It was almost a year ago that the country’s first “city-centric” investment fund, an ETF comprised entirely of Nashville-based companies, made its debut. At the time I called it “the stupidest investment idea ever” and also noted that,
You know your investment idea sucks when Arthur Laffer “loves” the idea…
.. and also:
I know I’m just a dumb housewife, not an investment genius like the bigwigs behind this idea, but what is the magic of having companies from diverse business sectors all lumped into one ETF just because they’re based out of Nashville? What does Dollar General have to do with HCA? The fund’s founders say:
The partners say Nashville’s position as an “it” city for business makes it an ideal candidate to launch the unique ETF.
This made no sense to me whatsoever, and it still doesn’t. It struck me as nothing more than a civic marketing campaign involving some local hotshots with too much extra money lying in their overstuffed sofa cushions which they didn’t mind throwing away. That’s fine if you can afford it, but there are some investment-ignorant people out there who actually buy this horseshit who probably can’t afford to lose their retirement money on what is basically a marketing ploy by the local Chamber of Commerce.
But what do I know. So, was the NASH ETF really a lousy idea? Let’s take a look-see:
NASH opened at $25 per share. Today it’s at $27.88. Its range: $23.75-$28 a share. YTD Return: a whopping 1.10% (inflation rate for May 2014 was 2.13%). Meanwhile, the markets as a whole have been booming. For example:
The NASDAQ composite is up 6.80%:
Again, I’m no genius about this stuff, maybe I’m missing something, but it still seems like this was a stupid idea and Arthur Laffer is still an economic dunce.