re: GII..the new global infrastructure etf. The concept of this appeals to me, and when a new etf comes up that has merit for me I like to plug into my data base another ticker that can be used as proxy. Do you have a suggestion of something that I can watch trade to see how closely the two moved together?
I think the answer is very open ended. He is asking about the new Macquarie Global Infrastructure ETF (GII). I wrote a profile of it for TSCM which you can read here. To me, GII seems like more of a foreign utility fund than anything else. If you think that is true it would make sense to track it with WisdomTree International Utilities ETF (DBU), the two have a lot of overlap.
Leaving it at that probably falls far short of completing the task. After looking under the hood you will see a lot of utilities. Usually this sector will be less volatile than the broader market which makes an argument for tracking versus the S&P 500 or some other broad-based index. I realize there is a lot of foreign but I would want to know how volatile a new ETF is relative to the index I benchmark against. In adding something new to your portfolio it either adds volatility or reduces it. GII should reduce it but it needs to be watched for a while to know. Maybe iShares S&P Global Utilities Fund (JXI) should be added to the study?
Then what about common stocks? Sticking with GII as a proxy for utilities; I generally prefer individual domestic stocks for this sector. So part of my thought process has to be will GII be, IMO, better than any of the common stocks that I currently own.
Another possible aspect to consider is should utilities be a sector where I start to add foreign instead of another sector. I have foreign in every other S&P sector except discretionary (and utilities). Maybe I should have foreign exposure here too.
All of this is for perpetual study for the way I do my job. I have written many times about studying new products as they come. I don't use what I would say are a lot of new products but occasionally I do integrate something new into the mix.
I'm supposed to head down to Phoenix today but I may be late. OK, this will be the last of the Swiss ice pictures.