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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Sampat Saraf who wrote (12549)	11/17/2003 5:36:06 PM
From: BWAC	Respond to of 95456

<the small-cap stocks which are not part of an ETF or an index may sell for cheaper valuations.> Nah, they have an index fund for that too. quotes.nasdaq.com ishares.com

To: Sampat Saraf who wrote (12549)	11/17/2003 5:44:45 PM
From: Kirk ©	Read Replies (1) \| Respond to of 95456

net-net, it is probably a wash if Putnam and other managed fund money goes to ETFs. Why? Because most managed large cap funds are closet index funds to start with. You pay a very high price to have them hold a bit more MSFT vs GE on Exxon than their S&P500 benchmark. I had the idea awhile ago that you tell people to index 80% of their investment money then buy sector funds or individual stocks (perhaps following my newsletter) with the remaining 20%. The cost savings from putting the 80% into index funds is huge and pays for the active management of the other 20%. Or so goes the theory. Kirk