by the way XO what do you think of ETF's
my brother who has lots more money than me has almost convinced me that ETF's
are way better than mutual funds. lower costs. easier in and out. no minimum.
no 30 day sell rule. as far as i understand an ETF is a mutual fund that is traded
like a stock. so you get the expertise, but the flexibility of an individual stock.
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ETF's are mutual funds. The disadvantage is you must pay a commission to buy and sell them. If you have a discount brokerage account with someone like Scottrade that charges only $7 per trade that is no big deal. You pay no commissions on five-letter funds if you buy them from the fund house like T Rowe Price, Fido, Vanguard, etc, or if you use a discount broker, but you should hang onto them for at least 90 days. The disadvantage is that ETF managers often do not have a long track record as do the managers of other funds, and the funds tend to be on average more volatile. I own EZU, FEZ, and the ishares Canada fund, for which I don't recall the ticket letters at the moment. You need to watch the three-letter funds more carefully because they are more volatile. This is because a lot of day traders furgle with them. They do this because they can, and can't daytrade with a five-letter fund. As for an oil ETF, no, I don't know own any, nor does my newsletter. I like PRNEX and RYDEX. and own those. They also invest in metals and other resources, which I consider a plus because they include diversity.
Most mutual funds are not worth crap. The same is true of ETF's. But not ALL are, and that is the good part. If you follow the recommended "buy and hold forever" strategy every fund manager recommends, you will not get rich anytime soon. The market rotates through various sectors and sizes, usually several at a time, on a random basis. Subscribe to Hulbert's Financial Digest, decide what your strategy and goals are, and then choose a highly rated newsletter and follow it religiously. Generally, 'hot tips' suck and if you heed them, you will be shorn.