Editor’s note: As of 9/12/11, the Focus ETF model is no longer available on Covestor
Model manager Analytic Investment added several new positions to the Focus ETF model at the beginning of December. In this model, Analytic Investment uses computer algorithms to help them identify ETF mispricing opportunities that have been caused by market inefficiencies. One of the new ETFs added to the fund is Spdr S&P Pharmaceuticals Etf (XPH). XPH’s goal is to mirror the results of the S&P Pharmaceuticals Select Industry® Index. They attempt to do so with low turnover within the fund. According to Yahoo! Finance on December 15th, the top holding in the ETF was Vivus Inc (NASDAQ: VVUS). Morningstar.com showed the fund trading at a premium to NAV on December 15th.
Another new ETF to the model was First Trust Dow Jones Internet Index Fund (FDN). FDN’s goal is to replicate the performance of the Dow Jones Internet Composite index. It does so by investing 90 percent or more of its assets in stocks that are on the index. On December 15th, Yahoo! Finance reported that the fund’s top holding was Google Inc. (Nasdaq: GOOG ). On the same day, Morningstar.com showed the fund trading at a discount to NAV.
And finally, Guggenheim Frontier Markets ETF (NYSE: FRN ) was added to the Focus ETF model. FRN attempts to deliver results in line with the performance of The Bank of New York Mellon New Frontier DR Index. On December 15th, Yahoo! Finance reported that the top holding in the ETF was Ecopetrol S.A. American Deposit (NYSE: EC) and, on the same day, Morningstar.com reported that the fund was trading at a premium to NAV.
