Paul Britt of IndexUniverse
writes that Charles Schwab
] six new fundamental ETFs, while they aren't incredibly low-cost, broadens the choices for fundamental exposure in an ETF. Though Russell Investments
, which worked with Research Associates
to design the indexes behind the funds, called it an alternative to active investing, Britt says it's much more akin to cap-weighted indexing.
Britt says the Schwab ETFs take a contrarian view, like value investing, because they will sell off the hot stocks and buy the fall stocks at every rebalancing. The funds rebalance a portion of the portfolio to the target, which is annually reset, every three months. Though the ETFs aren't low volatility, Britt points out, he considers them slightly insulated from short-selling hedge fund managers.
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