Archive | Financial ETFs

Financial ETFs, Homebuilder ETFs: Casualties of the October Jobs Report

Working-aged adults are leaving the workforce at a faster rate than those who are entering. For all the hoopla surrounding the 200,000 jobs created last month, investors paid very little attention to the 930,000 people who left the labor force in October. These are not 930,000 new retirees; most of these folks have given up [...] 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...


Which Income ETFs Are Handling The “Taper Time” Pressure?

On Thursday, 8/15/2013, the 10-year yield broke through the psychological barrier of 2.75%. Since May, the intermediate-term 10-year Treasury has catapulted from a year-to-date low near 1.6% to a year-to-date high of 2.8%. Clearly, the U.S. Federal Reserve is having trouble persuading investors that — absent its $85-billion-per-month bond binge — they have the tools [...] Continue Reading...


Investors Take Another Look At Stock ETFs With Above-Average Yields

Morningstar offers its paid subscribers a premium service called, “ETF Valuation Quickrank.” The company offers price-to-fair value estimates for several hundred ETFs that are based upon a proprietary analysis of the underlying stock holdings. At present, each investment is being labeled as fairly valued or overvalued; you will not a find a single fund — [...] 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...


Should You Follow Jim Cramer Into Regional Bank ETFs?

Broad-based stock and bond ETFs have struggled throughout the final month of the 2nd quarter. However, some folks may have found a bit of refuge in the banking sector. Can Banks Maintain Their Mojo?                   Approx 1 Month %               First Trust NASDAQ Community Bank (QABA)   2.2% SPDR KBW Regional Banking (KRE)     2.2% iShares DJ Regional Bank (IAT)       1.9% PowerShares KBW Regional Banking (KBWR)   1.8% SPDR KBW Bank [...] Continue Reading...


Revenge of the Rate-Sensitive ETFs

The month of May brutalized nearly every asset tethered to rising interest rates. Many of the ugliest returns could be found in REIT ETFs like SPDR DJ Global REIT (RWO), emerging market sovereign ETFs like Market Vectors Emerging Market Local (EMLC), pseudo-dividend ETFs like PowerShares S&P Low Volatility (SPLV) as well as MLP ETFs like [...] Continue Reading...


U.S. Manufacturing Shrinks. Should You Rethink Your Exposure to High Beta ETFs?

The possibility of the Federal Reserve slowing its bond purchasing program sent interest rates rocketing in May. Rate-sensitive assets — dividend stocks, REITs, MLPs, preferreds, muni bonds — all began to depreciate in value. By the end of the month, even common stocks began to stammer. Here on the first trading day of June, however, the [...] Continue Reading...


Great Rotation? Sector Rotation? Ignore Catchphrases When Selecting Your ETFs

There are moments when the media will grab hold of a terrific sound byte and refuse to let go. For example, some blame the recent weakness on yield-oriented assets — investment grade bonds, high yield bonds, convertibles, preferreds, REITs, defensive dividend stocks — on a mythical “Great Rotation.” The popular catchphrase describes a circumstance whereby [...] Continue Reading...


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