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Top 5 India ETFs as of August 2017
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do India exchange-traded funds (ETFs) are comprised of securities traded in India. This is an emerging market play, meaning it carries higher risk than more mature markets. (See also: The Risks Of Investing In Emerging Markets.) India’s economy is growing, but is not entirely stable and could be subject to volatility. The higher risk can mean higher returns, as each of the ETFs on our list shows. We have selected India ETFs that have the highest year-to-date returns of all India ETFs. An India ETF is not a buy-and-hold investment. You must consistently monitor not only each ETF’s performance, but also the condition of the economy in India. (See also: Citizens Scramble for Cash After India’s Currency Ban.) Here are the top five India ETFs by year-to-date returns as of August 10, 2017. 1. Direxion Daily MSCI India Bull 3x ETF (INDL) INDL uses the MSCI India Index as its benchmark. While it aims to invest 80% of its assets in securities from the index, the other 20% may be invested in leveraged financial instruments. The goal is to achieve a 300% return. That is, the fund tries to grow at three times the rate of the index. This adds a great deal of risk because losses can be accelerated the same way gains can when holdings are leveraged. The focus on large-cap and mid-cap stocks helps offset some of the risk. Avg. Volume: 43,214 PE Ratio (TTM): N/A Yield: 0.00 YTD Return: 103.27% Expense Ratio (net): 0.95% 2. Columbia India Infrastructure ETF (INXX) This ETF follows the Indxx India Infrastructure Index as its benchmark. At least 80% of assets go into companies that are listed on the index. The focus is on companies involved in infrastructure, so this would be an investment for those who think India is likely to grow its infrastructure to meet the needs of the world’s second-largest population (behind China). This focus gives investors the opportunity to invest in a narrow slice of the Indian economy. Avg. Volume: 31,233 PE Ratio (TTM): N/A Yield: 2.21% YTD Return: 35.42% Expense Ratio (net): 0.98% 3. VanEck Vectors India Small-Cap ETF (SCIF) For investors who like both small-cap stocks and Indian stocks, SCIF is an opportunity to invest in this specialized basket of stocks: the MVIS India Small-Cap Index. The fund may use depositary receipts in addition to investing directly in securities from the index. Note that micro-cap companies are included in the index, so this investment can carry higher risk. Avg. Volume: 88,507 PE Ratio (TTM): N/A Yield: 0.95% YTD Return: 46.33% Expense Ratio (net): 0.78% 4. Columbia India Small Cap ETF (SCIN) This is another small-cap India ETF benchmarked to the MVIS India Small-Cap Index. The stocks in the index are weighted by capitalization, so the ETF may weight the stocks similarly. The fund aims to keep 80% of its assets in securities from the index, but may have as much as 95% of assets invested in the index at any given time. Avg. Volume: 14,071 PE Ratio (TTM): N/A
Views: 1272 ETFs
Top 3 ETFs for Investing in Water in 2017
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do It's impossible to overstate our dependence on water. Even though roughly 70% of the earth is covered by water, only a tiny fraction of 1% is fresh and readily accessible to sustain over 7 billion people. (See also: The Economic Effects of Water Shortages.) In fact, the United Nations authored a report in 2015 suggesting that the world may only have 60% of its required water by 2030, absent major global policy changes. The bottom line is that water is a precious and increasingly scarce commodity, so now might be the right time to consider adding it to your portfolio for long-term growth. (See also: Should Water Be Privatized?) More investment advisors are recommending commodities as a dedicated asset class to hedge other assets in your overall portfolio. If you're looking at diversifying your commodities holdings to include exposure to water, you could also look at individual water utilities stocks if you have the time and inclination – or you could check out the emerging class of water exchange-traded funds (ETFs) to hedge your bets. Here are three water ETFs that are outperforming their peers. All figures as of July 14, 2017. PowerShares Water Resource Portfolio ETF (PHO) This is the largest and arguably the most popular water ETF, with over $804 million under management. Unlike other water funds, PHO is U.S.-centric, with a basket of 37 holdings that tilts toward mid- and smaller-cap companies, heavy on machinery and utilities and light on industrials. PHO's top 10 holdings comprise over 61% of the portfolio and feature names such as Ecolab Inc. (ECL) and Waters Corporation (WAT). (See also: Four Interesting Ways to Invest in Water.) Guggenheim S&P Global Water Index ETF (CGW) As the name suggests, this fund tracks the S&P Global Water Index and invests in companies of all market caps that stand to benefit from the increased demand for water, including water quality and delivery infrastructure. Although CGW has global exposure, it is heavily weighted to the U.S. (roughly 43% of its holdings) and the U.K. (roughly 15%). There are currently 50 companies in the fund's basket, with the top 10 holdings including major industry names such as Geberit AG (GBERY) and American Water Works Company, Inc. (AWK). (See also: Investing in Water: Risks to Consider.) PowerShares Global Water Portfolio ETF (PIO) The PIO portfolio tracks the Nasdaq OMX Global Water Index and focuses on global companies that create products for water conservation and purification. As you might expect, the portfolio is heavily tilted toward industrials and utilities, with a strong preference for large-cap growth and value. The portfolio is pretty concentrated as well, with the top 10 holdings accounting for over 56% of its assets. Top names include Ecolab, Veolia Environnement S.A. (VEOEY) and Danaher Corporation (DHR). While investor preference tends to be for PHO, this is a good play for investors with confidence in the fund's top holdings. (See also: Water: T
Views: 396 ETFs
Beat Inflation With This TIPS ETF
When investors get concerned about inflation, a favored destination turns out to be Treasury Inflation-Protected Securities (TIPS). TIPS form an important part of the overall U.S. government debt market and one that is easily accessible via an array of exchange-traded funds (ETFs). One of those ETFs is the FlexShares iBoxx 3-Year Target Duration TIPS Index Fund (TDTT). TDTT can often be overlooked in the conversation regarding TIPS ETFs, but that should not be the case with this fund. TDTT is neither new nor small. The ETF is nearly six years old and has more than $2 billion in assets under management. (See also: Tips for Inflation-Adjusted Bond (TIPS) ETFs.) TDTT's short and targeted duration provides a high correlation to immediate inflation changes and reduces unintended interest rate risk, said Morningstar in a recent note. However, it has a lower yield than its peers, and there are comparable funds at lower costs. It earns a Morningstar Analyst Rating of Bronze. Duration measures a bond's sensitivity to changes in interest rates. TIPS funds typically feature low durations in exchange for reduced sensitivity to interest rate fluctuations, meaning that the asset class usually features yields below those found on Treasuries and other fixed income assets. TDTT, which holds 11 bonds, has a modified adjusted duration of 3.1 years and an SEC yield of 0.78%. The ETF is designed specifically to target a duration of about three years. That puts it well below the average of competing TIPS funds. (See also: Introduction to Inflation-Protected Securities.) However, the fund's low volatility and high correlation with the inflation rate come at the cost of low returns, said Morningstar. The fund gained 0.04% annually over the five years through July 2017, while its category peers delivered a 0.34% annual loss. Moreover, even though the fund's management fee of 0.20% is cheaper than most its peers, there are cheaper alternatives. U.S. consumer price index (CPI) data are scheduled to be released this week, with the July number forecast to show a 0.1% increase from June. Excluding volatile food and energy prices, a common methodology when measuring inflation, July inflation is expected to have ticked higher by 0.2%. (See also: The Consumer Price Index: A Friend to Investors.) TIPS ETFs are proving popular this year, as highlighted by combined year-to-date inflows of about $3.3 billion to three of TDTT's well known competitors. This does not mean that TDTT is being left behind. The FlexShares TIPS ETF has added $211.5 million in new assets this year. (See also: US PCE Inflation Flat: Avoid TIPS ETFs.)
Views: 125 ETFs
Top 4 ETFs to Track the Nasdaq as of August 2017
If you're an investor with a keen interest in technology, it's only natural to take a look at exchange-traded funds (ETFs) that track the Nasdaq. The technology sector is historically volatile compared with the NYSE, and Nasdaq stocks exhibit about 35% more volatility. But volatility can also mean high growth potential and the accompanying financial reward. In 2017, the Nasdaq Composite Index has veered from returns of -14.45% in February to current year-to-date returns of 8.7% – it's not for the faint of heart. ETFs tracking the Nasdaq Composite offer investors exposure to the high-risk, high-reward technology sector while still hedging their bets with a more balanced approach. So if you'd rather not fiddle with individual stocks but still want the thrills of a tech-focused addition to your portfolio, take a look at these five Nasdaq-based ETFs. (See also: The Main Attractions of ETF Investing.) All year-to-date figures represent the period of Jan. 1, 2017, through July 10, 2017. Funds were selected based on a combination of performance, assets under management (AUM) and expense ratio. All figures were accurate as of July 11, 2017. PowerShares QQQ ETF (QQQ) Issuer: Invesco AUM: $51.64 billion YTD Performance: 22.08% Expense Ratio: 0.20% Fondly known as the Qubes on the Street, Invesco's QQQ trust is one of the oldest and most widely traded ETFs in the world. The fund tracks the Nasdaq 100, which is made up of the largest global non-financial companies listed on the market. Moreover, its internal rules skew it even more toward the technology sector, adding to its volatility. The information technology sector, for example, currently accounts for nearly 60% of the fund's portfolio. The fund is weighted heavily toward large-cap growth companies (over 50%). Despite its potential drawbacks, QQQ is an extremely inexpensive fund compared with its peers. Its one-year, three-year and five-year annualized returns are 26.51%, 16.73% and 18.96%, respectively. (See also: Big Price Tags Send Investors to QQQ.) Fidelity Nasdaq Composite Index ETF (ONEQ) Issuer: Fidelity AUM: $1.28 billion YTD Performance: 18.57% Expense Ratio: 0.21% Since its inception in 2003, this Fidelity ETF has attempted to replicate the Nasdaq Composite Index. At least 80% of its holdings are common stock included in the index, and more than 97% of the assets represent domestic companies. The fund is weighted toward the information technology, healthcare and consumer discretionary sectors, and you'll see lots of familiar names: Apple Inc. (AAPL), Alphabet Inc. (GOOG) and Microsoft Corporation (MSFT) are the top three holdings. (See also: Index Investing: The Nasdaq Composite Index.) iShares Nasdaq Biotechnology ETF (IBB) Issuer: BlackRock AUM: $9.44 billion YTD Performance: 15.96% Expense Ratio: 0.47% Pharmaceuticals and biotech are extremely volatile sectors on an already capricious exchange, but where there is risk, there is also potential for tremendous reward. If you wan
Views: 126 ETFs
Cheap International Income With This Vanguard ETF
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do With over half the world's dividend payers found outside the U.S., investors can turn to a diversified crowd of exchange-traded funds (ETFs) to bolster international income streams. One of the new entrants to the international dividend ETF field is the Vanguard International Dividend Appreciation ETF (VIGI). VIGI debuted in March 2016 as the international answer to the Vanguard Dividend Appreciation ETF (VIG), the largest dividend ETF trading in the U.S. In just about a year and half on the market, VIGI has already established an enviable following. At the end of June, the ETF had almost $552 million in assets under management, easily making it one of the most successful ETFs to come to market last year. (See also: Yield Hungry? Consider Vanguard's Global Dividend ETFs.) VIGI represents a sensible, smart beta, cost-effective option for investors looking to add international equity and income diversity to their portfolios. The ETF's strategy screens for stocks with consistent long-term dividend growth and caps individual weights to reduce its exposure to stock-specific risks, said Morningstar in a new research piece. The fund invests in large- and mid-cap stocks from developed and emerging markets, and screens for those that have increased their dividend payments for seven consecutive years. The strategy applies additional filters that eliminate stocks which may not be able to sustain their dividend growth. Investors should note that VIGI is not a dedicated developed markets ETF. The fund features exposure to dividend stocks from 32 countries, nearly 22% of which are classified as emerging markets. Europe is the fund's largest geographic weight at over 45%. However, VIGI's overall geographic composition is relatively conservative. Switzerland, Canada and Japan – defensive developed markets – combine for over 40% of the ETF's weight. VIGI holds 245 stocks with a median market capitalization of $51.6 billion, indicating that this is a large-cap fund. The ETF's top 10 holdings combine for 32.5% of its roster. (See also: International Dividend Appreciation ETF Hits New 52-Week High.) Many foreign stocks tie their dividend payments to earnings. Therefore, companies that have a history of increasing their dividend payments are also likely to be those that have been consistently growing profitably. This fund's return on invested capital comes in at 17.3%, compared with 12.5% for the MSCI ACWI ex-USA Growth Index. It also lands in the top quintile of the foreign large-growth Morningstar Category, according to Morningstar. Over the past year, VIGI is up 13%, but that trails the MSCI ACWI ex-USA Index by a wide margin. However, the Vanguard ETF is cost effective, with an annual fee of 0.25%. That makes it cheaper than 77% of rival funds, according to issuer data. (See also: These International Dividend ETFs Are Cheap Cheap Cheap.)
