ETFs

  • Chartwell ETF's Pick of the Week- Here's my ETF Pick of the Week PowerShares Dynamic Pharma (PJP) PJP is a basket of companies selected by a model based on a variety of investment criteria including growth, stock valuation, timeliness and risk factors. This ETF contains about...
  • Around the World with ETFs- By Carl Delfeld of Chartwell ETF Global Market Wrap Up Asian stocks fell sharply today, reversing a four-day rally, after weak U.S. housing and jobs data and volatility in the financial sector once again reminded investors of the fragile state...
  • ProShares ETF Report - strongest BUY and SELL signals, 7-25-08- About one month ago I provided a list of the ProShares ETFs that were generating the strongest BUY signals and the strongest SELL signals (use this link to read that post). At that time, the BUY list was dominated by the UltraShort ETFs and it was a picture of a market in trouble. Most sectors and market-caps were represented.

    We ran the scan again this week and the results were quite different. Below we have the list of those ProShares ETFs with the strongest technical underpinnings as well as a list of those ETFs that are the weakest.

    Strongest BUY Signals --

    The following chart lists only those ProShares ETFs where both DMI and Aroon evaluation indicates they are in reasonably strong up-trends. This is confirmed by the fact that these ETFs are trading with their 20-day moving average above their 50-day moving average.
  • Another Gulf States ETF- As reported at IndexUniverse, another ETF focusing on the Middle East is available. The new fund, called the Gulf States Index ETF (NYSEArca: MES), tracks the Dow Jones index of public companies headquartered or doing most of their business in Gulf Cooperation Council (GCC) countries - an economic alliance between six Gulf State member nations. The focus on the GCC is what makes this ETF unique. The current weightings in the index include: Kuwait (52.3%), United Arab Emirates (25.8%), Qatar (14.9%), Oman (4.4%), and Bahrain (2.6%). As with the other Gulf State ETFs, Saudi Arabia is not included since it does not have any companies open to foreign investment.
  • Bond market looks vulnerable - two ProShares ETFs to play the move- When it comes to the ProShares ETFs, most of the attention is devoted to the ones that track various stock-related indexes such as the Dow, NASDAQ, S&P 500, Russell 2000 as well as a number popular sector indexes such as financials, REITs, tech, etc. Lately, the ETFs that track oil are getting some action, too.

    What many individual investors may be missing is that the bond market, in particular the Treasuries, is not doing especially well. And ProShares offers a way to take advantage.

    Bond market fundamentals --

    There are several reasons for the situation in the bond market.

    The one that most investors are worrying about is inflation. Bonds typically decline in price as inflation increases or as the perception of impending inflation increases. This is because investors know that the typical Fed response to inflation is raising interest rates. This implies that bonds issued in the future will have higher yields than those currently being traded in the market. This expectation makes current bonds less valuable and tends to put pressure on bond prices.
  • New ETF Hits Gulf Region with Obama- By Carl Delfeld of ChartwellETF.com and ETFpickoftheweek.com Tomorrow, the Van Eck family of ETFs anticipates the launch of the Market Vectors - Gulf States Index ETF (MES) on NYSE Arca. MES seeks to replicate as closely as possible, before fees...
  • State Street Global Advisors Offering 10 New Sector ETFs- As reported at IndexUniverse, State Street Global Advisors is now offering 10 new sector ETFs:
    • SPDR S&P International Consumer Discretionary Sector ETF
    • SPDR S&P International Consumer Staples Sector ETF
    • SPDR S&P International Energy Sector ETF
    • SPDR S&P International Financial Sector ETF
    • SPDR S&P International Health Care Sector ETF
    • SPDR S&P International Industrial Sector ETF
    • SPDR S&P International Materials Sector ETF
    • SPDR S&P International Technology Sector ETF
    • SPDR S&P International Telecommunications Sector ETF
    • Another look at the Gold and Silver ETFs - Part I- The following was published at the investment website earlier this month. Only a few minor edits have been made below and part two will appear here tomorrow.

      It's been about nine months since the gold and silver ETFs were examined in comparison to spot prices and prices paid at coin shops (see Volume II, Issue 43) and this week's update seemed to be as good a time as any to have another look. This has always been an important subject to me because I've owned precious metals in various forms for many years now and, since I plan to continue to do so for the foreseeable future, I'm always interested in minimizing expenses.

      There will come a day when I'll want to sell just about everything I've got, but that day is very far off.
    • ETF Global Update- By Carl Delfeld of Chartwell ETF & ETFpickoftheweek All the major U.S. indexes finished higher for this week. The Dow Jones average finished up 3.6% for the week, Nasdaq gained 0.7%,while the S&P 500 ended up 1.7%. Europe ETFs as...
    • Dividend Focused ETFs' Performance Depends On Financial Sector-
      The number of new dividend focused exchange traded funds (ETFs) seems to have grown rapidly over the past few years. The unfortunate factor associated with these ETFs is nearly all of them have a heavy weighting to the financial sector. In order for these investments to gain positive traction from a performance perspective, improvement in the performance of financials will need to occur.

      Below is a table of a few of the dividend focused ETFs along with the sector weightings for each respective ETF. The table also includes the ETF yield and performance for the last 12-months. Additionally, the last two columns of the spreadsheet detail the sector weightings for the S&P 500 Index along with the 12-month return for each sector. The full spreadsheet can be accessed at this link.


    • Africa ETF Leads the New Frontier- By Carl Delfeld of ChartwellETF.com Are you ready for the new Frontier? No I am not talking about the next administration but rather the new Van Eck Market Vectors – Africa ETF (AFK). AFK seeks to track the Dow Jones...
    • ETF Update: Is it the Season for Biotech?-

      The main theme for this week continues to be playing defense -- continued strength in the inverse index ETF's and gold.  Market sentiment has deteriorated further, and there is, of yet, no good signal of a bottom.  The model did well in spotting these moves.  (Further explanation for new readers is at the end of this article.)

      Meanwhile, a few sectors are showing some signs of life, including the iShares Nasdaq Biotechnology Index Fund (IBB).

      Time for Biotech?

      Each week we try to feature a new sector on the buy list,  While the overall strength is not high, the IBB ETF qualified for fresh money this week.

    • ETF Pick of the Week-

      By Carl Delfeld of ETFpickoftheweek.com

      New Ireland Fund (IRL)

      This week's pick is in honor of John Templeton not just because of his meeting his final summons this week at age 95 but because it highlights one of the key tenets of his legendary investment career. Rather than look for markets that were performing well, Sir John built a career looking for troubled or ignored markets that traded at attractive valuations.

      Ireland has gone from darling to outcast in less than a year in the eyes of the global investment community. Due to vastly overvalued property markets and loose banking and fiscal policy, the market is done close to 70% since last fall. It's growth rate has averaged 7-8% during the past decade but growth prospects have been officially lowered to zero for 2009 and its economy actually shrank in the first quarter of this year.

    • Gold ETF "tonnes in the trust" increases by 46 tonnes- Earlier today, the "tonnes in the trust" for the SPDR Gold Shares ETF (NYSEArca:GLD) increased by an astonishing 46 tonnes, in what might be termed an "adverse reaction" to the many and varied government assurances that everything is hunky dory at mortgage giants Fannie Mae and Freddie Mac.Yes, a scale change was required for the chart above.

      This dwarfs anything other than the second day of trading for the ETF back in November of 2004 which saw 50 tonnes added.

      The only thing that comes close are two 19 tonne additions, 20 days apart, back in January of 2006, an 18 tonne addition in November of last year, and 52 tonnes added over a period of five days last September, just as the credit crisis was piking up steam.
    • ProShares Financial ETFs versus Real Estate ETFs - which should you own?- In looking at the constituent holdings of the ProShares Ultra Financials ETF (UYG) I noticed that there seemed to be a good number of REITS included.

      To investigate further, I took the holdings of the ProShares Ultra Real Estate ETF (URE) and did a direct compare to the holdings of UYG.

      To my surprise, every single one of the holdings in the Ultra Real Estate ETF, comprising a variety of 80 different REITs, was also included in the Ultra Financials.

      Relative performance --

      It is interesting to see how real estate underperformed the combined financials until March of 2008 when the situation turned around and financials became the one that underperformed.

    • Solar, Clean Energy ETF Investors Need to Take Long View-

      393800698 There are two new exchange traded funds (ETFs) in registration that offer exposure to a fast-growing area of the clean energy market. 

      Van Eck and Claymore are in line to offer solar energy ETFs. Claymore's Global Solar Energy ETF will track the Melvin & Company index of 25 stocks that are selected based on the  importance of solar energy within the company's business model.

    • Brokerage Firms Hug It Out With ETFs-

      Arigold Brokerage firms are putting their arms around exchange traded funds (ETFs) in a big way, even going so far as to build entire portfolios out of them.

      Some of the largest brokerage houses, such as Citigroup's (C) Smith Barney division, Merrill Lynch (MER) and Wachovia (WB), have begun pitching model portfolios made up exclusively of ETFs, reports Ian Salisbury for the Wall Street Journal.

    • ETFs, Stocks Sigh As the S&P Parties (Or Not) Like It's 1999-

      Wsj_graphic_3It's a historical fact: there are the periodic stretches of market declines that affect stocks and exchange traded funds (ETFs) amid the years of steady upward climb.

      Every so often, the ground made up in those climbs is lost, which is the case now. The S&P 500 is currently trading at the same level it was in April 1999, reports E.S. Browning for the Wall Street Journal.

      Up until last fall, the tech bubble was viewed as a short-term setback. But over the past nine years, the S&P 500 has been the worst performing of nine different investment vehicles tracked by Morningstar.

    • Gold ETFs Are Hot Now, But Know the Risks, Too-

      4187431734 As it continually hits new records, it's no secret that gold and related exchange traded funds (ETFs) are the trend right now. Many stories on the subject mention the metal's allure as a "safe haven" in shaky markets, but not everyone agrees.

      John Handbury for  The Market Oracle is a voice of dissent. He contends that investors aren't buying it for safety - they're buying it to make a profit. The metal is subject to the same principles of supply and demand like other commodities, but the supply side differs greatly from oil.

      There is enough gold to last thousands of years. There's no cartel that metes gold to the markets to maintain prices. And gold doesn't often get used up; it merely waits around until it's resold.

    • Financial ETFs Bounce Up After Paulson's Proposal - Will It Stick?-

      Bottom Is the government stepping in and hastening the bottom for financial exchange traded funds (ETFs)?

