Archive for the ‘Uncategorized’ Category
How to Profit Investing in Water
By Ken Faulkenberry
The past two years prove that passive equity index investing is risky to an investor’s portfolio. An investor needs to employ an active asset allocation strategy that is flexible enough to avoid overvalued assets and invest more aggressively when assets are undervalued. One of the benefits of an active strategy is the ability to look for investments with strategic advantages, and include them within a properly diversified portfolio.
Return on investment is driven by supply and demand. If demand outstrips supply; the return on that product or service will have to be higher than average to attract investors into investing and meeting that need. Therefore, everything being equal, investing where demand is high and growing will yield higher than average rates of return on investment. Industries or companies that meet these criteria have a long term strategic advantage.
The lack of pure water is one of the greatest challenges in the world today. While there is no shortage of water, there is a serious shortage of clean, potable water. In the developing nations, 80% of all diseases are a result of unsafe water. Contaminated water kills more people worldwide than any single disease, including AIDS or cancer.
World population growth is only a small part of the growing demand for water. As nations become more developed they consume more goods and services, particularly agricultural products. Two-thirds of all water consumed goes to irrigate crops. As nations like China and India increase their standard of living, water consumption can rise two or three times the population growth.
Water has some unique properties. Water is not a commodity, but a necessity. For example, unlike oil or most commodities, water cannot be replaced by another product. There is no substitute for water. No technological innovation can replace water. Demand is not affected by changing tastes, interest rates, recession, inflation, or deflation.
In order to meet the need for water in this century trillions of dollars of investment capital are going to be required. This means a higher than average rate of return will be required to attract investment capital to companies that focus on technology and services that purify, filter, transport, store, and bottle water.
Unfortunately, there are not a lot of good choices for individual investors to invest in water today. Water is too small a percentage of revenues and profits to make a difference in the large companies like General Electric (GE) that are investing in water. There are many smaller and more risky opportunities, but to be prudent, diversification would require investors to buy a portfolio of these stocks. The advantages of Exchange Traded Funds (ETFs) are extraordinary because they are a basket of stocks that trade like a single stock. ETF’s provide investors an inexpensive way to diversify small portions of a portfolio in targeted sectors.
ETF PowerShares Water Resources (PHO) enables an investor to own approximately 30 different stocks that focus on the provision of potable water. PHO gives an investor who wants to invest in water instant diversification and the ability to increase or decrease that position efficiently because it trades just like a stock.
Like all investment opportunities, investments in water should be a small part of a well diversified asset allocated portfolio. Both over-diversification and under-diversification are major reasons for poor investment portfolio performance. Much thought, planning and research should be put into how each investment fits into a portfolio.
Investors who want useful research, sound conservative asset allocation advice, and wise investment strategies should consider the online investment newsletter from ArborInvestmentPlanner.com. The Arbor Asset Allocation Model Portfolio (AAAMP), along with trade alerts, updates, reminders, and special reports gives the individual investor all the powerful tools needed to manage their own portfolio.
More information available at: www.ArborInvestmentPlanner.com
Houston Recording Artist Interviewed by ABC’s 20/20 Regarding the 2003 Quadruple Murders of Clear Lake Teenagers
Jennifer Grassman Recognized by 20/20 for her 2003 Crime Stoppers Benefit Concerts
Houston, TX – September 18, 2009 – At the request of the parents of Rachael Koloroutis, a victim of a quadruple homicide in a Clear Lake, Texas, suburban home on July 18, 2003, Houston-based recording artist Jennifer Grassman spoke with ABC’s 20/20 regarding the six year old murder case. In addition to Grassman’s high school friend, Rachael, 18, three others victims, Tiffany Rowell, 18, Adelbert Sanchez, 21, and Marcus Precella, 19, were also found bludgeoned and shot on that fateful afternoon.
