SPDR® S&P 500® ETF (SPY) vs Rydex S&P Equal Weight ETF (NYSEARCA: RSP)
RSP – all the index constituents weighted equally
higher management fees (40 bps vs 10 bps)
SPY – market cap weighted (i.e. AAPL is over 3%, XOM 2.6%)
Dividend yield about 2% for both
Sector weightings are different
The difference in the performance of the equal weight Nasdaq etf vs the Nasdaq 100 etf is even more stark once the AAPL started to underperform the market. YTD the First Trust NASDAQ-100 Equal Weighted IndexSM Fund (QQEW) is outperforming the QQQ by close to 600 bps.
Over time the equal weight etf will outperform the index etf because of the large cap bias.
DoubleLine Income Solutions Fund (DSL)
The Fund’s investment objective is to provide a high level of current income and its secondary objective is to seek capital appreciation.
The Fund may invest in debt securities and other income-producing investments anywhere in the world, including in emerging markets.
Trades at about a 4% discount to NAV
Currently yields $0.15 monthly but is subject to change at any point
1% management fee
World’s best fixed income manager for a relatively small fee
Very sensitive to moves in interest rates
| Sector Breakdown
|High Yield Corporates
Firsthand Technology Value Fund Inc (NASDAQ:SVVC)
a publicly traded investment fund that provides private technology and cleantech companies with development funding and working capital, primarily in the form of equity investments.
- Trades at a discount to NAV as of today
- Portfolio contains difficult to acquire stakes in pre-ipo companies
- About 130mm in cash (probably higher since FB stake likely sold)
- Already 2 very successful investments with FB and SCTY
- 1 million shares of common and preferred B shares of Twitter
- 2 and 20% fee structure
- CEF’s typically trade at discounts to NAV
- Management may have conflicts b/c of relationships with portfolio companies
- NAV may not be accurate with illiquid private securities
- Dependent on an healthy technology IPO market
Global X Top Guru Holdings Index ETF (NYSEARCA:GURU)
- Best long ideas from long/short, activist and long biased hedge funds based on 13f filings.
- Relatively low expense ratio.
- Diversified well. Mostly solid companies already.
- 13f filings could be stale
- Highly correlated with the market
- Illiquid and only about 120mm in net assets