      Treasury Secretary Henry Paulson came forward today with the most far-ranging overhaul of the financial regulatory system since the stock market crash of 1929. Among the features of the plan, reports Martin Crutsinger for the Associated Press, are:

    • Backtesting ETFs Involves Several Metrics You Should Understand-

      353857608 Most exchange traded funds (ETFs) are put to the test via backtesting. But what, exactly, does that mean?

      Thaddeus Malley for ETF Guide says the average investor should be aware of this.

      Backtests, he says, share common statistical metrics: standard deviation, Sharpe ratio, beta, alpha, R-squared and maximum up/down draw. All of these formulas all work together to explain how the hypothetical index performs and how much risk is associated with it.

      And now, for your vocabulary lesson:

    • Worldwide Growth Can Build Up Demand for Industrial ETFs-

      255549534 The PowerShares FTSE RAFI Industrials Sector (PRFN) exchange traded fund (ETF) could benefit from optimism in the industrial sector down the line.

    • First Actively Managed ETF Off to a Slow Start-

      2727674897 Now that the first actively managed exchange traded fund (ETF) has debuted, let's check in with it.

      On Tuesday, Bear Stearns (BSC) beat all other providers to market, with its Bear Stearns Current Yield Fund (YYY). On its first day of trading, 26,000 shares changed hands. On Wednesday, things had cooled considerably: 2,600 shares traded. Thursday saw 3,000 shares trade, reports David Wilson for Bloomberg.

    • Tapping Into the Energy Sector With a Diversified ETF-

      3698564633 Exchange traded funds (ETFs) have allowed investors to tap into the energy market without futures or oil and gas stocks. There are a broad number of options now, as the market has grown for these types of investment tools.

      Decide if this will be the anchor for your portfolio, or an added investment that will add risks and benefits associated with specialized trading.

      Chuck Marvin for TheStreet has some high-performing ETF options for passive investors:

    • Retail ETFs Are Shopping For Consumers-

      2125751231Retail exchange traded funds (ETFs) posted some losses this week. Where have all the shoppers gone?

      Retailer J.C. Penny (JCP) had a lowered outlook, reports Tomi Kilgore for Thomson Financial, with a bitter sentiment toward the sector. So far this week, it's down 14.8%. The company is 2% of the SPDR S&P Retail (XRT), which is down 5.6% this week.

    • Options or ETFs - which is better for the individual investor?- It is generally agreed that the ProShares long/short and ultra-long/ultra-short ETFs are good vehicles for both hedging and short term trading.

      One voice of dissent is from those who are adept at trading options. Their point is that options are cheaper and can provide more leverage. The variety of option strategies (puts, calls, butterflies, straddles, buy/write, LEAPs, etc.) can provide more flexibility. There are also a much larger number of stocks, each with an associated options chain, to choose from while there are only 64 ProShares ETFs, for example, currently on the market.

      For the individual investor, though, the ease of use derived from the ETF approach may outweigh the benefits of using options. In the case of the ETF, an investor does not need to choose an expiration date or a strike price.
    • New Gulf States / North Africa Frontier Market ETF- IndexUniverse is reporting the offering of a new frontier markets ETF on the Nasdaq: the PowerShares MENA Frontier Countries Portfolio (PMNA). The PMNA will track the Nasdaq OMX Middle East North Africa Index, which includes the countries of Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Nigeria, Oman, Qatar, and the United Arab Emirates. Claymore recently offered the Claymore/BNY Mellon Frontier Markets ETF (FRN) on the Amex, which is more global given that in also includes countries in Asia, Europe, and Latin America, along with the Middle East and Africa. As a result of its focus, the PMNA is a little more concentrated in oil-rich countries.
    • ProShares ETFs fail to track NASDAQ properly today - is this rally meaningful?- Some numbers to consider from today's trading:

      NASDAQ Composite up 2.28%
      NASDAQ 100 ($NDX) up 2.43%
      PowerShares QQQ (QQQQ) up 2.38%

      ProShares has a couple of ETFs that track the NASDAQ 100 on the long side and on the short side. One would have expected the double long ETF to move up nearly 5% and the double short ETF would have moved down nearly 5%.

      What we saw instead is the following:

      ProShares Ultra QQQ (QID) up 3.54%
      ProShares Ultra-Short QQQ (QID) down 3.74%

      Does this mean that ProShares was not able to deliver the expected returns and failed to track their underlying indexes properly? Or does it mean that investors did not completely buy into today's rally in the NASDAQ and, as a result, did not sell off the ultra-short ETF or bid up the ultra-long ETF as much as expected?

      I see this happen periodically. Is it a tell? Is it an indication we can't trust today's rally? Stayed tuned.
    • BNN TV appearance May 8, 2008
    • BNN TV Appearance June 10, 2008 part 2
    • Larry Glazer - CNBC TV 6/4/2008
    • Within five tonnes of a new record at the GLD gold ETF- The SPDR Gold Shares ETF (NYSEArca:GLD) continues to add to its holdings (see the company's website for details). As of Wednesday, the "tonnes in the trust" for the world's most popular gold ETF increased to 659 tonnes, just short of the record set in March.
      GLD_total.png" alt="" border="0" />The trust now has a net asset value of over $21 billion with average trading volume in excess of 10 million shares per day and has attracted an increasing number of investors in recent weeks.

