Archive | Emerging Market ETFs

U.S., European Stock ETFs Will Take Their Cues From Japanese Stimulus

The S&P 500 and the Dow may be toiling to reclaim the glory of all-time record peaks. On the other hand, nearly 200 ETFs have already recovered 52-week highs, terminating the notion of a lengthy stock market correction. The list of winners includes some of the biggest names from 2013, including: (a) Powershares DJ Pharmaceuticals [...] Continue Reading...


What Currency ETFs Know That Stock Investors Do Not

Investors can borrow a currency with low interest rates or zero interest rates and buy risk assets (e.g., stocks, bonds, commodities, currencies, etc.) in a currency with a higher interest rate. For example, a hedge fund might decide to borrow the low-yielding Japanese yen to buy New Zealand stocks that trade in the higher-yielding New [...] Continue Reading...


Will Foreign Developed ETFs Finally Outperform Domestic Stock ETFs?

Investors who allocated a portion of their capital abroad have been experiencing a whole lot of performance envy lately. For instance, those who concentrated their dollars in the S&P 500 last year savored 30% price appreciation, while those who allocated some money to the MSCI EAFE Index struggled to come to terms with a disappointing [...] Continue Reading...


Telecom, Utilities ETFs Ride The “Risk-Off” Train Alongside Lower Interest Rates

The Federal Reserve’s bond-buying program (a.k.a. “quantitative easing”) assuaged the fears of most stock market participants last year. From the fiscal cliff to the sequester spending cuts to the financial crisis in Cyprus, there were few hiccups in the price of the S&P 500. Even after May, when Chairman Bernanke hinted at curbing the controversial [...] Continue Reading...


ETFs Let You Invest With Your Head, Rather Than Your Heart

If anyone would have told me in 2011 that the “China neighbor” theme would struggle for as long as it has, I would have dismissed the argument outright. I had lived in places like Taiwan, Thailand and Hong Kong. I had visited a stock exchange in the Philippines, insurance institutions in Singapore as well as [...] Continue Reading...


Why Across-The Board Negativity On Commodity-Related ETFs May Be Misplaced

Investors are punishing commodity-rich countries yet again. As popular developed market funds like iShares MSCI United Kingdom (EWU) prosper, iShares MSCI Canada (EWC) and its heavy energy allocation keep the exchange-traded tracker languishing near 52-week lows. Similarly, iShares MSCI Frontier Markets 100 (FM) continues attracting buyers, whereas copper king Chile via iShares MSCI Chile (ECH) [...] Continue Reading...


Against the Herd: Lower Rates Rather Than Higher Rates In 2014

Bloomberg News surveyed banks and securities companies on where the 10-year Treasury yield would finish 2014. Economist forecasts averaged 3.41%. With 2013 closing near 3.01%, perceived strength in the underlying U.S. economy, and the Federal Reserve reining in its controversial bond buying program (”QE3″), the predictions are hardly outlandish. On the other hand, where in the [...] Continue Reading...


When Exchange-Traded Investments Recover

Should you buy when there is blood in the streets? While the prospect of buying low may sound great, a beaten-up asset can always get battered some more. There’s no certainty when it comes to recognizing precisely when the bludgeoning will stop or when the knife will hit the floor. There are times, however, when enough [...] Continue Reading...


Low P/E ETFs Become Less Risky When They Boast Technical Uptrends

Many value-oriented stock pickers do not see a self-sustaining U.S. economy and they continue to play “Taps” on their trumpets. Commonly cited warning signs include: (1) The 10-year annualized price-to-earnings (P/E) ratio of U.S. stocks is above 25, (2) In absolute dollar terms, the amount of borrowed money (i.e. margin debt) in the stock market [...] Continue Reading...


3 ETFs That Will Benefit From Capital Shifting Abroad

There’s not much question that the U.S. stock market is — in a traditional sense — overvalued. The S&P 500 currently flashes a price-to-earnings (P/E) ratio that is 20% higher than its historical average over a trailing 12-month period. Similarly, its price-to-sales (P/S) ratio of 1.6 is, conservatively speaking, 25% greater than a more typical [...] Continue Reading...


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