Category

Leveraged ETFs

Goldman Sachs ETF? Why Broker-Dealer ETF May Be Over-Subscribed!

By | China ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Leveraged ETFs, Special Sectors ETFs, US Markets and ETFs | One Comment

I usually enjoy articles by John Spence at CBS Marketwatch. And for that matter, Mr. Spence did a fine job representing Morningstar’s John Gabriel on the potential positives for the iShares DJ Broker Dealer Index Fund (IAI). Nevertheless, I’d like to offer an opposing viewpoint on the “high risk, high reward” stamp of approval. Analyst Gabriel is quoted as describing the iShares Dow Jones U.S. Broker-Dealers (IAI) as an “interesting satellite holding.” Gabriel notes that IAI has a tight correlation of 88% over 3 years with the S&P 500 and that it…

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ETFs That Investors Are Buying on Weakness

By | Consumer ETFs, Current Affairs and ETFs, Emerging Market ETFs, Energy ETFs, ETF Strategy, Europe ETFs, International ETFs, Leveraged ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

A 3-day bout of selling pressure? How far back do we need to look to find that short-term trend? Did 9/23 usher in the start of the correction? There are plenty of reasons for the sudden change in sentiment, even as U.S. consumer sentiment hit its highest levels since January of 2008; that is, we’ve got more than a few causes for a pause. The U.S. dollar is hitting 7-month lows against the yen. Both existing home sales and new…

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3 ETFs for the Weakening U.S. Dollar

By | Currency ETFs, Current Affairs and ETFs, Emerging Market ETFs, Financial ETFs, Leveraged ETFs, Short ETFs, Special Sectors ETFs | No Comments

Early Friday morning, 8/21/09, U.S. stocks hit intra-day 10 1/2 month highs. It took little more than a headline… “Existing Home Sales Fastest In 2 Years.” On the one hand, it appears the “quantitative easing” efforts by the Federal Reserve are working swimmingly. The Fed’s buying long-term treasuries. Interest rates on mortgages remain near historic lows. And foreclosure hunters, as well as first-time home-buyers, have stepped up to the home purchasing plate.  Yet the Fed’s only part of the “stimulating” picture. U.S. authorities like the Federal Reserve and Congress…

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ETF Turnover Higher For U.S. Markets Than For Emerging Markets

By | Asia ETFs, China ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Frontier Market ETFs, Latin America ETFs, Leveraged ETFs, Short ETFs, US Markets and ETFs | No Comments

Trade-ability is one of the premier features of exchange-traded funds. Yet studies on how investors choose to exercise the right to buy-n-sell, rather than buy-n-hold, are only now coming to light. Yan Zilbering and Donald Bennyhoff of the Vanguard Group recently came up with several intriguing observations on the trading of ETFs. Yet their conclusions focused on some of the more obvious discoveries. For example, the top 20 most heavily traded ETFs by dollar volume accounted for almost 80% of all ETF trading. This is not…

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The 3 Big Changes ETF Investors Have Been Making (EWZ, BRF, FAS, FAZ, GLD)

By | Commodity ETFs, Emerging Market ETFs, Financial ETFs, Latin America ETFs, Leveraged ETFs, US Markets and ETFs | One Comment

Scores of analysts look to derive meaning from fund flows. Specifically, if more investors are buying a particular ETF, it may be a sign that momentum is building. (It may also be a sign that the herd is moving in a direction that you shouldn’t be.) By the same token, when investors start to withdraw or sell certain holdings, it may be indicative of an ETF losing favor. Perhaps investors are rotating away from a given economic segment, country or…

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