Views: 56 ETFs
Top 3 China ETFs for 2017
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Since China has the world's second-largest economy, investing there is attractive for many reasons. China is growing rapidly, and as the exchange-traded funds (ETFs) below indicate, there are some impressive returns to be made. Of course, there are some equally large risks to navigate as well. (See also: 4 Ways China Influences Global Economics.) China ETFs may include companies listed in the United States as well as Hong Kong and Shanghai. In addition, two of these ETFs invest in derivatives, so investors should not consider these pure plays on Chinese stocks. There is always risk in China of government intervention or manipulation, but using ETFs to invest there offers some protection. With a diversified set of stocks in an ETF, you are less likely to suffer from the behavior of one company. That said, the returns so far have been stellar. The Chinese market is volatile, so investors need to be ready to ride out some ups and downs. This is especially true with leveraged ETFs. An ETF can fall as fast as it rises if the market turns sour. However, because ETFs can be traded like stocks, you can sell them fairly easily if you decide you want out. We have selected three Chinese ETFs that have offered returns of over 15% year to date. All figures are current as of July 14, 2017. 1. Direxion Daily FTSE China Bull 3X ETF (YINN) YINN is a leveraged ETF. Because it seeks to beat the FTSE China 50 Index by 300%, it should be considered high-risk. The underlying index is made up of the 50 biggest Chinese companies trading on the Hong Kong Stock Exchange. The enormous returns year to date are an indication of how fast the Chinese economy is growing, but also the fact that this ETF is leveraged. Avg. Volume: 672,683 Net Assets: $164.04 million Yield: 0.00% YTD Return: 45.93% Expense Ratio (net): 0.95% 2. ProShares Ultra FTSE China 50 (XPP) XPP uses the FTSE China 50 Index as its benchmark. It invests in securities from that index, but it also may invest in derivatives. In other words, this is a leveraged ETF. The fund tries to beat the underlying index by 200%. Of course, past performance does not guarantee future returns. Avg. Volume: 10,243 Net Assets: $41.1 million Yield: 0.00% YTD Return: 30.91% Expense Ratio (net): 0.95% 3. Global X China Materials ETF (CHIM) This Chinese ETF tracks the Solactive China Materials Total Return Index. It aims to keep at least 80% of its assets invested in securities from that index. It may invest in American Depositary Receipts (ADRs), as well as Global Depositary Receipts (GDRs). The focus is on the materials sector. Avg. Volume: 2,625 Net Assets: $2.56 million Yield: 0.95% YTD Return: 24.74% Expense Ratio (net): 0.65% The Bottom Line China is an exciting place, financially speaking. Its growth is rapid, and investors are making money by investing there. However, there is still risk. The Chinese economy could stall, and the government meddles more in the markets than U.S. i
Views: 235 ETFs
Top 5 Semiconductor ETFs as of August 2017
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do The PC market has dipped recently, which hurts many semiconductor stocks. However, semiconductors continue to be indispensable in phones, games, cars, military weapons and even home appliances. Also, cloud computing is increasing the number of devices needed to access the cloud. Though semiconductors continue to be an integral part of modern life, no semiconductor fund is bulletproof. It is important to differentiate between how the semiconductor industry is doing and how any particular semiconductor ETF is performing. (See also: The Truth Behind Trading Semiconductor Chip Stocks.) We chose the top 5 semiconductor exchange-traded funds (ETFs) based on performance as of August 10, 2017. The story that emerges when looking at these ETFs is that they have been very stable and have produced significant five-year returns. Management is everything. The money managers of the five ETFs listed below have produced strong results. (See also: What ETF Fund Managers Do.) However, investors should not blindly trust that such performance will continue. It is reasonable to make semiconductor ETFs part of a diversified investment portfolio, but it is vital to perform due diligence and make sure an ETF’s investment goals match the investor’s risk tolerance and time horizon for investing. 1. Direxion Daily Semicondct Bull 3X ETF (SOXL) This is a leveraged ETF. It tries to beat the PHLX Semiconductor Sector Index by 300%. This makes it a higher-risk ETF, but that higher risk is also the reason returns are high. Avg. Volume: 549,371 Net Assets: $330.55 million YTD Return: 63.17% Expense Ratio (net): 0.95% 2. iShares PHLX Semiconductor (SOXX) SOXX does not allow any single security to have a weight of more than 8% of the portfolio. This weighting restriction means SOXX must search beyond U.S. firms to foreign firms that are listed on U.S. stock exchanges. The result is that SOXX has many smaller companies to complement the large U.S. companies in the portfolio, and that means SOXX may be more diverse than other semiconductor ETFs. Avg. Volume: 568,585 Net Assets: $995.54 million YTD Return: 14.83% Expense Ratio (net): 0.48% 3. PowerShares Dynamic Semiconductors Portfolio (PSI) This ETF attempts to balance growth and risk as it mimics the Dynamic Semiconductors Intellidex Index. The money managers also consider whether a stock is undervalued or overvalued, and to some extent, engage in timing investments. Avg. Volume: 92,419 Net Assets: $278.08 million YTD Return: 24.50% Expense Ratio (net): 0.63% 4. VanEck Vectors Semiconductor ETF (SMH) This ETF uses the Market Vectors US Listed Semiconductor 25 Index as a benchmark. It invests in both stocks and depositary receipts, though it maintains at least 80% of its assets in stocks that are in the index. Foreign companies are included along with the U.S. firms in the portfolio. Avg. Volume: 3,271,963 Net Assets: $808.35 million YTD Return: 19.82% Expense Ratio (net): 0
Views: 85 ETFs
Inverse ETFs Can Lift A Falling Portfolio
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do If you are interested in maximizing investment returns regardless of market direction and hedging your portfolio against market risk, inverse ETFs offer a convenient way to accomplish these objectives. Tutorial: Exchange-Traded Funds ETFs in GeneralExchange-traded funds (ETFs) are similar to other packaged investment products like mutual funds but with several compelling differences. Like mutual funds, ETFs can provide investors with a diversified portfolio of securities designed to meet a wide range of investment objectives. Other characteristics such as access to professional investment management and exposure to alternative asset classes can be accomplished by using either investment product. In contrast to mutual funds, ETFs trade on exchanges and are continuously priced in real time, much like equity securities. ETFs are ideal for providing investors with access to a host of sophisticated investment strategies unavailable in long-only portfolios and other strategically allocated investment programs. One could ostensibly argue that ETFs are vastly superior to mutual funds in this respect. This distinction is significant and will be explored in greater detail below. Today you can find leveraged and inverse ETFs associated with virtually every important broad market benchmark, macroeconomic sector and most key industry groups. (For more on ETFs in general, see An Inside Look At ETF Construction.) Unique CharacteristicsThe first unique characteristic is self-evident: inverse ETFs seek investment results that correspond to the inverse (opposite) of the benchmark, or index, with which they are associated. For example, the ProSharesShort QQQ ETF (AMEX:PSQ) seeks results that correspond to the inverse of the performance of the Nasdaq 100 Index. If you anticipate a downturn in the Nasdaq 100, you would simply buy shares in PSQ. Another unique characteristic is the use of derivative instruments. Exchange-listed futures and options on futures contracts, swaps and forward agreements, and listed options on individual securities and securities indexes are typically used. The investment advisor to the ETF will trade or invest in derivative instruments that he or she believes will deliver the performance stated by each ETF using directional, non-directional, arbitrage, hedging and other strategies. (Keep reading about this subject in An Introduction To Swaps.) Usually, investment capital held in the legal trust underlying each inverse ETF is not invested directly in the securities of the associated index's constituents, unlike long-oriented ETFs. Also, assets not currently invested in derivatives or securities are frequently invested in short-term debt and/or money market instruments. The yields associated with these debt instruments contribute to the portfolio's total return and can be used as collateral (margin) for open derivative positions. A number of inverse ETFs seek to deliver returns that are multiples of the benchmark, or of the benchmar
Views: 22 ETFs
Where And How To Trade Energy Stocks
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Energy futures offer many New York Mercantile Exchange (NYMEX) products that track modern applications of fossil fuel, including WTI crude oil, Brent crude oil, heating oil, natural gas and unleaded gasoline. Equity traders and investors access energy markets through American and foreign companies that explore, produce, refine and transport these fuels, as well as derivative instruments that specialize in narrowly based exposure. (To learn more, see: Fueling Futures In The Energy Market). CME Group (CME), the parent of NYMEX, offers e-mini versions of the most popular energy contracts but low liquidity puts a high bar on entry for most traders and investors. As a result, equities and exchange traded funds (ETFs) provide the most popular path to sector exposure. There are many options when it comes to trading energy ETFs, including direct exposure through U.S. Oil Fund (USO) and U.S. Natural Gas Fund (UNG). However, these popular instruments show pricing variations compared to futures contracts due to contango, which accounts for time premium decay as contracts approach settlement dates. This mathematical adjustment can produce wide discrepancies in high volatility conditions, lowering profit potential compared to futures contracts. They’re therefore best used for short- term speculation, with equities and ETF baskets providing more accurate tracking with sector subcomponents. (On a related topic, see: How Oil ETFs React To Falling Energy Prices). Finding The Best Energy Trade TOP ENERGY STOCKS (Excluding Major Integrated Companies*) Name (Symbol) Capitalization (in millions) Schlumberger (SLB) 104575 Kinder Morgan (KMI) 94196 Enterprise Products (EPD) 63901 CNOOC Ltd. (CEO) 59997 Eog Resources (EOG) 48811 Suncor Energy (SU) 41284 Enbridge (ENB) 41253 Anadarko Petroleum (APC) 41058 Petrobras Brasileiro SA (PBR) 38024 Williams Cos (WMB) 36699 * Major integrated oil companies present a special standalone class, with numerous operations packaged into each operation. Energy stocks at all capitalization levels offer excellent opportunities but most traders stick with more popular names, comparing performance against the S&P 500, NYSE Arca Oil Index (XOI) and the most closely aligned ETF. Playing individual sub-sectors requires a thorough understanding of the differences between exploration, production, pipeline and refining companies. If seeking exposure that includes multiple sub-sectors, major integrated oil companies and broad based funds provide the best solution. Investors looking for exposure in the most stable companies will find them at the top of the capitalization heap while speculators seeking high risk will find it in small cap explorers with low revenues but intriguing property portfolios. Meanwhile, short sellers can play their game at all capitalization levels, especially when energy markets are stuck in downtrends. However, it’s best to avoid high yield compani
