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OldAIMGuy

03/06/13 12:43 PM

#36374 RE: Jers33 #36372

Hi J33, Re: SPHB and AIM.................

Schwab has some low expense ETFs from what I've heard. Don't know anything about SPHB, but did a quick look via StockCharts.com.



In general, we hope to see AIM doing its buying when the Wm%R level is below -80 and see AIM sales when it's above -20. So, at this point in time, AIM would probably just have finished a selling spree.

That said, it appears this 'high beta' ETF swings around enough to generate some buys and sells over time. I set up the ZigZag line here at 20 which would about equate to 10% Buy SAFE, 0% Sell SAFE and 5% of the position for buying and selling. So, using such settings, you would have seen an existing AIM account both buy and sell a number of times since 2011.

Other than that, it would be interesting to know what else Schwab uses for screening the S&P 500 stocks besides high BETA, if anything. Learn as much as you can about the ETF, so there won't be surprises along the way. MorningStar has some info on it here:
http://portfolios.morningstar.com/fund/summary?t=SPHB®ion=USA&culture=en-us

Retirement account investing is a bit different than taxable accounts. First, there's no tax benefit for 'selling at a loss' since there's no taxable gains taken either. So, we don't want to lose money in an IRA. That said, ETFs generally lower "single stock risk" and that's a good thing inside an IRA. ETFs don't reduce market risk or political risk or economic risk, ETC. However, just cutting down on single stock risk is a very large benefit.

While ETFs reduce single stock risk, that very same aspect also generally reduces volatility. Both amplitude and frequency of price change are usually dampened with an ETF. In this case, it appears that Schwab's screening process might be returning some of that amplitude and frequency to the design of the ETF. That might be a good thing for a marriage of the fund to AIM.

Best regards,
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Toofuzzy

03/06/13 11:30 PM

#36379 RE: Jers33 #36372

IVE, IWN, EFA, ICF, and for bonds, SHY now and TLT when rates peak

Toofuzzy