Jan 23, 2010
Ken Heebner is considered one of the very best fund managers in the country. But during this period of time, his fund was simply no different than the Brazil Fund ETF. This is an example of a fund manager exposing customers to a risk factor that they could have purchased in an ETF at a significantly lower fee. While Heebner should be credited for his outstanding long-term track record, his value-add -- like nearly all fund managers -- is in choosing broad risk expsosures, not 'stock-picking'. Moreover, he exposed customers to tremendous risk -- which could have been easily recognized if tracking his daily standard deviation of his funds returns -- as ETFreplay.com does.
Jan 20, 2010
Bonds | Volatility
This particular ETF, Barclays 3-7 Year Treasury Bond ETF (symbol IEI) with a stated effective duration of approximately 4.5 years, had daily standard deviation of 5.5% in 2009. While yields on treasuries are low -- duration management below 5 years is inherently low relative risk.
Jan 06, 2010
Difference Was Essentially The Currency Effect