Views: 11 ETFs
Top 5 Real Estate ETFs for 2017
Real estate investing is notorious for using leverage. That means a buyer of real estate can borrow most of the value of a property and reap the income from the entire property, even though he or she only put part of the money into it. Real estate ETFs are not like that. Investors buy shares and get paid dividend distributions and reap a total return based only the amount they have invested. The tradeoff for this is that there is lower risk. A real estate ETF invests in several real estate companies at once, whereas the individual buying a property is betting on just that one property. In addition, because an investor does not have to borrow funds to pay for the real estate, there is no debt to pay back. The following ETFs are instruments that investors may consider to get into real estate without having to be a landlord or becoming a partner in an investment group. We chose the top 5 real estate exchange-traded funds (ETFs) based on assets under management (AUM) as of August 15, 2017. They are listed below from largest to smallest. We evaluated the investment approaches of each fund so that investors can make comparisons of style and results. (See also: 4 Real Estate Trends for 2017 Investors Should Be Aware Of.) 1. Vanguard REIT ETF (VNQ) The primary goal of VNQ is high income. Investors may also see growth in the value of their investment, but that is secondary. The fund tracks an index that measures the performance of real estate investment trusts (REITs). The specific stocks of the REITs are part of the MSCI US REIT Index. The holdings in the ETF are weighted in a manner that is similar to the weightings in the index. (See also: 4 Risks of Shorting REIT ETFs.) Avg. Volume: 3,644,438 Net Assets: $64.59 billion PE Ratio (TTM): 7.52 Yield: 4.38% YTD Return: 3.82% Expense Ratio (net): 0.12% 2. iShares U.S. Real Estate ETF (IYR) Investors in IYR seek results similar to those of the Dow Jones U.S. Real Estate Index. The fund invests mostly in REITs and attempts to keep 90% of its assets in securities that are in the index. The companies represented by those securities may be large-cap, mid-cap or small-cap. The percentage of assets in any particular size of company is dependent on the underlying index. Money managers may change the mix of holdings to more closely reflect the performance of the benchmark. Avg. Volume: 6,404,896 Net Assets: $4.2 billion PE Ratio (TTM): 6.84 Yield: 4.01% YTD Return: 6.79% Expense Ratio (net): 0.44% 3. iShares Cohen & Steers REIT ETF (ICF) This fund seeks results similar to the Cohen & Steers Realty Majors Index. REITs are the components of the index, and the fund invests at least 90% of its assets in those REITs, or in depositary receipts representing the REITs. The fund looks for companies that may be acquired or that may acquire other companies as part of the consolidation of the real estate sector. Avg. Volume: 158,536 Net Assets: $3.27 billion PE Ratio (TTM): 12.96
Views: 71 ETFs
The Painful Truth About Leveraged ETFs
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do With the current fragile market inspiring more and more investors to make directional bets on the performance of the market, a popular class of exchange traded funds has attracted attention. Unfortunately, the growing popularity of leveraged ETFs is coming at a painful price. IN PICTURES: 20 Tools For Building Up Your PortfolioA PrimerThe popularity of leveraged ETFs is easy to explain. They allow the small investor to make big directional bets on a market or industry without having to assume leverage. Investors can now make leveraged bets without having to open margin accounts. Unfortunately, many investors have been burned badly by investing in these instruments even after making the correct market call. Consider a very popular EFT, the UltraShort S&P 500 ProShares (NYSE:SDS), which is designed to deliver daily investment results which equal twice the inverse of the daily performance of the S&P 500. In other words, the SDS sounds a like a great way to hedge against a market sell-off. If the S&P declines 2% one day, the SDS will go up by 4%. (For more, see Inverse ETFs Can Lift A Falling Portfolio.) A Painful LessonA closer examination reveals this is not the case. In 2009, the S&P 500 began at 903 and today sits at about 880 or a decline of about 2%. One would think that the SDS should be up around 4%. Unfortunately, a chart reveals that the SDS is actually down 10% this year. Even the Ultra S&P 500 ProShares (NYSE:SSO) which is supposed to deliver twice the index result - and thus expected to be down 4% - is down 14% this year. (For more, see Five Ways To Find A Winning ETF.) Are these levered ETFs misleading investors? In actuality, the instruments are being completely candid with investors. The stated goal of the levered ETFs is to produce daily investment results based on the long or short strategy of the fund. Some basic math provides clarity. If the S&P 500 declines 15% one day, to get back to par will require a gain of approximately 18%. A 15% decline for the S&P will result in a 30% decline in the SSO ETF. A 30% decline requires a 43% return to get back to even. But since the SSO mimics the S&P 500, when the S&P gets back to even by going up 18%, the SSO has only appreciated by 36%, not the required 43%. Offer Good for a Limited TimeYou can see the trouble these ETFs can cause when they are misunderstood and used inappropriately. By definition, they are designed for short-term directional bets. From January until March when the market headed south fast, the SDS was up nearly 100%. Similarly, the UltraShort Financials ProShares (NYSE: SKF) and Ultra Financials ProShares (NYSE: UYG) have each staged triple-digit returns over short periods this year. But year to date, both are off over 40%. The Bottom LineUnfortunately for investors, the ETFs are doing exactly what they are supposed to be doing on a daily basis but as long-term leverage instruments they are deadly. Understand the basic simple
Views: 11 ETFs
Top 3 Agriculture ETFs for 2017
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do The agriculture sector has performed well in the beginning of 2017. Demand for commodities has picked up. This includes corn, wheat, sugar and soy beans. Agriculture exchange-traded-funds (ETFs) have turned in some positive returns. However, the current performance should be put in context. Since June 2016, commodities have dropped. The rise at the beginning of 2017 has not taken commodity ETFs back to their highs of last June. The following three agriculture ETFs are worth watching this year. They were selected based on assets under management, so these are the three biggest. All of these ETFs showed steep declines in the last half of 2016, but they have started to recover and could do well through the remainder of 2017. It would be wise to watch global demand for commodities, as this is the driver not only for these ETFs, but for the agricultural sector in general. (See also: A Primer For Investing In Agriculture.) It should be pointed out that these funds may invest in exchange-traded notes (ETNs ), which are debt issued by banks based on the performance of an index. The price of an ETN depends on the performance of the index that is being tracked. In other words, these ETFs carry risk based on how commodities are doing worldwide. These are not good candidates for buy-and-hold investors. Commodities can be volatile, and of course, the ETFs that make their living off of commodities can be equally volatile. Still, the returns for these ETFs have been decent so far this year, so investors who want commodity exposure may want to look at the top three by assets under management. All figures are current as of February 15, 2017. 1. PowerShares DB Agriculture ETF (DBA) This ETF is tied to the DBIQ Diversified Agriculture Index Excess Return index. Note that the ETF will track changes in the index whether they are positive or negative. This means an investor will have no protection against declining commodities performance in the event there is a downturn. If you invest in this ETF, you should watch the performance of commodities themselves to get an idea of how the fund will perform. With net assets of over $775 million, DBA is very liquid. You should be able to buy and sell shares of this ETF fairly easily. Avg. Volume: 702,235 Net Assets: $775.89 million Yield: 0.00% YTD Return: 2.15% Expense Ratio (net): 0.93% Inception Date: January 5, 2007 Since Inception: -1.56% 2. ELEMENTS Rogers Intl Cmdty Agri TR ETN (RJA) RJA uses the Rogers International Commodity Index – Agriculture Total Return Index as its benchmark. It tries to replicate the performance of that index. It does this by investing in a basket of 20 futures contracts that are based on agricultural commodities. Investing in this fund is the equivalent of investing in those 20 contracts. You should understand how futures contracts work if you are going to buy shares in this ETF. (See also: Futures Fundamentals: How The Market Works.) Avg. Volume: 63,937 Net Assets: $130.08 million
Views: 118 ETFs
Seeking Value With a Small-Cap Value ETF
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do The value factor is one of the most widely followed investment factors, something that is evident by the scores of exchange-traded funds (ETFs) dedicated to value stocks. Of course, investors also want to know they are getting value when devoting capital to a value ETF. Part of the value proposition can come in the form of a low expense ratio, certainly something the Vanguard Small-Cap Value ETF (VBR) makes good on. The Vanguard Small-Cap Value ETF carries an annual fee of just 0.08 percent, or $8 on a $10,000 investment. That makes VBR less expensive than a whopping 94 percent of competing funds, according to Vanguard data. VBR follows the CRSP US Small Cap Value Index, which focuses on small-cap value names. However, investors should note just how small-cap this small-cap ETF really is. VBR's nearly 830 constituents have a median market value of $3.6 billion, putting the ETF more in mid-cap territory and above the $2 billion that is the standard definition of small-cap at the top end. (See also: VBR: Vanguard Small-Cap Value ETF.) Small-cap value stocks can have some drawbacks as well. These stocks also tend to have poor growth prospects and, in many cases, limited profitability, so they are not necessarily bargains. But they could become undervalued if investors extrapolate lackluster past growth too far into the future, said Morningstar in a recent note covering VBR. VBR is not top heavy at the stock level, as its top 10 holdings combine for less than 5 percent of the ETF's weight. That helps lower VBR's volatility and single stock risk. However, the ETF is top heavy at the sector level, as two sectors – financial services and industrials – combine for over half the ETF's weight. Large weights are allocated to financial stocks across an array of value ETFs, regardless of market cap spectrum. (See also: Value vs. Growth ETFs: How Do You Choose?) There are some advantages to the small-cap value style as well, including reduced volatility. Small-cap stocks have indeed historically compensated investors for their risks over the long term. From its inception in December 1978 through March 2017, the Russell 2000 Value Index (which offers similar exposure to this fund) outpaced the Russell 2000 Growth Index by about 3.5 percentage points per year, said Morningstar. This outperformance has not been consistent. During the past decade, the Russell 2000 Value Index lagged its growth counterpart by 2 percentage points annually. While they won't always come out ahead, value stocks will likely offer a modest return edge over the long term. (See also: Value Investing Strategies in a Volatile Market.)
Views: 25 ETFs
Are These 3 Agriculture Stocks Headed Higher
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Increased demand for agriculture products across the globe is sending the prices of farming-related assets higher. As you can see from the chart of PowerShares Global Agriculture ETF (PAGG), a popular fund used by traders to track farming-related activities, recent price action has surpassed a key area of resistance and momentum is now clearly in the upward direction. The breakout, shown by the black circle, is a clear technical buy sign and many traders will hold a bullish outlook until the price closes below the trendline or nearby moving averages. (For more, see: Choosing an Agriculture ETF.) Fertile Ground? One segment of the market that is capturing the attention of commodity traders is the agriculture chemicals industry. Bullish price patterns appearing on charts of major players along with strong demand for agro-chemicals, fertilizer and increased farming expenditures have been a boon for the industry. No analysis of agriculture chemicals is complete without a look at Monsanto Co. (MON). The company trades with a market capitalization of approximately $60 billion and is one of the most talked-about companies in the public markets. As you can see from the chart below, the price has recently broken out of an ascending triangle pattern. The move above $122.43 is a technical buy sign and many traders will use the bullish crossover between the MACD and its signal line (shown by the black circle) as confirmation of a move higher. Traders will likely protect their long positions by placing a stop-loss order below the long-term support of the 200-day moving average (red line), which is currently trading at $116.73. (For more, see: Triangles: A Study of Continuation Patterns.) Time to Invest in Fertilizer Another set of strongly positioned agriculture-chemical stocks is Potash Corp. of Saskatchewan, Inc. (POT) and The Mosaic Company (MOS). These two companies are global leaders in the mining, production and sale of potash-based fertilizers. Taking a look at the chart of POT below, you can see that it is nearing the resistance of the previous high of $37.45. Moves beyond this level will likely trigger a series of buy-stop orders. The recent bullish crossover between the 50-day moving average and the 200-day moving average signals the beginning of a long-term uptrend so many position traders will likely look to maximize the potential risk/reward of the trade by placing their stop-loss orders below the 200-day moving average ($34.76). Giving positions more room to maneuver will reduce the likelihood of being whipsawed out of a position prior to a surge higher. (For more, see: A Huge Opportunity in Fertilizer Stocks.) Mosaic Trending Higher Taking a look at the chart of Mosaic Co, you can see that the bulls have already sent the price above the resistance of high from June 2014. Traders will use this bullish chart pattern to anticipate a similar move in POT. The recent bullish crossover between the 50-day and 200-day moving average is also
Views: 22 ETFs
Top 3 Investment-Grade Corporate Bond ETFs
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Depending on your stage of life or the asset allocation in your portfolio, bonds may be a solid choice to provide fixed-income stability and a hedge against more risky equity investments. (See also: 6 Asset Allocation Strategies That Work.) Interest rates have been historically low for many years, making the gold standard, U.S. treasuries, less attractive. That's where investment-grade corporate bonds come in. Corporate bonds offer significantly higher yield in many cases, without an equally significant bump in risk. Yes, corporations do go bankrupt on rare occasions, but investment-grade bonds focus on companies with excellent credit ratings and very low risk of default. (See also: How to Invest in Corporate Bonds.) The problem is that picking institutional bonds is a skill best left to experts, and their fees can easily gobble up gains. Fortunately, there are a number of high-quality investment-grade corporate bond exchange-traded funds (ETFs) that are comparatively inexpensive and highly liquid. You also avoid the market-timing mistakes that so commonly befall amateur investors. Most investors should view bonds and bond ETFs as a strategic asset – a buy-and-hold investment that serves a specific purpose in their overall asset allocation. (See also: Evaluating Bond Funds: Keep It Simple.) If you're looking for a few good corporate bond options to round out your portfolio, here are a few ETFs that rise above their peers. All year-to-date (YTD) performance figures are based on the period of Jan. 1, 2017, through July 14, 2017, unless otherwise noted. Funds were selected on the basis of a combination of assets under management (AUM) and overall performance. All figures are as of July 15, 2017. iShares iBoxx $ Investment Grade Corporate Bond ETF (LQD) Issuer: BlackRock Assets Under Management: $36 billion YTD Performance: 4.52% Expense Ratio: 0.15% This is the largest of the corporate bond ETFs and has returned nearly 5.56% since its inception in 2002. The fund tracks the Markit iBoxx USD Liquid Investment Grade Index, investing roughly 90% of its assets into securities in the index, with the balance in cash funds. There are currently 1,691 holdings, heavily tilted toward the banking and consumer non-cyclical sectors. Top issuers include JPMorgan Chase & Co. (JPM) and The Goldman Sachs Group, Inc. (GS). LQD's low expense ratio and solid performance figures make it an attractive choice. One-year, three-year and five-year returns are 0.28%, 3.72% and 3.68%, respectively. (See also: Don't Doubt the Data: Bond ETFs Will Keep Growing.) Vanguard Short-Term Corporate Bond ETF (VCSH) Issuer: Vanguard Assets Under Management: $19.93 billion YTD Performance: 1.90% Expense Ratio: 0.07% Short-term bonds generally mature within one to five years, and yields are lower than those of their longer-term cousins. This fund tracks the Barclays U.S. 1-5 Year Corporate Bond Index and invests about 80% of its assets into securities on the benchmark index.
Views: 69 ETFs
The Risks of Investing in Inverse ETFs
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Inverse exchange-traded funds (ETFs) seek to deliver inverse returns of underlying indexes. To achieve their investment results, inverse ETFs generally use derivative securities, such as swap agreements, forwards, futures contracts and options. Inverse ETFs are designed for speculative traders and investors seeking tactical day trades against their respective underlying indexes. Inverse ETFs only seek investment results that are the inverse of their benchmarks' performances for one day only. For example, assume an inverse ETF seeks to track the inverse performance of Standard & Poor's 500 Index. Therefore, if the S&P 500 Index increases by 1%, the ETF should theoretically decrease by 1%, and the opposite is true. Inverse ETFs carry many risks and are not suitable for risk-averse investors. This type of ETF is best suited for sophisticated, highly risk-tolerant investors who are comfortable with taking on the risks inherent to inverse ETFs. The principal risks associated with investing in inverse ETFs include compounding risk, derivative securities risk, correlation risk and short sale exposure risk. Compounding Risk Compounding risk is one of the main types of risks affecting inverse ETFs. Inverse ETFs held for periods longer than one day are affected by compounding returns. Since an inverse ETF has a single-day investment objective of providing investment results that are one times the inverse of its underlying index, the fund's performance likely differs from its investment objective for periods greater than one day. Investors who wish to hold inverse ETFs for periods exceeding one day must actively manage and rebalance their positions to mitigate compounding risk. For example, the ProShares Short S&P 500 (NYSEARCA: SH) is an inverse ETF that seeks to provide daily investment results, before fees and expenses, corresponding to the inverse, or -1X, of the daily performance of the S&P 500 Index. The effects of compounding returns cause SH's returns to differ from -1X those of the S&P 500 Index. As of June 30, 2015, based on trailing 12-month data, SH had a net asset value (NAV) total return of -8.75%, while the S&P 500 Index had a return of 7.42%. Additionally, since the fund's inception on June 19, 2006, SH has had a NAV total return of -10.24%, while the S&P 500 Index has had a return of 8.07% over the same period. The effect of compounding returns becomes more conspicuous during periods of high market turbulence. During periods of high volatility, the effects of compounding returns cause an inverse ETF's investment results for periods longer than one single day to substantially vary from one times the inverse of the underlying index's return. For example, hypothetically assume the S&P 500 Index is at 1,950 and a speculative investor purchases SH at $20. The index closes 1% higher at 1,969.50 and SH closes at $19.80. However, the following day, the index closes down 3%, at 1,910.42. Consequently, SH clos
Views: 35 ETFs
Inverse ETFs Can Lift A Falling Portfolio
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do If you are interested in maximizing investment returns regardless of market direction and hedging your portfolio against market risk, inverse ETFs offer a convenient way to accomplish these objectives. Tutorial: Exchange-Traded Funds ETFs in GeneralExchange-traded funds (ETFs) are similar to other packaged investment products like mutual funds but with several compelling differences. Like mutual funds, ETFs can provide investors with a diversified portfolio of securities designed to meet a wide range of investment objectives. Other characteristics such as access to professional investment management and exposure to alternative asset classes can be accomplished by using either investment product. In contrast to mutual funds, ETFs trade on exchanges and are continuously priced in real time, much like equity securities. ETFs are ideal for providing investors with access to a host of sophisticated investment strategies unavailable in long-only portfolios and other strategically allocated investment programs. One could ostensibly argue that ETFs are vastly superior to mutual funds in this respect. This distinction is significant and will be explored in greater detail below. Today you can find leveraged and inverse ETFs associated with virtually every important broad market benchmark, macroeconomic sector and most key industry groups. (For more on ETFs in general, see An Inside Look At ETF Construction.) Unique CharacteristicsThe first unique characteristic is self-evident: inverse ETFs seek investment results that correspond to the inverse (opposite) of the benchmark, or index, with which they are associated. For example, the ProSharesShort QQQ ETF (AMEX:PSQ) seeks results that correspond to the inverse of the performance of the Nasdaq 100 Index. If you anticipate a downturn in the Nasdaq 100, you would simply buy shares in PSQ. Another unique characteristic is the use of derivative instruments. Exchange-listed futures and options on futures contracts, swaps and forward agreements, and listed options on individual securities and securities indexes are typically used. The investment advisor to the ETF will trade or invest in derivative instruments that he or she believes will deliver the performance stated by each ETF using directional, non-directional, arbitrage, hedging and other strategies. (Keep reading about this subject in An Introduction To Swaps.) Usually, investment capital held in the legal trust underlying each inverse ETF is not invested directly in the securities of the associated index's constituents, unlike long-oriented ETFs. Also, assets not currently invested in derivatives or securities are frequently invested in short-term debt and/or money market instruments. The yields associated with these debt instruments contribute to the portfolio's total return and can be used as collateral (margin) for open derivative positions. A number of inverse ETFs seek to deliver returns that are multiples of the benchmark, or of the benchmar
Views: 11 ETFs
Top 3 Defense ETFs (PPA, XAR)
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Even though military spending has decreased as a percentage of GDP over the past six years, aerospace and defense ETFs have done remarkably well with 5-year average returns ranging around 18%—and could continue to do well regardless of who wins the 2016 presidential election. Currently, there are three ETFs that follow different indices tracking the aerospace and defense industry. PowerShares Aerospace & Defense ETF (NYSEArca: PPA) The fund seeks to replicate the yield and price of the SPADE Defense Index. The fund invests 90% of its assets in the underlying index, and its top three holding are Boeing Co, Lockheed Martin Corp and United Technologies Corp. AUM $279.06M Expense Ratio 0.64% YTD 7.91% 5-Year Return 18.19% SPDR S&P Aerospace & Defense ETF (NYSEArca: XAR) Replicating the S&P Aerospace & Defense Index, the fund’s top holdings are B/E Aerospace Inc, Boeing Co and Spirit AeroSystem Holdings Inc. The fund follows a sampling strategy which allows the fund manager to invest in securities other than those securities comprising the underlying index, but at least 80% of the fund’s assets is invested in the index itself. AUM $217.85M Expense Ratio 0.35% YTD 9.24% 5-Year Return 18.47% iShares US Aerospace & Defense (NYSEArca: ITA) The fund seeks to replicate the performance of the Dow Jones US Select Aerospace & Defense Index which is composed of US aerospace and defense equities. The fund invests at least 90% of its assets in the index, and its top holdings are Boeing Co, Lockheed Martin Corp and United Technologies Corp—identical to PPA’s top holdings. AUM $927.12M Expense Ratio 0.44% YTD 9.56% 5-Year Return 18.65% Numbers are as of November 6th, 2016, provided by FactSet.
Views: 94 ETFs
Why Investors Should Avoid this China Bear ETF
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Bad news out of China is driving stocks lower, leading investors to seek ways to short the country any way they can. While many options are out there, the Direxion Daily FTSE China Bear 3X ETF (YANG) is one to avoid. The CSI 300 index has fallen into negative territory since the start of February, but YANG has lost over 5 percent in the same period despite being an inverse fund — attempting to inverse the Chinese market by shorting the largest Chinese equities. Several recent data points have helped weaken Chinese stocks but have not helped bring YANG higher. Earlier in February, China announced its forex reserves fell below $3 trillion. Prior to that, the People's Bank of China announced that it would raise its interest rate target by 10 basis points in an attempt to combat China's growing corporate debt burden. (See also: China's Debt Grew at a Terrifying Rate in the Last 12 Months.) The fund's use of leverage -- borrowing to sell short three times the fund's total capital -- is the main cause of its poor performance, because leverage costs drag down returns. Additionally, the fund is not designed for long term holdings, because it attempts to approximate three times the return of the fund's benchmark on any given day. As the company states on its website, These leveraged ETFs seeks a return that is 300% or -300% of the return of their benchmark index for a single day. The funds should not be expected to provide three times or negative three times the return of the benchmark’s cumulative return for periods greater than a day. To achieve this result, YANG will aggressively resell and repurchase its assets, causing a further drag on returns. The Fund seeks daily leveraged investment results relative to the Index and is different and riskier than similarly benchmarked exchange-traded funds that do not use leverage, Therefore, the Fund is not intended to be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios, Direxion warns.
