Wednesday, December 26, 2007

Portfolio Rebalancing, Diversification, and ETFs

In addition to dreaming about the great investment opportunities of 2008, the end of the year is a time when many investors think about rebalancing their portfolios, enhancing diversification, and lowering risk. It is also a good time to cut loose bad ideas and bad investments, while at the same time opening one’s mind to the possibility of new types of investments.

I can’t say where the best opportunities for 2008 lie, but I can tell you where to find them. Without a doubt, many the best investments for 2008 will found among the ETF universe. This should not come as a surprise, as the ETF universe has, by far, the broadest array of investment vehicles. So while some individual stocks may top next year’s list in terms of total return, the careful selection of a few ETFs in new asset classes will provide a better opportunity to enhance returns and lower overall portfolio risk at the same time.

While there are a number of places to research and screen ETFs, I am also a fan of those handy one page ETF ‘cheat sheets’ put out by Bespoke Investment Group: the US ETF Family Tree; and the Global ETF Family Tree, each of which are superbly organized. For my purposes, however, I can do one better with a four page PDF from ETF Guide: ETF Reference Guide 2007 Q4. Updated quarterly, this document gives me four important pieces of information that are not available from the Bespoke cheat sheets:

  1. Indication of which ETFs are optionable
  2. Average daily volume
  3. Expense ratio
  4. Expense ratio median for each category

Armed with this information, now is as good a time as any to start thinking about how to take advantage of the changing mix of investment opportunities – and the ETFs that can expand the scope of your investment reach.

6 comments:

Credit Card Toplist said...

Etfs are like you said the best investment out there superior to their brothers mutual funds and they have good they also alow yoou save more through the capital gain tax.So I can guess you are Ric Edelman fan just like me well anyways here is my blog http://www.livelymoney.blogspot.com/ come and visit their anytime and leave a comment or two

Anonymous said...

Thanks so much for pointing the ETF list pdf. Very very handy.

Packers and movers in mumbai said...

Are you looking for Packers Movers in Mumbai. Then you have just reached right website of Packers and Movers Services in Mumbai. Our service as Packers and Movers in Mumbai is rated as Top Packers and Movers in Mumbai. When shifting of households and private vehicle comes, its often to critical to choose reliable Packers and Movers in Mumbai. As smooth and safe delivery of your goods is our prime objective.
Please Visit Our Website : https://indianpackersmovers.in/
Visit here:Packers and Movers in Mumbai
Packers and Movers in Dadar

Packers and Movers in Hyderabad said...

There are many packers and movers in Hyderabad who are looking for ways to make easy money from innocent families and individuals like you who are planning to relocate. Such packers and movers Hyd may either provide extremely bad service and end up damaging your goods permanently, or disappear with your entire household items instead of delivering them to the destination. Hence, the most crucial step before you hire any movers packers in Hyderabad is to verify their authenticity and check if they capable of providing good quality services.
Visit Here:
Packers and Movers in Hyderabad
Packers and Movers in Jubilee Hills

Chair Manufacturers in Mumbai said...

Our company has well equipped machines and modern tools that ensure quality and fast production with the help of which we are able to manufacture more than 5,000 office chairs per year. And thus, we are able to meet the ever- growing demand of chairs. Among the many places where our products are supplied among those two biggest supplies are done in Mumbai, Pune in India.
Please Visit :
Chair Manufacturers in Mumbai
Chair Supplier in Mumbai

Anonymous said...

nice

DISCLAIMER: "VIX®" is a trademark of Chicago Board Options Exchange, Incorporated. Chicago Board Options Exchange, Incorporated is not affiliated with this website or this website's owner's or operators. CBOE assumes no responsibility for the accuracy or completeness or any other aspect of any content posted on this website by its operator or any third party. All content on this site is provided for informational and entertainment purposes only and is not intended as advice to buy or sell any securities. Stocks are difficult to trade; options are even harder. When it comes to VIX derivatives, don't fall into the trap of thinking that just because you can ride a horse, you can ride an alligator. Please do your own homework and accept full responsibility for any investment decisions you make. No content on this site can be used for commercial purposes without the prior written permission of the author. Copyright © 2007-2023 Bill Luby. All rights reserved.
 
Web Analytics