Monday 31 August 2015

NorthCoast Cushioned By Diversification, Now Looks For Bargains

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

August brought an extreme dose of volatility for stocks. Many indexes entered correction territory as investors became jittery on concerns of slowing growth in China. NorthCoast Asset Management seized the opportunity to adjust its ETF retirement portfolios amid the pullback. "Rebalancing the portfolios during volatile periods enables us to add value and create alpha," said Patrick Jamin, chief investment officer for NorthCoast.

You're Not ETF Tax-Loss Harvesting? You're Losing Out

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

The stock market's in a correction, with bellwether ETFs holding U.S. stocks poised for their biggest monthly loss since 2012. Don't panic. Savvy ETF investors see a downtrending market as an opportunity. As they wait for an uptrend to resume, they may adjust exposures within their ETF portfolios or add to and subtract from their watch lists. There's something else you could be doing. Now's a good time to use a tax-loss harvesting strategy, says

Flagship ETFs Hit Worst Month In 3 Years; Biotechs Fall

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

The major index ETFs downshifted further Monday, as China and the Federal Reserve have continued to weigh on the stock market. On the last trading day of August, exchange traded funds tracking the S&P 500, Dow Jones Industrial Average and Nasdaq 100 posted their largest monthly losses since 2012. Last week, turbulence in the stock market whipsawed investors even as it intensified worries about a global slowdown and raised doubts about the wisdom

These 3 Flagship ETFs Are Poised For 6% August Losses

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

The major index ETFs downshifted further Monday, as China and the Federal Reserve have continued to weigh on the stock market. On the last trading day of August, exchange traded funds tracking the S&P 500, Dow Jones Industrial Average and Nasdaq 100 were poised for their largest monthly losses since 2012. Last week, turbulence in the stock market whipsawed investors even as it intensified worries about a global slowdown and raised doubts about the

Friday 28 August 2015

A Warning Sign For S&P 500 ETF As Energy Stocks Lead

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

The major index-tracking ETFs hiccupped Friday after two stellar trading sessions as consumer confidence eased to a three-month low in August. Exchange traded funds holding energy stocks had led the broad market higher around midday on the back of rising oil prices. By early afternoon, the market was losing ground again. SPDR S&P 500 (SPY) edged 0.2% higher intraday, but a bearish sign appeared on its chart. It entered the "Death Cross" as the

Thursday 27 August 2015

Enjoy The Ride: Low Volatility ETFs Deliver In August

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Low volatility ETFs delivered in what has been a decidedly rocky month for global markets. China's yuan devaluation, intended to shore up its economy, sent U.S. and international stocks into a tailspin in August. Against that backdrop, smart beta ETF investment strategies that focus on less volatile stocks held up relatively better. Smart beta ETFs screen and select stocks based on alternative weighting methods or specific factors such as

3 Flagship ETFs Rally On GDP Data; Blue Chips Gain

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

ETFs tracking major benchmarks extended their gains for a second straight day. Investors cheered as China stocks surged for the first time in several sessions and as GDP data showed strength in the U.S. economy. The relief rally, as of around midday, saw three exchange traded funds following major U.S. indexes recover some of their damages from recent days. Their sharp plunge this week followed a yuan devaluation that clouded views of China's

Wednesday 26 August 2015

Investors Seem Calm Amid Steep Losses in Key Markets

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

The old saw on Wall Street is "sell in May and go away." However, it appears from new data on net inflows into exchange traded funds that despite investors going away, few sold their ETF shares even as commodity and emerging markets ETFs experienced big performance declines this summer. And that was before stock market news began to unnerve investors about the worst of the recent made-in-China sell-off. From July 1 through Aug. 19, the broad

ETF Firm Finds Interim Fix For Mispricing Disruptions

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Some mutual fund firms are implementing a work-around solution to the mispricing issue that has recently disrupted the ETF and mutual fund industries. On its website, Guggenheim Partners is using the previous day's closing indicative net asset value (NAV) for the benefit of ETF shareholders. A computer glitch has kept Guggenheim and a handful of industry peers from accurately and promptly pricing securities using confirmed NAV figures. One company

These ETFs Are Wobbling On China, Fed Moves

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Major U.S. index ETFs wobbled Wednesday, opening high for the second consecutive day but paring gains as investors weighed overseas action and Fed comments on rate normalization. Stock ETFs pulled back after a top Federal Reserve official described a September rate hike as "less compelling" now. PowerShares QQQ (QQQ), tracking the tech-laden Nasdaq composite index, popped 2.3% to 100.25 intraday. Among its top 25 stocks, Google (GOOG), Amazon

