Archive | Consumer ETFs

ETF Investor Implications Of An Absence In Sector Rotation

Over the last month, investors have witnessed a variety of strange events. The Republican party ungracefully bowed out of its bid to derail Obamacare during the tail end of the government shutdown. The Democrat party helplessly attempted to control damage associated with scores of consumers not being able to keep their health plans or their [...] Continue Reading...


Why The Rich ETFs Keep Getting Richer

One of the defining debates of our time is what to do about income disparity. Nobody disputes that the wealthy have become much wealthier, particularly over the last five years. At the same time, the poor have become impoverished (e.g., 50 million on food stamps, etc.); meanwhile, middle class families are barely treading water. Yet [...] Continue Reading...


Are Metal Miner ETFs Producing Again?

Prior to the collapse of real estate, tradable securities as well as dozens of global financial heavyweights in 2008, investors bet heavily on emerging market growth. Indeed, exporting powerhouses — Brazil, Russia, China — had benefited from an increasing worldwide demand for natural resources. Additionally, economists had ballyhooed the purchasing power of hundreds of millions [...] Continue Reading...


Sector ETF Reaction to Budget Impasse

It has been five trading days since “no-taper” euphoria has passed. In that time, U.S. stock assets have been falling, though the declines have been modest. Most investors continue to believe that a last-minute deal will be struck and that a bearish retreat like the 2011 correction is improbable. Nevertheless, different economic sectors appear to be [...] Continue Reading...


Stocks ETFs Dependent On Consumer Spending May Be In Trouble

According to Gallup, consumer spending dropped 15% from mid-August and it has been flat since the Federal Reserve’s tapering talk in May. Casual dining expenditures declined 3.5% in July as well as 2.0% in June. Meanwhile, Warren Buffett has been rapidly exiting stocks that are tied to consumer purchasing activity. Many market watchers recognize that there [...] Continue Reading...


Why You Should Ratchet Down Your Risk in Consumer-Oriented ETFs

Bartenders, waiters and other service staff in hospitality and retail comprised more than half of the 162,000 jobs created in July. The Bureau of Labor Statistics (BLS) revised job growth for the previous two months lower. Meanwhile, one of the premier measures of employment trends, the labor force participation rate, hovers near 35-year lows. Job growth [...] Continue Reading...


Interest Rate Volatility Slams Real Estate ETFs and Telecom ETFs

Has global monetary stimulus by the world’s central banks squashed euro-zone collapse fears forever? On Wednesday, European leaders hinted that they may withhold bailout euro-dollars from Athens due to lack of progress on government reform initiatives. The occurrence barely registered as an afterthought on most people’s radar screens. Of course, there was a time when a [...] Continue Reading...


How To Play It Safe With Stock ETFs

Transportation bellwether United Parcel Service (UPS) reduced its full-year profit forecast due to a weak economy. Fast food giant Yum Brands (YUM) experienced declines in earnings as well as revenue. Meanwhile, financial behemoth J.P. Morgan (JPM) managed to cover up waning revenue from mortgages and trading with sleight-of-hand accounting. Yet some folks in the financial [...] Continue Reading...


The Sector ETFs That “Dovetail” Best With The Fed Chairman’s Thinking

Is the current chairman of the Federal Reserve a genius, a knucklehead or a mere mortal? In late May, Ben Bernanke appeared to communicate that our central bank would soon be slowing down its bond purchasing program. Rate-sensitive assets from U.S. Treasury bonds to real estate investment trusts experienced a blood-letting that hardly seemed therapeutic [...] Continue Reading...


Choose ETFs With Relative Strength As Well As Defensive Attributes

The U.S. economy’s modest growth is attributable to the real estate market, corporate debt restructuring and big ticket consumption like auto. All of these areas are extremely rate sensitive. It follows that, with the Federal Reserve “taper talking” 10-year yields higher by 100 basis points (1%), the U.S. economy should slow in the coming months. [...] Continue Reading...


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