I am retired and take educated guesses on all things financial.

September 22, 2006

September 22,2006: NEW ETF CVY EEB

Roger Nusbaum, through his first-rate blog, Random Roger's Big Picture, brought to my attention several new ETF's which appear to fill gaps in portfolio's looking for a bit of a punch in their ETF swing.

One I especially like is the Claymore/Zacks Dividend Hog ETF which uses Zacks proprietary methodology to determine corporations with a superior return profile. Encompassing at present 147 global securities and trading at 24.90 (very close to net asset value), this fund is conservative, as dividends will serve as a shock absorber for the expected jolts markets receive-usually when we least expect it.The interesting aspect of the selection is that the fund uses other funds, such as the Zweig Fund and the Morgan Stanley Em Dbt in concert with stocks such as Wells Fargo, Rohm and Hass and Banco Colombia to create diversity with a modest expense rate of .60%. Reviewing the complete roster of securities in this portfolio was an eye opener for me in a positive way. Not your vanilla ETF or your sector specific ETF. No. Much more.Ticker symbol:CVY

The other fund I like is the Claymore/BNY BRIC ETF. Trading at 24.40 (again, very close to net asset value),this fund is a proportion inspired by the BNY index and assets in four countries: Brazil, China, India and Russia. Percentage-wise as of today,48% of assets were in Brazil, 31% in China, 14% in India and 7% in Russia.
Although I think Brazil is a bit heavy and India a bit light, I won't quarrel with the fund manager for now. Their are 75 securities in the fund, including stalwarts such as China Mobile, CIA Vale Do Rio Doce,Icici Bank,Petro China, Vimpel and Infosys.No monopoly of sectors in this fund,which is very smart,indeed.The expense ration is .60% - cheap for this type of investment spectrum. The ticker symbol is EEB.

I am considering adding both ETF's to my portfolio.

For additional information,go to the Claymore website(it's slick),

There is a boycott of sorts forming against CITGO, the Venezuelan State Oil Company after the outrageous remarks and local pandering Hugo Chavez (El Presidente)treated us to the past few days during his stay in New York City. I am not a big fan of boycotts, but am passing this along for your information. I use BP when I can get it.

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