Tuesday 25 August 2015

S&P 500 ETF Repairs Some Damage: 'Not Near A Recession'

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Major U.S. ETFs bounded out of the starting gate Tuesday, with SPDR S&P 500 (SPY) grabbing back much of its Monday loss. Emerging market and China ETFs drove international action, rallying from a weeklong slump as China overnight cut interest rates for a fifth time in nine months to buttress economic growth. Doubts about China's economic stability precipitated a global stock market rout Monday, causing major indexes to fall into a correction and

Monday 24 August 2015

Top ETF Firm Is 'Adding To Energy Positions Slowly'

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Neither an oil plunge nor an economic slowdown in the world's largest oil importer is rattling some ETF investors. Energy Select Sector SPDR (XLE), the $10.74 billion exchange traded fund bogey, absorbed nearly $31 million in new investor money last week. Many investors, seeing a long-term buying opportunity in its rock-bottom share prices, defied last week's violent China sell-off and oil's slump to multiyear lows. At CLS Investments in Omaha,

3 Energy ETFs With A Better View As Oil Prices Crash

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Battered, bruised and coveted: Energy ETFs have been gutted in the past year amid falling oil prices, but investors keep piling in. The three largest exchange traded funds holding broad-based energy stocks absorbed roughly $3 billion in new money combined in the first seven months of this year. CLS Investments, an ETF strategist firm in Nebraska, has been cautiously adding to its energy stakes. "While we believe current prices are attractive, we

China ETF Dumps 15%; QQQ And DIA ETFs In Correction

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

China ETFs tanked anew Monday as the Shanghai Composite index posted its biggest one-day percentage loss since 2007. Chinese news agencies described the trading session as "Black Monday" -- and the phrase reverberated around the world as U.S. and global markets sold off on the China panic. Fears about the health of the world's second largest economy continued to rattle Wall Street, as in the past week. Two flagship domestic exchange traded funds

Friday 21 August 2015

Psst! Look Abroad For ETFs With Big Gains And Income

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Several of the international stock ETFs that are outperforming the S&P 500 index this year also have higher yields. At least five are from WisdomTree Investments (WETF), the fifth largest ETF sponsor and an IBD 50 stock. WisdomTree Europe SmallCap Dividend (DFE) is up 11.95% year to date as of Thursday's close vs. SPDR S&P 500's (SPY) 0.16% gain. And it yields 2.59% vs. 1.92%. DFE, a $1.02 billion ETF, tracks a dividend-weighted index of the

As Dividend ETFs Gain, 7 Top Picks For Investing Success

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Dividend ETFs are charging ahead in the performance stakes, and little wonder. Amid China-induced choppiness, these funds brought a measure of reassurance to frayed nerves. They're packed with well-established companies, often with a value tilt. PowerShares S&P 500 High Dividend (SPHD) -- a top-performing ETF in the past month with a 2.6% gain -- holds IBD Dividend Leaders AT&T (T), Philip Morris (PM) and Altria Group (MO) in its 50-stock portfolio.

Small-Cap ETF Hits Correction; Gold ETF Shines Bright

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

The largest small-cap ETF entered correction territory Friday as weak Chinese factory data fanned the flames of this week's global sell-off. Gold prices firmed in afternoon trade, with the flagship ETF holding physical bullion poised to hit its biggest weekly gains since January. Investors have flocked to haven assets amid anxieties that the carnage in emerging markets could set back the Federal Reserve's hopes for a rate lift-off. IShares Russell

Thursday 20 August 2015

Buy And Hold ETFs? Just What Does That Mean To Pros?

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Ever wonder how the pros use exchange traded funds, and how that might differ from the ordinary investor? Ordinary investors looking ETFs often fall into one of two camps: 1. They choose to buy an index ETF they feel they can forget about. 2. They try to find an ETF for the next hot sector. How do the pros differ? They try to avoid both of the above choices. Take the buy and hold index camp. "We will fall on the side of buy and hold, not timing

SPY ETF Turns Negative For Year Before Clawing Back

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

The largest U.S. exchange traded fund surrendered its gains for the year before recovering Thursday. Major stock ETFs got off to a weak start, heading toward their third consecutive day of losses. The Federal Reserve's coy stance on the exact timing of a rate lift-off, coupled with new lows in oil prices, rattled investors. Amid a sell-off in China and European equities, investors fled to haven assets. SDPR S&P 500 (SPY) dropped more than 1% on

