Richmond Times-Dispatch from Richmond, Virginia • D4

D4 WEDNESDAY, JULY 27, 2011 RICHMOND TIMES-DISPATCH BUSI NESS Your Funds 5 reasons to buy not to buy ETFs In the middle of the anient economic crisis, it doesn't just seem like some new mutual fund is created every day promising some new and 12 better way to attack the market. There's 2.4 of them. Through the first half of 2011, some 440- Chuck THE ASSOCIATED RESS Workers paint the outside of a itora In MayfleM Ohio. Confidence In the eased sornewtiet. aconomy rota In Jury as concerns about Jobs and what the manager does in your private account, you may like it even more if it comes cheaper in fund form, provided the tax consequences of moving from separate account into a fund aren't too big.

Rue reasons to avoid new funds: There's no track record. Even if you like the manager and their past performance, anew fund is a whole new ballgame. The fund graveyard is littered with issues started by solid money managers whose tactics didn't work that well in the confines restrictions of a fund. The idea is unproven. Back-testing investment concepts running data on what would have happened if the fund or its strategy had been around in the past is not the same as managing money in the real world.

And some things that seem great on paper just don't pan out There's nothing new under the sun. With thousands of funds to choose from, you don't need a new one. The best fund ideas have been around for years, some dating back nine decades; disdaining the old standards for something created nine days ago is folly. It may not be around long. Another truism for the ETF space, where firms seem to throw up new ideas just to see what sticks.

What's more, even if the strategy works, a new fund might close from lack of support or interest New isn't always improved. Sometimes a new fund is an asset grab by management, an attempt to cash in on something hot, or to keep you from taking a slice of your money to the competition. Chuck Jarre Is senior columnist at MaritetWatch. He can be reached at cJaffemarketwatchom or at Box 70, Cohasset, MA Athenalnvest a research firm in Denver. "New funds are smaller and tend to hold fewer positions." New also means concentrated, even if by accident Howard and others noted that even if a fund's prospectus says it will be "diversified," the portfolio will still be relatively concentrated when the doors first open.

Funds that are focused and concentrated in specific investment areas designed to have fewer holdings are more likely to experience new fund phenomenon, but all new funds typically have the manager's best investment ideas. you knowlike the manager. When good managers split off on their own or when your personal money manager opens up a mutual fund there's an inherent trust and confidence there. When you believe in management's ability to build something, it's a good reason to get in on the ground floor. It does something different This is more true in the ETF space than in traditional funds, where new flavors tend to appeal to different investment tastes.

For example, the new ProShares Hedge Replication (HDG) is a new spin on using an ETF as an alternative to hedge funds, which might be attractive to someone who has never had the wherewithal to invest in hedge funds directly. It lowers your costs. Typically, new funds are more expansive than their average peer, but many advisory firms that start a fund are managing it the same way they run separate accounts. If you like plusnew mutual funds and exchange-traded funds opened for business, according to Lipper Inc. At 2.4 per day, that's 56 percent ahead of the pace of fund creation from the same period in 2010.

Some are new twists on old investment ideas, others involve money managers expanding private accounts into public funds and still others are newfangled concepts. There's a market for all of them, as "new" is a concept that resonates and sells with the investing public. With the pace of fund creation not likely to slow through the rest of the year, here are five reasons to consider new funds and five more to stay away. Rue reasons to buy a new fund New means small and nimble. This applies to actively managed funds and ETFs but not index flavors and it's a cause of "new fund phenomenon," the tendency of new funds to outperform when first opened.

"The biggest problem in the mutual fund industry is that funds get too big and overdiversify," said C. Thomas Howard, director of research for scant hiring. The unemployment rate rose to 9.2 percent, the highest this year. That's far below the average job gains of 215,000 per month in the February-April period. Besides job woes, there's a choppy housing market A report out Tuesday showed home prices in major U.S.

cities rose for the second straight month in May, propped up by an annual flurry of spring buyers. But after adjusting for such seasonal factors, prices fell in a majority of markets. The Standard Poor'sCase-Shiller home-price index showed that prices rose in 16 of the 20 cities tracked. Still, 19 of the 20 cities have seen year-over-year price declines. Meanwhile, another report showed fewer people bought new homes in June.

Sales of new homes fell 1 percent last month to an annual rate of 312,000, the Commerce Department said Tuesday. That's less than half the 700,000 that economists say is typical in healthy markets. Last year was the worst for new-home sales on records daring back a half century. Through the first six months of this year, sales are lagging behind last year's totals. Sales of new homes fell 15.8 percent in the Northeast and 12.7 percent in the West Sales rose 9.5 percent in the Midwest and 3.4 percent in the South.