Views: 69 ETFs
Bet Against The Euro With EUO ETF
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Typical investors have no way to easily and cheaply trade foreign currency markets, let alone short a currency. Fortunately, there are ETFs listed on U.S. stock exchanges that track foreign exchange movements both long and short. The ProShares UltraShort Euro (EUO) is one way for an investor to gain short exposure to the euro. Such an exposure may be profitable for someone betting that the euro will continue its recent decline. The euro currency has seen increased price volatility in the past few months. The European Central Bank is attempting to initiate quantitative easing in order to stabilize Europe's shaky economy, the Swiss National Bank de-pegged the Swiss Franc from the euro, and a new Greek government is threatening to finally exit the eurozone. All of this, plus persistent economic woes in the peripheral eurozone countries has caused the euro to lose value at a rapid rate. ProShares UltraShort Euro ETF Using a leveraged ETF is a convenient way for individual investors to gain short exposure to the euro. The ETF is a short exposure via the ETF and not a short position in and of itself. This offers a number of benefits including limited downside loss. One can only lose their investment and no more if the shares drop to zero, while a short has a theoretically infinite loss potential. Another is that certain investors are restricted from shorting financial instruments. Additionally, these shares can be bought outright without the need for margin. (See also: Guide To ETF Providers: ProShares) According to its prospectus, the ProShares UltraShort Euro ETF seeks daily investment results, before fees and expenses, that correspond to two times the inverse (-2x) of the daily performance of the U.S. Dollar price of the euro. This means that for every 1% loss in the spot EUR:USD market, the ETF should return a positive 2% and vice-versa. Gains will be magnified, but losses will also be exaggerated. Not only is the EUO a short instrument, it is also a leveraged ETF allowing for its double inverse return characteristics. These leveraged ETFs are also referred to as geared investments. Most geared funds have one-day investment objectives: They aim to provide a multiple (such as 2x or -2x) of the return of its benchmark for a single day. For any period of time other than a day, the performance of a leveraged ETF is not likely to equal the benchmark return times the multiple stated in its one day return objective. This is due to the compounding of daily returns, and the effects are magnified for geared or leveraged funds. (For more, see: Dissecting Leveraged ETFs.) EUO has performed exceptionally well this year due to the drop in the euro price. The ETF has returned nearly 14% year-to-date and almost 39% over the past 12 months. Meanwhile the EUR:USD currency pair has lost 5.1% year-to-date, falling from nearly 1.21 at the start of the year to just under 1.13. The euro had traded as high as 1.3931 dollars per euro during 2014. Asi
Views: 28 ETFs
The 3 Largest Emerging Markets ETFs (VWO, EEM)
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Emerging markets are once again rising in popularity with investors as an avenue for diversifying their portfolios internationally. While emerging-market economies have not performed in the past few years, as of 2016, for investors at the stellar rate they did between 2000 and 2010, many analysts expect emerging-market growth rates overall to continue to outpace growth rates in developed economies. Additionally, early 2016 has shown signs of a turn back to the upside in basic commodity prices, which is generally a boon for many emerging-market nations. Exchange-traded funds (ETFs) remain a popular low-cost and easy means of obtaining exposure to emerging-market equities. The following is a review of the three largest emerging-market ETFs, in terms of total assets under management (AUM), as of mid-March 2016. FTSE Emerging Markets Fund Issued by Vanguard, the FTSE Emerging Markets Fund (NYSEARCA: VWO) was established in 2005. This fund tracks the FTSE Emerging Markets All Cap China A Inclusion Transition Index. This index, which excludes South Korea, is comprised of the stocks of emerging-market nations' companies weighted by market capitalization. The FTSE Emerging Markets Fund provides investors with a substantial amount of highly liquid, broad exposure to emerging-market equities. This fund has undergone several distinct operational changes in the past few years, adopting its current index in 2013, and most recently, in 2015, fund managers started the process of including China A-shares and small-cap stocks in the fund’s portfolio. The FTSE Emerging Markets Fund has more than $34 billion in AUM. The fund has a very attractively low expense ratio of 0.15%. It offers investors a healthy dividend yield of 3.48%. The five-year annualized return for this fund is negative 3.36%, but the fund was up 3.7% for the year in mid-March 2016. The greatest portion of the assets in this fund’s portfolio are allocated to Hong Kong, accounting for 27.4% of the portfolio. Taiwan and India come in as a distant second and third, accounting for 14.6% and 13.5% of the portfolio’s assets, respectively. Financial services and technology sector stocks account for almost half of the portfolio holdings, at 24.6 and 18.6% respectively. The top three holdings for this fund include Tencent Holdings Ltd. (HKSE: 0700.HK), Taiwan Semiconductor Manufacturing Company Ltd. (NYSE: TSM) and China Mobile Ltd. (NYSE: CHL). Morningstar rates this ETF as average in terms of both risk and return. iShares MSCI Emerging Markets Fund The iShares MSCI Emerging Markets Fund (NYSEARCA: EEM) was launched by BlackRock in 2003. This fund tracks the market cap-weighted MSCI Emerging Markets index, a list composed of companies from emerging markets around the world. The iShares MSCI Emerging Markets Fund has nearly $25 billion in AUM and an average daily trading volume over $2 billion. Though it has lost its position as the largest fund in the emerging-market space to the FTSE Emergi
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A Look At 3 Smart Beta Bond ETFs (PHB,VBND,AGGP)
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Smart beta strategies continue to gain steam. While there are currently 771 smart beta equity exchange-traded funds (ETFs) on the market, there are only 22 smart beta fixed-income ETFs. Smart beta equity ETFs now have more than $500 billion in assets whereas their fixed-income brethren have just $5.2 billion. If you’re not sure of the definition of a smart beta ETF, there are several variations. They basically use technical analysis or fundamentals as opposed to market capitalization in order to determine holdings. Instead of looking at the more popular smart beta equity ETFs, let’s take a look at a few smart-beta bond ETFs that have performed well. (For more, see: Strategic/Smart Beta: What Investors Should Know.) 3 Smart Beta Fixed-Income ETFs The PowerShares Fundamental High Yield Corporate Bongd ETF (PHB) tracks the price and yield of the RAFI Bonds U.S. High Yield 1-10 Index. Its weightings are based on the book value and cash flow of the issuing firm. Issuances below B (junk) are excluded from consideration. Since PHB tracks higher credit ratings, it doesn’t have an exceptionally high dividend yield. Then again, it’s doubtful that many investors are going to complain about a 4.53% dividend yield, especially when PHB has appreciated 9.56% year to date. PHB has net assets of $958.45 million. It has a slightly higher than average expense ratio of 0.50%. The average daily trading volume over the past three months is 217,379. (For more, see: Could Smart Beta ETFs Be a $1 Trillion Market by 2020?) The Vident Core U.S. Bond Strategy ETF (VBND) tracks the total return of the Vident Core U.S. Bond Strategy Index. It overweights sectors with favorable valuation and momentum. VBND has net assets of $460.73 million and comes with an expense ratio of 0.48%. It has appreciated 5.68% year to date and currently yields 1.44%. This lower yield is likely part of the reason for the low average daily trading volume of 24,595. (For more, see: Smart Beta ETFs: The Pros and Cons.) The IQ Enhanced Core Plus Bond U.S. ETF (AGGP) seeks to track the price and yield of the IQ Enhanced Core Plus Bond U.S. Index. Its weightings are based on price momentum. Holdings are other ETFs, not individual bonds. AGGP offers exposure to Treasuries, mortgage-backed securities, corporate bonds and dollar-denominated emerging market bonds. According to this ETF’s summary page it: Seeks to outperform the U.S. dollar-denominated, taxable, fixed-income universe by using a momentum investing strategy, which seeks to track the persistence of ongoing trends in the market. AGGP’s top five holdings are LQD (28% of assets), VMBS (26%), VCIT (21%), MBG (13%) and MBB (9%). (For more, see: How to Evaluate Smart Beta ETF Strategies.) Key Metrics The chart below compares the key metrics for these three smart beta bond ETFs. Net Assets Expense Ratio Year to Date Performance Dividend Yield Volume PHB $958.45 million 0.50% 9.56% 4.53% 217,379 VBND
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https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Since inception in 2006, the SPDR S&P Biotech ETF (NYSEARCA: XBI) managed by State Street Global Advisors has earned investors a 19.32% return by focusing the majority of its holdings in the biotechnology sector. XBI fund managers aim to provide investors a similar total return to that of the S&P Biotechnology Select Industry Index, which is a subindustry portion of the S&P Total Market Index. The benchmark used for XBI tracks the performance of large U.S. company stocks for businesses operating in the field of biotechnology. As one of the most unique sectors in the market, biotechnology has long been a place where investors seek out high-growth opportunities. Biotechnology companies are those that work toward improving the qualify of life through research and development in the field of medicine, food and fuel. Companies within this sector and held within XBI are predominately focused on drug development under the umbrella of the medical industry, with major players including Radius Health, Inc. (RDUS), ZIOPHARM Oncology Inc. (ZIOP), Novavax, Inc. (NVAX) and BioCryst Pharmaceuticals, Inc. (BCRX). Fund managers of XBI utilize a sampling approach to disperse fund assets, and a substantial portion of assets, at least 80%, are invested in the biotech companies listed on the fund's target benchmark. XBI uses an equal weighting strategy among the 105 biotech company stock holdings found within the fund. Characteristics XBI is a strong fund option in the biotech market, due, in part, to the passive management investment philosophy implemented by its fund managers at State Street Global Advisors. As with other SPDR funds, XBI has a notably low turnover ratio, which helps in keeping total expenses passed on to investors relatively low. On average, exchange-traded funds (ETFs) in the biotech market have expense ratios ranging from 0.48 to 0.95%. XBI falls below the sector average with a gross expense ratio of 0.35% due to low turnover and passive management, making the ETF more attractive to investors than comparable biotech-focused funds. Like other ETFs, XBI can be bought and sold on the secondary market, with or without the assistance of a broker. Trading fees and commissions vary depending on the trading platform used. Suitability and Recommendations While all investments in the stock market present risk for investors, ETFs with a narrow focus in a single sector are more volatile than more diversified funds. Because XBI only invests in 105 U.S. company stocks, all within the biotech industry, the fund carries more risk for investors and has the potential to fluctuate a great deal. Specific to the biotech industry, companies operating in the sector are high risk due to the increasing costs of research and development, failed clinical trials and the constant potential for losing out to competing biotech firms. Fund managers at XBI use a sampling approach to select the companies held within the fund, based on the target index. This s
Views: 284 ETFs
Consider These Municipal Bond ETFs