Wednesday 19 August 2015

Gold ETFs Regain Some Luster As China Looks Weak, Fed Eyed

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Gold ETFs popped Wednesday in early afternoon trade as the stock market wilted further. China spooked investors again. Anxieties about a hard landing for the Chinese economy revived after wild swings in the nation's trading session. Worries about the Federal Reserve's course of action on a Fed rate liftoff also intensified ahead of the release of July Federal Open Market Committee meeting minutes. The Shanghai Composite Index flipped to gains

Tuesday 18 August 2015

Tough Month For 3 Most Heavily Traded ETFs

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

The most highly traded ETFs have struggled the past month. SPDR S&P 500 (SPY) has held up best and is still within 1% of its all-time high. PowerShares QQQ (QQQ) is within 3% of its 52-week high. Small-cap iShares Russell 2000 (IWM) has fallen 6% below its all-time high. Two resurgent Internet technology megacap stocks drove SPY's recent performance. Search giant Google (GOOGL) vaulted 27% higher in the past three months. It fell 5% in 2014. No. 1

As Dividend ETFs Gain, 7 Top Picks For Investing Success

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Dividend ETFs are charging ahead in the performance stakes, and little wonder. Amid China-induced choppiness, these funds brought a measure of reassurance to frayed nerves. They're packed with well-established companies, often with a value tilt. PowerShares S&P 500 High Dividend (SPHD) -- a top-performing ETF in the past month with a 2.6% gain -- holds IBD Dividend Leaders AT&T (T), Philip Morris (PM) and Altria Group (MO) in its 50-stock portfolio.

Top ETF Strategist's Tips For Reducing Portfolio Risk

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Windhaven Investment Management recently overtook F-Squared Investments as the ETF industry's largest strategist. Its Windhaven Diversified Growth strategy seeks capital appreciation while managing downside risk and diversifying investments across the globe and asset classes. It was the largest ETF managed portfolio at the end of the first quarter, holding more than $8 billion in assets. It produced an annual average 7.1% gain over the past 10

Retail ETFs Propped By Home Depot Amid Broad Stock Losses

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Retail and consumer discretionary ETFs bucked the general market trend Tuesday to advance on Home Depot's (HD) resounding earnings beat. China ETFs nose-dived amid the latest plunge in the country's volatile stock markets. Major U.S. stock ETFs traded modestly lower, weighed down by the Chinese sell-off and mixed housing data. Market Vectors Retail (RTH) climbed 0.2% to 78.72. No. 2 holding Home Depot gapped up 2% to multiyear highs on the stock

Monday 17 August 2015

Hedge Fund ETFs Are Poised For A Fresh New Look

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

What's the smart money been buying and selling lately? ETF investors will find out Aug. 27. That's when AlphaClone Alternative Alpha (ALFA), the exchange traded fund that taps into hedge funds' top picks for successful investing, undergoes quarterly rebalancing. Expect to see big new bets on financial stocks such as American International Group (AIG) and Bank of America (BAC), says Maz Jadallah, CEO of AlphaClone. On the other hand, booming

Homebuilder ETFs Rise On Upbeat Data In Earnings Week

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Major U.S. ETFs clawed back from early losses Monday with positive homebuilder data giving stocks a boost. Stock ETFs hobbled out of the starting gate amid surprisingly weak New York manufacturing data. Exchange traded funds holding homebuilder stocks hit 52-week highs as the key Housing Market Index, a gauge of builder sentiment, recorded its highest level since November 2005. They led sector equity ETFs higher, along with biotechs and precious

Friday 14 August 2015

Biotech, Semiconductor ETFs Enter Dangerous Ground

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Red-hot biotechnology and semiconductor ETFs are cooling dramatically. They led Friday's sell-off among sector equity funds, heading toward their second week of steep declines. That has analysts wringing their hands over what the red wash over biotech stocks means for investors. Is it an overdue correction for a frothy sector or a mere blip in the rally? IShares Nasdaq Biotechnology (IBB) dropped 2% intraday as it struggled to retake its 50-day

Thursday 13 August 2015

Dividend Investing: Is This Real Estate ETF Smarter?

