Tactical ETF Portfolio Shift Commentary 07/07/08

On the equity side, we have reduced our weighting in mega cap equity, cutting half of our exposure to domestic mega cap equities. While we like mega caps for their defensive characteristics, we feel the Dow Jones index has become too concentrated in names that we believe are exposed to further negative event/earnings risk. The proceeds from the reduction have been split evenly to increase exposure to mid cap growth and large cap growth. Mid cap growth remains one of our favored domestic segments, with the best earnings outlook among the major core market segments