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Municipal bonds can make a positive contribution to an investor's portfolio, by offering tax-free returns in some cases, and a steady stream of income over time. Cities, counties and states issue municipal bonds in order to fund the development of projects including hospitals, airports and school systems. Let's take a glance at a couple of issues investors should consider before determining if a municipal bond ETF makes sense for their investment portfolios.StrengthsThe underlying assets of a municipal bond ETFs like the iShares S&P National Municipal Bond ETF (ARCA:MUB) displays the diversity of holdings across state as well as across project development initiatives available to investors. The MUB fund's top holdings include general obligation bonds from states including California, Texas and Oregon. General obligation bonds are considered the safest among the variety of municipal bond offerings, since they are secured by the taxing powers of the issuing authority. The security of municipal bonds and their ability to offer a steady stream of income have made them a popular option for investors. The MUB fund has current yield of 3.20% and returned +6.43% in the last year (excluding distributions). Behind US Treasuries, municipals are considered by many to be the next safest category of investment. SEE: The Basics Of Municipal Bonds RisksTough economic times and lower tax revenues could lead to states having difficulty repaying those invested in municipal bonds. The risk is less pronounced for general obligation bonds, but they are amplified for municipal bonds tied to private institutions like hospitals, due to the risk of bankruptcy. The threat of future inflation, resulting in higher interest rates, could also mean lower returns for municipal bonds with longer times frames until maturity. In this case, municipal bond ETFs with a shorter average maturity, in the neighborhood of three years, like the SPDRS Barclays Capital Short Term Municipal Bond ETF (ARCA:SHM) and the S&P Short Term National Municipal Bond ETF (ARCA:SUB), would stand to perform better than funds with longer maturities, like the SPDR Barclays Capital Municipal Bond ETF (ARCA:TFI) with its average maturity of almost 14 years. SHM, SUB and TFI all returned +0.78%, +0.74% and +6.34% in the last year, respectively. SEE: 20 Tools For Building Up Your Portfolio State OptionsMunicipal Bond Fund ETFs are also available for individual states like California and New York. Two of the biggest funds in terms of total assets investors can investigate are the iShares S&P California Municipal Bond ETF (ARCA:CMF) and the iShares S&P New York Municipal Bond ETF (ARCA:NYF). Asset size is another consideration, since the smaller a fund is, the greater the possibility of the fund being closed down. CMF and NYF returned +8.19% and +6.60% respectively in the last year. SEE: Municipal Bond Tips For The Series 7 Exam Final ThoughtsThere has been some speculation concerning w
Views: 108 ETFs
The Top 3 British Pound ETFs
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Depending on who you ask, you might hear that Britain is headed for technical recession with the pound sinking even more in value relative to the dollar – or that the country is poised for economic growth following Brexit. Regardless of which view you choose to believe, there's no denying that the British pound had a rough year, ending 2016 as one of the worst performing currencies of the G10. In fact, at one point, the pound plunged to $1.15, its worst showing in over 45 years. (See also: Brexit's Effect on the Market.) However, the currency's relative weakness may provide an attractive entry point for investors willing to wait out the economic turmoil and bet on a recovery. If you are considering adding exposure to the British pound, these three exchange-traded funds (ETFs) may be a good place to start. (See also: The British Pound: What Every Forex Trader Needs to Know.) Note: Year-to-date (YTD) performance figures are based on the period of Jan. 1, 2017, through June 16, 2017. Funds were chosen on a combination of assets under management (AUM) and performance. Figures were accurate as of June 16, 2017. CurrencyShares British Pound Sterling ETF (FXB) Issuer: Guggenheim CurrencyShares Assets Under Management: $243 million YTD Performance: 3.33% Expense Ratio: 0.40% FXB is one of two major players in the British pound space, and it dwarfs the asset base of its only real competitor, the iPath GBP/USD Exchange Rate fund (GBB). At a cost of 40 basis points, FXB employs the simple strategy of holding physical pounds on deposit, albeit in an uninsured deposit account at JPMorgan Chase & Co. (JPM). The fund has good liquidity and tight spreads, making it easy to trade for even small investors. (See also: Is the Bearish Run Over for British Pound ETFs?) It is important to note that tax efficiency is an issue with FXB – all gains and distributions are treated as normal income for tax purposes. Performance wise, the fund has not done well, which is to be expected given the volatility of the currency and the global economy. One-year, three-year and five-year total annualized returns were -10.44%, -9.37% and -4.40%, respectively. iPath GBP/USD Exchange Rate ETN (GBB) Issuer: Barclays Bank (BCS) Assets Under Management: $4.24 million YTD Performance: 3.23% Expense Ratio: 0.40% GBB is the other player offering pure exposure to the British pound space, but with its tiny asset base, it comes with definite risks for the small investor. Average daily trading volume is a paltry average $62,000, so liquidity is a definite problem. Moreover, as is the case with FXB, gains from GBB are taxed as ordinary income. (See also: What Does UK Hung Parliament Mean for Europe ETFs?) This fund is structured as an exchange-traded note (ETN), which is a debt security, and it carries all the risks associated with Barclays, the issuing bank, so it is wise to tread carefully if you are thinking of jumping in. One-year, three-year and five-year total annualized retu
Views: 6 ETFs
An Equal-Weight ETF at a Lower Fee
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Competition is nothing new in the exchange-traded funds (ETFs) industry, and one of the most fertile territories for competition is fees. Fee cuts are the norm in the ETF business, and in a sign of the intensifying competitive landscape when it comes to attracting assets, some unique ETFs could start unveiling lower fees. Proving that fee cuts are not exclusively the territory of the largest issuers or cap-weighted funds, Guggenheim said Thursday it is reducing the annual fee on the Guggenheim S&P 500 Equal Weight ETF (RSP). RSP is one of the godfathers of the equal-weight ETF movement, a forerunner to the smart beta phenomenon. In a move that puts its annual fee well below the average for U.S. large-cap smart beta strategies, RSP's new annual fee is now 0.2%, a 50% reduction from the previous level. RSP's new expense ratio is the equivalent of $20 per year on a $10,000 investment. This significant fee reduction is designed to benefit existing shareholders and acknowledge the increasing use of RSP by institutional and individual investors as a core equity holding, said Douglas Mangini, Guggenheim senior managing director and head of intermediary distribution, in a statement. (See also: A Venerable Equal-Weight ETF.) Some equal-weight ETFs, including RSP, have long histories of outperforming their cap-weighted equivalents. That outperformance, critics assert, is often attributable to the equal-weight ETFs featuring more exposure to smaller stocks. Indeed, RSP does not shy away from its de-emphasis of large-cap stocks. The equal-weight approach was implemented to eliminate the large-cap bias of traditional capitalization-weighted index products, said Guggenheim. The resulting reduction in concentration risk, combined with a quarterly rebalance​, has helped RSP consistently outperform the S&P 500 on a rolling monthly basis since the fund's 2003 inception. It is impossible to argue with RSP's results. On a rolling monthly basis over the past five years, RSP has outperformed the cap-weighted S&P 500 84% of the time. Over the past decade, that number jumps to 100% of the time, according to issuer data. (See also: Get Diversification the Easy Way With ETFs.) By equally weighting its holdings, RSP's sector profile differs from that of the traditional S&P 500. Whereas technology, healthcare and financial services are the three largest sector weights in the standard S&P 500, RSP's three largest sector allocations are consumer discretionary, industrials and financials. RSP is underweight technology stocks by almost 1,000 basis points relative to the cap-weighted S&P 500. With almost $13.5 billion in assets under management, RSP is one of the largest equal-weight ETFs. (See also: S&P 500 ETFs: Equal Weight vs. Market Weight.)
Views: 38 ETFs
Emerging Market ETFs EEM and VWO  Which is Better
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Investing in emerging markets appears to be tricky because not many emerging markets are 'emerging' at the same pace they once were (or at all). Sure, emerging markets represent 49% of global domestic product, yet they only represent 9% of equity market capitalization. Therefore, if we’re looking at a long-term picture, then equity market capitalization will have to catch up to that large piece of the global GDP pie. In order to simplify matters, you can allocate 10% of your available capital in emerging markets (not all of that 10% should be in ETFs). This will give you exposure while limiting risk. When emerging markets began their swift rise, small-caps enjoyed the biggest gains. This is normal for the early stages of a bull market. Now that emerging markets aren’t as risk-on as in the past, a lot of investor capital has been shifted to large-caps. For example, over the past year, small-caps have underperformed large-caps by 5.5% in Europe, and by 11.5% in Asia. In China alone, large-caps gained 6.4%, whereas small-caps lost 2.6%. This plays a role in the iShares MSCI Emerging Markets (EEM) vs. Vanguard FTSE Emerging Markets ETF (VWO) debate. (For related reading, see: These Little Known Emerging Market Countries Are Star Performers.) EEM tracks the performance of large-caps and mid-caps via the MSCI Emerging Markets Index; VWO tracks the performance of large-caps, mid-caps, and small-caps via the FTSE Emerging Index. This would favor EEM (no small-cap exposure), but there’s a catch. Pay Attention to Expenses If EEM doesn’t have exposure to underperforming small-caps in emerging markets, then it should have outperformed VWO over the past several years. However, that’s not the case, and that’s why you always need to read the fine print. Consider the performance comparisons (as of 4/9/15): 1-Year 3-Year 5-Year EEM 3.35% 1.84% 1.43% VWO 7.40% 2.83% 2.39% EEM has an expense ratio of 0.68% (above average for the ETF universe), whereas as VWO has an expense ratio of just 0.15% (well below average for the ETF universe). That's the difference. Another point to consider is that EEM currently yields 2.19%, whereas VWO yields 2.72%. That’s not a major difference, but it’s a difference enough to factor in your decision. (For related reading, see: A Look At iShares Emerging Markets ETF (EEM).) This doesn’t necessarily mean that VWO will be a better investment than EEM going forward. You have to look at all the angles. For example, emerging market large-caps average double the ROE as small-caps while trading at a 35% discount to small-caps. (For related reading, see: Get Emerging Markets Exposure with this ETF.) Fortunately, there is one determining factor here. Remember, while VWO has exposure to small-caps, it’s not solely exposed to small-caps. It also offers exposure to mid-caps and large-caps. Since it tracks the FTSE Emerging Index, it has exposure to 851 companies, which is plenty of diversificatio
Views: 27 ETFs
XLU  Utilities Select Sector SPDR ETF
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do The Utilities Select Sector SPDR ETF (NYSEARCA: XLU) provides investment results that track the price and yield of the S&P Utilities Select Sector Index. The fund selects only companies in the utility sector from the S&P 500. This includes electric company utilities, multi-utilities, independent power producers, energy traders and gas utilities. The methodology used to construct the benchmark index has a number of rules. The companies must have a market capitalization of at least $4.6 billion. At least half of the outstanding shares must be in the public float and available for trading. The stock must have reasonable prices and liquidity. The company must appear to be financially viable based on publicly reported earnings. Shares must trade on major national exchanges. How It Tracks It In terms of a sector breakdown, electric utilities have a weighting of around 55% in XLU, followed by multi-utilities with a weighting of 39%. Independent power and renewable electricity producers have 3%. The smallest allocation is to gas utilities with 1%. As of August 2015, the fund has 32 holdings. The top 10 holdings have a total weighting of 60.73%. NextEra Energy, Inc. has the largest weighting in the fund at 8.79%. This is followed by Duke Energy Corporation with a weighting of 8.76%. NextEra has a market cap of $49 billion with the fund holding 5.6 million shares. Duke Energy has a market cap around $52 billion with the fund holding around 8 million shares. They are two of the largest utility companies in the country. The weighted average market cap of the fund is $27 billion, with the median market cap at $16 billion. The average price-to-earnings (P/E) ratio is 17.32, with the price-to-cash flow at 6.47. The fund began trading in 1998. Management The investment manager for the fund is SSGA Funds Management, Inc. The distributor is ALPS Portfolio Solutions Distributor, Inc. XLU tracks the utility sector as one of the nine sectors that constitute every company in the S&P 500 index. SPDR funds are very visible in the ETF industry. Characteristics The expense ratio for XLU is 0.15%, which is the second lowest in the sector. The average expense ratio for utility ETFs is 0.49%. XLU has a very low expense ratio due to the passive investment strategy used in tracking the benchmark index. Further, there are a limited number of holdings in the portfolio and limited turnover in holdings. The average daily volume is 12.61 million shares. This is very liquid and allows an investor to easily enter and exit a position in the fund. As of August 2015, the annual dividend yield is 3.45%. This is a decent-sized dividend, which reflects the overall high dividends in the utility sector. Shares trade on the NYSE Arca. Some brokers may allow for shares to be traded without any commission. The fund has $6.9 billion in assets under management, or AUM. Suitability and Recommendations The Utilities Select Sector SPDR ETF is a highly liquid fund suitable for di
Views: 114 ETFs
The Top 6 Russian ETFs (RSX, ERUS)
