I agree with unclemick2, I like funds that have been around awhile. Heck on my first trade, in my high risk acct (read bored so I play with stocks), I made 30%, of course the next five I lost all of that plus. In that acct I only started with 900, so I figure If I lose it all oh well.
What is their turnover ratio? I was reading about a dividend fund (might be this one) that was churning its portfolio - it would buy dividend stocks and hold them just long enough to get the dividend and then sell it and move to the next stock. I read about it in Money magazine. Their comment - the fund was small and the manager was able to buy and sell without any problems. They anticipated that if there were significant inflows into the fund, they wouldn't be as successful with their buy and sell strategy.
They juice the dividends by holding stocks for 61 days then cashing in. As others have said, this may not work once the fund grows too large. The short history of the fund makes me question the sustainability of their plan. I don't own any right now but I am tempted to throw some play money at it.
