Beta Hog

Diversification: Not the Han Solo Blaster You Thought It Was

Some good 'educational' points, some perhaps not so strong ... the 'evidence' over a 2 week interval is a bit short to my mind ...

Did Specialty ETFs Provide a Cushion From the Fall?

Appreciate the summary but regard a "bump-in-the-road" that lasted little more than a week as too short for firm conclusions. A real bear market of many months, whenever it finally arrives, will be much more telling. Most of these instruments are relatively new and haven't yet been tested under the stress of a major, extended decline. As well, the bulk of the foregoing ETFs attempt to exploit the "security-selection" route to 'alpha' rather than "market-timing" alternative. Too bad the ETF manufacturers haven't given us much choice on the latter. With the advent of inverse ETFs, the "timing" route should now be a cinch - providing, of couse, they could find a reliable TAA methodology to run it. I've developed one but haven't been able to find a manufcturer willing to sponsor a product so far. Any suggestions?