Replies to post #33603 on A.I.M. Users Bulletin Board (AIMUSERS)

[Adam]

Hi Jrx, The kind of ETFs I'm using are index ETFs such as major industry index ETFs or major style ETFs such as Vanguard or Schwab index ETFs (by capitalization or localization). I can't see these disappearing.

If you vow to avoid all ETFs and funds because of risk then you're really committed to avoiding the stock market altogether.

Adam

[Toofuzzy]

Hi jrx

>>>
I would be very careful with ETFs as well (look for a relatively long history ETF)
Keep in mind that even a mutual fund or a ETF may come on go (dissapear).This happened prominently in the tech boom, when the introduction of new Internet-focused funds.Many of the funds launched no longer exist today.
The same applies today, to ETFs,where many of them (for several reasons) wont exist in the near future. <<<

ETFs may "close" but that is different than going bankrupt. You can always role over an ETFs assets in to another similar fund.

In your stock example , as others have pointed out , you did not start with enough cash. If you look at the past two years and 2000 to 2003 in is not very hard for a stock or even a fund to drop more than 50%. If I was starting a new account now I would certainly start with 50% cash if I would start a new AIM account at all.

Toofuzzy