falcon2382 (31.94)

Time to get into SDY?

August 01, 2008 – Comments (0) | RELATED TICKERS: SDY , SPY , XLF

This is my first post. I have been meaning for quite some time to get a blog rolling, but I just couldn't find the time. Well, I was reading a Seeking Alpha article, The problem with Designer ETF's, that basically bashed SDY to hell. Several other people responded to the author in a way that I did not find to be very productive, thus I felt compelled to respond to the author's points myself, and consequently wrote a fairly detailed explanation as to why I think SDY is so compelling right now, but also attempted to counter much of his argument. All that said, my response is pasted below. I encourage you to provide your thoughts and feedback not only to what i wrote, but also to what he wrote as I think he did bring up some interesting points. In the end, I think SDY is a tremendous bargain right now and is trading at a .08% discount to NAV when it usually trades at a slight premium. Also note, his thesis wasn't directly tied to SDY but to all "designer" ETF's.   [more]