Mutual Fund of ETFs | ETF Trends

Hennion And Walsh Inc. introduced fund-of-ETFs (exchange traded funds) mutual funds based upon indexes created by Lipper Inc. The Smart-Growth Lipper Funds  include Optimal Conservative, Optimal Moderate, and Optimal Growth Indexes with each tracking New York-based Lippers proprietary Optimal Target-Risk Indexes. Aaron Siegel for InvestmentNews reports the indexes are chosen from all broad-based, sector and industry-specific domestic equity, international equity and fixed-income and commodity asset classes. These funds require a minimum investment of $1,000 and have an expense ratio of 1.5%.

Richard Kang of The Beta Brief has some specific opinions on this innovative concept.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.