Yet another attempt to emulate Value Line

[Nords]

No one wants to pay for a subscription to Value Line.

No one wants to have to go to the library every week (if your library still pays for a subscription!) to look up the stocks that are ranked #1 in value & timeliness.

No one wants to incur the trading costs of keeping up with Value Line's turnover.

Mutual funds have tried to automate the process for investors, but they've done a lousy job because they haven't strictly adhered to the Value Line recommendations. (If they tried to, it wouldn't be long before the arbs would front-run the Value Line issues. That WOULD be worth the VL subscription fee!)

Now PowerShares thinks they've solved the problem in the form of an ETF. This time it's really different because they'll hold the recommended stocks for a year. Of course there's some proprietary index techniques, the expense ratio isn't firm yet, the ETF is expected to hit the streets next month if it's ready, blah blah blah.

Anyone taken a look at this for their own portfolio?

 

[dex]

I think Investor's Business Daily is better than VL.
If they had a ETF for that, I would buy it.

 

[dex]

do a comparison with the s&p at bigcharts.com.
it looks as if fvl underperforms th s&p

 

[Michael]

When asked why the VL mutual fund underperformed the newsletter, a senior portfolio manager stated that the VL model doesn't work particularly well for large caps. If that is so, the ETF will need to buy VL recommended small caps to do well, which is often a problem for mutual funds.

http://www.fundalarm.com/arc1100.htm