“I remember my Mom calling me up at work,” said Grassman, now 24. “She said, ‘Honey, I’ve got some horrible news. Rachael’s dead. She’s been murdered.’ At first I couldn’t process the idea that she was talking about Rachael Koloroutis. I got numb all over. It was a feeling of profound shock, disbelief, and horror.”
Determined to bring comfort to the bereaved family and help the Houston Police Department apprehend the culprits, Grassman organized several memorial concerts to raise money for Rachael’s Crime Stoppers Reward Fund. With Grassman’s help, the Koloroutis family and Houston Crime Stoppers raised $100,000 for the reward fund, which at the time, was the largest reward in Crime Stoppers history.
After four torturous years of minimal leads and no answers, friends and family of the deceased were finally given some closure, when Christopher Snider and Christine Paolilla were charged with capital murder. Snider committed suicide before he was captured. Paolilla was apprehended and sentenced to life in prison on Monday, October 18, 2008 in the court room of Judge Mark Kent Ellis.
“I remember sitting in court not ten feet away from Christine Paolilla,” stated Grassman, “and wondering how someone who looked so small and miserable could have committed such a maliciously violent act. There can be no complete closure for anyone who knew Rachael, because nothing can fill the void that she left behind. Our only peace is in knowing that she is in Heaven, and God will avenge her death.”
The episode of 20/20 featuring the Koloroutis case and Grassman’s interview is set to air on September 25, 2009, at 10/9 CT on ABC. An online memorial for Rachael Koloroutis will be posted on the front page of www.JenniferGrassman.com, along with a download of the song which Grassman wrote for Rachael, entitled White Roses. 100% of proceeds will be donated to Crime Stoppers in memory of Koloroutis.
“I wanted to immortalize Rachael,” said Grassman. “She never got to attend college, get married, have kids, or do all the great things she dreamed of doing. I want everyone to know that Rachael is not just a statistic. Any parent would have been proud to have a girl like Rachael as a daughter, and she should still be with us today.”
About Jennifer Grassman
Jennifer Grassman is a vocalist, pianist, composer and recording artist. Grassman’s music effortlessly fuses diverse elements of classical, Celtic, gothic and rock styles into a beautiful, moving genre all her own. She resides in Houston, Texas with her husband and two cats. To learn more, please visit www.JenniferGrassman.com or www.rainnoverhouston.org.
About 20/20
ABC’s second longest running prime-time series, 20/20 is a newsmagazine that mixes investigative pieces with human-interest and celebrity features. Hosted by John Stossel and Elizabeth Vargas, 20/20 airs in Houston every Friday at 9:00 PM on KTRK, ABC Channel 13, after SuperNanny.
The SKCC 2nd Annual Christmas in July Gala Receives Strong Support from Area Representatives and Local Businesses
Commissioner Eversole encourages businesses during the 2009 SKCC Christmas in July Gala. (Credit: Ava Ray)
Commissioner Jerry Eversole Speaks to Banquet Guests; Local PR agency wins SKCC Toni Award for Business of the Year
July 26, 2009 – SPRING, TX – The Spring-Klein Chamber of Commerce (SKCC) celebrated their 2nd Annual Christmas in July Gala on Friday, July 24, 2009. Harris County Precinct 4 Commissioner Jerry Eversole spoke as the special guest during the banquet.
“The unique challenge for this chamber is that the area you represent cannot easily be mapped out,” said Commissioner Eversole at the event. He was referring to the fact that Spring and Klein are unincorporated and extra-territorial jurisdictions of Houston. “But the businesses of this area need to support this chamber in order for it to continue to grow.”
His comments were spoken with the Commissioner’s candid and outspoken sense of humor to an audience that included a table hosted by Senator Dan Patrick. Court Koenning, chief of staff for Senator Patrick, and his wife, Dawn, were also at the event.
Event auctioneer, Mark Moore TAL #15019, purchased and donated a Texas Flag donated by Representative Debbie Riddle to be flown over the state capital and a VIP Capitol Tour for the live auction in honor of the day of their choosing.
“We are so appreciative of all the support that we have received from our representatives and the community,” said Toni Richard, president and co-founder of the SKCC. “The membership continues to grow at a steady pace and our mission to connect the community to create a thriving economy in Spring is really making an impact.”
“We thank all of the businesses that supported us through donations to our auction,” added Elle Carnes, chair of the Christmas in July Committee. “We also give special thanks to the generous sponsors who made this event possible.” Sponsors of the event included Shorco Inc., Century 21 – Robert Harris, Houston WAHMS (Work-at-Home Moms) and the Tomball-Spring Times.
The event also featured the first annual SKCC Toni Awards ceremony. Candace Runaas, president of Runaas Resources, tearfully accepted the honor for her company as the 2009 Business of the Year. The award recognizes businesses that make outstanding service contributions to the chamber and its member businesses.
“I was chamber president of the Humble Chamber of Commerce for 18 years,” shared Eversole, “and I enjoyed ever minute of it. This chamber can be a very successful one as long as the area businesses and members are willing to support the work that they are doing.”
Commissioner Eversole is currently serving his fifth four-year term as commissioner of Precinct 4, the largest Harris County precinct, encompassing 587.1 square miles with over 904,000 residents. Spring Texas is located in Harris County Precinct 4.
ABOUT THE SPRING KLEIN CHAMBER OF COMMERCE: Founded in May 2008, the Spring Klein Chamber of Commerce (SKCC) is the business and community support organization dedicated to being the primary resource for area economic development, business expansion and overall quality of life in Spring-Klein. For more information, visit www.springkleinchamber.org or call 281-257-4431.
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Texas-based Investment Planner Launches Unique Investment Blog
ArborInvestmentPlanner.com launched a free Investment Blog with portfolio management articles, blogroll, and personal finance and political websites pertinent to investor’s financial health
Houston, TX – June 30, 2009 (PRWeb) – ArborInvestmentPlanner.com launched a new Investment Blog aimed at independent investors who want to manage their own portfolio. The new blog includes investment portfolio management articles, blogroll, investment and political web sites.
Owner, Ken Faulkenberry states “we have put together the best Conservative, Libertarian, and Christian based blogs and web sites at one location”. He also admitted “We hope while investors are exploring they note the outstanding long and short term performance of the Arbor Asset Allocation Model Portfolio (AAAMP).”
ArborInvestmentPlanner.com is a stock and ETF online portfolio management service which provides a real-time model portfolio, trade alerts, updates, and special reports to subscribers. The new blog is a free service and accessible to everyone. New Blog: www.ArborInvestmentPlanner.wordpress.com
Local Track Team Ready for Area 13 Amateur Athletic Union Junior Olympics District Qualifier
Texas Stallions Youth Track Club
The Texas Stallions Youth Track Club score fourteen top six finishes at final meet before district!
Spring, TX, June 8, 2009. – In the last meet before the Area 13 Amateur Athletic Union (AAU) Junior Olympics (JO) District Qualifier, the Texas Stallions demonstrated readiness by bringing home 3 gold, 2 bronze, 3 fourth, 5 fifth, and 1 sixth place finishes. A youth Track and Field Club based in Spring Texas, the Texas Stallions are dedicated to the development of youth track and field athletes in the North Houston area. Lead by head coach Paul Durisseau, fifteen Texas Stallions participated in the AAU sanctioned Flying Dragons Track Meet on Saturday June 6, 2009 at Klein Memorial Stadium in a variety of track and field events for youth 5 – 18 years old.
Ten boys and five girls took part in events that were held by age groups: Primary (5-8), Sub-Bantam (9), Bantam (10), Sub-Midget (11), Midget (12), Sub-Youth (13), Youth (14), Intermediate (15-16), and Young Men/Women (17-18). Awards were given for the top-six finishers in each age group. Competing against over 10 other teams, the stallions took home fourteen top-six finishes. The top-six finishers were:
Girls:
Youth:
- LaKayla LaFrance – 100m Hurdles, 3rd – 17.34
Sub-Youth:
- Brittany Collins – 800m Run, 5th – 2:47.36
Midget
- LaMika LaFrance – 400m Dash, 5th – 1:07.37; 800m Run, 5th – 2:52.74
Primary
- Lavoxkeia Carnes – 100m Dash, 1st – 15.78; 400m Dash, 1st – 1:16.06
Boys:
Intermediate:
- Lamont Grow – Long Jump, 3rd – 19’5”
Sub-Youth:
- Alexander Brooks – 1500m Run, 4th – 6:05; 800m Run, 6th – 2:48.34
Midget
- Freddie Moore – Shot Put, 4th – 36’2.5”; Discus, 4th – 57’3.75”
Bantam
- Christopher Ward – 1500m Run, 5th – 6:16; 800m Run, 5th – 3:02.15
Primary
- Harrison Moore – Long Jump, 1st – 12’3”
The Texas Stallions Stable consists of Adam White, Ahmad Cummings, Alexander Brooks, Anthony Grant, Audreanecia Hagan, Brittany Collins, Christopher Collins, Christopher Ward, Freddie Moore, Harrison Moore, Hunter Cork, Jarius Chevalier, Jonathan Carnes, Kaleb Bryant, Kaylan Harris, Kendrick Skinner, LaKayla LaFrance, LaMika LaFrance, Lamont Grow, Lavoxkeia Carnes, and Zhanna Brooks.
The Stallions can be seen next Saturday, June 12 -13, 2009 at the Area 13 AAU JO District Qualifier, held by the Sonics Youth Track Club at Klein Memorial Stadium, 16715 Stuebner Airline, Klein, TX 77379 at 8:00 am each day. Qualifying times in the district meet will allow athletes to advance to the Area 13 Regional Championships in July where they will have the opportunity to qualify for the Amateur Athletic Union (AAU) Junior Olympics to be held in Des Moines IA in early August. To learn more about the Texas Stallions youth track club please visit our website at http://www.eteamz.com/txstallionstrack/, call our registrar Erica Skinner at (832)-866-2026, or email txstallions@att.net.
About the Texas Stallions Youth Track Club
The Texas Stallions Youth Track Club is a non-profit 501(c)(3) organization that is sanctioned by the Amateur Athletic Union (AAU) Gulf Association and the USA Track and Field (USATF) Gulf Association youth track programs for boys and girls from ages 6 to 18 years old. Our track club is dedicated to the development of youth track and field athletes in the North Houston area. Our objectives are: to challenge our youth through track and field, and to strive for excellence in every life endeavor; to teach fundamental track and field principles that will equip youth athletes with the skills to compete on a national level; To develop the minds and bodies for future leadership athletic training and discipline; and to develop a spirit of competitiveness that will foster a desire to always strive for excellence. Our website is located at http://www.eteamz.com/txstallionstrack/.
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Photo Caption: Texas Stallions Youth Track Club.
Investment Planner Real-Time Model Portfolio Reaches All-Time High
May 30, 2009 – ArborInvestmentPlanner.com announced today its real-time model portfolio, the Arbor Asset Allocation Model Portfolio (AAAMP) is up +10.3% for the year to date, an all-time high. This is after a 2.0% loss in the portfolio for 2008 versus a loss of 37% in the S&P500. The AAAMP has a positive return of 7% for the entire bear market beginning in the fall of 2007 to the close of Friday.
The AAAMP is sent to ArborInvestmentPlanner.com subscribers to help investors achieve diversification thru proper asset allocation by following the model. Trade alerts, updates, and reminders then keep subscribers updated and flexible as economic and market conditions require.
For more information visit: www.ArborInvestmentPlanner.com.
Five Essential Themes For Every Investment Portfolio
ArborInvestmentPlanner.com
SPECIAL REPORT
By Ken Faulkenberry
How do you get a strategic advantage that can add the percentage point or two that really gives your investment portfolio extraordinary returns?
Look at what one or two extra percentage points return can mean to your portfolio. A $100,000 investment earning 8% for 30 years returns $1,093,573, at 9% returns $1,473,057, and at 10% returns $1,983,740. It’s amazing what that extra two percentage point return does over a lifetime!
Return on investment is driven by supply and demand. If you have demand that outstrips supply; the return on investing in that product or service will have to be higher than average to attract investors into investing and meeting that need. Therefore, everything being equal, if you can invest where demand is high and growing you can expect a higher than average rate of return on your investment.
Here are five themes with the potential of providing the extra return on investment that transforms your portfolio from average to extraordinary:
ENERGY – Whether we are talking about oil, natural gas, coal, nuclear energy, or new green energy, we will probably need it all. We already use all the energy we produce worldwide. The tremendous growth expected in the standard of living of the emerging markets, in addition to worldwide increase in population, will force us to find more ways to produce and deliver energy to an energy starved world.
INFRASTRUCTURE – No state or nation is able to thrive without the infrastructure to support growing economies and populations. Airports, railroads, highways, communications, etc. are all needed to move people, products, and information efficiently. Developed countries have old and neglected infrastructure needs. Emerging markets have unending needs for new infrastructure.
FOOD/NUTRITION- As third world nations develop they require more and higher quality food. This process is already under way. Add world population growth and you have ever increasing demand for good nutrition and quality food for decades to come.
DEFENSE/TERRORISM/WAR – We live in a dangerous world. Trends that include an increasing number of fanatics willing to kill innocent people will require technology and diligence to defeat. Add to the fact that as we have become more global and mobile we have needed more resources to keep the peace, not less.
HEALTH/ENVIRONMENT – This might be the most rewarding and riskiest investment of the five. Due to population growth in the developing markets, higher standards of living being demanded by emerging countries, and the aging of the developed nations (particularly the U.S. and Japan); the demand for health care and need for environmental services are expanding rapidly and possibly outstripping any other area. The growing risk is the trend toward government which socializes the industry and creates rationing instead of a free market that innovates and grows to meet expanding needs. Therefore, one must be extra careful when investing in this area.
Each of these five themes have the potential to provide extraordinary investment returns because the demand created by the global market place will require these needs be met. Choosing individual investments that provide a properly diversified asset allocated portfolio takes knowledge and many hours of research. Ken Faulkenberry, principal at ArborInvestmentPlanner.com, asserts, “We take advantage of global trends and provide the Arbor Asset Allocation Model Portfolio (AAAMP), Trade Alerts, and Updates to help independent investors make their own investment decisions.”
“People want to stay in control of their assets,” says Faulkenberry, “but lack the time, resources, or knowledge to research individual investments and place them in a properly diversified portfolio. Companies like Arbor Investment Planner provide these services, along with peace of mind.” More information is available at: www.ArborInvestmentPlanner.com.
Texas Based Independent Recording Artist Jennifer Grassman Flouts Traditional Music Industry Precedents
Houston Based Recording Artist Jennifer Grassman Puts an Innovative New Twist on Album Production and Music Marketing with the help of Spring Fitness Centers
May 7, 2009 – HOUSTON, TEXAS – Houston based recording artist Jennifer Grassman recently split from her record label of five years, Truth Love Music, and set out to produce and fund her third album as an independent artist in the purest sense of the term. With projected production expenses for the album approximating $10,000, Grassman needed an innovative way to raise funds and market her music.
Spring Fitness Owner Thomas Kennison and Recording Artist Jennifer Grassman
“I’ve always been an entrepreneur,” said Grassman, “so I did not find raising $10,000 to be particularly intimidating. Money is the oil that lubes the cogs of creative production. I view it as the means to an end, not as the end. Meaningful art is the ultimate end. Since the majority of my fans are diehard art and performing arts enthusiasts, I decided to offer them an opportunity that would appeal to their passion. In exchange for donations they can receive secret concert tickets, get their name listed in my album credits, and other such novel tidbits.”
Grassman’s various sponsorship levels range from $25 to over $1,000, and “Thank You Gifts” for said sponsorships range from a free CD to a privately held house concert and dinner, for you and your friends, right in your home. Although these opportunities have only been available for a little over a week, several contributions have already been made, including one by area gym, Spring Fitness. Spring Fitness will be receiving credit in Grassman’s upcoming album, Serpents’ Tales & Nightingales, as well as on her website, www.JenniferGrassman.com, where a list of sponsorship opportunities can be found.
“Spring Fitness is actually the gym that my husband Jason and I attend,” said Grassman. “I love their facilities because they have an exclusive women’s area and it’s not pretentious like a lot of the bigger chain gyms. Jason and I went in to work out recently and the owner, Tom (who is almost always there), informed us that he wanted to donate towards the album. That, as you can imagine, solidified my commitment to working out there. My abs have already improved!”
This new business model which incorporates fan and corporate sponsorships is quite deviant from the traditional music industry model, in which a record label would provide the capitol to fund an artist’s projects. Given that in this case no record label is in play, Grassman decided to do what she does best; be creative.
“My music is creative,” stated Grassman, “and that seems to fly pretty well. Why should my marketing or business practices be any different? If it’s ethical and inspired, I’m up for it. Besides, business should be fun, especially in regards to the arts.”
About Jennifer Grassman
Jennifer Grassman is a vocalist, pianist, composer and recording artist. Grassman’s music effortlessly fuses diverse elements of classical, Celtic, gothic and rock styles into a beautiful, moving genre all her own. She resides in northwest Houston, Texas with her husband and two cats. To learn more, please visit www.JenniferGrassman.com or www.rainnoverhouston.org.
About Spring Fitness
Founded in 1994, Spring Fitness Center provides customers with “family style fitness.” While most gym facilities charge extra for personal training, child care, aerobics and tanning, Spring Fitness is special in that it incorporates these services into one low monthly fee competitive even with non profit centers such as The YMCA. Spring Fitness also has sister clubs in Tomball and off FM 1484. To learn more please visit www.NewSpringFitness.com.
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Jennifer Grassman
www.JenniferGrassman.com
www.RAINNOverHouston.com
Press & Media Contact:
Candace Runaas
281.257.4431
info@runaasresources.com
www.runaasresources.com
- Spring Fitness Owner Thomas Kennison and Recording Artist Jennifer Grassman
Pretty Girls Wins Gold Remi at Worldfest Houston Film Festival
Pretty Girls Wins Gold Remi at Worldfest Houston Film Festival
Zenfilm and Jennifer Grassman’s music video collaboration continues to earn respect among artistic peers
Jennifer Grassman during shoot of the award winning Pretty Girls video
Houston, TX – April 28, 2009 – Jennifer Grassman Music and Zenfilm celebrate yet another award for their music video collaboration Pretty Girls. The Worldfest Houston Film Festival presented the artistic team, which includes TLM Productions, with the coveted Gold Remi. In February 2009, the video also received a Silver Addy from the American Advertising Federation.
“This recognition means so much to me as an artist,” says Grassman. “It is a true honor to have Worldfest and The American Advertising Federation recognize our work with such distinguished awards.”
Pretty Girls, Grassman’s first music video, unveiled worldwide in December 2008. The visually stimulating production is garnering significant US and international attention, including airplay on MTV-UK and festival screenings across the United States.
The track single hails from her debut album At the Back of the North Wind and is described as a “surreal, dark and beautiful homage to women through the centuries and the joys and dangers that their beauty has drawn into their lives” by Zenfilm director Ross Wells.
Filmed in and around a 150 year old rural farmhouse outside of Richmond, Texas, Pretty Girls captures dramatic and dangerous moments in the lives of attractive females throughout the ages. The narrative is intercut with dynamic performance footage of Jennifer Grassman filmed in Studio A of ‘The Abbey Road of the South’, historic SugarHill Studios, in Houston.
The award-winning video is gaining a rampant online viral presence on channels such as Vimeo and YouTube. To view Jennifer Grassman’s Pretty Girls music video, visit www.JenniferGrassman.com.
About Jennifer Grassman
Jennifer Grassman is a vocalist, pianist, composer and recording artist. Grassman’s music effortlessly fuses diverse elements of classical, Celtic, gothic and rock styles into a beautiful, moving genre all her own. She resides in northwest Houston, Texas with her husband and two cats. To learn more, please visit www.JenniferGrassman.com or www.rainnoverhouston.org.
About Zenfilm
Zenfilm is a film production company and postproduction boutique founded by the award winning team of Executive Producer Merideth Melville and Director W. Ross Wells. The company has produced award winning music videos that have received international airplay and festival recognition in recent years. Zenfilm worked together with Dan Workman and Andrew Amelang of TLM Productions to bring this project to the screen. For additional information, visit www.zenfilm.com or http://wrosswells.com.
CONTACT:
What are ETFs? Should they be in your Portfolio?
ArborInvestmentPlanner.com
April 2009
Special Report
What Are ETFs?
Should They Be In Your Portfolio?
ETF stands for Exchange Traded Fund. Used as an investment vehicle, they are a hybrid of mutual funds, stocks, and closed-end mutual funds. Like stocks or closed-end mutual funds, ETFs trade on a market exchange so they can be traded (intraday) anytime stocks trade, not just at the end of the day. It has multiple holdings or investments inside it like a mutual fund or closed-end fund. It has a certain number of shares outstanding on a given day that investors buy or sell to change their position, like a stock or closed-end fund. But unlike closed-end funds which can trade at a discount or premium to their NAV (Net Asset Value), ETFs typically trade close to their NAV because they can be exchanged in-kind with baskets of the underlying securities by authorized institutions.
The ability to trade intra-day may or may not be important in an individual investor, but it definitely is a nice feature. The ability to have multiple holdings or track a specific index is a major positive attribute since diversification is so important. The fact that ETFs have shares outstanding and don’t have to liquidate small amounts protects shareholders because fund managers are not forced to liquidate assets on demand that drive up commissions and fund expenses.
In addition to the above, ETFs have other important attributes. ETFs generally have lower expenses ratios than mutual funds due to the way they are structured. Like sector mutual funds ETFs can segment to very specific or targeted sectors of the economy. This allows investors to have a diversified position in a small slice of a sector you want to be invested in. For example, ArborInvestmentPlanner.com believes potable water is going to be a scarce resource this century. There are few pure water plays or opportunities in individual stocks, but you can buy ETFs that specialize in companies in the water industry. This allows you to take a small position that is diversified.
While there are many positive attributes to ETFs, there is one major drawback. Since most ETFs are not actively managed, but are programmed to follow a specific index, the index and therefore the EFT, may not own the very best stocks. Actively managed ETFs will generally have higher expense ratios than ETFs tied to an index. This is why it’s important to either do your own homework or have someone you trust such as ArborInvestmentPlanner.com doing your research for you.
Like any investment, ETFs require research and knowledge to be able to place them in a properly diversified asset allocated portfolio. ETFs play an important role in the Arbor Asset Allocation Model Portfolio (AAAMP) by providing an inexpensive way to diversify small positions in targeted sectors of the market (i.e. Water Resources, Precious Metals Mining, Agribusiness, Environmental Services, Biotechnology, etc). The Arbor Asset Allocation Model Portfolio (AAAMP) usually holds 25-40 individual positions of which typically about one-third are ETFs.
More information is available at www.ArborInvestmentPlanner.com.
Sincerely
Ken Faulkenberry
ArborInvestmentPlanner.com
