Evolution of Indexing
I also had a one-on-one sitdown with the man who designed the Claymore Patent ETF, which will trade under the ticker OTP. I don't have an opinion yet, but studying it is not a waste. The Patent ETF methodology values companies by assessing the financial worth of a company's patent portfolio, believing that the better patents a company owns, the better the stock will do. The back-test obviously supports the thesis. But the fact that I needed 10 minutes of face time with the designer of the index to understand it may explain why the fund may not be popular.
I had a very quick chat with someone from the Chicago Board Options Exchange. I asked if anyone was interested in making an ETF out of its buy-write indices. There is interest, but that's about all that the representative could say. Unfortunately, the CBOE booth was not getting a lot of traffic, so I'm not sure there will be enough interest to make investible products around these, but I hope so.
I stopped by the FTSE booth and found one interesting item coming: the FTSE Macquarie Global Infrastructure Index, which will be an ETF, possibly as soon as next quarter. I have written about and disclosed owning the Macquarie Trust (MIC), which is not an indexed product. Macquarie has a bunch of infrastructure indices, including Australia, Europe and Japan. I'm a big believer in this niche that Macquarie has created, and while I like MIC for now, at about a 3% weight, I would swap into something else from it if I felt it was superior.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV