AI
Monday, October 27, 2008 12:59:22 PM
I was looking at etf connect and saw a number of funds with large discounts to nav; I was wondering how people feel about aiming something like UTF ;a utility fund...
Well, in ordinary times it might be fine. But since these are anything but, I'd be wary of playing what might as well be termed a sector fund. If you're looking for something with reasonable discount to the NAV as well as low expenses, and something that hopefully will be here for the duration, you might want to take a look at ADX, "Adams Express Company." They started in October of 1929 and the fact that they're still here says something! Though their yield is modest, at 2.43%, they trade at a 16.02% discount to NAV with a very favorable expense rate of 0.46%!
and major holdings are rather large, hopefully reasonably stable names like:
Not a recommendation, of course, but one to consider. ETFconnect's sortation filter allows you to screen out leveraged funds. I would look at those not at too far an extreme either discount or overly generous dividend yield. Expense ratio should be moderate as well.
Happy hunting!
Best,
AIMster
P.S. Source Capital SOR might be another interesting contenda!
Well, in ordinary times it might be fine. But since these are anything but, I'd be wary of playing what might as well be termed a sector fund. If you're looking for something with reasonable discount to the NAV as well as low expenses, and something that hopefully will be here for the duration, you might want to take a look at ADX, "Adams Express Company." They started in October of 1929 and the fact that they're still here says something! Though their yield is modest, at 2.43%, they trade at a 16.02% discount to NAV with a very favorable expense rate of 0.46%!
and major holdings are rather large, hopefully reasonably stable names like:
As of 06/30/2008
Holding Dollar Value % of Total Portfolio
Petroleum & Resources Corp $95,321,000.00 8
Schlumberger Ltd. $40,823,000.00 3.4
General Electric Co. $37,046,000.00 3.1
Microsoft Corp. $32,462,000.00 2.7
ConocoPhillips $27,845,000.00 2.4
Oracle Corp. $23,100,000.00 2
PepsiCo, Inc. $22,892,000.00 1.9
Air Products & Chemicals $22,738,000.00 1.9
Unilever plc ADR $22,728,000.00 1.9
Procter & Gamble Co. $20,675,000.00 1.7
Not a recommendation, of course, but one to consider. ETFconnect's sortation filter allows you to screen out leveraged funds. I would look at those not at too far an extreme either discount or overly generous dividend yield. Expense ratio should be moderate as well.
Happy hunting!
Best,
AIMster
P.S. Source Capital SOR might be another interesting contenda!
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