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

The prospect of rising rates has weighed on ETFs holding real estate investment trusts (REITS) in 2015. IShares U.S. Real Estate (IYR) has fallen 0.2% year to date. But it's a top performer among sector equity exchange traded funds over the past 15 years, with an average annual 10% gain. Real estate is increasingly important to investment success for financial advisors and investors. It's seen as a distinct asset class, offering both capital

Consumer ETFs Gain On Retail Data; IBD 50 Stocks Rise

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Major index ETFs hobbled out of the starting gate Thursday, wavering between narrow gains and losses in a reflection of the stock market's unsettled mood. Investors weighed relatively upbeat retail sales and job numbers against China's market-roiling currency devaluation. Consumer discretionary exchange traded funds traded higher as the latest economic data show wallet-wielding Americans gave the economy a boost in July. Retail sales rose 0.6%,

Wednesday 12 August 2015

As CyberArk Beats, Cybersecurity ETF Draws A Warning

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Israeli firm CyberArk Software (CYBR) smashed Wall Street expectations with its Q2 earnings beat Tuesday. The network security provider's stock price has almost doubled since its September IPO. Savvy Americans rode the coattails of a new ETF for investment success in the relatively young cybersecurity industry. PureFunds ISE Cyber Security (HACK) launched in November 2014 and rapidly swelled to more than a billion dollar in assets. But that very

Earnings Put Spotlight On Airlines, Homebuilder ETFs

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

The ETF market is on fire, and investors are showing an undimmed appetite for risk. Neither a spectacular China sell-off nor Greek drama kept investors from piling into ETFs in July. Equity exchange traded funds absorbed $18.69 billion in new money last month. Investors poured $4.63 billion into SPDR S&P 500 (SPY) alone. By comparison, bond ETFs hauled in $7.35 billion. As Q2 earnings season enters its final stages, the overall results have

IPO, Internet ETFs Groan On Alibaba Results

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

ETFs with big stakes in Alibaba (BABA) tanked Wednesday as the Chinese e-commerce leader narrowly beat earnings estimates, but missed on revenue. China ETFs, and peers with hefty exposure to Asian stocks, led the sell-off on the stock market today. The yuan extended sharp losses for the second straight day following the Chinese central bank's currency devaluation. Investors sought out haven assets such as gold and bonds amid sharp questions about

ETFs Resume Record Growth Pace

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Exchange traded funds aren't just growing fast. They're growing faster than ever. ETFs and their kissing cousins, such as ETNs, listed in the U.S. pulled in net new assets 8% faster than in recent years, according to research and consulting firm ETFGI. A record $125.1 billion in net new assets were gathered during the first seven months of 2015. That topped the prior record of $115.9 billion, which were drawn in during the same period in 2013. ETF

Tuesday 11 August 2015

Shock Yuan Move Sinks China, Global ETFs; Gold Climbs

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

China's shock move to devalue the yuan sank both China and emerging market ETFs Tuesday. Gold hit a three-week high as the desperate Chinese action rattled global investors. Worries about China's economy, the world's second largest, ramped up over the weekend on poor export data. The currency devaluation -- the latest in a series of steps to shore up growth -- is further undermining investor confidence in the Asian nation. Its effects rippled across

Monday 10 August 2015

Smart Beta ETFs: Is Yours Silly Or Seriously Good?

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

In a year of modest stock market gains, smart beta ETFs -- many of which try to beat cap-weighted benchmarks -- are more popular than ever. Forty-seven smart, or strategic, beta ETFs have debuted in the U.S. this year, lifting the U.S. total to 432. Globally, these exchange traded products are seeing strong inflow for a third consecutive year. Assets have grown at an annualized clip of nearly 40% since the beginning of 2012 -- twice the rate for the

Midcap, Web Security ETFs Eye Zebra, CyberArk Results

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Midcap ETFs took the vanguard of stock market action Monday as investors eyed earnings from top-rated Zebra Technologies (ZBRA) and CyberArk Software (CYBR). Zebra, the tracking technology expert and IBD Leaderboard stock, reports Q2 results Tuesday. The maker of radio frequency identification (RFID) and thermal printers is a key holding in several First Trust exchange traded funds including Industrials/Producer Durables AlphaDEX (FXR) and Mid Cap

Friday 7 August 2015

Why This ETF Strategist Sold Off Gold Mining ETFs

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Gold and silver mining stocks have done precious little for ETF investors' portfolios in 2015. In fact, their performance has been negative for several years in a row. Spot gold is trading at multiyear lows. Some market watchers view this as a buying opportunity for gold, as well as gold miners and explorers. But not one ETF strategist, who in January sold out of gold miners in a flagship asset allocation model. Year to date, Market Vectors Gold