      Relative to many other commodities, the gold price has lagged this year. In fact, with an 11 percent year-to-date gain, the yellow metal is 6th from the bottom in gains this year of the 19 commodities in the Reuters/Jeffries CRB Index.
    • Adding Wood To Your Portfolio - No Kidding- Are you interested in generating returns that consistently on-average beat the S&P 500, have a low correlation with other assets, and have low volatility of returns? Looking to get into the commodity markets, but worried that crude oil, natural gas, coal, and the soft food commodities have gotten ahead of themselves? No need to worry. We have the prefect investment for you - wood. No kidding, wood. And when I say investment, I mean investment. Waiting around for trees to grow is not for active day traders.
    • ETF Update: "There's Gold ....-

      .....in them thar hills"  (Origin Unknown).  Despite the dubious construction and grammar (language buffs can check here) the statement has a certain ring.  The reason is the enduring quality of gold as a store of value.  In modern times, this means a value that is impervious to the actions of governments and central bankers.

      The quest for gold is so powerful that a wise expert on the subject put it thusly:  "I know what gold does to men's souls."  That expert was a character in the 1948 Bogart classic, The Treasure of the Sierra Madre,

      Investors need not risk their souls to consider gold mining stocks, but it is wise to take notice when this sector nears the top of our ratings list.  It provides a strong signal of inflation concern and the need for a defensive posture.  As usual, our weekly update includes something about our featured sector as well as the implications for the overall market.

    • The Debate On Levered/Inverse ETFs-

      A down market would do this.  That is, bring out a debate on the benefits of hedge fund-like investing.  With indexing and ETFs, one would think it’s all about gaining exposure to markets (hopefully on the upside) and reducing or eliminating exposure when required as a defensive measure.  You can call that effectively tweaking the asset mix or full out market timing.

      However, today’s ETF industry is one that has evolved.  With inverse ETFs, any investor can now literally “build their own hedge fund”.  Shorting and the use of options requires a margin account which is not a big deal but now as long as one can open a trading account of the most basic kind, there’s not much to it to gain short exposure.
      So this brings me to an email I received today care of Google Alerts which is a pretty amazing service.  You can basically tell Google to email you when anything new appears on the web related to a specific search.  Of course, for this blog something like “ETF” and “exchange traded fund” would do it.  The bad side to the service is you can easily have a big pile of emails in your inbox.

      Anyway, here’s what I received today:

    • ProShares ETFs - why trading volume makes a difference- ProShares has a diversified lineup of ETFs that allows investors to adopt various strategies based on individual sectors, market-cap, desire to be long or short, etc.

      Of the 64 ETFs currently offered, it is clear that some are more popular than others. This popularity is translated into trading volume.

      Why volume matters --

      The greater the volume, the smaller the bid/ask spread tends to be. Higher spreads are like a hidden fee that subtracts from investor returns. This is especially of concern to short-term traders.

      On a related note, an investor might ask if this is a liquidity issue. Is it related to the liquidity of the stocks that make up the ETF? According to IndexUniverse.com, research shows that it is the liquidity of the ETF, and not the liquidity of the underlying components that really matters.

      Lower volume can be associated with higher expense ratios. The heavier trading volumes associated with larger funds implies that these ETFs can spread their expenses over wider ownership bases.
    • ETF Update: Time for Inverse Index Positions?-

      It was a difficult week for investors, almost regardless of market sector. As we have observed in our last several updates, a general deterioration in market sectors helps the investor get a good feel for the overall market. Last week we wondered whether there was anyplace to "hide". We noted that the inverse market sectors ETF's were showing surprising strength.

      Markets versus Sectors

      Most ETF investors are interested in finding the best sectors. The advantage of considering market ETF's and their inverses -- SPY and SH, DIA and DOG, QQQQ and PSQ -- is the ability to compare the overall market to individual sector performance.

    • BNN TV appearance May 29, 2008 "Stars and Dogs"
    • A Bullish Case for ETFs in a Bear Market-

      Well my continued lack … well, maybe a better word is reduction … in blogging has been compensated by increased conference speaking.

    • ETF Update: Nuclear Takes the Lead-
      The Market Vectors Nuclear ETF (NLR) has taken the top position in our weekly sector rankings. The top four holdings in this ETF constitute about 10% each, and the list drops rapidly to holdings of 5% or less.

      Reviewing Our Mission

      Our weekly ETF Update is designed to assist both investors and traders interested in ETF's and Sector Rotation. Before turning to the current rankings, let us undertake a review for readers new to this series.
    • Where Are Precious Metals Headed In 2008 (With A Focus On Gold)-

      Precious metals have appreciated considerably in midst of all the mess within the US economy. Gold has pushed from under $300 an ounce in 2002 to over $1000 - an all time high in nominal terms, while silver during the same time period rose from under $5 an ounce to over $20.

       

    • Malaysiapore ETFs- By Carl Delfeld of the Chartwell ETF Advisor and Chartwell Partners Asset Management Like two turbine engines powering a jet plane, the Malaysian (EWM) and Singapore (EWS) markets and ETFs have been working smoothly in tandem to give investors superior...
    • ETFs Of ETFs Are Here-

      Well, not here if you’re anywhere outside of Canada. And not here, meaning not “right now”. But close (if you’re an American) and soon in terms of wait time.

      As a follow up to my recent posting, “Funds Of ETFs Are On Their Way“, we now have news from Claymore Investments in Canada of the world’s first ETFs of ETFs. If someone knows of others already available, please let me know.

