If you did not see the in depth 30 second segment on CNBC you may have missed this news.
The five ETFs are the Claymore Zacks Yield Hog (CVY), the Claymore Zacks Sector Rotation (XRO), Claymore Sabrient Insider (NFO), Claymore Sabrient Stealth and Claymore BRIQ ETF (EEB). As a side note they Claymore listed essentially the same BRIQ ETF in Toronto under ticker CBQ in the last couple of weeks.
I will be doing a write up on CVY for TheStreet.com on Tuesday (it will be available for free). These ETFs have been in the pipeline for a while and I have touched on these briefly in the past. The potential problem I see in utilizing some of these fund like Stealth, Insider and Sector Rotation is difficulty in managing the capsize, style and sector weighting. The back tested performance has been very good to be clear and while relying on back testing is not ideal, good results certainly are better than nothing. Of course if the results stunk there'd be no fund.
If you have interest in picking a strategy, similar to a stock screen, to include in a diversified portfolio you need to check the balance of your fund in the context of your portfolio a little more often than most folks, again if staying diversified is a priority.
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7 comments:
Cramer keeps chanting "finance and tech." Which ETFs do you favor in these sectors.
Several of these new Claymore
etfs sound interesting, but I can't seem to find information about their expense ratios. Perhaps they are too new.
www.claymore.com
it looks like 0.60%
Thanks for the post.At first glance, I like the stated portfolios in the CVY and EEB ETF's. I can see each of these performing a specific role in a diversified portfolio - maybe mine.
Roger, I think a better way to think about these ETF's is as being individual strategies. I would be more concerend about interstrategy correlation than total sector/market cap mix.
In that respect the various dynamic stratgy ETF's (Powershares,Zacks,Valueline) will overweight/underweight certain sectors/themes because that is what they are designed to do. You are betting that the black box knows how to pick stocks/themes.
If you want to stick to a set allocation then you should own passive ETFs.
For what it's worth, I'm a big believer in strategy diversification.
For what it's worth, I'm a big believer in strategy diversification.
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