CAPT GW

New ProShares ETFs Double Up Commodities Exposure

Looks like this is something to consider for the "explore" part of someone's "Core and Explore" asset allocation.

In this environment, I now lean toward a core 30% in an ETF -- "VTI", and another 20-30% in secure bond funds or ETFs. "SHY" is fairly stable and can be traded as an ETF. (Wish there were a stable NY or national short-term municipal bond ETF!) VFIIX or USGNX are decent GNMA funds with 4.55 to 5% yields, and they certainly work. They especially work today in IRAs! The rest should be probably kept in a guaranteed money market and/or a safer basket of muni bonds, until stability returns. (As some semblance of security returns to the markets, ETF's like these commodity based ones might work when the dollar starts to weaken and as emerging markets get up steam. In addition, my "explore" allocation could possibly include up to 5% in ultra short or long postions to capitalize on obvious trends that have proven themselves. But in 4Q/08, there is no direction. The Obama rally is a good short-term event, but the fiscal crisis still will go on well-beyond 1/20/09.