      Here’s what I know and it’s straight from the source:

      Tomorrow, Claymore Investments is launching the Claymore Global Balanced Income ETF (TSX:CBD) and the Claymore Global Balanced Growth ETF (TSX:CBN). They are the first ETF Wrap portfolios in Canada (and the world) to provide a single ETF as a core part of an investor’s portfolio.

    • Our 2008 ETF Predictions-

      Fireworks It was a busy, exciting year in the world of exchange traded funds (ETFs) in 2007. But it's not time to rest on our laurels just yet, because all indications are that 2008 is going to be even bigger and better. Hundreds of new ETFs are in registration, the assets continue to flow and the word of mouth is spreading.

    • Full Time Trader - Revisited-

      Before Christmas I had the bright idea of quickly calculating how much it would take to go from a typical 9 to 5 job to trading full time. I admit, I was grossly conservative in my calculations. So much for doing things on the back of an envelope as your professors tell you to do at a dinner party, eh? In any event, I decided to revisit the full time trader idea but this time armed with what I think are real life parameters and a couple of assumptions that I would consider if I were a full time trader.

    • Shorting Explained: To Go North, Head South- An excerpt from Dave Fry's new book “Create Your Own ETF Hedge Fund: A DIY ETF Strategy for Private Wealth Management” - reprinted with permission of the author and publisher: ***
    • When It Comes to Currency ETFs, You've Got Options-

      Currencies once were the domain of the big-time investors, or were considered "too risky," but exchange traded funds (ETFs) have made it easy for regular investors to get in on them, too.

      These are interesting times for currency ETFs, says David Bogoslaw for BusinessWeek. The dollar was on a downtrend until recently, when it began showing some strength against the euro and other currencies.

      The Federal Reserve's rate cuts and speculation that economic recovery in the United States might be speedy have had a hand in the recent performance. However, investors will still be concerned with reducing their exposure to U.S. equities and Treasury bonds and currency ETFs will attract interest.

    • ETF Trading is a Key to Sector Rotation-

      The rise of ETF's has caused a major change in trading, particularly in sector rotation strategies.  There are several good current articles on this subject.

    • Attack of the Clones? No … I-Banks-

      Lehman Brothers have now entered the ETF fray (actually, their product line up contains exchange traded notes) and they’re branded as Opta ETNs. Well this is an interesting development and one that I don’t find very surprising.

      Let’s think about the ETF industry for a minute (I am aggregating ETNs and any other derivative of this type of instrument … no not that derivative … into the term “ETF”). Are we moving more and more towards alternative asset classes? Are we adding sexier functionality to products? Are actively managed ETFs on the horizon? The answer to these questions is not just “yes” but we’re basically there. If the ETF industry is less about beta and more towards something else … some alternative or exotic or “non-standard” beta and even possibly (wow!) alpha then watch out. Investment banks are going to jump in and then some.

      Why wouldn’t they? Once you move away from the more traditional views of passive management, you’re moving closer to the I-banks sweet spot. The higher fees (margins) don’t hurt either.

    • Five ETF Sectors To Recession-Proof Your Portfolio-

      The signs are all there that we're in a recession: many exchange traded fund (ETF) sectors have taken a hit, Congress is calling hearings, the Federal Reserve is talking about more rate cuts, housing, retail and unemployment numbers are unimpressive at best.

      When will the government finally admit what we've all suspected for some time now - that the recession has already started? We can't answer that, but what we can tell you is that now is the time to start thinking about how you can protect your portfolio. The last thing you want to do is wait until it's too late.

      Here are a few sectors that have been bucking the trend:

      Agriculture
      Let's face it: no matter what the economy looks like, people gotta eat. Sure, in times of belt-tightening, you might cut back on the beluga caviar, but you'll still want nutritious and low-cost foods such as bread, milk, meat and vegetables. Apparently, ETFs are on a "see food" diet.

    • ETF Investors Dig for Platinum, Gold and Silver-

      751pxplatinumringsYes, investors are flocking to gold exchange traded funds (ETFs) as the dollar weakens.

      Case in point is streetTRACKS Gold Shares (GLD): after gold surged to a record $992 an ounce earlier this week, the fund traded nearly 11.5 million shares, reports Joanne Von Alroth for Investor's Business Daily. No one is particularly surprised, though.

      What is surprising is the performance of white metals.

    • Sign of the Times: UltraShort QQQ ETF Is Top Fund So Far This Year-

      Cosoompa One sign of the turbulence in our markets: the top performing fund year-to-date is an ultra short.

      The ProShares UltraShort QQQ (QID), which holds some of the biggest stocks in the Nasdaq 100, is up 48%, reports David Penn for Trading Markets.

      Inverse funds such as these are designed to move in the opposite direction of its underlying index. In the case of QID, the "UltraShort" label means it delivers twice the opposite. These days, when the market seems to be heading down more than it's moving up, short ETFs are popular with investors who want to keep earning, regardless of conditions.

    • Commodities and Short ETFs Tell the First-Quarter Tale-

      The challenging first quarter has come to a close, and by taking a look at the top performing exchange traded funds (ETFs) for the period, one can get a sense of what the story was. Short ETFs and commodities were the strongest performers, signaling that the markets were tough for investors and they turned to shorts to capitalize, or commodities to hedge rising costs. Meanwhile, many investors shied away from stock ETFs as the market continued its attempt to right itself.


