Archive | Mid Cap ETFs

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) 0.0% Above Vanguard [...] 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 (JNK) 5% Vanguard Short-Term Bond (BSV) 5% [...] 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...


How Diversified ETF Portfolios Can Make You Feel Like A Loser

Financial professionals often talk about the importance of diversifying across the asset classes. Had you chosen to do so in 2013, however, you may be feeling less giddy than the “Holy Cow, Look at the Dow” cheerleaders on CNBC. ETFs For 14 Asset Classes 2013 YTD Approx % Large Cap US: SPDR S&P 500 Trust (SPY) 31.9% Mid [...] Continue Reading...


Should Changing Market Dynamics Concern Small Cap ETF Owners?

For the better part of 6 months, small company stocks have outperformed large company stocks. That’s not unusual for an unapologetic bull rally. Indeed, if investors are embracing risk, then they are typically willing to pay a higher price to own faster growing corporations. Since the beginning of October, however, riskier holdings have been losing momentum [...] Continue Reading...


The Great Resistance? U.S. Stock ETFs Stumble At Key Price Points

According to the U.S. National Bureau of Economic Research (NBER), the “Great Recession” began in December 2007 and ended in June 2009. Eighteen months hardly constitutes a lengthy economic contraction. Just ask Portuguese and Spanish citizens whose countries have never quite recovered from the slump that began in the U.S. and spread across the globe. [...] Continue Reading...


3 Reasons to Embrace This Particular Active ETF

Long-time readers and listeners know that I am an active manager of passive “Index ETFs.” I favor exchange-traded index vehicles because the diversification comes with low expenses, exceptional tax-efficiency and intra-day liquidity. The media have regularly inquired why I rarely endorse the use of “Active ETFs.”  For one thing, these funds involve more frequent trading, creating [...] Continue Reading...


Majority of Companies Disappoint On Revenue. Should You Rebalance Your ETF Portfolio?

On a quarterly basis, 61% of companies tend to beat top-line revenue numbers. However, corporations are only beating expectations by a paltry 39% for Q1. The revenue shortfall is not hard to explain. Multinational corporations are struggling to generate sales due to a slowdown in global growth, particularly in Europe and China. The modest achievement in [...] Continue Reading...


An ETF Portfolio For Lowering U.S. Stock Risk in the Months Ahead

Treasury bonds are rocketing, commodities are reeling and the euro-zone’s economy is contracting. That is hardly the backdrop for continued equity price appreciation. Yet the U.S. stock market has had little resistance in capturing all-time records. Regardless of region, asset classes typically move in the same direction. It follows that one would not expect unabashed buying [...] Continue Reading...


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