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Tom, Do you know of an ETF or fund that invests solely in Euro Bonds?
CHI
Anybody have any thoughts on the below article other than it will create a buying opportunity? Any long term effect on the fund.
Toofuzzy
Calamos Releases Comment on Auction Rate Securities Market
Tuesday March 4, 5:00 pm ET
NAPERVILLE, Ill., March 4 /PRNewswire-FirstCall/ -- The failure of the closed-end fund auction process has permeated the entire closed-end fund market as liquidity providers have stepped away. Initially, failed auctions were limited to lower rated securities, but as liquidity disappeared, closed-end funds began to be impacted. Should the auctions continue to fail, common shareholders may eventually be impacted through lower distribution rates.
"The recent turmoil in the U.S. credit markets has spilled over into the auction-rate securities market and in turn, into the closed-end fund market. It's important to remember, however, that this is a liquidity issue, not a credit issue," said John P. Calamos, Sr., the chairman, chief executive officer and co-chief investment officer of Calamos Investments.
Each of the five funds that Calamos has outstanding has experienced failed auctions. Pursuant to the standard governing documentation on the preferred securities, a failed auction triggers a "maximum rate" as described in each prospectus. The fund shareholders will continue to receive dividends during this time. The maximum rate is a calculation, and an example of a rate for each of our funds is included in the following table:
Fund Ticker Maximum Rate Maximum Rate (as of
Calculation February 29, 2008)
Calamos
Convertible
Opportunities and AA Financial CP 4.473 %
Income Fund CHI multiplied by 150%
Calamos
Convertible and AA Financial CP 4.473 %
High Income Fund CHY multiplied by 150%
Calamos Strategic 7- Day LIBOR 4.706 %
Total Return Fund CSQ multiplied by 150%
Calamos Global 7- Day LIBOR 4.712 %*
Total Return Fund CGO multiplied by 150%
Calamos Global
Dynamic Income 7- Day LIBOR 4.706 %
Fund CHW multiplied by 150%
(*) Fund only auctions on Tuesdays, auction occurred on February 26,
2008.
"The failed auctions have created liquidity challenges for many closed-end funds, including the Calamos closed-end funds. While it is impossible to predict when the heightened uncertainty surrounding the auction rate securities market will abate, we remain confident in the fundamental positioning of the Calamos closed-end portfolios. As in all market environments, we continue to manage the funds according to a time-tested discipline guided by long-term perspective and proprietary research," said Mr. Calamos.
My retirement account's holdings are starting to make some progress even in this stinky market.
First up is the most recent one to trade - a world govt. bond fund:
Next is a precious metals commodity fund:
Last is the main "growth" item for the portfolio, the "timely stocks in timely industries" fund from PowerShares:
The international stock funds haven't done as well nor have the U.S. small and mid cap value funds. All but the CHY and PHY shares are new to the account as of November, so will take some time to get some history built.
Best regards, Tom
Hope it helps! I've been adding significant amounts of these high yielders since August.
Best regards, Tom
Thanks for the reply Tom.
Hi eM, Re: Stability and High Yield..............
It's a mixed bag at best. If one's 100% invested in the high yield funds near the top, then it becomes a very painful experience when the NAV and share price start downward. However, if one can continue to average down in share price, NAV and average up in yield, then it's not so earth shattering. Assuming the dividends stay steady, the lower the price, the higher the effective yield.
In my case, in my taxable account I pull the yield for living expenses. In my IRA its there to generate cash since I've not been pulling a salary for 22 years and haven't been able to contribute to an IRA. So, since the funds won't be sold unless there's a yield crisis, I don't mind being able to average down.
The JGG is government oriented in income and subject to yields world wide on sovereign debt; CHY is corporate debt and therefore subject to the winds of the economy. NRI is based in real estate and REITS so has both the FED and the economy as its influences. Still for the three, the overall yield is good.
I think the yields on these can only drift a certain distance from prevailing govt bonds of shorter duration. After that people, even when somewhat fearful of capital loss become attracted by the higher yield. The spread is pretty large right now and the generaly stock market nor the real estate market don't appeal to the average investor right now. So, support should start to build for the high yield funds.
