Archive | Mid Cap ETFs

‘Taper Tantrum’ Round 2? It’s More Serious For Stocks This Time Around

By definition, a recovery is the regaining of something lost. Homeowners have partially (and in some instances, entirely) recovered the equity in their property since the start of the Great Recession. Similarly, market-based securities investors have regained their capital and even accumulated additional paper wealth. The jobs recovery is a bit more challenging to quantify. For [...] Continue Reading...


Tactical Asset Allocation Changes? Track the Exchange’s A/D Line

I listen to sports talk radio in the morning for entertainment. Today, a popular broadcaster went off script to chat about the ridiculous nature of political correctness, surmising that Americans obsess over social issues when they have few concerns about the economy. He went so far as to describe the economic environment as exceptional, after [...] Continue Reading...


Understanding Why Rates Must Go Lower Leads To Better Risk-Adjusted Results

Is there any conceivable path for Japan – the world’s 3rd largest economy – to escape eventual default? The country owes one quadrillion yen ($8.4 trillion U.S. dollars), yet takes in only $460 billion annually. Even at negligible rates, the Japanese government must allocate approximately 40% of its total tax revenue on paying the interest [...] Continue Reading...


Paper Wealth In Your Accounts Is Great, But Only If You Know How To Protect It

One of the more challenging tasks in high finance is making the distinction between “paper wealth” and economic health. Are the two related? Sure. Are they positively correlated. Sometimes, particularly on the downside. Does one matter more than the other? That depends upon who you are. Too frequently, writers will talk about paper wealth like [...] Continue Reading...


ETF Risk Management In The Face Of A Surging U.S. Dollar

Historically, when the U.S. dollar surges, forward S&P 500 earnings plummet. In the same vein, the last two times that the world’s reserve currency skyrocketed, the U.S. economy slipped into a recession. Come on, Gary. Do you really think that we have already dipped into recession territory? No, I do not. Yet the idea that the [...] Continue Reading...


Proof Positive That U.S. Stock ETFs Are Not The Only Place To Be

Financial professionals are blaming the latest round of risk asset uncertainty on a variety of factors, from the continuing sell-off in oil to the possibility of Greece being kicked out of the euro-zone. Still others are pointing to anxiety over the U.S. Federal Reserve’s intention to raise its overnight lending rate target in mid-2015 – [...] Continue Reading...


Are All ETF Correlations Barreling Towards 1.0?

Since the S&P 500 hit 2011 on September 18, it has forfeited 4.1%. That may not represent a significant decline. Yet, the year-to-date damage across an array of 18 popular asset classes is a bit more vexing. Depreciation Across 18 Unique Asset Classes % Off 2014 High 200 Day MA Vanguard Total International Bond (BNDX) [...] Continue Reading...


Is The S&P 500 Now Safer Than A Diversified Portfolio?

Both the media and a wide array of financial advisers preach owning a diversified portfolio. Below, I have created a hypothetical asset mix that a moderate growth investor might employ: 30% iShares S&P 500 (IVV) 25% Vanguard Total Bond (BND) 12.5% iShares MSCI EAFE (EFA) 7.5% SPDR S&P Mid-Cap 400 (MDY) 5% SPDR High Yield [...] Continue Reading...


Preparing Your ETF Portfolio For Increased Volatility

HSBC’s most recent Purchasing Managers’ Index (PMI) for the Chinese economy rose to 50.5 from a final reading of 50.2 in August. The manufacturing sector may be expanding, but the growth is noticeably restrained. Meanwhile, German factories registered their slowest growth in 15 months and the French manufacturing segment continues to shrink. Equally disconcerting, the [...] Continue Reading...


Reduce Your ETF Risk Without Forsaking Well-Deserved Rewards

Chief market technician at MKM Partners, Jonathan Krinsky, is the latest commentator to add perspective on the trouble with U.S. small-cap stocks. He noted that roughly 80% of large-cap S&P 500 components are currently trading above their long-term trendlines (200-day), while only 40% of small-cap Russell 2000 components are above their 200-day moving averages. According [...] Continue Reading...


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