Category

Mid Cap ETFs

ETF Risk Management In The Face Of A Surging U.S. Dollar

By | Bond ETFs, Commodity ETFs, Currency ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Large Cap ETFs, Mid Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Historically, when the U.S. dollar surges, forward S&P 500 earnings plummet. In the same vein, the last two times that the world’s reserve currency skyrocketed, the U.S. economy slipped into a recession. Come on, Gary. Do you really think that we have already dipped into recession territory? No, I do not. Yet the idea that the Federal Reserve can permanently prevent an economy (or a stock market) from succumbing to cyclical forces is foolish. In fact, Federal Reserve Open Market Committee…

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Proof Positive That U.S. Stock ETFs Are Not The Only Place To Be

By | Bond ETFs, Commodity ETFs, Currency ETFs, Current Affairs and ETFs, Energy ETFs, ETF Philosophy, ETF Strategy, Financial ETFs, Mid Cap ETFs, Small Cap ETFs, Special Sectors ETFs, Technology ETFs, Telecom ETFs, US Markets and ETFs | No Comments

Financial professionals are blaming the latest round of risk asset uncertainty on a variety of factors, from the continuing sell-off in oil to the possibility of Greece being kicked out of the euro-zone. Still others are pointing to anxiety over the U.S. Federal Reserve’s intention to raise its overnight lending rate target in mid-2015 – the first move of its kind since December of 2008. Meanwhile, the biggest names in bonds have added fuel to the fire. Bill Gross at…

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Are All ETF Correlations Barreling Towards 1.0?

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

Since the S&P 500 hit 2011 on September 18, it has forfeited 4.1%. That may not represent a significant decline. Yet, the year-to-date damage across an array of 18 popular asset classes is a bit more vexing. Depreciation Across 18 Unique Asset Classes % Off 2014 High 200 Day MA Vanguard Total International Bond (BNDX) 0.0% Above Vanguard Short-Term Bond (BSV) -0.1% Above Vanguard Intermediate Bond (BIV) -0.2% Above iShares 20+ Treasury (TLT) -0.4% Above PowerShares Preferred (PFF) -1.0% Above…

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Is The S&P 500 Now Safer Than A Diversified Portfolio?

By | Bond ETFs, Consumer ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, International ETFs, Large Cap ETFs, Mid Cap ETFs, Real Estate ETFs, Small Cap ETFs, Special Sectors ETFs, Technology ETFs, US Markets and ETFs | No Comments

Both the media and a wide array of financial advisers preach owning a diversified portfolio. Below, I have created a hypothetical asset mix that a moderate growth investor might employ: 30% iShares S&P 500 (IVV) 25% Vanguard Total Bond (BND) 12.5% iShares MSCI EAFE (EFA) 7.5% SPDR S&P Mid-Cap 400 (MDY) 5% SPDR High Yield (JNK) 5% Vanguard Short-Term Bond (BSV) 5% Vanguard Emerging Markets (VWO) 5% iShares Russell 2000 Small Cap (IWM) 2.5% Vanguard REIT (VNQ) 2.5% iShares TIPS…

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Preparing Your ETF Portfolio For Increased Volatility

By | Asia ETFs, Bond ETFs, China ETFs, Consumer ETFs, Current Affairs and ETFs, Dividend ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Health ETFs, International ETFs, Large Cap ETFs, Mid Cap ETFs, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

HSBC’s most recent Purchasing Managers’ Index (PMI) for the Chinese economy rose to 50.5 from a final reading of 50.2 in August. The manufacturing sector may be expanding, but the growth is noticeably restrained. Meanwhile, German factories registered their slowest growth in 15 months and the French manufacturing segment continues to shrink. Equally disconcerting, the Japanese economy declined at its worst annual rate since the mayhem of the global credit crisis in the first quarter of 2009. Perhaps ironically, some…

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Reduce Your ETF Risk Without Forsaking Well-Deserved Rewards

By | Bond ETFs, Current Affairs and ETFs, Dividend ETFs, ETF Philosophy, ETF Strategy, Europe ETFs, Global ETFs, International ETFs, Large Cap ETFs, Mid Cap ETFs, Small Cap ETFs, US Markets and ETFs | No Comments

Chief market technician at MKM Partners, Jonathan Krinsky, is the latest commentator to add perspective on the trouble with U.S. small-cap stocks. He noted that roughly 80% of large-cap S&P 500 components are currently trading above their long-term trendlines (200-day), while only 40% of small-cap Russell 2000 components are above their 200-day moving averages. According to Mr. Krinsky, it marks the widest divergence between the two benchmarks since 1995. A variety of market watchers have been pointing to the poor…

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How Diversified ETF Portfolios Can Make You Feel Like A Loser

By | Alt Energy ETFs, Asia ETFs, Bond ETFs, Commodity ETFs, Current Affairs and ETFs, Emerging Market ETFs, ETF Philosophy, ETF Strategy, Frontier Market ETFs, International ETFs, Large Cap ETFs, Mid Cap ETFs, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

Financial professionals often talk about the importance of diversifying across the asset classes. Had you chosen to do so in 2013, however, you may be feeling less giddy than the “Holy Cow, Look at the Dow” cheerleaders on CNBC. ETFs For 14 Asset Classes 2013 YTD Approx % Large Cap US: SPDR S&P 500 Trust (SPY) 31.9% Mid Cap US: SPDR MidCap (MDY) 33.1% Small Cap US: iShares Russell 2000 (IWM) 34.0% Large Cap Foreign: iShares MSCI EAFE (EFA) 21.7%…

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Should Changing Market Dynamics Concern Small Cap ETF Owners?

By | Current Affairs and ETFs, ETF Philosophy, ETF Strategy, International ETFs, Large Cap ETFs, Mid Cap ETFs, Small Cap ETFs, Special Sectors ETFs, US Markets and ETFs | No Comments

For the better part of 6 months, small company stocks have outperformed large company stocks. That’s not unusual for an unapologetic bull rally. Indeed, if investors are embracing risk, then they are typically willing to pay a higher price to own faster growing corporations. Since the beginning of October, however, riskier holdings have been losing momentum to the large-cap bellwethers. The iShares Russell 2000 (IWM):SPDR S&P 500 Trust (SPY) price ratio demonstrates the relative weakness in smaller company stock shares….

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The Great Resistance? U.S. Stock ETFs Stumble At Key Price Points

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

According to the U.S. National Bureau of Economic Research (NBER), the “Great Recession” began in December 2007 and ended in June 2009. Eighteen months hardly constitutes a lengthy economic contraction. Just ask Portuguese and Spanish citizens whose countries have never quite recovered from the slump that began in the U.S. and spread across the globe. In fact, over the last five years, many might say that they’ve experienced a modern-day depression. Perhaps, then, the severity of the 2007-2009 downturn is…

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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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