Archive | Special Sectors ETFs

The Reappearance Of Resources-Rich Country ETFs

For the better part of three years, investing in mining companies has been an exercise in extraordinary patience. A significant portion of the poor performance is attributable to the slowdown in emerging market growth. Economic weakness from China to Brazil to India has contributed to plummeting commodity prices and fresh lows for industrial metals. Shares of [...] Continue Reading...


Is The Bear For Gold-Oriented ETFs Over?

Non-residential construction, home building and manufacturing have been decelerating. Nowhere is this more evident than in the new 52-week lows being set by industrial metals like iPath Copper (JJC) and multi-sector metals investments like PowerShares DB Base Metals (DBB). The latter tracks a rules-based index composed of futures contracts in widely used metals like aluminum, [...] Continue Reading...


An Easy Way To Insure Against A Big Loss With Your ETFs

One of the more noticeable trends in the current U.S. stock bull has been the flip-flopping of the bears. Steven Russolillo at WSJ.com recently profiled a variety of prominent voices who received accolades in the past for extreme pessimism. Yet, even as price gains started to pile up in 2009, 2010, 2011, 2012, these folks [...] Continue Reading...


U.S. Stock ETFs Completely Decouple From U.S. Economic Concerns

Can we really attribute all of the horrendously weak economic data to icy pavements and polar vortexes? The Institute of Supply Management (ISM) services sector report for February recorded its weakest data point in four years (51.6), posting a percentage decline that is the second worst ever. In the same report, a sub-index on jobs [...] Continue Reading...


5 ETF Indicators Battle The Risk-On Herd

Shares of Gilead, Netflix and Tesla have rocketed to record peaks. The S&P 500 is on track for its best monthly performance since October. And the overwhelming majority of CNBC commentators assure viewers that the bullish case for stocks rests on a solid foundation. While there may not be a compelling reason to abandon broad market [...] Continue Reading...


Lower Risk ETFs On The New 52-Week High List

Does anyone really think that the monstrous erosion in homebuilder sentiment and the disappearance of mortgage applications are due to the nasty weather? Perhaps one can attribute the sad state of retailer earnings to cold spells and polar vortexes. One can even consider excusing two months of abysmal payroll data to rain, sleet and snow. [...] Continue Reading...


Diversification Across ETF Asset Classes Reclaims Its Mojo

Glum economic data derailed U.S. stocks in January. A mammoth “miss” for manufacturing activity, an unsettling decline in mortgage applications as well as an appalling “net-new-jobs” number were some of the high-profile culprits. At long last, it seemed as if the market might treat bad news as a reason to recoil. Here in February, though, disappointing [...] 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...


3 ETF Indicators That Challenge The “Economy Is Improving” Assumption

CNBC commentators and Bloomberg analysts have spent the last few months explaining how the Federal Reserve’s measured withdrawal (a.k.a. “tapering”) from electronic dollar creation (a.k.a. quantitative easing) is a sign that the U.S. economy is capable of standing on its own. Personally, I believe that it should be allowed to stand on its own regardless; [...] Continue Reading...


3 Ways An ETF Investor Can Approach The Increasingly Erratic Stock Market

If an economic data point came in much weaker than expected last year, the U.S. Federal Reserve’s monetary stimulus offered reason enough to buy stocks. Bad news served as good news. At the same time, when a data point exceeded expectations, the resilience of the American economy also inspired equity purchases. Good news served as [...] Continue Reading...


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