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David Stafford
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Student of markets, enjoys following their course.
My book:
Around the World in Several Pieces
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  • Under The Bridge And Into One's Portfolio, Perhaps; Water Stocks

    With the market in general per se, being a little "rough" if one will these past few weeks, I figured that it might be a sort of ideal time to look back on the performance of some water index related stocks.




    The water stocks used here are none other than PIO, FIW, and CGW. Though one might presume that these stocks might have similar returns per se, it seems that there is a slight amount of alpha or systematic yield per se, based on approach to forming said portfolio of water stocks per se, that can pay dividends or at least yield in this case(at least in the medium-long term). In so far as these indices in general are concerned, it seems that they tend to be "industrials" heavy, and they tend to have an emphasis on water investments on either side of the Atlantic per se, in general.


    The Guggenheim ETF, CGW, is an interesting sort of fund. It's holding-weighting strategy per se, produces an interesting sort of holdings distribution pattern. It heaviest holdings per se, comprise around 5-7% of its portfolio, and this sort of trails off in a sort of wedge like manner into a sort of long tail of around 1% of portfolio holdings-positions. It may also be worthy of note that it has 52 different holdings in its portfolio based on the S&P Global Water Index. As one last note per se, this portfolio has a price to book of roughly 2.4.

    CGW website;


    The First Trust water index investment, FIW, is another interesting water investment if one will. It has 36 or 37 holdings(counting holdings in cash/cash-proxies), and is based on the ISE Water Index. The fund its self, seems to select its holdings based on market-capitalization in general, so perhaps that may be a somewhat interesting approach. This fund's price to book is around 2.25, perhaps placing it in between the other two funds per se.

    FIW website;


    Not to leave our third entry per se out in the cold, PIO is also an interesting investment. It has that similar price to book value of around ~2.15. It also has a sort of heavy top position weighting in some cases with some positions holding upward of 7% to 8% of the total portfolio's assets per se. It also seems more geared towards large and mid-cap growth stocks per se, and is quite US-centric, with about 40% of its holdings representing US-water-related-investments. In so far as # of holdings and base index are concerned, PIO seems to be based on the Nasdaq water index, as opposed to that from the S&P, and has a total # of holdings value of 36 or 37, depending on if one counts cash etc.

    PIO's Website;


    Just before we get to the tables and graphs, for the current dividend yield for these guys per se, we have the following;

    (from Google Finance, similar source for the data used in the other data-displays further below)

    CGW; 1.49

    FIW; .69

    PIO; 1.94


    According to data from Google finance concerning the price changes of these guys, we have the following for a more long term picture for these water-index-investments in general;

    Price change over time;

    (click to enlarge)Change in Price of the Investments in Question

    and a chart to see this from another angle if one will;

    (click to enlarge)


    Hence in the data, one may see that FIW in particular is sort of interesting, is has the lowest 1 day losses for today, and the highest 5 years gains overall, just barely edging out CGW for the top spot there. In the interim it seems as though CGW and PIO break even into positive values per se a little earlier, but it seems as though CGW continues that positive streak over time per se, a little more than the other stock that breaks even at roughly the same time per se. FIW seems to pull out the median price to book value per se, at the moment, with the highest long-term gains, but just barely over CGW. Whether this makes it better or not is perhaps a sort of qualitative sort of individual preference call perhaps, for surely it seems a touch more volatile per se, or dynamic if one will.


    Either way, hopefully if one had water stocks or water investments on one's mind this hopefully helped partially quench that thirst per se. In addition to these sort of investments, there are also sort of interesting water mutual funds if that is more to one's liking per se. One notable water-mutual fund perhaps being CFWAX for example, which is managed by ye olde Calvert Investments, down here in Maryland, which seems to have other interesting sort of sustainable-investment related products on offer aswell.

    Calvert Water Fund website;


    However one goes about adding a little water-stock action to one's portfolio is seems as though in the relatively short-term they look rather similar even if based on somewhat different underlying indices per se, so perhaps just as one may prefer Aquafina or whatnot to Poland Springs, perhaps water investments are somewhat similar, or perhaps some quality of them may be a better fit with one's specific portfolio per se, in regards to the beta/alpha melange of one's own individual investments. Either way hopefully this helped others perhaps get their feet wet aswell per se, in regards to these "liquid investments" if one will. Thanks again for reading, and I hope everybody's investments are doing great.

    Tags: FIW, CGW, PIO, Water, Utilities
    Aug 01 7:23 PM | Link | Comment!
  • An Interesting Index; The "Ocean Tomo 300"

    -----My apologies, not sure if OTR or OTP exist anymore, they may be somewhere in some sort of ETF purgatory, still existing in various online databases, and on the Ocean Tomo 300's website's text, but not on the Guggenheim(related to Claymore) products page for example. I believe the index its self is still alright, but OTR/OTP may perhaps be sort of ethereal investments per se. The growth oriented index being; OTPATG with the normal index being simply OTPAT. Thanks again for reading, my apologies if that caused any confusion.

