Archive | Real Estate ETFs

Are Rate-Sensitive ETFs Suggesting Economic Weakness Ahead?

Lost in the bull market euphoria is the reality that economists have been dead wrong about the direction of asset prices, particularly bond prices. Last December, when 55 of the most prestigious economists across a wide range of institutions had been polled by Bloomberg about where the 10-year yield (3.0%) would end the year, each [...] 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...


These 5 ETF Charts Are Killing “Risk-On” Exhilaration

Admit it. You are feeling a little bit edgy these days. While you understand that fear is the elixir of investment opportunity, you also recognize that there is little glory for the last person standing on a sinking aircraft carrier. Most in the media have been touting bull market accomplishments, job gains and economic progress. Writers [...] Continue Reading...


Home Sales Data Incinerate Confidence In Economically Sensitive Stock ETFs

My wife and I sold two condominiums near the tail end of 2005. We could not justify owning residences that were 40% more expensive to own than to rent. Simply put, it was time to cash in. Due largely to my comfort with the liquidity of market-based securities, I did not wade back into the real [...] Continue Reading...


Sector ETFs In 2014 And 2007: The Inconvenient Comparison Feels Like A Bone In The Throat

The S&P 500 has served up a 7%-plus return through the first six-and-a-half months of the year. That’s remarkably impressive when one considers the depth of geopolitical conflict, the implication of structural under-employment, the October end of quantitative easing (QE3) and the strong possibility of a significant change to the legislative branch this November. Naturally, some [...] Continue Reading...


3 Rate-Sensitive ETF Categories Demonstrate High-Caliber Endurance

Many of the word’s most respected economists projected the direction of interest rates at the start of the year. The average assessment? Experts collectively anticipated that the 10-year Treasury bond yield would rise from 3.03% to 3.41% by the end of 2014. I didn’t see it. For one thing, the well-being of real estate in a below-trend [...] Continue Reading...


3 “Risk-Off” Signs For ETF Investors

Committee members of the U.S. Federal Reserve forecast economic growth every year. Not surprisingly, investors place a great deal of faith in those projections. After all, Fed estimates may impact monetary policy. Estimates for each of the last five years turned out to be exceedingly rosy. Time and again, the “recovery” turned out to be sluggish [...] Continue Reading...


What You Don’t Know About Relative Strength Shifts In ETFs Can Hurt You

One of the best web sites for identifying trends in the ETF marketplace is ETFscreen.com. And one of the best features at the data aggregation portal is the Relative Strength Factor (RSf) reporting. According to ETF Screen, the Relative Strength Factor (RSf) represents a percentile ranking of fund performance relative to all other funds in the [...] Continue Reading...


Homebuilder and Home Construction ETFs Falter At The Real Estate Altar

Is the enthusiasm for the real estate market built on a solid foundation? Existing home sales fell in March to its lowest pace since July of 2012. Worse yet, sales have declined for seven out of the previous eight months, ever since the the Federal Reserve signaled its intent to slow the pace of its [...] 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...


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