July 20, 2009

Hammered Again!

Well, as my faithful readers know, e*trade hammered me and many of its customers when they abruptly liquidated their mutual fund line. You can read my thoughts on it here and here.

It looks like another company is up to some games as well.

I "had" an S&P 500 index fund. It was the Harris Insight Index fund (HIDAX), now owned by Virtus.

On July 16th, I received an e-mail from e*trade stating that I have a new trade confirmation. I thought that is strange because I didn't make any trades.

I logged into my e-trade account and sure enough found all of my shares of HIDAX were sold, at a large loss of course. I sent e*trade's customer service a message questioning why the fund was sold.

This time it doesn't appear as though it was e*trade's fault. Here is their response:

"Dear Mr. Matthews,

Thank you for your message regarding your brokerage account.

The VIRTUS INSIGHT TR VIRTUS INDEX FD, HIDAX, liquidated its assets on 7/14/2009. As part of that liquidation your shares of the company fund were sold on 7/15/2009. "

So because some company can't manage an "unmanaged" index fund I have to lose over $7,000!

I have about had it with mutual funds. The only mutual funds that I have are with Columbia and TIAA-Cref.

I have been added some ETF's to my portfolio, but they are from Vanguard. So I will need to reevaluate my portfolio and determine what I need to do because of poor management!


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