Category

Materials ETFs

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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Diversification Across ETF Asset Classes Reclaims Its Mojo

By | Bond ETFs, Commodity ETFs, Consumer ETFs, Currency ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Health ETFs, Industrial ETFs, Materials ETFs, Real Estate ETFs, Retail ETFs, Semiconductor ETFs, Special Sectors ETFs, Technology ETFs, Telecom ETFs, Transportation ETFs, US Markets and ETFs, Utilities ETFs | No Comments

Glum economic data derailed U.S. stocks in January. A mammoth “miss” for manufacturing activity, an unsettling decline in mortgage applications as well as an appalling “net-new-jobs” number were some of the high-profile culprits. At long last, it seemed as if the market might treat bad news as a reason to recoil. Here in February, though, disappointing data have only strengthened the resolve of buy-the-dip investors. Job growth deceleration from a 3-month rolling average of 190,000 down to 150,000 sent U.S….

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Telecom, Utilities ETFs Ride The “Risk-Off” Train Alongside Lower Interest Rates

By | Bond ETFs, Currency ETFs, Current Affairs and ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Health ETFs, Materials ETFs, US Markets and ETFs, Utilities ETFs | No Comments

The Federal Reserve’s bond-buying program (a.k.a. “quantitative easing”) assuaged the fears of most stock market participants last year. From the fiscal cliff to the sequester spending cuts to the financial crisis in Cyprus, there were few hiccups in the price of the S&P 500. Even after May, when Chairman Bernanke hinted at curbing the controversial policy by the fourth quarter, stock assets kept beating away the short-selling wolves. And the “non-events” did not end there. A possible military strike on…

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Why Across-The Board Negativity On Commodity-Related ETFs May Be Misplaced

By | China ETFs, Commodity ETFs, Current Affairs and ETFs, Emerging Market ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Frontier Market ETFs, Global ETFs, International ETFs, Materials ETFs, Natural Resources ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Investors are punishing commodity-rich countries yet again. As popular developed market funds like iShares MSCI United Kingdom (EWU) prosper, iShares MSCI Canada (EWC) and its heavy energy allocation keep the exchange-traded tracker languishing near 52-week lows. Similarly, iShares MSCI Frontier Markets 100 (FM) continues attracting buyers, whereas copper king Chile via iShares MSCI Chile (ECH) has seen its fortunes evaporate over the course of three years. Retail investors are not the only group convinced that most commodities will drag on…

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