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ETFs to Watch June 19, 2013 (FAZ, IBB, TBT)

ETF Professor — Wed, 19 Jun 2013 10:37:14 +0000

Here is the ETF Professor's ETF Watch List for Wednesday, June 19, 2013.

The iShares Gold Trust (NYSE: IAU) will certainly be in focus.

The Direxion Daily Financial Bear 3X Shares (NYSE: FAZ) is worth a look.

The ETFS Physical Platinum Shares (NYSE: PPLT) is worth considering.

Give the iShares Nasdaq Biotechnology (NASDAQ: IBB) a try.

Emerging ...

Emerging Markets Awash in Protests

ETF Professor — Tue, 18 Jun 2013 21:49:48 +0000

In what is becoming something of an emerging trend, no pun intended, developing world stocks and many of the ETFs that track them are cascading lower even on days when U.S. equities rally. The reasons are plentiful and the recent declines for an array of emerging markets ETFs are staggering.

Weak currencies, slowing growth, concerns about the end of quantitative easing here in the U.S., interest rate cuts that have yet to work, interest rate hikes that have proved equally futile and other factors have prompted severe punishment of emerging markets bonds, currencies and stocks.

That could change on Wednesday if the Federal Reserve signals the end of easing is not imminent, but that does not change domestic strife that is plaguing some emerging markets ETF, such as the following.

iShares MSCI Turkey Investable Market Index Fund (NYSE: TUR) The iShares MSCI Turkey Investable Market Index Fund has gained 1.6 percent in the past five days, but not be deceived because the ETF is down 16 percent in the past month. Just weeks after TUR was boosted by news of Turkey's new investment-grade credit rating, the arcane and inept leadership of Prime Minister Recep Tayyip Erdogan is

Interesting Similarities Among 2013's Top-Performing ETFs

ETF Professor — Tue, 18 Jun 2013 20:09:33 +0000

With 2013 nearly half complete, now is a good time to look at this year's top-performing ETFs to see what has worked, what might keep working and which funds could be vulnerable to second-half pullbacks. Before getting to the good stuff, some housekeeping is in order.

First, 10 ETFs that will be highlighted are all plain vanilla, non-leveraged funds. Second, the list and performance data come courtesy ETF Replay, which features the 10 best an 10 worst non-leveraged funds on the front page of its web site.

Health Care Rules
An investment in the Health Care Select Sector SPDR (NYSE: XLV) has paid off this year as that ETF has surged more than 20 percent. However, XLV's performance pales in comparison to what biotech ETFs have delivered. Interestingly, one so-called expert labeled biotech ETFs as "dangerous" in February while touting the virtues of Amgen (NASDAQ: AMGN).

That was not the best of calls because biotech ETFs big and small have been stellar performers this year. Lead by the Market Vectors Biotech (NYSE: BBH), an ETF that coincidentally allocates 13 percent of its weight to Amgen, three biotech ETFs are found among the top-10 year-to-date performers. BBH is in the seventh spot while the iShares Nasdaq Biotechnology Index Fund (NASDAQ: IBB) is ...

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:

Spain Garners a Bull Call

ETF Professor — Tue, 18 Jun 2013 16:36:45 +0000

It was just over a year ago that yields on Spanish 10-year sovereign bonds surged over 7.6 percent. Investors fretted that the "S" in the infamous PIIGS acronym was headed for collapse and a subsequent epic bailout.

Spain, the eurozone's fourth-largest economy, offered little in the way of bullish investment themes, that is unless one enjoys crippled banks and the region's highest rate of joblessness.

Fast-forward to 2013 and it is fair to say the iShares MSCI Spain Index Fund (NYSE: EWP) has not been as bad of a performer as many would have predicted at the start of the year. EWP, the lone Spain ETF, is actually slightly higher year-to-date when accounting for Tuesday's gain. With EWP holding up fairly well, at least one investor is cautiously optimistic on Spanish equities.

"I've recently upgraded my view of Spanish stocks to neutral from underweight," said iShares Global Chief Investment Strategist Russ Koesterich in a new note. "While Spain continues to face severe growth headwinds, there are three main reasons why I'm less concerned about the market now."

While ...

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 ...

Worse, Not Better For Brazil ETFs

ETF Professor — Mon, 17 Jun 2013 20:14:02 +0000

Around these parts, we try not to pick on or laud single ETFs, or a group of similar funds, too much. We try to be fair, equal-opportunity critics and givers of complements.

Brazil ETFs such as the group's marquee name, the iShares MSCI Brazil Capped Index Fund (NYSE: EWZ) are making that task difficult because bad news continues mounting for Latin America's largest economy.

To be fair, EWZ and the other Brazil ETFs are far from being the only LatAm offenders these days. Slowing growth and declining commodities prices have weighed on ETFs ranging from the Global X FTSE Colombia 20 ETF (NYSE: GXG) to the iShares MSCI All Peru Capped Index (NYSE: EPU).

However, it sure feels like Brazil has been the most prolific issuer of bad news to investors. There was the interest rate increase at the end of May, which prompted increased speculation Brazil is dealing with stagflation. There is the plunging real. The WisdomTree Brazilian Real ETF (NYSE: BZF) is off five percent in the past month.

Then there is the fact that EWZ has been the worst-performing of the four major BRIC single-country ETFs ...

This EM Bond ETF's Luck Can't Get Any Worse, Can It?

ETF Professor — Mon, 17 Jun 2013 19:30:22 +0000

At least for the moment, it is fair to say emerging markets bonds are "so 2012" and it really does not matter if one is talking about the dollar-denominated variety or local currency bonds.

Amid plunging currencies and heightened fears the Federal Reserve is looking to end quantitative easing, investors have scampered out of emerging markets bond ETFs at almost break-neck speed in recent weeks.

Since the start of May, the iShares J.P. Morgan USD Emerging Markets Bond Fund (NYSE: EMB),the PowerShares Emerging Markets Sovereign Debt Portfolio (NYSE: PCY) and the Market Vectors Emerging Markets Local Currency Bond ETF (NYSE: EMLC) have lost over $1 billion in assets combined, according to Index Universe data.

On emerging markets bond ETF that has yet to be hit by the outflow virus is the iShares Emerging Markets High Yield Bond Fund (NYSE: EMHY). No, this is not a misprint, but EMHY has seen INFLOWS of almost $5.5 million since early May.

EMHY started to rally last year and kept those good times going into the first quarter on ...

Why Can't All Investors Trade Over-the-Counter Before the Market Opens? (OTCM)

Louis Bedigian — Mon, 17 Jun 2013 17:59:35 +0000

Not all investors have pre-market access to stocks traded within OTC Markets Group's (OTC: OTCM) (OTCQX: OTCM) three exchanges. Some are only allowed to trade after the market opens. This has created a degree of frustration and confusion among those who assumed that investors were able to trade whenever they wanted.

According to Cromwell Coulson, CEO of OTC Markets Group, pre-market availability is determined by the brokerage firms.

"Pre-market trading is a game for sophisticated investors because there's not as much liquidity, there's not as much price formation taking place," Coulson told Benzinga. "In many ways the pre-market trading is the market finding its price level. So many investors, ...

State-Run Energy Companies Are Sinking These ETFs

ETF Professor — Mon, 17 Jun 2013 17:30:00 +0000

By no means has 2013 been a bad year for some of the largest energy sector ETFs.

The Energy Select Sector SPDR (NYSE: XLE) and the Vanguard Energy ETF (NYSE: VDE) are both up more than nine percent year-to-date and both are flirting with their highest levels since before the financial crisis when oil prices were $40 to $50 per barrel higher than today.

Those performances are solid when considering shares of Exxon Mobil (NYSE: XOM) and Chevron (NYSE: CVX), the two largest U.S. oil companies, are up an average of just 5.5 percent this year. Still, those numbers are fantastic when compared to some of the state-controlled oil giants that dominate an array of emerging markets ETFs.

Down 20.2 percent this year, Petrobras (NYSE: PBR) remains one of the more egregious offenders among state-run oil firms, but this nothing new for the Brazilian oil giant. More importantly, Petrobras is far from being the only state-controlled oil company that is wreaking havoc on multiple ETFs. Just look at the following group.

Global X China Energy ETF (NYSE: CHIE)
The primary drivers of performance in the Global X China Energy ETF are China's massive ...

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 ...

Earnings Expectations for the Week of June 17

Nelson Hem — Sun, 16 Jun 2013 16:40:09 +0000

Quarterly reports from FedEx (NYSE: FDX), Oracle (NASDAQ: ORCL) and Kroger (NYSE: KR) will be among the highlights on the earnings front this week. Here is a quick look at what analysts are expecting from these and some of the week's other, most prominent earnings reports.

FedEx

This ostensible economic bellwether is expected to say that earnings came to $1.96 per share for its fourth quarter of fiscal 2013. That would be down from $1.99 per share in the year-ago period. Revenues for the quarter are estimated to be about four percent higher to $11.44 billion.

The full-year forecast calls for earnings per share (EPS) of $6.05 on $44.39 billion in revenue. That would compare to $6.59 per share and $42.70 billion in the previous year. Note that both consensus EPS estimates have slipped by a penny over the past 60 days. Look for the earnings report Wednesday morning.

Oracle

In its report after the markets close Thursday, Oracle is expected to post fiscal fourth-quarter earnings that were more than five percent higher than in the year-ago period to $0.87 per share. Full-year EPS from this enterprise software and hardware maker are forecast to be up more than eight percent to $2.68.

Revenues from this Redwood City, California-based company are predicted to total $11.13 billion for the most recent quarter and $37.46 billion for the fiscal year. That would be up less than two percent and ...

Short Sellers Pounce on Real Goods Solar (FSLR, RSOL, SCTY)

Nelson Hem — Sat, 15 Jun 2013 12:08:38 +0000

Among U.S. solar-related stocks, Real Goods Solar (NASDAQ: RSOL) and SolarCity (NASDAQ: SCTY) saw the largest upswings in short interest between the May 15 and May 31 settlement dates.

GT Advanced Technologies (NASDAQ: GTAT) and MEMC Electronic Materials -- now known as SunEdison (NYSE: SUNE) -- also saw short interest in their shares grow somewhat.

However, short interest in Suntech Power Holdings (NYSE: STP), (which is in bankruptcy) was essentially flat during that time.

The number of shares sold short in Advanced Energy Industries (NASDAQ: AEIS) and SunPower Holdings (NASDAQ: SPWR) decreased in the final weeks of May, but the largest drop in short interest happened to First Solar (NASDAQ: FSLR).

Furthermore, the number of U.S.-listed shares (or ADRs) sold short of foreign companies Canadian Solar (NASDAQ: CSIQ), JA Solar Holdings (NASDAQ: JASO) and Yingli Green Energy (NYSE: YGE) grew in late May, while short interest in China Sunergy (NASDAQ: CSUN), LDK Solar (NYSE: LDK), ReneSola (NYSE: SOL) and Trina Solar (NYSE: TSL) shrank.

Here is a quick look at how First Solar, Real Goods Solar and SolarCity have fared and what analysts expect from them.

First Solar

Short interest in this solar energy company fell almost 16 percent to around 15.39 million shares during the period. That was the smallest number of shares sold short in at least a year, but it still represents more than 25 percent of the float. Days to cover declined slightly to about two.

In ...

Short Sellers Load Up on Best Buy and Sears (BBY, RAD, SHLD)

Nelson Hem — Sat, 15 Jun 2013 12:06:27 +0000

Overall, the short interest moves in troubled retail companies were mixed again during the final weeks of May. But Best Buy (NYSE: BBY), Rite Aid (NYSE: RAD) and Sears Holdings (NASDAQ: SHLD) saw especially large upswings in the period.

The number of shares sold short in Avon Products (NYSE: AVP), GameStop (NYSE: GME), Office Depot (NYSE: ODP) and OfficeMax (NYSE: OMX) also increased between the May 15 and May 31 settlement dates.

But the short interest in Barnes & Noble (NYSE: BKS), Bebe Stores (NASDAQ: BEBE), Bon-Ton Stores (NASDAQ: BONT), J.C. Penney (NYSE: JCP), Pacific Sunwear (NASDAQ: PSUN), RadioShack (NYSE: RSH) and SuperValu (NYSE: SVU) declined during that time.

Here is a quick look at how Best Buy, Rite Aid and Sears Holdings have fared and what analysts expect from them.

Best Buy

Short interest in this specialty retailer rose more than 19 percent to 25.04 million shares by the end of the month, erasing a similar retreat by short sellers in the previous period. The number of shares sold short represents more than nine percent of the float. Days to cover fell to about three.

Best Buy attributed the net loss for its first quarter to restructuring costs. The company has a market capitalization of about $9 billion and a dividend yield near 2.5 percent. The long-term EPS growth forecast is only about four percent. The forward earnings multiple is ...