First, talking about the new equalweight ETF (EQL):
We are in Newport, Oregon. The video (sorry for the poor audio, by the way) was shot at Cannon Beach.
Reader JCarr just asked it if made more sense to own the underlying stocks instead of the EQL ETF to capture the strategy because of the expense.
I can't imagine that after paying commission on 500 stocks (do you really mean stocks?) it would be cheaper. Further if he meant buy the nine ETFs it depends on how many shares you buy, plus you are looking at a new commission for every ETF when you rebalance.
One thing I did not get to in the video is that I would rather make decisions on each sector - this would be obvious to anyone who has read this blog for a while. One investment advisor was quoted in IndexUniverse's coverage of this fund talking about the benefits of not being overweight certain sectors. Yes, there clearly are benefits to not being overweight certain sectors, but what if something horrible happens in utilities and/or materials? You'd be hideously overweight those two. I would submit there would be much more benefit to taking these reins yourself as opposed to always targeting the same 11% in each sector no matter what is happening.
I can't imagine that after paying commission on 500 stocks (do you really mean stocks?) it would be cheaper. Further if he meant buy the nine ETFs it depends on how many shares you buy, plus you are looking at a new commission for every ETF when you rebalance.
One thing I did not get to in the video is that I would rather make decisions on each sector - this would be obvious to anyone who has read this blog for a while. One investment advisor was quoted in IndexUniverse's coverage of this fund talking about the benefits of not being overweight certain sectors. Yes, there clearly are benefits to not being overweight certain sectors, but what if something horrible happens in utilities and/or materials? You'd be hideously overweight those two. I would submit there would be much more benefit to taking these reins yourself as opposed to always targeting the same 11% in each sector no matter what is happening.