      United States Natural Gas (UNG):       It's up 33.8% year-to-date, no surprise given that the cost of energy has skyrocketed. It settled at $10.101 per 1,000 cubic feet. Natural gas isn't the same as gasoline used to power cars; it's used residentially, commercially and industrially to heat homes, heat boilers and generate electricity.

    • Has the Fat Lady Sung?: Japanese Stocks Will Turn When US Treasuries Turn- In November 2007, we openly wondered which big institution would bite the dust and trigger the extreme policy response that eventually broke the negative credit spiral. While there are conspiracy theories that Bear Stearns (BSC) was deliberately shot down by rumor-mongering so it could be bought for a song, some are also suggesting that Bear Stearns may also represent the equivalent of the “fat lady” singing i.e., the beginning of the end of this credit crisis opera. The Fed has pulled out all the stops to get its arms around a massive credit crisis. Most importantly, they have opened the Fed’s discount window to securities firms for the first time since the Depression, while the government has relaxed the capital rules for Freddie Mac and Fannie Mae, ostensibly to put a prop under the collapsing US mortgage market.
    • Get Serious With Currency ETFs As Dollar Hits New Lows-

      279845891 As the dollar hits new lows, currency exchange traded funds (ETFs) are getting more attention than ever.

      Rydex Investments, home of the CurrencyShares lineup, and the first family of currency ETFs, introduced CurrencyShares the website for information and commentary on Foreign Exchange Analytics (FXA), which is under the "research and tools" option.

      The new commentary gives information on the world's major currencies, representing the largest and most liquid asset class. Currency as an asset class provides investors with diversification benefits and the chance to capitalize on the cyclical nature of currency valuations. Currency tends to follow longer-term trends over time.

    • Market Statistics - indecision- This week our Alert HQ market scan process has provided a set of mixed signals. Is this evidence of investor indecision or consolidation or just a brief stop before the next big move? We now have four weeks worth of data, as seen in the chart below, and all in all, it is hard to interpret this data in a bullish manner.

      Market Statistics, WE 3-14-2008
    • Global ETFs Rally with Fed Action- By Carl Delfeld of the Chartwell ETF Advisor Yesterday was an ugly day for ETFs as the US stock market sank in the afternoon. (Dow -1.29%, S&P 500 -1.55%, Nasdaq Composite -1.95%). The S&P 500 Index closed at a 1-1/2...
    • Looking Under the Hood of Alternative Energy ETFs- Alternative energy is the thing, even in the exchange traded fund (ETF) arena. It's so in right now, in fact, the venture capitalists have poured a record amount of money into the business. In a report issued by Dow Jones...
    • Six Reasons ETFs Are Better Than Mutual Funds- Exchange traded funds(ETFs) can give your portfolio an edge and the excessive growth of the industry is proof of their success. Dan Wiener and Jim Lowell for Index Universe list six advantage that ETFs can provide for you. Portfolio Construction....
    • Nickel and ETN Are Part of the Commodities Bull-

      3249664289The falling dollar has investors scurrying for cover under exchange traded funds (ETFs) representing gold, silver and...nickel?

      There's no nickel ETF, but there is an exchange traded note (ETN): the iPath Dow Jones AIG Nickel TR Sub-Index (JJN). The fund is up 20.2% year-to-date and 10.3% during the past week. Besides the usual suspects of the weakening U.S. currency and general economy, what else is behind this performance?

    • Aussie Dollar and Chinese Inflation Surge-

      Foreign_currency
      By Carl Delfeld of the Chartwell ETF Advisor and ETFfolio.com

      ETF investors need to be aware that inflation in the Asia-Pacific region is creating upward pressure on two key currencies. What will be the impact on exchange-traded funds that track markets in the region?

    • U.S. Dollar Falls Further and Currency ETFs Rally-

      2605750927 It could be just what exchange traded fund (ETF) investors who are bearish on the U.S. dollar want to hear: another day, another low.

      After two days of setting records, the euro once again set one on Thursday, reports Erin Conroy for the Associated Press.

      The dollar's decline could complicate the Fed's decision-making progress in regards to the economy. That's because when the Fed cuts rates in an attempt to jump-start the economy, those cuts also drive the dollar lower.

    • India's Economy and ETF Faces New Challenges- By Carl Delfeld of the Chartwell ETF Advisor India’s government, economy and stock market tracked by the new WisdomTree exchange-traded fund (EPI)face a series of challenges which could dent India's growth and attraction to global ETF investors. First, higher interest...
    • China ETF stuck in channel or about to break out?- The iShares FTSE/Xinhua China 25 Index ETF (FXI) has been in a downtrend for months. In the last month or so it has bounced off a support level in the $140 area several times. The ETF has finally begun to turn up. On Tuesday it came right up against its downward sloping trend line. On Wednesday it fell back within the channel (see chart below).

      Chart of FXI
      Are we seeing merely technical trading or are there fundamental developments in the Chinese economy that will drive the ETF one way or the other?

      In reviewing some of the recent news out of China there are a couple of developments that are worth discussing.
    • Chartwell Launches Global Innovation Folio- Boulder and Colorado Springs, CO - Chartwell Partners Asset Management has launched another folio, called the Global Innovation 30 Folio. The folio is based on Business Week's annual feature, The Most Innovative Companies Rankings, which is a collaborative effort with...
    • Is the U.S. Falling Behind When It Comes to Innovative ETFs?- The United States isn't chopped liver when it comes to offering interesting and creative exchange traded funds (ETFs), but where do we stand when compared with the rest of the world? Matthew Hougan for Index Universe says that the frontier...
    • The Year of Metals, Food and Foreign Markets ETFs- Foreign markets and international-focused stocks and exchange traded funds (ETFs) have displayed exceptional growth and gained popularity over the past couple years. The foreign markets may not outperform U.S. market forever, but they are worth your consideration and time in...
    • Nuclear Power Sector Is Beginning to Glow, But There's Only One ETF- In these times of global warming and growing concern over emissions, one area of growing interest for exchange traded fund (ETF) investors is that of nuclear power. Peter Charles for Seeking Alpha is currently employed in the nuclear power industry...
    • New ETF Gives Global High Dividend Yield Exposure- State Street Global Advisors began trading a new exchange traded fund (ETF) today: the SPDR S&P International Dividend (DWX). The fund tracks the S&P International Dividend Opportunities Index, which consists of 100 tradeable, exchange-listed stocks from around the world that...
    • South Korean ETF Needs More Financial Reforms-

      Dressedsuccesswoman
      By Carl Delfeld of the Chartwell ETF Advisor

      The iShares Korea exchange-traded fund's (EWY) trading pattern is unfortunately starting to look a bit like Japan's. The ETF's top three holdings, Samsung, Posco and Kookmin Bank, account for 30% of assets and all face some market headwinds.

      But the key constraint to higher South Korea economic growth and a bull market is its over-regulated financial sector.

    • If It's Clinton Or Obama, These ETFs Might Benefit- Now it's time for the flip-side: What exchange traded funds (ETFs) stand to gain from a Democrat (that will be either Barack Obama or Hillary Clinton at this point) occupying the White House? If Obama wins, says Kevin Baker for...
    • Sector Rotation In A Global ETF Portfolio- Adapting your investment strategy with exchange traded funds (ETFs) is important when economies around the world are becoming more interrelated. Doing so will add value and increase the chance of outperforming benchmarks, reports Carl Delfeld for Index Universe. The wheres...
    • Platinum Price Skyrockets, But There's No ETF to Choo-Choo-Choose-

      206481725 Platinum prices jumped in January because of the power outage in South Africa - too bad there's no exchange traded fund (ETF) for the precious metal available here in the United States.

      Prices will continue to rise and the end is not in sight, say analysts. If you have your heart set on a platinum piece this Valentine's Day, or rather your valentine has platinum tastes, be ready to pay the price. Guys planning to pop the question might have a little sticker shock in store for them, says Allen Sykora for Wall Street Journal.

      Platinum prices are set for a jump of 24% compared to the end of 2007.

      The spot price for platinum closed at $1,911.00 on Tuesday. The prices on platinum will continue to be supported because of the power disruptions and the lower production expected for this year.

    • Actively Managed ETFs vs. Regular ETFs- In our recent post on actively managed exchange traded funds (ETFs) being closer to a reality than ever before, reader Marketworth wanted to know the difference between an actively managed ETF and a traditional one. We're here to help. Traditional...
    • The Global Sector ETF Spread-

      The ten global exchange-traded funds that make up the S&P Global 1200 are a useful tool for ETF investors since they cover 70% of world equity value. They also allow advisors and investors the flexibility to execute a smart strategy to overweight or underweight global sectors.

      So far this year, the best performing global sector has been the iShares S&P Global Healthcare Sector (IXJ) which is down 7.1% while the worst performing global sector has been the iShares S&P Global Technology Sector (IXN) which is down 14.8%. This spread of over 7% is significant but a look at a shorter timeframe highlights why a rotation strategy of shifting into undervalued sectors can pay off.

    • Is a newish ETF a good way to invest in the Jewish state?-

      Someone called us recently to ask about a newish ETF called the SPDR Emerging Middle East & Africa (Amex: GAF). The ETFshowimagephp.jpg is heavily weighted around three countries — South Africa (65%), Israel (17%) and Egypt (6%).

    • New York Stores Start Accepting Euros - Currency ETFs Might Like It- Money is now talking with a European accent in New York as some stores have begun accepting euros, making some currency exchange traded funds (ETFs) look pretty good. Angela Moore for Reuters says that some shop owners have decided that...
    • Fancy Exchange Traded Funds for all Appetites-

      ETF’s are a relatively safe way to invest in the stock market. It is often the preferred way to invest for inexperienced investors or those who don’t have much to invest. It allows you to diversify even the smallest of portfolio’s without the cost of buying many different stocks. With the markets in recession mode, here are some ETF’s that you might consider:

    • The New Hao China Smaller Company ETF- By Carl Delfeld of the Chartwell ETF Advisor The Claymore/AlphaShares China Small Cap Index ETF (AMEX: HAO) began trading this week offering yet another way to get at the China growth story. Claymore's HAO ETF has an expense ratio of...
    • Microsoft Makes an Offer to Yahoo - What Will It Mean for Tech ETFs?- The war over who will be Internet King has another battle brewing, and it's going to make technology-related exchange traded funds (ETFs) something to keep an eye on. Yahoo (YHOO) has been slumping, and Microsoft (MSFT) has swooped in with...
    • Claymore 'Acts Responsibly' and Closes 11 ETFs- After three years of billions of dollars flowing into exchange traded funds (ETFs) and hundreds being launched, one ETF provider is showing their accountability and trimming the hedges. Following a recommendation and approval from their board of directors, Claymore today...
    • Video of Tom Lydon on Squawk Box This Morning-

      Tom Lydon appeared on CNBC's Squawk Box this morning to discuss ETFs with host Becky Quick. A video of this morning's segment with Tom is below:

    • Gambling ETF Gives Purest Play on Casinos- One area of the entertainment industry that doesn't appear to be suffering in the wake of the writer's strike and the otherwise tough economic climate is gaming, and the exchange traded fund (ETF) industry is launching funds to cover the...
    • Aussie ETF (EWA), Rio Tinto & Banks- By Carl Delfeld of the Chartwell ETF Advisor The Australian exchange-traded fund (EWA), a steady performer over the past few years, has been a bit topsy turvey during the last quarter. Normally, one would think that the trouble lies with...
    • Pricing Japanese Banks for Bankruptcy is Overdoing It- Many have dismissed the Fed’s unprecedented 75bps inter-meeting cut as an overreaction to plunging equity prices and/or an effort to get ahead of the subprime contagion curve, which they have fallen significantly behind. However, what if the move was in response to the potential for a much more serious credit crisis that is still working its way through the global financial system?
    • Shorting ETFs Without The Risk- Now that exchange traded funds (ETFs) have proliferated, investors have a lot of room to consider their options, one of which is short ETFs. Most short sellers have found over the past 20 years that there is more opportunity to...
    • Do Global Exchanges Follow Country ETFs - Up and Down?- By Carl Delfeld of the Chartwell ETF Advisor and Chartwell Partners Wealth Management Publicly-traded stocks of global stock exchanges, like many country exchange-traded funds, had a great year in 2007 rising about 70 per cent due to record trading volumes....
    • Recession Survival Tips And ETFs- It's time to face the music, as the odds of a recession have grown, and major decisions regarding lifestyle, investments and exchange traded funds (ETFs) will have a greater impact. In an effort to prepare, Kathleen Pender for San Francisco...
    • Overseas ETFs Suffer With U.S.- The U.S. recession fears are touching down on all parts of the globe, and exchange traded funds (ETFs) suffered along with world markets. Trang Ho for CNN Money reports that similar to the U.S. indexes, most bounced back after hitting...
    • Internet ETFs May Take Off With Yahoo's New Plan- Internet icon Yahoo Inc. (YHOO) is seeking to boost profits, and thus boost related exchange traded funds (ETFS) and pacify investors who have been demanding more action to reverse the steep decline in the company's stock price. Co-founder Jerry Yang...
    • Short ETFs Shining Bright- These days, it's all about the short exchange traded fund (ETFs). Scroll through the list of top-performing funds year-to-date on Morningstar and you'll see the proof: the top 33 performing funds so far this year are all variations on the...
    • Is the Worst Over for Financials ETFs?- All it takes is a quick browse under our "financials" category to see that related exchange traded funds (ETFs) have taken a real beating over the last year. The credit crisis, the mortgage crunch, the slowdown in consumer spending and...
    • Futures Down 520 Points- Dow futures are down 520 points while the SP futures and Nasdaq futures are down 60 and 75 points, respectively.  Overseas markets were pounded today, with the Dax taking a 7% hit. Here’s a 3 day, 15 minute chart next to a 3 month daily chart of the Dow and S&P futures.  Notice the gap down [...]
    • ETFs - You Can Have A Dream, Too- The Rev. Dr. Martin Luther King Jr. had a dream...and so can you, possibly on a personal level with your exchange traded fund (ETF) investments. Dr. King was a Baptist minister by background and later became a civil rights activist...
    • Which Way Japan Market & ETFs?-

      Which way will Japan exchange-traded funds such as the iShares MSCI Japan (EWJ) go as negative economic news fights what is perceived as very attractive valuations?

    • The Falling Dollar and Currency ETFs-

      Currency It is no secret that the U.S. dollar has been falling against other major currencies, as evidenced by exchange traded funds (ETFs) and related investments.

    • Smart Swissie (FXP) and Samurai Currency (FXY) ETF Play-

      In our Chartwell Global Strategy portfolio, we have had exchange-traded fund positions in both the Swiss Franc (FXP) and Japanese Yen (FXY).

    • What's Your ETF Sell Strategy?-

      The S&P has not had a 10% correction in many months....until today.

      Joe Bel Bruno for the Associated Press reports that persistent fears of a recession, weak retail sales figures and disappointing results from Citigroup sent the markets plunging.

    • Consumer Spending and ETFs in Retreat-

      U.S. consumers seem to be reluctant to open their pocketbooks and the impact is showing in the numbers and in the weak performance of exchange-traded funds that track consumer spending such as the iShares S&P Global Consumer Discretionary Sector ETF (RXI).

    • British Pound and ETF Slide Backward-

      One of last year's strong currencies seems to have taken a bit of a stumble along with its exchange traded fund (ETF) and for once, it's not the U.S. dollar.

      The British pound was a powerhouse at one point, trading nearly double the rate of our own dollar. Today, reports Gary Gordon of ETF Expert, the currency is trading near 52-week lows and is worth only slightly more than its value at the start of 2007.