Comments on: Breaking Up With ETFs Is Hard To Do http://www.etftrends.com/2008/09/breaking-up-with-etfs-is-hard-to-do.html Keeping a grip on exchange traded funds (ETFs) Sat, 21 Nov 2009 23:28:06 -0800 http://wordpress.org/?v=2.8.6 hourly 1 By: Tom Lydon http://www.etftrends.com/2008/09/breaking-up-with-etfs-is-hard-to-do.html/comment-page-1/#comment-1781 Tom Lydon Mon, 08 Sep 2008 17:30:59 +0000 http://www.etftrends.com/?p=4845#comment-1781 Great comment. In some cases, you're absolutely right. However, we've seen billions flow into hot-performing ETFs in the past year and know that investors didn't have potential losses on long-term strategies in mind. So, we offer an alternative defensive discipline, which can protect principal and provide emotional stability. However, after declining 40% from its recent high, buying FXI might be a great long-term strategy at this point. Great comment.

In some cases, you’re absolutely right. However, we’ve seen billions flow into hot-performing ETFs in the past year and know that investors didn’t have potential losses on long-term strategies in mind. So, we offer an alternative defensive discipline, which can protect principal and provide emotional stability.

However, after declining 40% from its recent high, buying FXI might be a great long-term strategy at this point.

]]> By: Anonymous http://www.etftrends.com/2008/09/breaking-up-with-etfs-is-hard-to-do.html/comment-page-1/#comment-1732 Anonymous Fri, 05 Sep 2008 20:24:09 +0000 http://www.etftrends.com/?p=4845#comment-1732 Isn't this type of strategy inappropriate for a long term investor? It may be appropriate for people who trade for the short and intermediate term, but what happened to the buy and hold strategy? If one understands the fundamentals of the strategy of an ETF (e.g. I think China will do well in the long term - why wouldn't I just want to buy and hold an ETF such as FXI - and just ride out the dips and peaks?) Is this just a more passive market timing strategy? Also, how does this strategy hold up in a quantitative way - i.e. past performance? Have there been any studies that test this strategy against other strategies (e.g. buy and hold, etc.), when including commission costs, taxes, etc.? Isn’t this type of strategy inappropriate for a long term investor? It may be appropriate for people who trade for the short and intermediate term, but what happened to the buy and hold strategy? If one understands the fundamentals of the strategy of an ETF (e.g. I think China will do well in the long term – why wouldn’t I just want to buy and hold an ETF such as FXI – and just ride out the dips and peaks?)

Is this just a more passive market timing strategy? Also, how does this strategy hold up in a quantitative way – i.e. past performance? Have there been any studies that test this strategy against other strategies (e.g. buy and hold, etc.), when including commission costs, taxes, etc.?

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