Sunday, July 12, 2009

Suspicious Indices and ETF's


It is worthwhile to look at more than just a ticker and a chart when you are dealing with indices and ETF's. You might be surprised at how they are calculated.

For instance, I was stoked about shorting RTH, until I found out it was hugely Wal-Mart which would probably fare pretty well in tougher times.

Check out ETF Connect, it is a good information source. One stop shopping for all your ETF questions. Sorry you have to copy and paste

http://www.etfconnect.com/select/fundpages/etf_funds.asp?MFID=74525

The USD index is also an oddball, please click to enlarge this screen cap and check it out.

However one final thought....this oddball index is doing a good job of being inversely correlated with the $SPX, so maybe it does serve a good purpose.

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Insightful and Useful Comment!