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Russian ETFs offer highly specialized exposure to the ninth most populous nation and its relatively new market economy. This BRIC component, along with Brazil, India and China, presents a hot spot in worldwide economic development, generating the bulk of industrial growth in the last two decades. Continued Western dependence on these countries seems inevitable as financial markets head toward the next decade. Russian equities and funds traded on U.S. exchanges exploded in volume in 2014 and 2015, in reaction to Ukrainian military intervention that undermined years of peaceful relations with the West. Political and military tensions have continued into 2016, intensified by Russia’s energy dependence during the worst commodity decline in decades. Further, Russia's involvement in the Syrian conflict has added to the stress, raising dark memories of the Iron Curtain era. Russian ETF Overview Investors and market timers can trade Russian political and economic developments through six ETFs on the U.S. exchanges. It’s a well-balanced grouping, with three large cap funds focused on broad exposure, two on leveraged and inverse exposure while a single fund covers the Russian small cap universe. Take time to choose wisely between these instruments because performance can vary greatly. The big cap funds offer outsized exposure to the energy sector, which has been battered by the commodity collapse. Gazprom PJSC ADR, Russia’s natural gas conglomerate, stands at the top of their holding lists and is the top component of the index, used to calculate pricing on leveraged and inverse funds. Only the small cap fund allows market players to avoid exposure to this mega cap, which holds the world’s largest natural gas reserves. The Top Russia ETFs Name Assets in 1000s Market Vectors Russia ETF (RSX) $1,658,580 iShares MSCI Russia Capped ETF (ERUS) $213,844 Daily Russia Bull 3x Shares (RUSL) $167,551 Daily Russia Bear 3x Shares (RUSS) $34,297 Market Vectors Russia Small-Cap ETF (RSXJ) $30,957 SPDR S&P Russia ETF (RBL) $21,536 Market Vectors Russia ETF offers the group’s most popular fund, trading more than 13-million average shares per day. It’s an expensive instrument with a .63% expense ratio, but high liquidity and tight bid/ask spread balance this higher cost. It came to life in August 2007, at the height of the last bull market and has been stuck in a downtrend since April 2011, at the same time that crude oil topped out. Not surprisingly, it’s posted a 5-year return of -57.82%. The fund tracks the market-cap weighted Market Vectors Russia Index. It holds a 7.72% Gazprom weighting, while the energy sector comprises 35% of the total weighting. Basic materials, financials and telecommunications together constitute a nearly equal weighting, allowing the fund to offer a broader performance base. It currently pays a 3.61% annual distribution yield. iShares MSCI Russia Capped ETF takes a different approach, track
Views: 22 ETFs
SPLV vs. LGLV  Comparing Low-Volatility ETFs
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Volatility is a measure of the dispersion of the returns of an asset. Volatility gives an investor a general idea of how risky an asset is expected to be. A higher volatility means more risk; the price of the security can be expected to change dramatically in a relatively short period of time. Usually, volatility is determined by calculating the asset's standard deviation. Some exchange-traded funds (ETFs) are designed with the specific goal of maintaining low volatility; two examples are the PowerShares S&P 500 Low Volatility ETF (NYSEARCA: SPLV) and the SPDR Russell 1000 Low Volatility ETF (NYSEARCA: LGLV). Purpose and Strategy The PowerShares S&P 500 Low Volatility ETF invests the majority of its assets in stocks of companies in the S&P 500 Low Volatility Index. The index consists of the 100 stocks of the S&P 500 Index that have the lowest volatility over the past 12 months. Both the index and the ETF are rebalanced four times per year. The fund aims to provide growth during bull markets and to act as a risk reducer during down markets. The SPDR Russell 1000 Low Volatility ETF aims to mimic the returns of the SPDR Russell 1000 Low Volatility Index. The index focuses on large-capitalization stocks and selects up to 200 individual equities for the index based on their volatility rankings. Portfolio and Fund Data As of April 2016, the PowerShares S&P 500 Low Volatility ETF was invested in 100 different stocks and had an average market capitalization of $46.9 billion. The fund currently allocates 68.44% to large-cap stocks and 31.56% to mid-cap stocks. Its top three sectors are consumer staples, financials and industrials. It has $6.71 billion in assets under management (AUM) and an expense ratio of 0.25%. The fund's 12-month trailing yield is 2.13%, and its 52-week range is $20 to $40.76. The daily trading volume is approximately 2 million shares. The SPDR Russell 1000 Low Volatility ETF is invested in 82 different stocks and has a weighted average market capitalization of $77.6 billion. The fund's top three sectors are financial services, consumer discretionary and consumer staples. It has $46.2 million in AUM and an expense ratio of 0.12%. The fund's 12-month trailing yield is 2.38%, and its 52-week range is $65.00 to $77.37. The average daily trading volume is only a few thousand shares. Performance and Risk Characteristics The PowerShares S&P 500 Low Volatility ETF was created on May 5, 2011. Since then, the fund's annual returns have ranged from 4.01 to 23.16%. Its year-to-date (YTD) return as of April 4, 2016, was 5.16%. Since inception, the ETF's annualized return is 12.4%. The fund has a beta of 0.71 versus the S&P 500 index and a standard deviation of 10.11%. Against the S&P 500 Index, its three-year market up-capture is 79.85% and its three-year market down-capture is 60.46%. The SPDR Russell 1000 Low Volatility ETF was created on Feb. 20, 2013. Since then, the fund's annual returns have ranged f
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Comparing ETFs Vs. Mutual Funds For Tax Efficiency
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Exchange-traded funds, or ETFs, are significantly more tax-efficient investments than mutual funds. This is primarily due to the differences in structure between the two investments and the different way in which these two investment instruments are traded. The basics of taxation for either mutual funds or ETFs is if they appreciate in value so an investor realizes a profit, a capital gain is then created and taxes are due. Some overstate the case for ETFs and talk about them as if they were tax-free. That is not the case. The government still wants a piece of all capital gains realized, either through appreciation in net asset value, or NAV, or through any dividends that may be received. Of course, capital gains are tax-deferred until retirement if an investor's mutual funds or ETFs are purchased and sold in an employer-sponsored retirement plan, such as a 401(k), or in an individual retirement account, or IRA. However, there remains a distinct tax advantage for ETF investors revealed by a basic statistical analysis. In the period from 2000 through 2010, the average small cap-oriented mutual fund produced capital gains to shareholders equal to roughly 7% of NAV. Over the same time frame, a comparable small cap-focused ETF only paid out capital gains equal to about 0.02% of net asset value. This is a huge gap and represents a huge difference in corresponding tax liability. ETFs and Tax Efficiency One of the main reasons ETFs are more tax efficient is due to the fact they generally create fewer taxable events than most mutual funds. The overwhelming majority of ETFs only sell holdings when the elements that compose their underlying index change. A significantly lower portfolio turnover rate means significantly fewer taxable gain incidents. Some actively traded equity mutual funds have turnover rates higher than 100%. In contrast, the average turnover rate for an ETF is less than 10%. In respect to this aspect of ETFs versus mutual funds, ETFs that aim to mirror the performance of specialized, nontraditional indexes or are constructed using proprietary criteria for portfolio selections, may have notably higher turnover rates. However, the turnover rate is still, in all likelihood, lower than the average for mutual funds. A Basic Structural Difference The primary differential in tax efficiency stems from the fundamentally different way in which ETFs are structured, or the specific type of investment asset they are as compared to mutual funds. One of the key structural differences is while ETFs are traded on exchanges, just like individual stocks, mutual fund shares are bought directly from, and sold directly to, the mutual fund company. What this means for an individual investing in a mutual fund is the choices and actions of his fellow fund investors can affect the individual's own tax liability. This is not true for ETFs. The way this happens is if other investors in the mutual fund decide to sell, or redeem, a substantial amount of share
Views: 96 ETFs
How To Reduce Taxes On ETF Gains
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Investors seeking to beat the market should look to exchange-traded funds (ETFs) for their tax efficiency. The ease of buying and selling ETFs, along with the low transaction costs, offer investors another efficient portfolio-enhancing tool. Tax efficiency is also an important part of their appeal, and is the one we'll focus on in this article. Investors need to understand the tax consequences of ETFs, so they can be proactive with their strategies. We'll begin by exploring the tax rules that apply to ETFs and the exceptions you should be aware of, and then we will show you some money-saving tax strategies that can help you get a great return and beat the market. Read on to learn why these rules can remove restrictions in your financial life. SEE: Introduction To Exchange-Traded FundsGeneral Tax RulesETFs enjoy a more favorable tax treatment than mutual funds due to the unique structure. Mutual funds create and redeem shares with in-kind transactions that are not considered sales. As a result, they do not create taxable events. However, when you sell an ETF, the trade triggers a taxable event. Whether it is a long-term or short-term capital gain or loss depends on how long the ETF was held. In the United States, to receive long-term capital gains treatment you must hold an ETF for more than one year. If you hold the security for one year or less, then it will receive short-term capital gains treatment. It's not all doom-and-gloom for mutual fund investors. The good news is that a mutual fund's generally higher turnover of shares creates more chances for capital gains to be passed through to the investors, compared with the lower-turnover ETFs. SEE: Mutual Fund Or ETF: Which Is Right For You?As with stocks, you are subject to the wash-sale rules if you sell an ETF for a loss and then buy it back within 30 days. A wash sale occurs when you sell or trade a security at a loss, and within 30 days after the sale you: Buy a substantially identical ETF, Acquire a substantially identical ETF in a fully taxable trade or Acquire a contract or option to buy a substantially identical ETF If your loss was disallowed because of the wash-sale rules, you should add the disallowed loss to the cost of the new ETF. This increases your basis in the new ETF. This adjustment postpones the loss deduction until the disposition of the new ETF. Your holding period for the new ETF begins on the same day as the holding period of the ETF that was sold. Many ETFs generate dividends from the stocks they hold. Ordinary (taxable) dividends are the most common type of distribution from a corporation. According to the IRS, you can assume that any dividend you receive on common or preferred stock is an ordinary dividend unless the paying corporation tells you otherwise. These dividends are taxed when paid by the ETF. Qualified dividends are subject to the same maximum tax rate that applies to net capital gains. Your ETF provider should tell you whether the dividends th
Views: 92 ETFs
AGG  iShares Barclays Aggregate Bond ETF
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do The iShares Core U.S. Aggregate Bond ETF (NYSEARCA: AGG), which tracks an index of U.S. investment-grade government and corporate bonds, provides an opportunity to obtain a broad, diversified exposure to the overall bond market with a single investment. Bond exchange-traded funds (ETFs) are becoming an increasingly popular method for investors to diversify their overall investment portfolios with a selection of investment-grade fixed-income securities. Many investors appreciate the fact that the regular income from bonds provides a safety cushion against downturns in stock market investments. ETFs commonly provide quarterly distributions, rather than just annual or semi-annual payments. Bonds also provide superior protection in the event of bankruptcy, compared to stocks. Bondholders are in a significantly better position as far as recovering their investment in bankruptcy proceedings than common stockholders. Additionally, bond funds help to reduce overall volatility in an individual's investment portfolio. Bond ETFs typically have very low costs. The iShares Core U.S. Aggregate Bond ETF tracks and seeks to mirror the performance of the Barclays U.S. Aggregate Bond Index. The index is designed to reflect the overall U.S. investment-grade bond market. It includes U.S. government bonds and corporate bonds, along with mortgage pass-through and other asset-backed securities. The index only includes taxable, fixed-rate securities denominated in U.S. dollars, with at least one year remaining to maturity. The fund does not carry the exact same holdings of the index, which consists of about 8,000 debt securities. Instead, the fund uses a representative sample of approximately 2,500 of the index holdings. Additionally, in order to obtain more favorable buy or sell prices, the fund manager exercises discretion as to the extent that the fund will sometimes purchase an issue prior to its being added to the index, or hold an issue beyond the point where it has been removed from the index. The fund is rebalanced monthly, and the annual turnover ratio required to track the index accurately is approximately 120%. The turnover ratio in excess of 100% implies that the fund maintains holdings for less than one year on average. Major holdings of the fund include U.S. Treasury bonds (T-bonds) and notes (T-notes), Fannie Mae mortgage-backed securities (MBS), and corporate issues from KfW (KFW), Verizon (VZ) and Bank of America (BAC). Characteristics This fund from Blackrock was launched in 2003, and it has performed well. Its 10-year average annual return, as of 2015, is approximately 4.27%. The fund has net assets in excess of $25 billion. The ETF's mix of debt security holdings is approximately 40% U.S. government issues, 30% corporate issues and 30% MBS. Among corporate issues, the financial and industrial sectors account for the overwhelming majority of issues. The weighted average coupon value of the fund's holdings is 3.28%, and the average weighted ma
