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Two Exceptionally Good ETFs
Displaying Outstanding Growth Potential

Donald Pearson, President, Pearson Capital Inc., continues to advocate that value selections should continue to be a larger part of his portfolios. Adding value investments should continue to reward us today and going forward, says Pearson.

Featured in this month’s Pearson Investment Letter are two exceptionally good ETF selections displaying outstanding growth potential while featuring value are SPDR Dow Jones Industrial Average ETF Trust (DIA) with companies displaying a wide range of diversity such as McDonald’s, Home Depot, Boeing, Microsoft, United Health, and several others. This has been available for purchase since 1998 and has averaged a return of 9% annually and 12.8% for the past ten years.

The investment seeks to provide investment results that, before expenses, correspond generally to the price and yield performance of the Dow Jones Industrial Average (the “DJIA”). The Trust seeks to achieve its investment objective by holding a portfolio of the common stocks that are included in the DJIA (the “Portfolio”), with the weight of each stock in the Portfolio substantially corresponding to the weight of such stock in the DJIA.

The other featured value ETF this month is Health Care Select SPDR ETF (XLV) This ETF is category specific and features 100% healthcare. The top five companies making up more than 30% of their portfolio are Johnson & Johnson, United Health, Pfizer, Abbot Lab, and Merck. This has also been available for purchase since 1998 and has returned on average 9% annually. In the past ten years their average return has been 15.1%.

The investment seeks investment results that, before expenses, correspond generally to the price and yield performance of publicly traded equity securities of companies in the Health Care Select Sector Index. In seeking to track the performance of the index, the fund employs a replication strategy. It generally invests substantially all, but at least 95%, of its total assets in the securities comprising the index. The index includes companies from the following industries: pharmaceuticals; health care equipment & supplies; health care providers & services; biotechnology; life sciences tools & services; and health care technology Pearson Capital’s ongoing philosophy for investing is maintaining portfolios with 70% or more with ETFs depending on size. Adding individual stock choices is also an excellent way to better diversify a portfolio and, again, size will help us make these decisions. Smaller portfolios for those beginning as startups will be all ETFs as the safety factor dictates this, unless we have had prior conversations and a specific stock choice has been requested, says President Donald Pearson.

Editor’s Note: Pearson Capital, Inc. works individually with clients to design fully diversified and customized investment portfolios while seeking attractive, long-term returns. The firm’s portfolio management approach is similar to Warren Buffett’s, Peter Lynch’s, and John Templeton’s investment philosophy. To learn more about the services that Pearson Capital, Inc offers, visit www.pearsoncapitalinc.com.

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