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SPHB instead of VTI?
Posted: Fri Aug 05, 2011 4:08 pm
by 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
Re: SPHB instead of VTI?
Posted: Fri Aug 05, 2011 6:01 pm
by 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.
Re: SPHB instead of VTI?
Posted: Sat Aug 06, 2011 2:11 am
by 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.
Re: SPHB instead of VTI?
Posted: Sat Aug 06, 2011 11:01 am
by MediumTex
melveyr wrote:
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.