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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Slagle who wrote (12410)	12/13/2006 3:22:46 PM
From: energyplay	Read Replies (1) \| Respond to of 220126

First, let me say that I am not the expert on dividend stocks. These funds are good ideas, not perfect. They will be much more value weighted than a typical fund. The stock picks seem to be mostly avoiding many of the stocks which have high dividends because their is something wrong (real dog stocks). That's based on a quick look. I would have been very happy to have some of these fund options in my 401 (k) plans. These funds will not do as well as specific stock selction, but they will have a lower risk profile. If we look at what Crossy, Taikun, Ed Ajootian and Tommaso have been buying and trading, we could to much better. However, if you have job, travel a lot, or have high trading costs, sometimes you need something that takes less effort. For a US taxable account, the tax benefits of dividend income can be important. Even though these ETFs have strong companies and good dividend, I would not subsitute these ETFs for the bond allocation part of a portfolio. When world stock markets drop, these ETFs will drop, and high quality bonds won't. All the major stock markets in the world have become more and more correlated with each other. To find less correlation, we would need to look at exchanges in Egypt, Pakistan, Turkey and other very hard to buy places. The costs in the funds seem to run from 0.28% (good) to 0.58% for the more specific country, small cap and sector funds. For the fees, there should be some gains in there. I don't mind paying 0.58% for small cap Japan - looks of work involved, and usually some good gains. For a MID-CAP US based funds, I want a real low fee, however. Also, there is some spread between the NAV and the trade prices, and I would expect a bid/ask spread. Limit orders might be good. These funds may not be a good vehicle for capturing small gains (like 12%) in a sector. Specifically - DEW has some very good holdings, and should benefit a little from a weaker US Dollar, and also from European equitities being a little unpriced vs. US equities. Some of these European stocks are underpriced relative to their growth rates. That means 3 possible sources of some capital appreciation in additon to the dividend. DNH is heavily loaded towards basic materials and Australia, which is good for right now, but it tends to be a bit like a sector fund (energy and metals) and a country fund. Thanks for mentioning these funds.