This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

New ETFs for Plain Vanilla Investors

The Claymore Wilshire 4500 Completion Index, which is designed to follow the performance of the Wilshire 4500, tracks all companies trading in the United States that are not included in the S&P 500. The WREI is designed to be a pure play for investors seeking a play on all available REITs trading in the U.S.

While WXSP and WREI are the first of their kind, this is not the first time an ETF or mutual fund has attempted to copy the performance of the all-encompassing Wilshire 5000. The SPDR Dow Jones Total Market ETF (TMW) tracks the same index as WFVK, although its basket is made up of considerably fewer positions.

Additionally, while they track the MSCI US Broad Market Index today, the Vanguard Total Market ETF (VTI) and Vanguard Total Stock Market Index Fund (VTSMX) originally tracked the Wilshire 5000.

Aiding the appeal of Claymore's new instrument is an attractive 0.12% expense ratio. By comparison, TWM, which will suffer from greater tracking error due to its more concentrated exposure, charges 0.21%.

WXSP will cost investors 0.18% while WREI charges 0.32%.

Although WFVK is a great fund for investors looking for the ultimate equity catch-all, in the end, the largest hurdle standing in this fund's way will be volume. Despite the fact that investors are returning to broad equity index funds, the Wilshire 5000 has not traditionally been as appealing to investors as the S&P and Dow. As a result, TWM has typically been an illiquid fund.

Claymore's new instrument will have to rely on its more diverse holdings and cheap expense ratio to pull in investors. If it fails on those scores, this fund will most likely falter.

-- Written by Don Dion in Williamstown, Mass.
At the time of publication, Dion owned PowerShares QQQ.

Don Dion is president and founder of Dion Money Management, a fee-based investment advisory firm to affluent individuals, families and nonprofit organizations, where he is responsible for setting investment policy, creating custom portfolios and overseeing the performance of client accounts. Founded in 1996 and based in Williamstown, Mass., Dion Money Management manages assets for clients in 49 states and 11 countries. Dion is a licensed attorney in Massachusetts and Maine and has more than 25 years' experience working in the financial markets, having founded and run two publicly traded companies before establishing Dion Money Management.

Dion also is publisher of the Fidelity Independent Adviser family of newsletters, which provides to a broad range of investors his commentary on the financial markets, with a specific emphasis on mutual funds and exchange-traded funds. With more than 100,000 subscribers in the U.S. and 29 other countries, Fidelity Independent Adviser publishes six monthly newsletters and three weekly newsletters. Its flagship publication, Fidelity Independent Adviser, has been published monthly for 11 years and reaches 40,000 subscribers.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
WXSP $36.83 0.00%
WFVK $34.94 0.00%
SPY $185.27 -0.09%
VTI $93.72 0.06%
WREI $40.86 -2.14%


Chart of I:DJI
DOW 15,914.74 -99.64 -0.62%
S&P 500 1,851.86 -0.35 -0.02%
NASDAQ 4,283.5920 +14.8290 0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs