Archive for the ‘ETF and mutual fund ideas’ Category

DVY – interesting ETF

Thursday, June 17th, 2004

I found some interesting information to help allocate assests. DVY, an ETF I own consists largely of mid cap financial stocks, utilities, and telecoms. The article says it can be used to add a value play to an otherwise aggressive-growth oriented portfolio.

The top ten holdings:
ALTRIA GROUP – MO
BANK OF AMERICA – BAC
COMERICA INC – CMA
DTE ENERGY – DTE
EASTMAN CHEM – EMN
FPL GROUP INC – FPL
GENERAL MOTORS – GM
NICOR INC – GAS
PEOPLE BK CONN – PBCT
PNC FINL SVC – PNC

While I have some growth stocks, I lean more toward value stocks with nice dividends. This ETF gives me a nice basket of value stocks with nice dividends and comprises about 10% of my portfolio.

Financial stocks and XLF

Thursday, June 3rd, 2004

I have owned XLF (an ETF that tracks financials) for a few months now. I was considering selling it because financial stocks have been going down on interest rate fears. This article, however, says that it’s time to “start building a bullish posiion.” because fears about rates and litigation have led to too much selling.

I might sell anyway, regardless of whether it’s time to be bullish or bearish on financials. A look at the 6 month chart shows that XLF tracks the S & P 500 pretty closely. Why not just buy IVV or SPY (an ETF that tracks the S & P 500) and save a bit on the expenses. XLF has an excellent .27% expense ratio, but SPY has a .12% expense ratio while IVV is .09%. VTI is another possibility designed to track the entire US stock market for .15%.

Asian markets

Monday, February 16th, 2004

I’ve started looking for mutual funds and ETFs that follow the markets of China, India, and Thailand because I read an article (sorry I can’t link to it, but I read it in Kuala Lumpur and can’t find it online) about how these three countries are expected to perform quite well.

As always, remember that I’m just here to share my stock market ideas. I don’t claim to be an expert so you always have to do your own research. Don’t go buy Chinese stocks and claim that I told you to. I’m just saying that you might want to do some research on these three markets.

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Exposure to foreign stocks through ETFs

Monday, January 12th, 2004

In an article I recently read, http://www.usafairtrade.com/icplan.htm, Warren Buffet mentions that he’s investing in foreign currency due to the weakening US dollar. The general consensus seems to be that the dollar will be weakening for a while (maybe a year though possibly longer according to Buffet).

I live in Korea, so my Korean salary is becoming more valuable in terms of US dollars but my US stocks are becoming less valuable in terms of Korean won. I plan to keep my investments in the US and in dollars, but I would also like to make money. A declining dollar may mean declining US stock prices.

The question then becomes how to invest in foreign stocks. For me the answer is to invest in exchange traded funds or ETFs. The ticker symbol IOO tracks the S+P global 100. This includes big US companies but also big foreign companies: the top ten holdings are AMER INTL GROUP AIG, BP Plc, CITIGROUP C, EXXON MOBIL XOM, GENERAL ELEC CO GE, Hsbc Hldgs, INTEL CORP INTC, MICROSOFT CP MSFT, PFIZER INC PFE, WAL-MART STORES WMT.

Then there’s EFA. the summary:

The fund uses a representative sampling strategy in order to try to track the MSCI EAFE Index. The fund invests in stocks from Europe, Australia, and the Far East with concentrations similar to those of its index.

Finally, there’s EPP

The iShares MSCI Pacific ex-Japan Index Fund seeks to provide investment results that correspond generally to the price and yield performance of publicly traded securities in the Australia, Hong Kong, New Zealand, and Singapore markets, as measured by the MSCI Pacific Free ex-Japan Index.