All three funds are currently selling at discounts to their NAV. As stability returns, we should see the Price/Share start to switch back to even or slightly above the NAV.
Best regards, Tom
Tom, I noticed that your CHY and JGG your biggest holdings both seemed to have rolled over in about May of last year. I have found the same thing with several that I have looked at. I think that the market will be terrible for stocks for quite some time and I am at 100% cash since June of last year except for a few quick trades. I am tempted to go for the high yields, but does it really make sense to have a fund that pays 10% and the NAV drops 20%? I'm thinking that there must be some funds that invest in foreign fixed income where most are paying way more than in the US where maybe the NAV has stayed stable. Have you spotted anything like that?
I've updated the web page on my retirement account to show the various components since I reallocated the assets in November of 2007. While it has turned out not to be the ultimate in timing moves, it looks like it's going to work out okay, given time.
http://www.aim-users.com/etfunds.htm
I've added one graphic to show the overall allocations:
Best regards, Tom
Hi Toof, Re: High Income components...............
I had for years only owned govt bond funds. They did what I wanted - paid the bills - but had very little in any other potential.
I decided to diversify into corporate bonds and then real estate trusts as far back as 1998-1999. In a very glacial manner I started this process. Instead of selling off the bond fund I owned, I just added the other components as they became reasonable and I had cash. In late 1999 I'd added significantly to the real estate side but hadn't found a proper vehicle for the corporate side. I was still buying individual bonds of companies at that time.
As the early part of this decade started off as a rough patch for regular common stocks, the price of bond funds was bid up from their cyclical lows of 1999 and so I had very little chance to add to my positions. As time went on these investments continued to do well way past the time when I thought they'd cycle again.
As companies started to come out of the early recession of this decade, I switched from govt bonds to corporates to ride their tide of good fortune. That continued to this year.
I now have a mix of all three: corporate bond funds, govt bond funds and real estate funds (mostly REITs involved). While not quite 1/3 each, I'm working my way in that direction for the long run.
Best regards, Tom
Writing Options
I previously bought some shares of CREE @ $24.50 and at the same time wrote
June $22.50 PUTS (giving someone the right to sell me more @ $22.50) for $5.00 / sh
I had wanted to write CALL options but was greedy and the stock went down making that unlikely at the price I wanted but I had the GTC order in.
CREE shot up more than 8% today and I got my price
June $25.00 CALLS (giving someone the right to buy my shares @ $25.00) for $3.50 / sh
That is a 15% premium for six months for just the CALL
$8.50 for both together or a 34% return in six months for both as long as the stock isn't PUT to me. If it is Called I lose the stock but that is OK.
If the stock is PUT to me I will effectively be buying the shares @ $14 / sh which is below the 52 week low.
More typically CALL and PUT options near the money pay about 10% premium.
The danger with using them as part of an AIM strategy is that you will get wipsawed.
Toofuzzy
Hi Tom
A short while ago you mentioned that you diversified your bond funds to include corporate, government, and a few other bond sectors.
I was wondering what you sectors you split it in to and what funds for each sector.
So far I own CHI
I have also looked at CHY, EAD, MSD, and most interesting to me at the moment HYB
Toofuzzy
Hi Toof, Re: Style vs Industry...................
I don't favor Style over Industry, but I can only divide the pie so many ways and wanted to get nonUS exposure along with Value components and the only way to do so was to give up on my IYE, IYG, IYW and IBB and use the proceeds to buy into those other areas.
Some time in the future I'll probably have a big enough pie to divide it further and rejoin the ranks of Industry ETFs.
Best regards, Tom
Hi Tom
I remember discussing with you when i set up my account whether to go with STYLE or INDUSTRY divesification. At the time you steered me towards industry for greater volitility
So if you haven't addressed it in your link my question is why do you now feel style is better.
While I have come around to thinking style is better for smaller accounts / asset levels because you need less individual (so larger) funds, recently I took a look at a series of three I-shares funds and found and was dismayed that the same top 10 stocks in roughly the same percentage were in all three funds! One was the growth, one the value, and one the underlying total index.
Toofuzzy
Re: Retirement Account Diversification.....................
