Schenley Park and their Covestor Model Capital Appreciation Plus looks for positions that will appreciate in value while offering activity that is not as volatile as the S&P 500. Let’s look at five of the funds that dominate this model.
ProShares UltraShort S&P 500 ETF (SDS) is a bearish fund designed to be inversely proportionate (by 200%) to the performance of the S&P 500. As of July 19th 2010, it was trading just below NAV offering investors a slight discount.
iShares Dow Jones US Utilities Sector Index Fund (IDU) is meant to mirror the performance of the Dow Jones U.S. Utilities Index. At least 90% of the assets of the fund are identical to those in the index. As of the date of this post, the ETF was trading at a premium.
Mimicking the performance of the Dow Jones U.S. Consumer Goods Index is iShares Dow Jones US Consumer Goods Sector Idx Fd (IYK). With underlying assets like Coca-Cola Company (NYSE: KO), Colgate-Palmolive Company (NYSE: CL) and Ford Motor Company Common Stock (NYSE: F), it is a collection of large, generally stable companies with businesses that can often maintain revenues during a stressful economic climate. As of the date of this post, the fund was trading at a premium to NAV.
ProShares Ultra Dow 30 ETF (DDM) looks to perform like the Dow Jones Industrial Average at a rate of 200%. As of the date of this post, the fund was trading at a small premium to NAV.
iShares Dow Jones US Real Estate Index Fund (IYR) is meant to perform like the Dow Jones U.S. Real Estate Index. It has underlying positions like the Public Storage and Host Hotels and Resorts REITs (Host Hotels & Resorts, Inc. Com (NYSE: HST); Public Storage Common Stock (NYSE: PSA). The fund was trading at a premium on July 19, 2010.
