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Monday, August 5th, 2013
following gurus

13 0805 zGURU

Investors love gurus and performance (absolute and relative both, if you please).

GURU has it all — or at least has to date.  Therefore, unlike a lot of new ETFs, the assets have really started to flow into it.  (Since the most recent total assets number wasn’t on the chart, I penciled it in.)

Its full name is Global X Top Guru Holdings Index ETF and if you want to read the “investment case,” check out the PDF that the sponsor links to on its website to explain it.

As with other vehicles, GURU follows the leaders of the pack of hedge funds, buying what they buy, with the inherent delay that comes from waiting for the 13F filings to know what they own.

I have written quite a bit about market gurus and the risks and benefits of following them, as a partial compilation of the relevant postings demonstrates.  (My favorite references my experience of hiring a guru and teaching a swami.)

For many reasons, GURU is worth watching.  The timing of its introduction appears to have been perfect in many respects.  How consistently will it work going forward and how big will it grow?  (Chart:  Bloomberg terminal.)

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