Exchange Traded Funds
I want to write a post to the AIM ETF board to make sense of the various providers and how they compare and overlap. I wanted to cover the series that cover the market without overlap of holdings and leave out the leveraged 2 and 3x funds etc. I may do bonds in the future. I would like to explain what indexes they are based on in a rational matter. I wanted to cover the funds that are broken down into the 9 or 10 industry sectors. This list is probably not complete. There are also many more funds that cover various sub-sectors.
Some of these funds have more volatility than you might want for a taxable fund. Check Yahoo finance (Profile) Look in the lower right corner of the page.
Toofuzzy
There are a few S+P funds
SPY, IVV, RSP (equal weight) and VV from Vanguard is almost a S+P 500 fund along with FEX from FIRST TRUST
There are a few fund companies that divide the S+P 500 in to 9 or 10 sectors
The sectors in general order are:
Consumer discretionary, Consumer staples, Energy, Financial, Health, Industrial, Materials, Technology, (Sometimes Telocom), and Utilities. Sometimes there are REIT funds which would have a bit overlap.
SPDR INDEX
xly, xlp, xle, xlf, xlv, xli, xlb, xlk, xlu in addition there are some other "X" series funds
xme, xrt, xes, xsd, xop, xhb (which must have some overlap with the above)
www.sectorspdr.com
Fees are .22%
Together, the nine Select Sector SPDRs represent the S&P 500 as a whole. They are capitalization weighted.
VANGUARD ETFs
vcr, vdc, vde, vfh, vht, vis, vaw, vgt, vox, vpu, and vnq (REIT)
www.vanguard.com
Fees are generally .2%
The fund employs an indexing approach to track the performance of the MSCI U.S. Investable Market index. (total US market) It is market capitalization weighted.
RYDEX Equal Weight
rcd, rhs, rye, ryf, ryh, rgi, rtm, ryt, ryu
www.rydex-sgi.com
Fees are .5%
The investment seeks to replicate, before fees and expenses, the performance of the S&P Equal Weight index.
FIRST TRUST (QUANT)
fxd, fxg, fxn, fxo, fxh, fxr, fxz, fxl, fxu
Fees are .7%
www.ftportfolios.com
The index is a modified equal-dollar weighted index selects stocks from the Russell 1000 index that may generate positive alpha relative to traditional passive style indices through the use of the AlphaDEX(TM) screening methodology.
POWERSHARES QUANT funds
pez, psl, pxi, pfi, pth, prn, pyz, ptf, pte, pui
in addition they have pkb, pxe, pic, pxj, pmr, pjb, ptj (which must have some overlap in holdings with the above)
www.invescopowershares.co
Fees are aprox. .65%
The Dynamic Intellidex indexes evaluate companies based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors. Securities shown to possess the greatest capital appreciation potential are selected for inclusion in the index.
In addition I-Shares has DOW based INDUSTRY FUNDS
iym, iyc, iyk, iye, iyf or iyg, iyh, iyj, iyw, iyz, idu, and IYR or ICF (REITS) in addition there are
ibb, ieo, iez, ihe, ihf, ihi, iai, iak, iat, ita, itb ( which must have some overlap in holdings with the above)
www.ishares.com
Fees are aprox. .48% for the main sectors
The investment seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Dow Jones U.S. Consumer Goods Index. (which is broader than the S+P 500) It is capitalization weighted
The foreign funds broken down in to the matching 9 sectors are:
SPDR S+P GLOBAL INDEX (ex-US)
ipd, ips, ipw, ipf, iry, ipn, irv, ipk, ist, ipu, and rwx (REIT)
www.spdrs.com
Fees are .5%
The investment seeks to replicate, net of expenses, the S&P/Citigroup BMI World ex-US Sector Indexes.
I-SHARES S+P GLOBAL (includes US companies)
rxi, kxi, ixc, ixg, ixj, exi, mxi, ixn, ixp, jxi
www.ishares.com
Fees are .48%
The investment seeks results that correspond to the price and yield performance, before fees and expenses, of the S&P Global Sector Indexes.
WISDOM TREE INTERNATIONAL (QUANT ex-US )
dpc, dpn, dka, drf, dbr, ddi, dbn, dbt, dgg, dbu, and drw (REIT)
www.wisdomtree.com
Fees are .58%
This fund series pays particularly high dividends because it is dividend weighted. That might be dangerous if an industry like banking has high dividends just before they go down the tubes.
The investment seeks to track the price and yield performance, before fees and expenses, of the WisdomTree International Sector indexes. The fund uses a representative sampling strategy. The index measures the performance of companies in developed markets outside of the U.S. that pay regular cash dividends on shares of common stock. Companies are weighted in the index based on regular cash dividends paid.