After 5 years working with my original plan with ETFs in my retirement account I've done a significant restructuring.
http://www.aim-users.com/etfunds.htm
This will give the complete story.
Since the account's size only allowed a certain level of diversification back in 2002, I went as far as I could. Now, with growth of the portfolio of about 60% overall and an increase in the level of reserve funds available it was now time to do more work.
While the overall account remains committed about 60% to equities and 40% to income, I've divided the equity side into more pieces. Instead of business sector funds this time I've chosen "style" funds for this work. Larger and smaller cap value and growth, U.S. and International are all now represented.
In the future we may further subdivide some of these areas as there's more value to be spread around. But for now, this is about as diversified as I can make it and still have viable AIM accounts.
Best regards, Tom
Hi AH, Re: Non U.S. ETFs..........................
I feel this is more a currency value performance than anything to do with the core investments' performance from business.
That's part of the beauty of these ETFs. They offer some pretty good currency hedging. In this case, as we sell shares of the non U.S. ETF and shift the value to the weaker U.S. currency, we're both selling "high" and buying "low." I'm certain that there will be another era where that US currency will be put back to work buying back shares of depressed non US ETFs.
Best regards, Tom
Hi AH, Re: Homebuilders ETF...................
About 3 weeks ago 11 of the 41 "Worst Performers" for the last 13 weeks were related to home building, furnishing, etc. Historically when we get that type of concentration in the Worst list it's a pretty healthy signal that the sector is "over sold." Just for fun I took a look at that ETF in "Point and Figure" view and it seems to concur nicely.
Now, that doesn't mean it can't remain "over sold" for longer, or that it might become even more over sold. However, AIM's pretty good at handling the last few gasps of these big moves. My PIC List is an example of that sort of Out Of Favor buying. As you suggest, the home building sector won't necessarily disappear, but it could be pretty tough for a while. Sector P/E doesn't look bad for now, but they're looking back at history not at the next quarter's probable lousy earnings.
Sector Book value, on the other hand, is such that this sector is now selling at 1x BV. That's one of the lowest Price/Book ratios in the market today.
I made my move last week. I replaced my Financials sector with this one. Financials is also out of favor, but probably doesn't have the recovery potential either. The ETF for Home builders represents a rather small universe of companies. Only about 30, I believe. The financials sector fund I was using was far more broadly diversified. I'm tracking both in separate accounts, so it will make an interesting foot race.
Best regards, Tom
Were they more exhuberant, or does lower U.S. interest rates depress the value of the dollar? A decline in the value of the dollar versus other currencies, makes the value of all non-U.S. assets more valuable, including stocks.
I think it may look even more washed out in coming months. Some builders will survive and even thrive as demand returns. Some wil probably disappear, either in bankruptcy or liquidation. For me, I would let the market tell me when conditions have improved. For AIMers, this ETF is probably better than individual stocks, unless you have a good feel for the future. Those that have landholdings, in growth areas of the U.S. are the best bets. Some areas are going to languish for a long time. If AIMing, I'd allow for a very generous cash reserve, you might need it.
A look at the nonUS ETFs certainly makes me smile. Not that the US market isn't happy about the FED move, but the folks outside the US seem "exuberant."
Anyway, I updated my web page devoted to such things:
http://www.aim-users.com/exusetf.htm
Here's the summary:
Best regards, Tom
Hi TF, Re: Homebuilder start point...............
I took a look at ITB on a Point and Figure chart and it looks pretty well washed out.
http://stockcharts.com/def/servlet/SC.pnf?c=ITB,P&listNum=
Maybe this would be a nice time to get an AIM account started.
Best regards, Tom
ITB and KRE entry point
I am thinking eventually home builder stocks have to stop bleeding and that will probably happen before the actual business improves.
Wondering how to pick an entry point for ITB the homebuilder index.
In a similar vein regional banks look interesting and KRE was recommended by Cramer.
Once the rate cuts start happening financial stocks should improve.
Should I wait for a rate cut or some technical signal to get in?
Then of course course I can take the advise of the commercial and,,,,,,,,
"Just do It ! " and let AIM worry about it.
