David Jackson
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Which Safe Havens Survived the Selloff? [View article]
R. Guy Kraines, President and COO of Sabrient, wrote to Mr MacDonald objecting to the use of the word "frauds". His letter also stated:
<blockquote>On the market front, I'm sure you recognize that essentially every 100% long equity position (which describes all equity ETFs) got clobbered on February 27th, whatever sector they were in, whatever selection technique they used or wherever in the world they were invested Even commodity-based gold and oil stocks got hammered.
The better performing investments you note in the article (bonds and the Swiss franc) don't represent stock market investments. Your point in noting this is obvious, but it should in no way cause you to start your column by denigrating a particular equity investment.
Further, we'd like you to reconsider the performance of DEF overall. You fail to note that, since it's inception on December 21, 2006 through February 26 th, it outperformed the S&P 500, increasing 5.23% vs. 2.58% for the S&P. One might have thought that, having ratcheted higher faster than the S&P, it might have been exposed to risk of a greater correction. From inception through March 8th, it increased 1.61%, versus a loss of 0.74% for the S&P 500, a broader performance gap.</blockquote>...
According to Matt Hougan's article, Did Specialty ETFs Provide a Cushion From the Fall?, DEF fell 4.98% from its close February 26th to close March 5th, versus a decline of 5.39% for the S&P 500 ETF, SPY.