Have been playing XIT(info tech), XGD(gold), XEG(energy), XIN(international), XMD(midcap), and XSP(S&P) for almost a month. Also the TD fund TAG(growth). The market makers do a pretty good job of following the Nav per unit of both funds. That in plain English means the actual value of the basket of stocks doesn't get too far out of whack of the market makers bids and asks. So liquidity isn't much of a problem because the market maker is always willing to buy 10000 or more shares slightly below the market value of the basket, and sell you some slightly above the market value. Suggest you set up a table as I have plotting the closing prices and the Navs each day which can be found here,..
http://www.iunits.com/english/iunitsfunds/fundvalues.cfm
http://www.tdassetmanagement.com/content/products/Etf/funds/p_OurFunds.asp#FundValues
You can also get the stocks in the baskets on those sites, and portfolio them on SI and get a good idea of how the Nav is changing minute by minute throughout the day. I'm just starting to do that now.
XIT did well last week tracking the rise of Nortel and Celestica, and when one stock drops for some reason, the diversification saves you from losing a lot of money.
Looks like a good safe turtle way to make money on days you want to go long.
The two bonds funds(xgv(5 yr bond),xgx (ten yr bond)) react well on bad stock market days, but don't think you'd make much after commish unless conditions get severe for several days,...probably better off in cash for short term duck and cover. |
