RIT FMA

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R?I?T FMA
Financial Management Association
Winter Quarter Kick-off Meeting
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R?I?T FMA
Financial Management Association
Finance News

• Re-launch of cnbc.com
• Taco Bells E-coli breakout
• Wall Streets Bonus Bonanza

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R?I?T FMA
Financial Management Association
Portfolio Overview (as of 12/7/06)
Nintendo sells 600,000 Wii units in first 8 days!
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R?I?T FMA
Financial Management Association
Portfolio Overview
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R?I?T FMA
Financial Management Association
ETFs The End of Mutual Funds?
ETF Assets Top 400 Billion In November
140 ETFs launched this year
344 currently trading
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R?I?T FMA
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. ETFs are not actively managed.
The ETF Quote
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R?I?T FMA
Financial Management Association
Why ETFs?

• More Liquidity (can trade all day long)
• Available ETFs 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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R?I?T FMA
Financial Management Association
ETF Innovation
SSO Does it measure up? Motley Fool Article
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R?I?T FMA
Financial Management Association
ETF Innovation
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R?I?T FMA
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 SP 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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R?I?T FMA
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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R?I?T FMA
Financial Management Association
There are even ETFs for Gas Guzzlers!

• Hedge with USO or OIL

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R?I?T FMA
Financial Management Association
My ETF Proposition

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R?I?T FMA
Financial Management Association
Next Meeting Friday, December 15th Room
12-1115 Technical Analysis Presentation