Paul Frank

Paul Frank
Contributor since: 2010
Company: ETF Market Opportunity Fund "ETFOX"
I put the return figures from the Fund's most recent semi-annual in the interview. There are a lot of rules regarding what a 1940 Act manager can say. I am allowed to talk about YTD,1 year, 3 years, 5 years, and since inception. ETFOX's return as of 12.22.2011 close is:
YTD: 0.21%
1 year: 0.79%
3 years: 17.52% annualized
5 years: 3.88% annualized
Since Inception [4/30/2004]: 45.06% Total return and 4.98% annualized
Yahoo and some of the other data services sometimes have trouble adjusting for year-end distributions. ETFOX paid its year-end distribution 2 weeks ago and some services may not have adjusted yet. I usually find Morningstar's data to be accurate. Thanks for looking into the Fund.
Arnie: it isn't accurate.
Varan: don't think I'd have the 5 Stars from Morningstar with those numbers. You better check your data. http://bit.ly/uybIb7
Jason: The question I was asked was: "The U.S. housing market seems to be in the midst of another prolonged leg down. How are you playing this via ETFs? Is the commercial real estate market a better bet going forward? How much weight are you giving to REIT funds in client portfolios?" Seems like it got edited down. I was trying to say I won't touch it and I agree with you. Paul.
hat trick: I try to add alpha by adding non-correlating beta. The TBF is right about where I bought it, but it wasn't an attempt to pick a bottom in yields. Paul.
JL: not meaning to go "black swan" on you, but in a worst case meltdown scenario I don't want to take a double hit. Paul.
Ritr54: The Fund owns TBF and the biggest fault is the 0.95% expense ratio. Not a big fan of exchange traded notes [DLBS]. If we had a market meltdown DLBS could be doubly slammed, one by bonds soaring in value and the second by the credit risk of its issuer. Paul.
DK: There is always going to be a benchmark the Fund will lag. Morningstar has the Fund as Large Growth; Lipper has it as a Multi Cap Core. In reality the Fund can go anywhere, so some type of World Index may be best. In 2009 the Fund was predominantly in Large Growth but I can't change its benchmark each year. The regulators and Fund's attorney have said to use the S&P 500. Paul.
Mike: my expense ratio is 1.75% and I carry the expense ratios of the ETFs the Fund owns [0.34% last year] in my prospectus. The 1.75% pays Fidelity and Schwab their 0.40, the transfer agent, administrator, custodian, legal, and accountants. The Fund is still small and is in the middle for funds of equal size. When assets get over $100mm the expense ratio goes down to 1.5% and I'm really looking forward to lowering it. Paul.
mormcash25: sorry you didn't like the article. I answered the questions I was asked and I don't put my Fund holders "out on a limb" so my answers probably aren't either. You can see me on CNBC at this link: www.youtube.com/watch?... and I did wear one of my better suits. Paul.
Good article, thanks. Shorting Muni's is tough, market is totally fractured, but you can buy CDS's on some issues. Would love an "inverse" muni ETF.
Dave: could you please add an IDX [Indonesia] chart someday, would love to know your thoughts.
Gary: nice article, never thought of doing any A/D work on the inside of an ETF. One issue that could foul it is the unequal weights. I'm sure treating Exxon Mobil as an equal of Hess [Exxon Mobil is 22% of XLE while Hess is only 2.4%] could lead to trouble, but you've found a nice way of confirming broad movement within a sector ETF. Thanks.
Dave: I'm watching EWM and India as closely as you. Love all your work and all your comments. Thanks.
Paul Frank
ETF Market Opportunity Fund
ETFOX
Don, thanks for the posting. The holdings listed are a little stale, I've since gotten out of BioTech and HealthCare. I publish the Fund's holdings monthly on the web site: ETFMutualFund.com.
Paul M. Frank
ETF Market Opportunity Fund
ETFOX
paul.frank@etfmutualfu...