Wednesday, June 13, 2018 9:59:22 AM
Welcome back K, Re: ETFs for AIM..............
I've been using the equal weight sector ETFs for the U.S. They're available from (now) Invesco. They used to be Guggenheim but were recently absorbed by Invesco just recently.
These don't have significantly greater volatility than cap weighted ETFs but have, as a group, been good and in some cases out-performing similar sector ETFs. Further, I can trade them at Schwab with no commission. I believe this may also be true of TD Ameritrade but haven't checked.
As far as individual stocks go, it's hard to make recommendations when the goals aren't known. I've been working from Value Line's "Selection and Opinion" section (available each week at most public libraries). In there you'll find four lists of 20 stocks each. The first group are their selections for conservative dividend payers. Second group contains stocks with above average dividend yield and good 3-5 year growth potential. Portfolio 3 is stocks with good 3-5 year growth potential. The final group consists of stocks with good 12 month growth potential. Here's an example from earlier this year:
The turnover in the first three portfolios is very low, so they give AIM the most opportunity to work its best efforts. Portfolio 4 is interesting, but the turnover there is more momentum based and more frequent.
In my own studies looking at Compound Annual Growth Rates (CAGR) I've found that mature cyclical stocks with decent dividends offer AIM opportunity to out-perform Buy/Hold. Looking at stocks over a 3-5 year time horizon increases the chance of AIM working a buy cycle. That is where AIM will start to catch up with Buy/Hold. Each buy cycle advances AIM's approach on Buy/Hold performance. Reasonable dividends allow us to collect "rent" while awaiting AIM's trades to improve total performance.
I've found the portfolios listed in Value Line mentioned above to be good hunting grounds for long term holdings for AIM. I've been concentrating on Portf II and III as sources of inspiration.
I've been using the equal weight sector ETFs for the U.S. They're available from (now) Invesco. They used to be Guggenheim but were recently absorbed by Invesco just recently.
These don't have significantly greater volatility than cap weighted ETFs but have, as a group, been good and in some cases out-performing similar sector ETFs. Further, I can trade them at Schwab with no commission. I believe this may also be true of TD Ameritrade but haven't checked.
As far as individual stocks go, it's hard to make recommendations when the goals aren't known. I've been working from Value Line's "Selection and Opinion" section (available each week at most public libraries). In there you'll find four lists of 20 stocks each. The first group are their selections for conservative dividend payers. Second group contains stocks with above average dividend yield and good 3-5 year growth potential. Portfolio 3 is stocks with good 3-5 year growth potential. The final group consists of stocks with good 12 month growth potential. Here's an example from earlier this year:
The turnover in the first three portfolios is very low, so they give AIM the most opportunity to work its best efforts. Portfolio 4 is interesting, but the turnover there is more momentum based and more frequent.
In my own studies looking at Compound Annual Growth Rates (CAGR) I've found that mature cyclical stocks with decent dividends offer AIM opportunity to out-perform Buy/Hold. Looking at stocks over a 3-5 year time horizon increases the chance of AIM working a buy cycle. That is where AIM will start to catch up with Buy/Hold. Each buy cycle advances AIM's approach on Buy/Hold performance. Reasonable dividends allow us to collect "rent" while awaiting AIM's trades to improve total performance.
I've found the portfolios listed in Value Line mentioned above to be good hunting grounds for long term holdings for AIM. I've been concentrating on Portf II and III as sources of inspiration.
Best regards,
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