Toofuzzy
Interesting article on ETFs and Asset Allocation
http://biz.yahoo.com/seekingalpha/070625/39239_id.html?.v=1
Toofuzzy
Hi Jack, The email address is here, just click on my name and it's there.
Looking forward to hearing from you.
Best regards, Tom
Don't have your email. Seems to have changed. Been a while. Mine is what I use here at gmail. I've been looking at some new ideas around AIM but want to has them out in the background before going public.
Cheers, Jack
Hey Jack, It's been quite a while, good to hear from you again. Do you have my email address?
Best regards, Tom
Hi Tom,
Oddly enough, iHub doesn't remember me. Can't send private messages. Would like to talk about ETFs and more using my name and gmail if possible.
Cheers
Jack
Another sale in the Mexico ETF:
The substantial cash position now gives us the luxury of letting this one grow without any further sales for about the next 10% of share price growth.
Best regards, Tom
Which is more valuable Bricks and Mortar or Intellectual Property? Interesting new ETF will represent the IP end of things:
http://www.claymore.com/etf/public/fund/Overview.aspx?ID=4467b372-9ef3-4d5f-a4b8-b32d09994414
Best regards, Tom
--------------------------------------------------------------
Ocean Tomo Catches the Wave in Valuing Intellectual Property
By Alan Sipress
Washington Post Staff Writer
Sunday, May 6, 2007; Page F03
Some of the manufacturing jobs that built American industrial might have left for foreign shores. Services, too, are taking wing. American capital now crosses the border with the ease of a mouse click.
What remain at the core of today's U.S. economy are innovative ideas -- intellectual capital.
But even as economists and corporate executives acknowledge this new reality, they've found it difficult to accurately measure the worth of ideas to companies and the economy.
That's where Keith Cardoza came in. An asset manager at Ocean Tomo, a Chicago financial services firm specializing in intellectual property, Cardoza concluded the marketplace was failing to keep pace with the economy's seismic shift over the last generation. His research showed that knowledge had displaced traditional assets as the lifeblood of the U.S. economy.
Cardoza set out last year to create a stock index that, in his view, reflects the role invention plays in fueling economic growth. The result was the Ocean Tomo 300 patent index, which uses a novel technique for valuing patents held by companies to assemble what he says is a roster of many of the country's most innovative enterprises.
By contrast, leading stock indexes such as the Standard & Poor's 500-stock index and Dow Jones industrial average try to capture activity in the broader economy by listing a cross-section of large companies. The Ocean Tomo 300 has only been live for seven months, too short a time to judge its long-term prospects; for now, it is outperforming the S&P 500 by slightly less than half a percent.
Cardoza's index is not an investment, but after it was established, a separate exchange-traded fund based on the index and called the Claymore/Ocean Tomo Patent ETF debuted on the American Stock Exchange. That fund, issued by Claymore Securities, now has $16.2 million in assets and closed Friday at $27.17.
"I realized that we are in a time in our economy when we have outsourced manufacturing to China and outsourced services to India. What we have left in this country is knowledge," Cardoza said.
Some analysts are intrigued by the approach for pricing patents, which give companies a valuable, limited monopoly on new inventions, but have questions about whether patents should serve as the basis of a stock index. Skeptics say patent value may prove too narrow a measure of corporate prospects.
"It's not clear that intellectual property equates to superior performance over the long term," said Jeff Tjornehoj, a senior research analyst at Lipper. He noted that many of the most successful stocks of the last decade, including Berkshire Hathaway and Countrywide Financial, are missing from the Ocean Tomo index.
Cardoza said his patent index is as well suited to the current era as the Dow was to the industrial age, taking into account factors that the Dow and other indexes don't.
Cardoza said his research showed that tangible assets, like plants, equipment and inventory, represented four-fifths of the market value of U.S. companies 30 years ago. The other fifth came from intangible assets like brand name, reputation and other factors. Now, he said, the ratio has flipped, and intangibles, which he valued by subtracting tangible assets from a company's total market value, make up four-fifths of the pie, with the largest slice made up of patents, copyrighted material and other forms of intellectual property.
Ocean Tomo is not the only company that's tried to measure the value of patents. The Patent Board, a Chicago research firm, publishes a scorecard ranking companies based on the number and quality of their patents across 17 different industries.
The notion that patents are tied to growth is not entirely new. A study published last year by the Federal Reserve Bank of Cleveland found that the single best predictor of how a state's income will grow is the number of patents in the state per capita. Education ranked second.
Ocean Tomo's valuation system for rating patents was developed by California patent lawyer Jonathan Barney, who now works for the firm. Barney's key insight was that companies, which are required to pay the U.S. Patent Office every four years to maintain their patents, would only do so if the patented technology was proving to be valuable. Barney identified 53 factors in a patent document that indicated whether a patent was likely to be renewed -- that is, whether it was valuable.
For its index, Ocean Tomo evaluated the patents issued by the patent office according to these factors and then assigned each one a value relative to the others. Finally, using this rating system, Ocean Tomo selected 300 publicly traded companies that own what were found to be the most valuable patents relative to the company's book value.
"Now, knowledge is transformed into intangible forces of power," Cardoza said.
Another new 52 Week High generated by EWW today at $58.42.
Every little bit helps!
Best regards, Tom
EPP tripped a sale yesterday after almost a year. 51 weeks ago we sold enough to push the Cash Reserve above the 33% threshold that we maintain as our maximum level. So, in December of '06 and again in February of this year we passed on the AIM advice to sell and instead increased Portfolio Control by half the AIM directed amount.
This sale came with the reserve level at 32.7%, just under our threshold. Post sale the cash level is up to 40%, so it will be a while before we see another sale.
Best regards, Tom
Non-US ETFs back near their 52 week highs. This bodes well for those who diversified overseas and for those AIMers who were able to add to positions in early March.
Best regards, Tom
I've swapped my PIV shares for another PowerShares product, PYH. I have done this in my retirement account where there's no taxation to think about. I'll wait on the taxable accounts until after we've reached the 12 months of ownership and cap gain will be lower.
PYH is another Value Line based product. It follows the top stocks in "Timeliness" rank that are also in the highest "Timeliness" ranked industries. Here's their right-up on it:
http://www.powershares.com/products.aspx?ticker=PYH
Best regards, Tom
FXI has trimmed a bit of its excess with rapid Liposuction this AM! Heavy volume, too.
AIM's showing a first buy back of shares starting about a dollar lower than the price as of this update. The healthy dose of cash waiting for reuse here has moderated the value drop in this model portfolio today.
A proper level of purchasing directed by AIM should help the portfolio's progress in the future.
Best regards, Tom
Non-U.S. ETF model portfolio results as of this week:
Not a lot of buying opportunities represented in the last two years! Sometimes it's nice to be reducing inventory when everyone else wants to buy, however.
Will foreign investments stall if the U.S. heads into recession? Is the dollar going to strengthen or weaken against foreign currencies? With this portfolio being managed with AIM, it hardly matters. There's already captured profits and plenty of cash available if history plays out one way, there's plenty more inventory should it play out another.
Details at:
http://www.aim-users.com/exusetf.htm
Best regards, Tom
Hi Extel,
Just a thought on the 200% funds. So I'd be selling one as I were buying the other. Problem? Well in any long extracted bull/bear market you could see one or the other dipping below $5. Tons of people on margin out there! A dip below $5 would cause forced covering and liquidations. Also, it would prompt a reverse split by the fund to stop it from happening anyway. How are they going to manage all that dumping at one time? Just my 2 cents, but a $100 inverse 200% fund from 1991-2000 would have ended up at about 2 cents anyway without some type of intervention. Ken
Tks Don. I noticed recently Profunds (I believe) has released even more of their ultra short funds. I guess the question is, is their a good AIM technique to use paired funds?
tom, don,
SKF is a baby and not understanding the concept of articles in pairing. Then again, if it has to with Contrarian plays, man this stuff is piece of cake to handle. We would have to hire more staff just to handle and master this project on a daily basis. The accounting and shiping/receiving would be busy as well. Oh what to do!
When I saw the werd "Pair strategy" via Proshares, I thought you guys were talking about Contrarian trading with http://www.proshares.com/
At the beginning, there was only 8 perhaps 10 stocks or 4/5 pairs to play in a Win - Win position to be in, day in and day out. Now, I see they added more pairs to play with. Real kewl. We just luv it when a plan comes together.
Been Swing Trading the pairs since they were born back in July.
Enjoy the day and stay healthy, wealthy and wise.
Best regards,
Quillnpenn
Hi Don, Thanks for the article. It's not as though we haven't tossed this one around a bit in the past, but I'm not sure anyone's managed to get it working right as of yet!
Best regards, Tom
ETF "Pair" strategy...........interesting concept.
http://www.thestreet.com/funds/etf/10336443.html
Hi Q&P, Re: IBB..............
Here's what the "Point and Figure" looks like on IBB....
I was able to accumulate in last year's low trough but there's not been enough juice to get me back to inventory reduction yet.
P&F's next big objective is around $88 and I'm waiting for $86+.
Best regards, Tom
Yo! tom,
No sooner than when exciting news comes out, IBB is sinking a little. Had a nice run for the first two weeks of the year. Sold on the morning of the 18th and am waiting for a head fake. If none occurs, will then Swing right back in when the price label flashes. Just luv it when a plan comes together.
http://stockcharts.com/h-sc/ui?s=ibb&p=D&yr=0&mn=4&dy=0&id=p42098688828
http://investors.com/editorial/IBDArticles.asp?artsec=28&issue=20070122
http://stockcharts.com/h-sc/ui?s=dgg&p=D&yr=0&mn=4&dy=0&id=p42098688828 china mobile is in the pool where they and India are signing up 5 to 6 million customers a month. The telcoms in china will be hot because of the 2008 olympics.
FYI, cramer said last night to be a little exposed to international stocks.
Have fun and see ya around the campus.
Best regards.
Quillnpenn.
Hi Q&P, IBB's been good for me over time. It dipped last summer enough for me to add to the position. It's risen enough since to keep me smiling.
Best regards, Tom
re: IBB, the come back kid.
http://investors.com/editorial/IBDArticles.asp?artsec=28&issue=20070116
More kewl latest and greatest stuff on page 10. DSI looks promising.
http://www.stocktradersalmanac.com/sta/pdf.jsp?id=1007&file=sta_newsletter_1007.pdf
Quillnpenn
Hi AH, A Nag ETF........
Excellent Idea!
Quick, call PowerShares!
TV
Probably just a matter of time before a pink sheets ETF is formed. Judging by the number of boards here at I-Hub focused on pink sheet issues, this could be a popular ETF. I'd love to see a performance index. At least I'm not aware of one, and I guess I have a bias that most such issues are worthless, so a pink sheet index would have negative performance. But that's an unstantiated feeling, I'd like to see some data. My general impression is that folks who buy pink sheet stocks are like the bettors at racetracks that play every 50-1 nag.
Thank you Q,
It's good to have you hanging around again. Thanks for joining us here late in '06 and I'm looking forward to 2007 and watching your Swing at the ETFs!
Best regards, Tom
Tom, kewl stuff to peruse at your leisure
http://biz.yahoo.com/seekingalpha/061220/22712_id.html?.v=1
http://biz.yahoo.com/seekingalpha/061227/22976_id.html?.v=2
http://seekingalpha.com/by/type/sector/etf/specialty-etfs
I hope you can understand the above mess and let's enjoy the journey in the year of 2007 and beyond.
Best regards,
Quillnpenn
re: Cockroach Theory
Tom, et., al.,
Classes are in session every day at the IBD site as well as in the the IBD paper at http://investors.com/etf/ then click on Full Story.
Enjoy the readings and let's have a very prosperous New Year.
Best regards,
Quillnpenn - Sequoia Equity Warehouse
QuillandPenn;
Thanks for your opinion, it looks like there was a dividend on the 20th and the sell-off was on the 19th., just a blip.
Re: EWA
yep ! EWA is comin back. There was a buy signal Friday, December, 22, 2006. A confirmation will occur when the CCI (20) says is north of the -100 line and climbing.
Hope this can help.
Best regards,
Quillnpenn - Swing Trader - Sequoia Equity Warehouse
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
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