This Day On The Street
Continue to site
ADVERTISEMENT
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

Market Neutral ETF Might Be Launching at Just the Right Time

The three-year annualized return for the index is reported at 4.55% versus 13.61% for the S&P 500. The three-year result could be thought of as discouraging for the next time the stock market is up a lot.

In thinking about the above numbers it is important to remember the objective of the fund. QMN is not supposed to look like the stock market. In the last three and half years the S&P 500 has doubled.

If it doubles again over the next three and half years QMN will not go up anywhere near that much, that is not the investment objective. That the fund came out after the S&P 500 doubled might turn out to be very good timing for the launch.

If QMN performs as hoped for then its role in a portfolio would be in a modest weighting as a portfolio diversifier to hopefully offset the effect that stock market volatility is having on the rest of the portfolio.

At the time of publication the author held GLD as a client and personal holding.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

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
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
EFA $65.97 0.00%
GLD $115.60 0.00%
QMN $25.65 0.00%
SLV $15.56 0.00%
TWM $35.50 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs