New ETFs

Dividend ETFs: No Need to Pay up For Yield

ETF Professor — Tue, 18 Jun 2013 18:48:19 +0000

Although concerns about rising interest rates have spiked in recent weeks, investors still want yield. Now, it is a matter of what asset classes they turn to in an effort to generate income.

Yields on 10-year Treasurys were 2.19 percent as of Monday, up from 2.13 percent on June 3, according to Treasury Department data, but the reality is even at 2.2 percent, the yield on Treasurys is nothing to write home about.

Given the still anemic yields on assets that are perceived to be risk-free, it is not surprising that investors have been paying up for higher yields elsewhere. The ongoing hunt for yield has predictably prompted talk of a dividend bubble, particularly as valuations on some favorite dividend sectors have become stretched.

"A number of analysts believe dividend-paying stocks with the highest dividend yields are expensive compared to other parts of the equity market. A rise in the long-term interest rates in the U.S. put some pressure on the performance of stocks with the highest dividend yields in May," said WisdomTree Research Director Jeremy Schwartz in a research note.

Said another way, investors may want to consider different spins on dividend ETFs rather than paying up for yield with traditional sector and dividend funds. For example, the Utilities Select Sector SPDR (NYSE:

ETFs to Watch June 18, 2013 (FDN, USO, VB)

ETF Professor — Tue, 18 Jun 2013 11:20:04 +0000

Here is the ETF Professor's ETF Watch List for Tuesday, June 18, 2013.

The U.S. Oil Fund (NYSE: USO) is starting to look good.

Give the First Trust Dow Jones Internet Index Fund (NYSE: FDN) a look.

Check in with the Vanguard Small Cap ETF (NYSE: VB).

Emerging markets plays of the day: WisdomTree Emerging Markets ...

ETFs to Watch June 17, 2013 (EEV, FXE, TBT)

ETF Professor — Mon, 17 Jun 2013 11:05:03 +0000

Here is the ETF Professor's ETF Watch List for Monday, June 17, 2013.

The Market Vectors Coal ETF (NYSE: KOL) will certainly be in play.

Give the ProShares UltraShort Oil & Gas (NYSE: DUG) a try.

The Direxion Daily Small Cap Bear 3X Shares (NYSE: TZA) is worth a look.

Dividend play: WisdomTree LargeCap Dividend ETF (NYSE:

A Look Ahead: This Week's ETFs to Watch

ETF Professor — Sun, 16 Jun 2013 23:31:19 +0000

A rough week for stocks has come and gone with all three major U.S. indexes settling lower. The S&P 500 shed nearly 1.2 percent as traders fretted over global central bank policy, namely the 800-pound gorillas in the room, those being the Bank of Japan and the Federal Reserve.

Speaking of the Fed, that is the entity that will dominate this week's action as Ben Bernanke and friends kick off a two-day meeting on Tuesday. Financial markets have already begun pricing in possible tapering of the Fed's $85 billion-per-month bond-buying activities, but it should be remembered the Fed has made no official announcements to that effect.

Additionally, it is good economic news that will give the Fed room to wind down its easing efforts and, at least in theory, solid data points should boost riskier assets such as stocks and ETFs. Let's see how that plays out this week with the following ETFs.

PowerShares DB US Dollar Index Bullish (NYSE: UUP)
There is $4.3 billion invested in various currency ETFs and ETNs, a small number relative to other asset classes available in ETF Land, and one that has the potential to get smaller, not bigger, in the near-term. Investors that opt to use ETFs for currency ...

ETFs to Watch June 14, 2013 (ELD, EPP, XLK)

ETF Professor — Fri, 14 Jun 2013 09:45:03 +0000

Here is the ETF Professor's ETF Watch List for Friday June 14, 2013.

The Market Vectors Coal ETF (NYSE: KOL) looks terrible.

Keep an eye on the iShares MSCI Japan Index Fund (NYSE: EWJ).

Let's see if the bounce in the iShares MSCI Pacific ex-Japan Index Fund (NYSE: EPP) is for real.

Give the Technology Select Sector SPDR (NYSE:

Staggering Facts About Declining Emerging Markets ETFs

ETF Professor — Thu, 13 Jun 2013 18:43:45 +0000

It is not a stretch to say that plenty of investors are well aware of the broad-based damage being inflicted upon emerging markets ETFs. Heading into the start of trading, the Vanguard FTSE Emergign Markets ETF (NYSE: VWO) and the iShares MSCI Emerging Markets Index Fund (NYSE: EEM), the two largest emerging markets ETFs, were both off more than nine percent in the past month.

One reason investors have embraced ETFs such as VWO and EEM over the years is because of country diversification, or the ability to dodge single country risk. Said another way, a nine percent drop in a month is nothing to brag about, but things are much worse for some other emerging markets ETFs. Some country-specific funds are being taken to the woodshed. Just look at these jaw-dropping facts, but take heart because there are some pleasant surprises on this list.

Asia
Earlier this year while the BRIC quartet and other large developing markets such as South Korea and South Africa, folks were complaining that all emerging markets were laggards. That meant they were ignoring stellar performances turned by ETFs with heavy exposure to markets such as Indonesia, the Philippines and Thailand.

That was then and this is now and now the investors that did embrace those markets

ETFs to Watch June 12, 2013 (CFT, GREK, YCS)

ETF Professor — Wed, 12 Jun 2013 10:24:29 +0000

Here is the ETF Professor's ETF Watch list for Wednesday, June 12, 2013.

Of course the iShares Gold Trust (NYSE: IAU) will be in play.

The Global X FTSE Greece 20 ETF (NYSE: GREK) should be in focus.

Keep an eye on the United States Natural Gas Fund (NYSE: UNG).

Emerging markets plays of the day: ...

ETFs to Watch June 11, 2013 (QQQ, TAN, VYM)

ETF Professor — Tue, 11 Jun 2013 11:29:26 +0000

Here is the ETF Professor's ETF Watch List for Tuesday, June 11, 2013.

Keep an eye on the Guggenheim Solar ETF (NYSE: TAN).

Give the iShares Dow Jones Select Dividend Index (NYSE: DVY) a look.

The Vanguard High Dividend Yield Index ETF (NYSE: VYM) is also worth a trade.

Consider the PowerShares QQQ (NASDAQ: QQQ).

Emerging markets ...

MSCI Reclassification Puts Spotlight on These ETFs

ETF Professor — Mon, 10 Jun 2013 20:32:38 +0000

Traders have had bigger fish to fry over the past few days, but a potentially noteworthy news event is slated for the after-market docket on Tuesday.

That is when index provider MSCI (NYSE: MSCI) unveils its annual market reclassification, an event that could impact a raft of ETFs tracking developing and frontier markets.

On the other hand, this even has the potential to be anti-climatic as it was last year when MSCI again declined to move South Korea and Taiwan to developed market from emerging market status. To its credit, MSCI does not take market reclassifications lightly.

The last time it changed a market's classification was in 2011 when it demoted Trinidad & Tobago to standalone from frontier. The last time an ETF was affected by an MSCI reclassification was May 2010 when Israel promoted to developed from emerging market. It has taken a while, but the iShares MSCI Israel Capped Investable Market Index Fund (NYSE: EIS) is finally close to getting back to where it traded after the upgraded. Several months, later EIS surged only to enter a multi-year tailspin after becoming a developed market ETF.

Here are some of the ETFs that could be in focus if MSCI delivers some surprises on Tuesday.

iShares MSCI Emerging Markets Index Fund (NYSE: EEM)
An obvious choice to be sure, ...

ETFs to Watch June 10, 2013 (EMB, FXP, KOL)

ETF Professor — Mon, 10 Jun 2013 10:31:45 +0000

Here is the ETF Professor's ETF Watch List for Monday, June 10, 2013.

The Market Vectors Coal ETF (NYSE: KOL) can't seem to get right.

Give the iShares MSCI Hong Kong Index (NYSE: EWH) a look.

Keep an eye on the WisdomTree Total Dividend Fund (NYSE: DTD).

Emerging markets plays of the day: PowerShares India Portfolio ...

A Look Ahead: This Week's ETFs to Watch

ETF Professor — Mon, 10 Jun 2013 10:29:51 +0000

A better-than-expected May jobs report was the catalyst to lift U.S. stocks to another strong showing last week.

Employers added 175,000 new jobs last month, but the unemployment rate rose to 7.6 percent from 7.5 percent. Still, that was enough to hearten the bulls. Over the last two days of the week, the S&P 500 surged 2.1 percent to notch a weekly gain of 0.8 percent.

All three major U.S. indexes gained more than one percent on Friday.

The good thing about the jobs report, except for the part where the unemployment rate rose and the March and April numbers were revised lower, is the part where it probably was not strong enough to bring an immediate end to quantitative easing. However, a watered down version of QE appears likely and perhaps as soon as late in the third quarter. That is a reality markets must begin reconciling.

That and plenty of other issues in the week ahead that should have a meaningful impact on the following ETFs.

ProShares UltraShort FTSE China 25 (NYSE: FXP)
We are getting right to the heart of matter with the inclusion of FXP on this week's list. Rather than recommend a short position in the iShares FTSE China 25 Index Fund (NYSE: FXI), a long position in the double-leveraged FXP could be the alluring ...

ETFs to Watch June 7, 2013 (DBC, EWJ, TBT)

ETF Professor — Fri, 07 Jun 2013 11:14:21 +0000

Here is the ETF Professor's ETF Watch List for Friday, June 7, 2013.

The Market Vectors Gold Miners ETF (NYSE: GDX) looks good all of a sudden.

The iShares MSCI Japan Index Fund (NYSE: EWJ) does not.

Give the PowerShares DB Commodity Index Tracking Fund (NYSE: DBC) a look.

Keep an eye on the Technology Select Sector SPDR (NYSE: ...

ETFs to Watch June 6, 2013 (DUG, GLL, UUP)

ETF Professor — Thu, 06 Jun 2013 10:35:52 +0000

Here is the ETF Professor's ETF Watch List for Thursday, June 6, 2013.

Keep an eye on the ProShares UltraShort S&P500 (NYSE: SDS).

Sector plays: ProShares UltraShort Oil & Gas (NYSE: DUG) and the First Trust Financials AlphaDEX Fund (NYSE: FXO).

Give the ProShares UltraShort Gold (NYSE: GLL) a look.

Emerging markets plays of the ...

Time to Shift to These Dividend ETFs

ETF Professor — Wed, 05 Jun 2013 11:52:01 +0000

The specter of rising interest rates has investors pondering the near-term fate of low-beta sectors previously prized for low-risk dividends.

Income investors, and rightfully so, are wondering why they should be involved with capital-intensive utilities if those companies are subject to higher borrowing costs when rates rise. Betting on consumer staples stocks with heavy international exposure when the U.S. dollar is strengthening is another obvious source of concern.

Things have gotten dire quickly for some dividend ETFs as a result. The Wall Street Journal proclaimed as much on Tuesday with the headline The End of the Affair for Dividends.

Still, inflow data from BlackRock indicate $3.7 billion flowed into dividend ETFs last month, bringing the year-to-date total to $14.9 billion. Throw in the $6.9 billion real estate funds and the $3.3 billion that went to preferred stock funds and income oriented ETFs have seen year-to-date inflows of $24.7 billion.

The problem is not inflows to dividend ETFs. Rather, the recent struggles of the utilities sector and the potential for consumer staples to follow suit highlight the need for investors to look beyond the usual dividend ETF suspects. That group was mentioned in the Journal piece and includes ETFs such as the Vanguard Dividend Appreciation ETF (NYSE: VIG), the Vanguard High Yield Dividend ETF (NYSE: VYM), the SPDR S&P Dividend ETF (NYSE: SDY) and the iShares High Dividend Equity ETF (NYSE: HDV).

Investors love that quartet. Inflows say as much as those four ETFs have attracted a combined $5 billion in new assets this year as of May 31, according to Index Universe data.

Before diving into the nitty gritty, it is important to note that the intent of this piece is not to malign any ETF, its sponsor or its shareholders. The four aforementioned ETFs have delivered solid returns, are all highly liquid and most are ...

ETFs to Watch June 5, 2013 (BND, GDXJ, SMH)

ETF Professor — Wed, 05 Jun 2013 10:55:44 +0000

Here is the ETF Professor's ETF Watch List for Wednesday, June 5, 2013.

The iShares Nasdaq Biotechnology Index Fund (NASDAQ: IBB) will be in play.

Give the First Trust Technology AlphaDEX Fund (NYSE: FXL) a look.

The Market Vectors Junior Gold Miners ETF (NYSE: GDXJ) continues to tease traders.

The Market Vectors Semiconductor ETF (NYSE: SMH) continues to ...