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I think they may have a place with conservative investors. I'm a little skeptical of "low volatility" (over the long-term), as I would be with "stable value" (to use one of those "believe us, it's conservative"-type terms), but if it works, it works.
I haven't been overjoyed with it recently, but I'm sticking with GTAA (which appears to be expanding in scope as management indicated it would previously) in the conservative ETF spot, as I like the concept and management. In terms of a conservative play, GTAA can in theory go entirely to cash (and can hedge slightly otherwise) if the environment warranted. It has the ability to go from 0-60 and back again, but I think - in a way similar to managed futures - the fund may not be able to keep up with significant short-term swings and is best with at least a consistent mid-term trend. You do get a fund that can look one way one month and be entirely different the next.
Reply to @scott: Thanks, Scott, for your usual informative response. GTAA looks interesting - it would be so nice to have a fund "do it all" in terms of making regular changes in this market that seems to me to have absolutely no relation to reality - especially if they, on average, do a good job at it.
Comments
I haven't been overjoyed with it recently, but I'm sticking with GTAA (which appears to be expanding in scope as management indicated it would previously) in the conservative ETF spot, as I like the concept and management. In terms of a conservative play, GTAA can in theory go entirely to cash (and can hedge slightly otherwise) if the environment warranted. It has the ability to go from 0-60 and back again, but I think - in a way similar to managed futures - the fund may not be able to keep up with significant short-term swings and is best with at least a consistent mid-term trend. You do get a fund that can look one way one month and be entirely different the next.
GTAA = Cambria Global Tactical.
http://www.mutualfundobserver.com/discuss.php#/discussion/472/analysis-of-new-high-beta-and-low-volatility-etfs-from-powershares