MFOHome About Commentary Discussions Funds The Best Resources Support Us!

Howdy, Stranger!

It looks like you're new here. If you want to get involved, click one of these buttons!

Sign In Register

Categories

In this Discussion

Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.

    Support MFO

  • Donate through PayPal

LFEQ - gimmicky ETF (with the possibility of downside protection)

JoeD
in Fund Discussions
Kind of interesting idea, anyway. Van Eck offers this product (LFEQ) which supposedly uses a proprietary model to determine the best allocation split between 2 investments: 1) an S&P 500 ETF and 2) US Treasuries. That's it. Just 2 investments. The ER is .59%.

Supposedly the model gives daily trades signals on whether to allocate 20%, 40%, 60%, 80% or 100% to equities. Which begs the question....if stocks go into a tailspin, will their model get out of equities in time?

This ETF has total Net Assets of only $9.8M. If only such products worked as intended/advertised. I find they rarely do.

Comments

  • DavidV
    We do not need to invest in LFEQ, but we can follow its allocation to determine market signal. Currently, the fund is 100% in SPY.
Sign In or Register to comment.