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Stock Absorbers for Wall Streets Dips and Bumps

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November 29, 2011 – Comments (0)

Barron's had an intersting piece over the weekend about not one, not two, but twelve new ETFs launched in 2011 focused on various flavors of low-volatility.  Seven of them hit the street since Sep.

That raised a bit of a hmmm.  I like the types of stocks these funds hold, but my contrarian streak sees a caution flag when something starts getting that popular.  But, valuations for the big, blue chips don't seem out of line yet.

Then I thought, why pay even the small fees charged by an ETF.  I can build a DIY portfolio to do the same thing and write a Fool article on the topic while I'm at it.

Questions and comments welcome as always.  Any low-beta favorites you'd like to add to the list?

Bonus sidebar for blog readers:  Barron's also had a piece on pension funds and hedge fund fees.  The article included this gem from Utah Retirement Systems' deputy chief investment officer, Larry Powell. 

That said, not all pension funds are pushing for better terms. "Unfortunately, many investors are performance chasers and rely almost exclusively on past performance, assuming it will persist in perpetuity," says Powell. "There are a lot of smart investors; however, there are a lot more dumb ones." 

I wonder which pension fund managers are too dumb to negotiate fees with hedge funds.

Fool on!  

Russ

 

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