Views: 130 ETFs
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Originally launched in 2007, the former Vanguard MSCI EAFE exchange-traded fund (ETF) became the Vanguard FTSE Developed Markets (VEA) ETF in May 2013, when it switched away from tracking the MSCI EAFE Index. The official reason given for the switch was a reduction in index-licensing costs. The current underlying index for VEA is the FTSE Developed ex North America Index. This index is structured to reflect the performance of nearly 1,400 large- and mid-cap companies across nearly two dozen developed markets (mostly in Europe and Asia). It is considered to be ex North America because it excludes companies from the United States and Canada. This will not be the last change for Vanguard's offering, however. It has been announced that the VEA will transition away from the FTSE Developed ex North America Index and into the FTSE Developed All Cap ex U.S. Index. VEA will pick up exposure to Canadian stocks and small-caps from non-U.S. developed markets. Early estimates suggest the change will create an 8% turnover in the portfolio. Even after adding some exposure to North America, the VEA portfolio will remain highly diversified across European and Japanese holdings. As of mid-2015, the top five holdings – Nestle (NESN), Novartis (NVS), Roche (RHHBY), Toyota (TM) and HSBC (HSBC) – only account for 7.25% of the entire portfolio's value. VEA is not quite as regionally diverse. Nearly one-quarter of the portfolio comes from Japanese companies and another 20% from the United Kingdom. Other countries with more than 5% exposure include Switzerland, France, Germany and Australia. Characteristics One of Vanguard's tax-managed funds, VEA belongs in the Foreign Large Blend category. It is managed by Vanguard and advised by Vangaurd Group, Inc. VEA, like most Vanguard ETFs and mutual funds, is notable for its passive, low-turnover approach and incredibly low costs. Foreign Large Blend ETFs commonly carry expense ratios of 0.35% or higher, and the Lipper peer average expense ratio for 2014 was 1.39%. VEA only has an expense ratio of 0.09%, which is far below industry average and is even considered low for a Vanguard ETF. Expense ratios for funds do not include fees associated with brokers or other trading costs. Vanguard describes VEA's strategy as a passively managed, full-replication fund. This means that it literally aims to track its underlying index in an identical pattern. Even though it avoids the U.S. market, investors can find, track and trade VEA through the New York Stock Exchange Arca. Suitability and Recommendations As with all equities in foreign markets, the Vanguard FTSE Developed Markets ETF carries market risk, currency risk and political risk. The fund's decision to avoid emerging markets could potentially reduce future returns, but it also helps to avoid volatility and other emerging market risks. Interested investors might find it difficult to anticipate movements in VEA. The fund has a history of changing indexes
Views: 76 ETFs
4 Ways to Invest in Gold (GLD, FSAGX)
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Gold is a perennially popular investment with some investors and market analysts, and has gained the endorsement of a number of hedge fund managers since the 2008 financial crisis. The primary catalyst behind such bullish stances on gold is an increasing disenchantment with the monetary policy of the Federal Reserve Bank. Investors looking to add gold to their portfolio have a number of choices available for gold exposure. Physical Ownership The most direct form of gold investing involves holding physical gold in the form of bullion, gold coins or gold jewelry. The advantage of having actual gold is that, in the event of an economic or financial crisis, the investor has an asset that, short of robbery, cannot be taken away from him. The asset also directly mirrors the spot price of the metal. However, there are a number of disadvantages to holding physical gold, including having to pay premium prices to purchase, store and insure it. Note further that physical gold is taxed as a collectible. Gold ETFs Gold ETFs offer investors an easy way to obtain gold exposure through indirect ownership. These ETFs include SPDR Gold Shares (NYSEARCA: GLD), which offers shares in a trust that holds gold bullion. Investors can alternatively choose to invest in ETFs that offer a basket of stocks of gold mining companies. ETFs are a low-cost alternative for gold investing and offer the usual advantages of ETFs, such as the liquidity provided by being freely traded on exchanges, but they are not without risk. The primary concerns about ETFs that hold gold bullion generally revolve around skepticism regarding the security of the bullion deposits that back the shares. ETFs that invest in the stocks of gold mining companies are, of course, subject to the same basic risk as any investment in equities. Also, a specific selection of gold stocks may outperform or underperform relative to the average performance of gold stocks overall. Gold Mutual Funds For investors who are more comfortable with mutual fund investing, there are a number of gold mutual funds that hold investments in stocks of companies whose principal revenues are derived from the gold mining industry. One example is the Fidelity Select Gold Portfolio (FSAGX), which holds a mix of investments in both foreign and domestic equities of companies engaged in the exploration and development, production or marketing of gold and gold products. The Fidelity fund may also dedicate part of its assets to holding gold bullion. Gold mutual funds carry the common risk of equity investing: The investment may increase or decrease in value. An additional drawback, relative to ETFs, is relatively lower liquidity, since mutual fund shares can only be redeemed at the end-of-day price and typically carry higher expense ratios than ETFs. Gold Futures Gold futures contracts offer investors a highly leveraged investment in gold. With approximately $5,000 in margin money, an investor can hold the rights to a futures contr
Views: 80 ETFs
Update  First Trust Dow Jones Internet Index Fund (FDN)
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do When it comes to online commerce and investment options, the leading choice is the First Trust Dow Jones Internet Index Fund (FDN) ETF that targets the largest of all US-based internet firms. The online sector of business continues to take gigantic strides forward. With leading companies like Google, Amazon, and Facebook having nearly limitless opportunities to expand and continue to develop profit, more and more investors and firms alike are attracted to the return potential of the internet. Given how easy it is for such internet-based business to reach global markets over traditional brick and mortar companies, there is little wonder the success has and continues to be so tremendous. (See also: The One ETF To Own The Top Internet Company Stocks.) FDN, issued in June 2006, tracks the fDow Jones Internet Composite Index. According to First Trust, for any company’s stock offering to be included in the index, it must generate at least half (50%) of its annual revenues from the internet alone. FDN is overseen by First Trust Advisors based in New York with the current fund manager in charge Mr. Jon Erickson. As of Sep. 12, 2016, FDN encompasses total assets of about $3,575 million and consequently is the largest US-traded internet equity ETF. The fund comes with an expense ratio of .54%, has a large-cap equity focus, and in terms of geographical allocation exclusively concentrates on the United States. Total Returns Since the Inception of FDN As of Aug. 31, 2016, FDN features an annualized performance (represents changes to the NAV) of 14.48% since the ETF’s inception on Jun. 19, 2006. Over the last ten years, FDN’s annualized performance is 14.58%, 19.53% over the last five and 16.84% over the last 3 years. FDN comes with a Sharpe Ratio (3-year measure) of 0.95 as of Aug. 31, 2016. (First Trust) In the following we have a look in detail at the performance figures of each of the last five years (2011-2015) as well as the current YTD performance: Performance 2011: -5.82% Performance 2012: 20.65% Performance 2013: 53.61% Performance 2014: 2.44% Performance 2015: 21.67% FDN’s YTD total return is 6.37% - as of Sep. 12, 2016. The Bottom Line The First Trust Dow Jones Internet Index Fund (FDN) is a solid way for investors to gain diversified exposure to internet-based companies. Though this fund continues to perform well and has historically, it is not without risk. Because of the high correlation between internet companies, their fortunes tend to follow similar trajectories in some respects. Proper due diligence as a well as a full risk-tolerance assessment should be undertaken prior to investing.
Views: 64 ETFs
VGT  A Tech ETF Still Attracting Flows
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do The Vanguard Information Technology ETF (NYSEARCA: VGT) is the second-largest technology sector exchange-traded fund (ETF). With total net assets of $8.4 billion and 343 holdings, this ETF tracks the performance of the MSCI U.S. Investable Market Information Technology 25/50 Index, which encompasses the large-, mid- and small-cap telecommunication services companies in the American market. Unlike many broad-sector tech ETFs, the Vanguard Information Technology ETF limits its exposure to the information technology subsector. As mobile devices replace desktop PCs, demand for cloud-based computing platforms is soaring. This development brings significant growth opportunities for information technology companies. Software as a service (SaaS) allows businesses to expand and upgrade software without purchasing new hardware. This benefits software developers at the expense of hardware manufacturers and distributors. Investors seeking to profit from these developments, while avoiding the unpleasant consequences for hardware manufacturers, can focus on information technologies through this ETF. The largest holding of the Vanguard Information Technology ETF is Apple Inc. (NASDAQ: AAPL) with a 13.33% portfolio weighting. The fund's second-largest holding is Microsoft Corp. (NASDAQ: MSFT) with a 9.55% portfolio weighting. The third-largest holding, Facebook Inc. (NASDAQ: FB), comprises 6% of portfolio's assets. Therefore, the top three holdings of this ETF account for 28.88% of its portfolio weight. The ETF has a 0.1% expense ratio, was launched on Jan. 26, 2004 and has a dividend yield of 1.56%. ETF Performance Many analysts monitor an ETF's fund flows, instead of merely assessing performance, by studying the fund's fundamentals and reviewing its chart for technical signals. Flows for ETFs, mutual funds and index funds can provide signals of investor sentiment about a particular sector, the market in general or the perceived health of the overall economy. The Securities and Exchange Commission (SEC) monitors flows in exchange-traded notes (ETNs) when considering rules concerning the disclosure process. When the share price for a particular ETF makes a significant advance, a dislocation can occur between the ETF price and the prices of the underlying shares. In such situations, arbitrage traders correct the situation. Such activities can either reduce the number of outstanding ETF shares, causing the price to increase, or raise the number of outstanding ETF shares, causing the price to decline. Monitoring ETF Flows Institutional investors make the big trades, which becomes apparent when reading flows. Retail investors can assess the popularity of the Vanguard Information Technology Index ETF among institutional investors by monitoring its inflows. Many investment research companies watch for weekly changes indicating the creation or destruction of creation units, tracking the disclosed number of outstanding shares of an ETF. These changes indicat
Views: 145 ETFs
Modernize Your Portfolio With ETF Futures
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Exchange-traded funds - baskets of stocks traded on an exchange - were first introduced in 1993. Since then, the number of ETFs has exploded to include more than 300 different funds with more than $300 billion under management worldwide in 2007. Stock index futures were first introduced through the Chicago Mercantile Exchange (CME) in 1997. Since then, volume has increased on a yearly basis. As of 2007, there are three different futures contracts traded on ETFs: Standard & Poor's 500 depositary receipts (tracks large-cap stocks) