SPHB instead of VTI?

[ngcpa]

Has anyone considered using the new Powershares High Beta S&P ETF for the stock market compoment?  The ETF holds 100 S&P 500 stocks that are high beta.  More info can be found at:

http://www.invescopowershares.com/produ ... icker=SPHB

:>) Norm

[craigr]

What is high beta today could be low beta tomorrow. It's a backwards looking measure.

Also this fund is way too new that I'd want to put any money in it. Last thing you want as a (taxable) investor is to put a bunch of money in a fund only to have it liquidate in a few years when the new car smell wears off and leave you with a huge tax bill. I prefer broad based index funds with no gimmicks that are well proven in a variety of markets.

So no, I wouldn't use this fund for the core portfolio.

[melveyr]

Have you tried looking at small cap indices?

I am not hunting for beta, but it is a popular place to look. I think it makes sense why smaller companies should have greater systemic risk.

[MediumTex]

Have you tried looking at small cap indices?

I am not hunting for beta, but it is a popular place to look. I think it makes sense why smaller companies should have greater systemic risk.

This idea has been discussed a lot in earlier threads here and in the megathread at BH.

There is such a thing a too much volatility.