting for "dividends" and there's a lot of dividends when selecting for value.

Also, this account is a retirement account and as such can't be tapped for a while yet (the tragedy of being too young!).

My current income from my work still pales compared to my investing. One could consider my vocation an avocation at this point. Business is good, however.

Best regards, Tom

Port Washington, WI 53074
Public Reply | Private Reply | Keep | Last ReadPost New MsgReplies (1) | Next 10 | Previous | Next
Follow Board Follow Board Keyboard Shortcuts Report TOS Violation
Current Price
Detailed Quote - Discussion Board
Intraday Chart
+/- to Watchlist