There are several ways to time the launch of a new exchange-traded fund (ETF).
One is to strike while a sector is hot, pull in a lot of trend-following money, and accept that the fund's performance might be mediocre, since the hotter the sector, the more due it is for a correction.
That's how it went for the Market Vectors Junior Gold Mine ETF (GDXJ), which nearly doubled in its first year of trading and is since down by more than half...
Another approach is to launch when a sector is out of favor, accept that you'll attract very little money upfront, but hope that good future performance will draw investors later on. That's what Madison NJ Pure Funds has done with its new Junior Silver Miners ETF...
Read full article...
More on silver:
Doc Eifrig: The two things your broker doesn't know about silver
These are Ron Paul's 15 favorite gold and silver stocks
Casey Research: Four facts you must know before speculating in junior resource stocks