ETF Expert

Boeing is finally prepared to deliver its 787 Dreamliner. One writer believes that Aerospace ETFs like iShares DJ Aerospace and Defense (ITA) would be the dreamy way to play the delivery, as opposed to employing the Guggenheim Airline ETF (FAA). PowerShares Aerospace and Defense (PPA) might also capitalize.

However, the question worth asking here is whether or not a global economic slowdown might make industrial sub-segments like Aerospace/Defense even cheaper. What’s more, there is a reasonable concern that the deficit reduction “Super Committee” might not strike a deal, leading to significant cuts in defense spending.

While it is true that ITA has outperformed SPDR Industrials (XLI), it is not exactly flashing a near-term buy signal. Moreover, it is moving in lock-step with the SPDR S&P 500 Trust (SPY), rather than providing any discernable diversification.

ETF Exposure To The Dreamliner Trade – Don Dion, The Street
The Difference Between Cheap Price And Good Value – Ron Rowland, Money And Markets
Can The China Real Estate ETF Survive Bubble Fears? – Eric Dutram, ETFdb
Large Investors Tap ETFs For Short-Term Trades: Report – Tom Lydon, ETF Trends
Consumer Discretionary Tanks – Bespoke   

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Disclosure Statement: ETF Expert is a web log (”blog”) that makes the world of ETFs easier to understand. Gary Gordon, MS, CFP is the president of Pacific Park Financial, Inc., a Registered Investment Adviser with the SEC. Gary Gordon, Pacific Park Financial, Inc, and/or its clients may hold positions in the ETFs, mutual funds, and/or any investment asset mentioned above. The commentary does not constitute individualized investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial, Inc. or its subsidiaries for advertising at the ETF Expert web site. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert disclosure details here.

Tags | China Real Estate ETFs, Consumer Discretionary ETFs, ETF Investing, ETF Prices