A.I.M. Users Bulletin Board

[OldAIMGuy]

Hi Jake, Re: BETA...................

A BETA below 1.00 just means it generally trades contrary to the market. A very low BETA could mean that it not only trades opposite the market but does so in a big way - sort of like a high BETA stock or fund has bigger price swings that something nearer 1.00.

Some of those low BETA ETFs had a better year last year than the higher BETA ETFs but not all. RYE (BETA 1.79) - Energy was the best over the last year with RYU, (BETA 0.65) - Utilities being second best. Energy certainly traded contrary to the rest of the market but has a long term high BETA. That was more of a Sector Rotation thing.

Hope this helps,
OAG Tom