The median price of a new home rose to $235,200 nationally. Consumers From Page D1 economic recovery, fluctuating up and down as consumers react to the stock markets, corporate news and world events. And while confidence had rebounded by now during the last recession which ended in 2001 it remains shaky two years into the current recovery. Earlier in the year on the index, which measures how Americans feel about business conditions, the job market and the next six months, Americans were more optimistic that the economy was on track for a recovery. But consumer confidence has fallen since reaching a three-year high of 72 in February.

"Overall, consumers remain apprehensive about the future, but some of the concern expressed last month has abated," said Lynn Franco, director of The Conference Board Consumer Research Center. Even the data of different consumer confidence surveys don't agree on just how concerned Americans are. Last week, for instance, a Thomson Reuters University of Michigan survey that also tracks consumer confidence showed the measure fell in July to its lowest level in more than two years. The weak job market, for one, has weighed on consumers. The economy added only 18,000 net jobs in June, which was the second straight month of Daily Calendar EVA RUSSOTNES-nSMTCH Matthew Oulmet, center, walks through Kings Dominion with parent company regional vice president Richard Zlmmerrruui, left, and Pat Jones, vice president and general manager of Kings Dominion.

Tran with the Virginia Asian Chamber of Commerce and former International Trade event manager for the Virginia Economic Development Partnership. Topic: "Export Readiness Assessment, International Business Plan, and International Market Research Resources and Strategies." Cost: $15 for members; $20 nonmembers. Registration: aabacaabac.org or (804) 649-0204. Detals: www3abac.org. MAJOR BUSINESS AND ECONOMIC EVENTS Commerce Department releases durable goods for June, 830 am Federal Reserve releases the Beige Book, 2 pm.

Aetna Inc. reports quarterly financial results. AutoNation Inc. reports quarterly financial results. Boeing Co.

reports quarterly financial results. ConocoPhilps reports quarterly financial results. Coming Inc. reports quarterly financial results. Delta Air Lines Inc.

reports quarterly financial results. Dow Chemical Co. reports quarterly financial results. General Dynamics Corp. reports quarterly financial results.

Visa Inc. reports quarterly financial results after the market close Wellpoint Inc. reports quarterly financial results. Whole Foods Market Inc. reports quarterly financial results after the market close.

German automaker Daimler AG reports quarterly financial results. South Korean electronics company LG Electronics Inc. reports quarterly financial results. From staff and wire reports Park From Page D1 its individual parks. Last year's introduction of the Intimidator 305 roller coaster helped boost Kings Dominion's attendance, he said.

"Assets like that in the industry have always been good performers in terms of driving attendance. The other reality, though, is that it also is a foundation to retain attendance. You want new attendance, but over the course of the years, you have to reinvest in the business to drive attendance." Attendance at Cedar Fair parks this year is trending upward, he said without providing specifics because the publicly traded company has not released second-quarter results yet "We hope we have another record year," he said. "It is hard to do back-to-back in this economy in particular. If weather plays a good role, we will be OK." The hot weather helps Kings Dominion because it has a water park, he said.

"But (the hot weather) does slow down our numbers on the roller coasters." Kings Dominion is a "great asset for the region, and my hope is we can LOCAL EVENTS RtdiTedi's Healthcare IT presents "HIE Plot Routes Scanned Documents," 730 am, Westwood Club, 6200 West Club Lane Speakers: Michael Matthews, CVHNCenVaNetMedVirginia: Jeff Odell, senior vice president of marketing and business development, Central Virginia Health NetworkKfedWginia. Cost: $20 for members; $30 for non members. Registration: www.rfchtech.com or (804) 228-4T78. Business Networking International, 730 am, Long Foster, 9321 Midlothian Turnpke, Suite E. DetailsRSVP: Rae Nunnally, (804) 839-5014.

Hanonr Industrial Air Park Business Association's meeting, H30 am James River Equipment, 11047 Leadbetter Road. Richard Claridge of Little Mountain Technologies wil talk about how your smal businesses can get the benefits of our wired world whle minimizing the exposure of your assets. Cost: $10 for non members. Details: www.hiapba.com or Diane Munn, (804) 675-7502. The Southside lunch meeting of the Richmond Woman's Network meets at Tt30 am, Capital AJe House, 14000 Midothian Turnpke.

Detalsregistra-tions: Suzanne Davis, sdavisgidesigninterlorsxom or (804) 379-3641. Business Networking International, Tt30 am, Capital Ale House, 13831 vllage Place Drive. Detals: David Abel, (804) 639-0609. Business Owners Institute offers a "Business Leaders Lunch Workshop," Tt30 am Richmond Country Club, 2950 Patterson Ave. Speaker: Jim Roman.

