ETF Expert: The 3 Most “Impressive” ETFs Over Past Month
17 July 2009 at 12:09 pm by Gary Gordon
The 3rd week of July trading activity is going to get a lot of press. The Nasdaq hasn't seen a run this strong in this short of time since 2006. And the S&P all but wiped away a correction that had taken 4 weeks to play out.
The activity is in stark contrast to early parts of the 2007-2009 bear market. Every time that the market seemed to build a small bit of momentum over 6-8 weeks, it often took less than 1 month to destroy investor confidence.
This time around, advisers, fund managers and individual investors seem more willing to buy the dips. What's less certain is whether or not the U.S. market can break out of an 865-955 trading range that's effectively been in place for 12 weeks. (Note: Many might point to the fact that we are currently trading near the higher end of that range.)
Yet with all of the excitement surrounding the overall markets, I find the price movement of a select group of ETFs/CEFs even more compelling. Here's my list:
| 3 ETFs/CEFs Flying Under the Radar | |||||||
| % 1 Week | % 1 Month | Dividend | |||||
| Eaton Vance Tax Managed Buy Write (ETW) | 6.9% | 5.9% | 14.5% | ||||
| Eaton Vance Risk Managed Eq income (ETJ) | 6.4% | 5.4% | 10.4% | ||||
| Market Vectors Small Cap Brazil (BRF) | 9.5% | 10.3% | 3.0% | ||||
| iShares S&P 500 Index (IVV) | 7.0% | 2.7% | 2.6% | ||||
| *1-month return includes recent dividends | |||||||
2. Eaton Vance Risk Managed Equity Income Fund (ETJ). Ironically, ETJ has a very similar "covered call" approach for the domestic marketplace. ETJ pursues an option income premium by holding common stocks where the value may be subject to writing call options.
Yet ETJ does something else with respect to risk-managed gains; that is, it also has the authority to write put options on individual stocks that the manager believes may become good purchase opportunities at prices below current levels.
ETJ is complicated… and it is not without its vocal critics. Yet its 6.5% weekly gain alongside a 10.4% income distribution is hardly something to ignore.
3. Market Vectors Small Cap Brazil(BRF). Since its inception, I gave a host of reasons why this fund might be an exceptional addition to a truly diversified portfolio. You may wish to revisit, "Small Cap Brazil ETF Diversifies Your Global Pie."
By way of review, large-cap Brazil funds like iShares Brazil(EWZ) focus heavily on the basic materials segment of the economy as well as large exporters. Meanwhile, Brazil Small Cap Fund (BRF) holds companies that serve the up-n-coming middle class population, with a 30% weighting in consumer discretionary and a 10% weighting to consumer staples.
Equally worthy of note, in a month (6/18/09-7/17/09) that experienced a correction for stock assets and a one week turnaround, most of the conversation centered on the U.S. markets. Here are 3 ETFs with strategic vision as well as high income streams.
If you'd like to learn more about ETF investing… then tune into "In the Money With Gary Gordon." You can listen to the show "LIVE", via podcast or on your iPod.
Disclosure Statement: ETF Expert is a web log ("blog") that makes the world of ETFs easier to understand. Pacific Park Financial, Inc., a Registered Investment Adviser with the SEC, may hold positions in the ETFs, mutual funds and/or index funds mentioned above. Investors who are interested in money management services may visit the Pacific Park Financial, Inc. web site.
