AdvisorOne Goes All the Way for ETFs

Talk about going all the way.

Exchange-traded funds, or ETFs, are no longer a secret among fund managers seeking an extra dose of diversification. ETFs, which are mutual funds that trade on exchanges like stocks, can be found in countless open- and closed-end mutual funds. But the folks at AdvisorOne funds believed so much in the potential of ETFs that a few years ago they switched their two hallmark funds to all-ETF formats.

So far the move has been a smashing success. (CLSAX Quote)AdvisorOne Amerigo, the more aggressive of the two funds, is benchmarked to the S&P 500 and is up 5.1% -- 2.7 percentage points better than the index. (CLERX Quote)AdvisorOne Clermont, the more conservative fund, uses a blended benchmark of 45% S&P 500 Index and 55% Lehman 1-5 Year Government Credit Index. Clermont is up 1.6% year to date. Since the conversion to ETFs, combined assets of the AdvisorOne funds have increased from $50 million to in excess of $800 million. ...