ETF Expert

Many times, if I needed large-cap value exposure, I have gravitated towards the Dow Jones Industrials (DIA). The volume makes it easy to trade. The companies represent some of America’s finest. And the index is as transparent as they come. (That means… you know exactly what you’ve got in just 30 companies.)

Still, there are more than a few other large-cap value proxies worthy of consideration. Specifically, streetTracks follows a Wilshire index in its streetTracks Large Value (ELV). Barclays carries the popular Russell 1000 Value Index in the iShares Russell 1000 Value (IWD).

The volume on the streetTracks and iShares vehicles is far weaker than the renowned Dow. Will those other investments even be around in 2 more years? How can you get a buy price or a sell price that you want when the bid/ask price spread is so wide? (The latter challenge is particularly troubling in the middle of extreme market volatility.)

Yet if you do choose to buy-hold-n-hope, you might want to give some attention to ELV and IWD. They have outperformed the more popular Dow Jones Industrials (DIA) over the past 5 years.

However, you may not choose to buy-hold-n-hope. You may purchase with a long-term perspective, yet still have a plan to sell when markets dictate. In this case, it appears the Dow may be the rougher, tougher exchange-traded fund for your money.

Disclosure Statement:  As a Registered Investment Advisor, Pacific Park Financial, Inc. may hold positions in the ETFs, mutual funds and/or index funds mentioned above. Investors who are interested in money management services may visit the Pacific Park Financial, Inc. web site.