Fund Rankings Update, 10/17/2008

Weekly Average Momentum Index (AMI) rankings of SSPP, nSSPP, SELECT, ETF have been posted at: http://yechen.pan.googlepages.com/

Asset allocation is important to weather the market's up and down. As of today, I have provided 6 ranking tables, SSPP, nSSPP, SELECT, ETF, iETF and sETF. SSPP contains 31 funds in my company's old 401k plan, and nSSPP contains 38 funds in my company's current 401k plan. These funds are more conservative except a handful of specialty funds. SELECT contains 42 Fidelity's sector funds. These funds, in my opinion, have medium volatility because their prices are updated once a day. As you can see, a lot of funds are from Fidelity's mutual fund family. This is because I have been with Fidelity for 20 some years and their fund selections are the largest in the industry. ETF, iETF, and sETF contains specialty index funds with iETF focuses on international index funds and sETF specializes in sector index funds. These funds are traded like stocks hence with higher volatility. ETF are very popular in the past few years because of its tax efficiency, and if traded properly, can provide higher return. One way to diversify is to assign different percentage of your total investment to follow different ranking tables. For example, a conservative approach may assign 70% to SSPP rankings, 20 % to SELECT, and 10% to ETF, while a more aggressive approach may assign 40% to SSPP rankings, 40% to SELECT and 20 % to ETF.