As Growth ETFs Keep On Going, A Closer Look At One

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Large-cap ETFs rallied in July as stock investors sought safety in well-established names amid turmoil abroad and mixed earnings at home. The three largest S&P 500 exchange traded funds hauled in more than $7 billion in new money combined. IShares Core S&P 500 (IVV) gained 2.2% last month. Its growth counterpart, iShares S&P 500 Growth (IVW), did better, rising 3.7%. Its value counterpart, iShares S&P 500 Value (IVE), did worse, edging up only

Biotech ETFs Peg Big Losses On Week As Earnings Weigh

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Biotech and energy stocks led the sell-off in U.S.-focused ETFs Friday as investors digested a solid but unspectacular jobs report. Media stocks recovered. Investors in exchange traded funds found some relief in their portfolio allocations to foreign stocks. China stocks rallied, with emerging market ETFs hopping on the ride. ALPS Medical Breakthroughs (SBIO) skidded 3% to 34.88. SBIO holds $197.9 million in assets, with 74% in biotech stocks and

Thursday 6 August 2015

This ETF Strategy Lags But Could Soon Hit Its Stride

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

An ebbing tide may lower some boats faster than others. Expect popular stocks with weak fundamentals to be challenged in likely tougher times ahead, experts say. Luckily for investors, ETF strategies exist to zoom into strong companies with sound qualities. That's important at this late stage of the bull market, says Andy Kapyrin, director of research at RegentAtlantic Capital, a $3 billion registered investment advisory. "Dispersion is happening,

Media ETF Reels As Viacom, Gray TV, AMC Are Tuned Out

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Media-focused ETFs sold off briskly Thursday on a slew of lackluster earnings foreshadowed by the Disney (DIS) bust earlier this week. The latest results confirm the trend of cable customers abandoning pay TV bundles for cheaper Internet streaming services such as Netflix (NFLX). PowerShares Dynamic Media (PBS) slumped 4.8% to 24.33. The $159.6 million ETF slipped through its 200-day line on the stock market today, with Viacom (VIAB), Gray

Wednesday 5 August 2015

ETFs Rise On First Solar; Consumer ETFs Lag On Disney

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Solar ETFs rose high and clear above their nonleveraged peers Wednesday as First Solar's (FSLR) Q2 results outshined analyst estimates. The solar-panel maker beat on both EPS and revenue and gave 2015 guidance that topped forecasts. Shares surged 18% on massive volume in midday trade, recovering its 200-day line. Guggenheim Solar (TAN) popped 5.5% to 35.79. The $280.69 million ETF holds First Solar as its No. 3 stock, with roughly 7% of assets.

Tuesday 4 August 2015

Technology, Semiconductor ETFs Slump On Apple's Plunge

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Technology and semiconductor ETFs were gouged Tuesday asApple (AAPL) dropped an alarming 3% in early afternoon trade. The iPhone maker sliced through its 200-day moving average Monday. With further losses in the stock market today, the $655.6 billion Cupertino, Calif.-based company is 14% off its April 28 high of 134.54. Apple's massive market cap gives it a dominant position in the ETF world. More than 100 exchange traded funds count it as a top

How You Can Take Advantage Of Outperforming Japan ETFs

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Monetary easing and market-friendly reforms kindled Japan ETFs this year. But one wealth manager is sitting out Japan exchange traded funds' top-notch performance in 2015. "Our tactical relative-strength-based trading strategies have us long the U.S.," says Steve Blumenthal, founder and CEO of CMG Capital Management Group. "We are not currently long Japan, emerging markets or developed markets." Still, Blumenthal, who owned WisdomTree Japan Hedged

Monday 3 August 2015

Health, Consumer ETFs Holding IBD 50 Stocks Set To Report

Otmane El Rhazi from Investor's Business Daily - ETFs RSS.

Flagship U.S. ETFs nudged lower on the first trading day of August, as below-par manufacturing and spending data as well as falling oil prices weighed on investors. SPDR S&P 500 (SPY), an exchange traded fund proxy for the broad market, shrank 1% in early afternoon trade, with the utility sector bucking the trend to notch a small gain. Energy was the biggest laggard among the nine Sector SPDR ETFs, taking a 2% hit. China ETFs led the decline in