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Actively Managed ETFs

3 Ways An ETF Investor Can Approach The Increasingly Erratic Stock Market

By | Actively Managed ETFs, Bond ETFs, Current Affairs and ETFs, Defense & Aerospace ETFs, ETF Philosophy, ETF Strategy, Health ETFs, Special Sectors ETFs, Telecom ETFs, US Markets and ETFs, Utilities ETFs | No Comments

If an economic data point came in much weaker than expected last year, the U.S. Federal Reserve’s monetary stimulus offered reason enough to buy stocks. Bad news served as good news. At the same time, when a data point exceeded expectations, the resilience of the American economy also inspired equity purchases. Good news served as good news. In fact, any news prompted additional risk taking in 2013. Flat corporate revenue? It will improve. Fed exit from quantitative easing (QE)? They…

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Alternative ETFs: Can You Increase Your Risk-Adjusted Performance?

By | Actively Managed ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Leveraged ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Is anyone bothered by the bizarre relationship between a sub-par economy and ever-rising stock prices? In brief, dismal hiring coupled with negligible wage growth encourage the Federal Reserve to continue suppressing interest rates with its emergency bond buying program. Corporations use the ultra-low rates to refinance debt, repurchase stock shares, cut costs and enhance profit margins, while rarely using the easy money to hire. Meanwhile, investors increase their margin exposure to buy riskier assets and/or simply opt for riskier assets…

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Which ETFs Are Benefiting From U.S. Dollar Woes?

By | Actively Managed ETFs, Asia ETFs, Bond ETFs, Currency ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, International ETFs, Large Cap ETFs, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

The U.S. dollar has certainly lost value since the Federal Reserve began printing greenbacks to purchase U.S. bonds. On the other hand, most of the damage occurred at the onset of the Fed’s quantitative easing program(s). Since the “euro” came under extreme pressure during the sovereign debt crisis of 2011, and since Japan’s campaign to radically devalue its currency (yen) in 2012, PowerShares DB Dollar Bullish (UUP) has been remarkably stable. On the other hand, current market participants have sniffed…

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“Sell on May 31” Educates ETF Investors

By | Actively Managed ETFs, Bond ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Special Sectors ETFs, US Markets and ETFs | No Comments

Permanently bullish commentators have dismissed the monstrous sell-off on the final day in May as a profit taking exercise. They maintain that rising bond yields as well as momentum in non-defensive stock segments confirm underlying strength in the U.S. economy. Unfortunately, those who ignore the true nature of the interconnected global economy — one that is under an increasing amount of stress — may find themselves falling victim to a summertime portfolio slaughter. Consider what actually transpired in May. Officials…

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“Tapering Talk” Is Cheap… Buy Rate-Sensitive ETFs On Significant Dips

By | Actively Managed ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Materials ETFs, Real Estate ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Jason Geopfert of SentimenTrader.com recently explained that a three-month view of the S&P 500’s upside persistence (closing near a daily high) has reached an extreme seen in 4 other instances over the last decade. On each of those occasions, the market hammered risk assets with a significant pullback. In the last 30 years, the only time that markets did not sell off dramatically when upside persistence was this extreme occurred in 1995. So is the market experiencing a 1995-like renaissance?…

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3 Reasons to Embrace This Particular Active ETF

By | Actively Managed ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Mid Cap ETFs, Small Cap ETFs, US Markets and ETFs | One Comment

Long-time readers and listeners know that I am an active manager of passive “Index ETFs.” I favor exchange-traded index vehicles because the diversification comes with low expenses, exceptional tax-efficiency and intra-day liquidity. The media have regularly inquired why I rarely endorse the use of “Active ETFs.”  For one thing, these funds involve more frequent trading, creating a likelihood of adverse tax consequences for the shareholder. There are less tax concerns in an index fund that only rebalances quarterly or annually….

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Step Away From The Foreign Currency ETFs

By | Actively Managed ETFs, Commodity ETFs, Currency ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Media outlets continue pressing the notion that new cash is entering the stock market from the sidelines. And for the most part, this may be an accurate depiction. Anecdotally, many of my risk-averse money management clients have asked me to move them up from “ultra-conservative” to “moderately conservative.” Similarly, a number of traditional “moderates” are asking if now is the right time to become a bit more aggressive. In some cases, these clients are providing me with dollars from savings…

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The Return of the “Yen Carry Trade” Benefits The Currency Harvest ETF

By | Actively Managed ETFs, Currency ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, International ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Japanese stocks have been perennial underachievers. So when I suggested on December 20 that investors might benefit from WisdomTree Japan Hedged Equity (DXJ), I was asking certain readers to challenge conventional wisdom. (See “A Foreign Stock ETF For A Rapidly Declining Currency.”) My thought process on the matter was relatively straight-forward. The incoming prime minister of Japan expressed a determination to devalue the yen through unconventional bond-buying measures. At the time, it appeared that those measures might even rival the…

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The Death of Bond ETFs? Change Your Fixed Income Lenses

By | Actively Managed ETFs, Bond ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy | No Comments

The S&P 500 is above 1500. CBOE S&P 500 Volatility (VIX) is sitting near 15-year lows. And 88% of iShares S&P 100 (OEF) component stocks are above respective 200-day moving averages. Normally, you might hear more discussion about complacency and/or an imminent sell-off. Instead, you’re hearing more about the “Great Rotation” out of bonds and into stocks. In fact, if Laszlo Birinyi or Jeremy Siegel have your ear, we’ve just barely begun an exuberant stage for equities. Bullish prognosticators certainly…

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How ETF Investors May Profit From Currency Devaluation

By | Actively Managed ETFs, Currency ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, International ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

ETF enthusiasts can make profitable investing decisions based upon government/central bank currency manipulation. For example, a little more than a month ago, I wrote “A Foreign Stock ETF for a Rapidly Declining Currency.” In the article, I discussed Shinzo Abe’s determination to devalue the yen substantially through aggressive monetary intervention so that Japan’s exports would be more competitive on the world stage. The beneficial trade? An investor who chose WisdomTree Japan Hedged Equity (DXJ) has seen month-over-month gains of  7.9%. In…

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