RIT FMA

Financial Management Association

Winter Quarter Kick-off Meeting

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Financial Management Association

Finance News

• Re-launch of cnbc.com
•Taco Bell’s E-coli breakout
•Wall Street’s Bonus Bonanza

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Financial Management Association

Portfolio Overview (as of 12/7/06)

Nintendo sells 600,000 Wii units in first 8 days!

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Financial Management Association

Portfolio Overview

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Financial Management Association

ETF’s: The End of Mutual Funds?

“ETF Assets Top $400 Billion In November”

140 ETF’s launched this year

344 currently trading

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Financial Management Association

What is an ETF?
Exchange Traded Fund
A fund that tracks an index or basket of investments, but can
be traded like a stock. ETF’s are not actively managed.

The ETF Quote

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Financial Management Association

Why ETF’s?
•More Liquidity (can trade all day long)
•Available ETF’s include many different asset classes.
•Great for top-down stock picking
•More Leverage (can short, buy options etc.)
•Lower management fees (as low as .09% of assets compared to
mutual funds which average around 1.4%)

•Less research for you!

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Financial Management Association

ETF Innovation

SSO: Does it measure up?

Motley Fool Article

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Financial Management Association

ETF Innovation

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Financial Management Association

ETF Innovation for Dividend Lovers

PowerShares Dividend Achievers Portfolio (PFM) is based on an

index that currently has 313 companies that have hiked their dividends on
average for 22 years and by 12% annually for the last 10 years.

PowerShares High Growth Dividend Achievers Portfolio (PHJ) is

based on an index of 100 dividend achievers with the highest 10-year
annual dividend growth rate. This group has raised dividends by an
average of 20.2% annually for the last decade and have beaten the S&P
500 index for the last three, five, and 10-years (through June 30).

PowerShares International Dividend Achievers Portfolio (PID) differs

from the other two in that it evaluates dividend growth of international
companies (that trade in ADRs in the U.S.) over a 5-year period.

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Financial Management Association

ETF Innovation to Hedge Against Inflation

•iShares Lehman 20 Year Treasury Bond (TLT)

•iShares Lehman 7-10 Year Treasury Bond (IEF)

•iShares Lehman TIPS Bond fund (TIPS)

The article

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Financial Management Association

There are even ETF’s for Gas Guzzlers!

•Hedge with USO or OIL

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Financial Management Association

My ETF Proposition

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Financial Management Association

Next Meeting
Friday, December 15th Room 12-1115
Technical Analysis Presentation

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