Category

Materials ETFs

Sector ETFs In 2014 And 2007: The Inconvenient Comparison Feels Like A Bone In The Throat

By | Bond ETFs, Current Affairs and ETFs, Dividend ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Health ETFs, Internet ETFs, Materials ETFs, Real Estate ETFs, Retail ETFs, Special Sectors ETFs, Telecom ETFs, US Markets and ETFs, Utilities ETFs | No Comments

The S&P 500 has served up a 7%-plus return through the first six-and-a-half months of the year. That’s remarkably impressive when one considers the depth of geopolitical conflict, the implication of structural under-employment, the October end of quantitative easing (QE3) and the strong possibility of a significant change to the legislative branch this November. Naturally, some investment sectors of the economy have outperformed others. Here’s a peek at the 2014 year-to-date results: Sector ETF Performance (1/1-7/21) in 2014    …

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The Bears On Gold ETFs Are Wrong

By | China ETFs, Commodity ETFs, Currency ETFs, Current Affairs and ETFs, ETF Philosophy, ETF Strategy, Global ETFs, Materials ETFs, Natural Resources ETFs, US Markets and ETFs | No Comments

Most of the top 50 economies in the world have engaged in one form or another of monetary stimulus since the start of 2009. Halfway through 2014, most still endeavor to keep interest rates low to encourage borrowing by consumers and businesses; nearly all of those countries or regions also hope to fuel exports with modestly depreciating currencies. Theoretically, tactics designed to devalue a currency as well as push borrowing rates into the basement should strongly benefit precious metals like…

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Susceptibility 101: ETFs That Are Exceptionally Far From Respective Trendlines

By | Alt Energy ETFs, Biotechnology ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Health ETFs, Industrial ETFs, Materials ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | 2 Comments

Are investors cautiously optimistic? Probably. A little bit greedy? Maybe. Yet I would be hard-pressed to describe the current psychology in terms of euphoria. The most apt descriptor is complacency. Keep in mind, geopolitical tensions are rising in the Middle East, Ukraine and off the coastal waters near China. Not surprisingly, gasoline prices have remained stubbornly high with the price of crude holding well above $100 per barrel. Yet none of these troubles have impeded the historic rally for U.S….

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Are Consumer ETFs Ready To Cry Uncle?

By | Consumer ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Materials ETFs, US Markets and ETFs, Utilities ETFs | No Comments

Most folks experience anxiety about carrying any kind of debt load. Many of us do not even distinguish between the different types of debt that we owe. Of course, some debts may be “better” than others. A subsidized Stafford loan from the Federal government allows a student to defer his/her principal and interest during college, pay back a low fixed rate of roughly 3.86% after school, as well as achieve a degree that increases one’s salary potential. Similarly, a first…

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Great Rotation? ETFs Encounter A Different Kind Of Shift In 2014

By | Alt Energy ETFs, Biotechnology ETFs, China ETFs, Commodity ETFs, Consumer ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Frontier Market ETFs, Health ETFs, Internet ETFs, Large Cap ETFs, Materials ETFs, Natural Resources ETFs, Retail ETFs, Small Cap ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

Whatever happened to the “Great Rotation?” You remember the predictive theory that ultra-low yields would encourage investors to rotate out of bonds and into stocks. The notion picked up steam shortly after the Federal Reserve announced its intention to taper its quantitative easing (QE) program in May of 2013. Yield-sensitive assets of all stripes — corporate bonds, Treasury bonds, munis, preferred shares, REITs — experienced the type of rapid wealth destruction that is more commonly associated with significant stock slumps….

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Smoking Hot Emerging Market ETFs: The Real Thing Or Just Another Head Fake?

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

In a matter of weeks, funds like Vanguard Emerging Markets (VWO) surged forward by as much as 8.5%. Do investors suddenly believe that Russia, Brazil and China will collectively get their developing economies back on track? Not necessarily. Is the investing community waking up to the 40% price-to-earnings (P/E) discount for shifting capital into emergers instead of U.S. equities? Probably not. Rather, we may simply be looking at a wave of short-sellers covering their short trades. Look at it this…

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ETF Investors React With Caution To A Weakening Consumer

By | Biotechnology ETFs, Bond ETFs, Commodity ETFs, Consumer ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Health ETFs, Industrial ETFs, Materials ETFs, Retail ETFs, Short ETFs, Technology ETFs, Telecom ETFs, US Markets and ETFs, Utilities ETFs | No Comments

Last week, board members of the Federal Reserve signaled that they may begin hiking overnight lending rates as early as 2015.  A majority of analysts believe that the message is in line with an anticipated acceleration of U.S. economic growth and a more robust expansion. Similarly, economists polled by the National Association for Business Economics (NABE) foresee a 2.6% bounce in consumer spending here in 2014. If we’re going to spend more, however, wouldn’t our paychecks need to grow at a…

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The Reappearance Of Resources-Rich Country ETFs

By | Alt Energy ETFs, Commodity ETFs, Currency ETFs, Current Affairs and ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Global ETFs, Materials ETFs, Natural Resources ETFs, Special Sectors ETFs, US Markets and ETFs | 2 Comments

For the better part of three years, investing in mining companies has been an exercise in extraordinary patience. A significant portion of the poor performance is attributable to the slowdown in emerging market growth. Economic weakness from China to Brazil to India has contributed to plummeting commodity prices and fresh lows for industrial metals. Shares of miners suffered alongside commodity angst. Market Vectors Gold Miners (GDX) had been particularly battered, experiencing price erosion of 65% between May of 2011 and…

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Is The Bear For Gold-Oriented ETFs Over?

By | China ETFs, Commodity ETFs, ETF Philosophy, ETF Strategy, Materials ETFs, Natural Resources ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Non-residential construction, home building and manufacturing have been decelerating. Nowhere is this more evident than in the new 52-week lows being set by industrial metals like iPath Copper (JJC) and multi-sector metals investments like PowerShares DB Base Metals (DBB). The latter tracks a rules-based index composed of futures contracts in widely used metals like aluminum, copper and zinc. Many attribute the commodity price declines to weakness in global economies such as China, Brazil and Russia. Granted, slowdowns in emerging market…

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U.S. Stock ETFs Completely Decouple From U.S. Economic Concerns

By | Commodity ETFs, Consumer ETFs, Current Affairs and ETFs, Defense & Aerospace ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Health ETFs, Industrial ETFs, Large Cap ETFs, Materials ETFs, Natural Resources ETFs, Retail ETFs, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Can we really attribute all of the horrendously weak economic data to icy pavements and polar vortexes? The Institute of Supply Management (ISM) services sector report for February recorded its weakest data point in four years (51.6), posting a percentage decline that is the second worst ever. In the same report, a sub-index on jobs showed that services sector employment actually contracted. Meanwhile, after-tax personal income for consumers dropped 2.7% from one year earlier — a decline that rivals the…

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