Topic: "Marketing Cost Effective Ways to Gain Visibilty." Cost: $13 and includes lunch. Pay at the door or register at www.boiva.com. Virginia Asian Chamber of Commerce and SunTrust Bank offer series on "Growing Your Business Through International Sales" mini workshops for small to-merJum size companies wishing to develop international markets, 1 pm, SunTrust Bank, 919 Main St, first floor. Presenter: My Lan continue on a nice positive path to not only make people happy, but provide Cedar Fair is looking in ets you want better concert seats, you pay for it," he said. The test started about 10 days ago, but so far the results are positive.

"We found there is a very good appetite for it" This is just one example, he said. "As we get into the business of what features make sense and what value opportunities make sense, we will continue to figure out what the consumer wants," Ouimet said. "What the visitor wants is what they will get" (804)649-6379 to new attractions and offerings and is experimenting with some features at its theme parks. For instance, Kings Island is selling a limited number of Fast Lane passes, which enable customers to get into a shorter line at its most popular roller coasters and attractions. The pass costs $50 above the admission fee.

"We are trying to determine how other consumers react to the fact that some people pay more to get up to the front of the line. It is like concert tick Henrico Business Licenses Pooch A Bones (retail merchant); fcensee Brandy Washington, 207 Chickahominy Bluff Road, Henrico 23227. Blurr (adult educational service); fcensee Domonic Anderson, 609 Halwood Farms Lane, Henrico 23223. Anderson Racing (personal services); licensee Domonic Anderson, 609 Hallwood Farms Lane, Henrico 23223. AJum-n-Giass LLC (contractor); licensee same, 2570 New Market Road, Henrico 23231 Brothers Painting Co.

(contractor); licensees Rank Avies Dwight Harbin, 3618 Reynolds Road, Henrico 23223. Timothy M. Brown (cleaning services); licensee same, 229 Gawain Drive, Henrico 23223. Car Works Datal Shop (motor vehicles service); licensee Demitrius Crawley, 8412 Gla-zebrook Ave, Henrico 23228. Conrad's Construction LLC (contractor); fcensee same, T721 First Colonial Court, Henrico 23231.

The following ore recently issued business licenses in Henrico. Diamond Ds Towing (motor ve hides services); licensee Donald R. Matthews, 3801 Mead-owbridge Road, Henrico 23222. RS Handyman Service (repair, renovate, service); fcensee Randy Shim, 9001 Michaux Lane, Henrico 23229. Strategic Connections Inc.

(contractor); licensee same, various Henrico locations. James Smith Electrical (contractor); fcensee James Smith, 1835 Meadow Road, Sandston 23150. Rotable Staffing Solutions (personnel agency); fcensee Tyler Capital Ventures LLC, 3809 Korth Lane, Henrico 23223. Three Stone Medta LLC (businessmiscellaneous service); licensee same, 1516 Wllow Lawn Drive, Henrico 23230. VA Center LLC (ratal restaurant); licensee same, 10000 Brook Road, Glen Alen 23059.

tot Choice Power Washing (personal services); fcensee Travis Chishoim, 2801 Laflin Place, Henrico 23228. Fleming's Painting (contractor); fcensee Marc Fleming, 6424 Rudd Place, Henrico 23231 Creative Styles (barber shop); fcensee Levern Lewis, 3712 Me-chanicsvlle Turnpke, Henrico 23223. Mayo Interior Dei mating" Event (personal services); fcensee MaNka S. Mayo, H401 Ridgegate Lane, Glen Allen 23059. Sol knar Builders (contractor); fcensee Marisol Marrero, D941 Misty Cove Court.

Henrico 23233. Bkxkexchange Minority Group (personal services); fcensee Lance Nelson, 127 Westover Ave, Henrico 23223. Tuesdays: Richmond licenses Wednesdays: Henrico licenses Thursdays: Chesterfield licenses Fridays: Chesterfield and Hanover bu (ding permits Saturdays: Henrico and Richmond bu (ding permits Airport From Page D1 17 percent of RIC's annual 3.28 million air travelers. Delta Air Lines held the top market share in June at 31.19 percent, followed by US Airways at 21.98 percent. Operating revenue at Richmond International for the fiscal year that ended June 30 was $38.8 million, a 2.1 percent increase from the prior year.

Operating expenses were $193 million, up 0.99 percent. For the current fiscal year, the airport expects a modest increase in passenger traffic of less than 2 percent But RIC also expects uneven results some months will be better than others, Bell said. fflllllganflmesclspatcri.com (804649-6379 Air shares June market shares for airlines serving Richmond International Airport, with market share In parentheses for the same month In 2010: Delta: 31.19 percent (27.71 percent In June 2010) US Airways: 21.98 percent (2235 percent) American: 1247 percent (12.13 percent) United: 9.80 percent (10-08 percent) AlrTran: 9.06 percent (8.84 percent) Continental: 8.28 percent (8.23 percent) JetBlue: 6.69 percent (9.98 percent) Air Canada: 045 percent (0.52 percent) Sara: dpttil festal Akport Communal.