    Guggenheim Etf's;


    The sort of casino-reminiscent nature of the sometimes semi-random quotes that are generated at the bottom of a Google finance quote lookup have today generated a really interesting gem, perhaps amongst the sea of investment opportunities that reside on the stock exchange per se.


    Perhaps the intrigue of the abbreviated name as it appeared in the little spreadsheet per se was just too much, however, today I was introduced by chance, to an index that providentially perhaps, seems to really sort of intertwine with some previous writings and musings per se on the new age of technology that perhaps lies ahead of us and amongst us now.

    (click to enlarge)



    Hence in searching for latest news on FIW, a water index, which I like for mostly international diversification reasons(price to book for FIW is looking decent for this sort of investment per se aswell, though most similarly themed indexes have relatively similarly ratios in said regard)relative to other indices, I came upon OTP and OTR. OTP is the sort of I guess rudimentary if one could call it that, version of the aforementioned index(in fund form), while OTR is the growth oriented version. The index its self has the Amex ticker of OTPAT, or good old overtime-Pat if one is feeling poetic. As a side note, though the two funds, OTR & OTP seem to be quite similar in so far as performance is concerned, it seems that OTR seems to pull ahead to the upside on occasion, converging later etc etc. In fact this might be an interesting sort of options trade per se if one will, if that is to one's taste per se.


    Either way, the index its self is quite interesting. According to the portion of the website of Ocean Tomo, that's dedicated to the index;

    The index is currently weighted as follows;

    Small Cap









    Cons. Non-Durable


    Basic Mats.



    The companies represented by the index's holdings per se, are according to the description of the index, chosen based on their quality whereby they represent a model whereby a large proportion of their organization's assets per se are represented by intangible assets, or something of that nature.


    The list of companies which comprise the index seems to be quite varied and interesting perhaps, and can be found on this link here;


    This is perhaps an interesting sort of index in that it may sort of represent, like HTGC et al., an opportunity to sort of get on the train of future "growing" companies per se, regardless of sort of more sector based themes. In a sense allowing one to invest in those companies which may potentially sort of lead their sector in regards to investments into intellectual/intangible capital if one will, without having to also invest in companies in that same sector who may not be so patent/"R&D" focused. Surely there are other ways of doing this aswell, but perhaps this represents a sort of convenient way of doing so en masse for a variety of sectors if one will.


    I don't mean to cite so much from the index formulator per se's website but here's an attractive representation of the performance of the index, which seems to be somewhat better if one will, than the S&P 500, historically speaking per se.

    *-from webpage whose adress ends in ot300.html cited above.

    *-there is another image depicting this which goes back a little further, on the webpage this is linked from, however this representation would presumably be using back-filled data, which may none-the less relate the potentially attractive nature of this index.


    Either way this was perhaps an interesting index, I myself was previously unaware of it, it seems interesting though, and seems to play nicely into the theme of investing in future tech-growth per se, in one way or another.


    Hopefully this has been perhaps interesting to others aswell, thanks again for reading, index investing or not, I hope everybody's investments are going great in this particularly sort of interesting market environment. Thanks again for reading.


    (click to enlarge)




    Tags: FIW
    Jul 28 3:41 PM | Link | Comment!
  • Triumph Of The Beta Hedges; NRK And CFD

    Amidst the general market routing of the day, with most sectors down there still exists a glimmer of hope per se for portfolios in general at least in the academic sense.


    The sort of not so alpha generative(generally speaking), and kind of fun beta-barricade of commodity etfs and muni etfs did ok today. Though they have relatively decent dividend yields even for being sort of beta hedges per se, often times muni etfs and commodity etfs may be tempting to sell per se, particularly if one has some sort of conviction in a particular sector or macro play per se, however perhaps its days like these where the stalwart defenders rise to the occasion where other positions fail per se.


    They may not be glorious in so far as their dividend yields are concerned, they may not be daring in so far as positive volatility is concerned, they may not really ever be alluringly trendy, but perhaps when the markets experience their own sort of charge of the light brigade like today, these sort of due diligence related sort of pro-active defensive beta hedges really shine.


    For, while the rest of the market in general is pretty much down, ye old NRK and CFD hold the line per se, up .46 and .26% for the day respectively. Perhaps when one sometimes may be tempted to go full sort of long-term positive growth/yield it may be hence helpful to recall days like today as I surely will, which though they don't happen very often, are surely sort of great treatise in portfolio-crafting if one will.


    Hence, I hope everybody had a little bit of these unsung champs in their roster or portfolio per se, these handy praetorians of portfolio planning if one will, and hopefully even if one is a little perturbed per se, by the sea of red that has potentially overtaken one's portfolio, with positions like these perhaps one can still have faith in the methods inherant to the field of portfolio planning per se. Thanks again for reading. May your hedges always shine.


    (click to enlarge)


    Tags: NRK, CFD
    Jul 17 4:27 PM | Link | Comment!
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