Archive | Current Affairs and ETFs

The Return Of Energy ETF Dominance?

Energy ETFs outperformed the overwhelming majority of competing sector investments in the previous bull market (10/02-10/07). In the early part of the run, the war in Iraq boosted the demand for shares. In the later stages of the rally, emerging economic growth fueled speculative excesses in both the price of oil as well as desire [...] Continue Reading...


ETFs For Those Seeking Greater Tax Freedom

A leading non-partisan tax policy researcher, The Tax Foundation, estimates that your first 111 days belong to the U.S. government. When the estimate includes the effect of federal borrowing, the date moves to May 6. In other words, you work for Uncle Sam in your first 125 days of a given year, while the remaining [...] Continue Reading...


ETFs Of CEFs? Yield Shares High Income (YYY) Impressive Since Inception

Before exchange-traded funds (ETFs) became widely accepted, the closed end fund, or CEF, offered investors the ability to trade a diversified investment throughout the day. CEFs have a fixed number of shares such that supply and demand determines share price. Yet those prices frequently trade at a significant discount or premium to the actual underlying [...] Continue Reading...


Great Rotation? ETFs Encounter A Different Kind Of Shift In 2014

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 — [...] Continue Reading...


Disappointing Employment Data Affects Stock And Bond ETFs Differently

In 2008, President George W. Bush expressed regret for an ill-conceived 2003 speech aboard the USS Intrepid in front of a “Mission Accomplished” banner. The blunder? The declaration of victory in the initial battle and the subsequent celebration came a mere month into the war. Consequently, every setback for years afterwards reminded the country that [...] Continue Reading...


How To Buy Emerging Market ETFs With Greater Confidence

In aggregate, emerging market stocks trade at a 40% price-to-earnings (P/E) discount to developed U.S. stocks. Does that make emergers cheap? Not necessarily. A number of analysts have pointed out that the 10-year P/E of 25 on U.S. equities has only been surpassed at three other moments in history (i.e., 1929, 2000, 2007). It follows [...] Continue Reading...


How Bond ETFs Crushed Stock ETFs In The First Quarter Of 2014

Don’t blame weakness in home sales on weather conditions. The National Association of Realtor’s pending home sales index has fallen for eight consecutive months. In fact, you can trace the trouble directly back to when 30-year fixed mortgages pole vaulted from 3.5% to 4.5% in the summer of 2013. The rate-sensitive home-building segment has been able [...] Continue Reading...


Three Reasons Top Earners Should Favor High Yield Muni ETFs

Many fear that rising interest rates will crush income-oriented portfolios. Get over it — that was last year’s news. In fact, the vast majority of high-yielding assets have been the best performers of 2014, including utility stocks, REITs as well as long-dated U.S. Treasuries. Naturally, some investors still wish to hedge against rate risks. What these [...] Continue Reading...


ETF Investors React With Caution To A Weakening Consumer

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) [...] Continue Reading...


Three Characteristics Of ETFs Near 52-Week Highs

The investing public tends to place a great deal of faith in the forecasts of economists. To be frank, I am not entirely sure why. An overwhelming majority missed the impact that well-documented declines in real estate were having on the economy in 2007. Here in 2014, the latest housing data may be showing cracks as [...] Continue Reading...


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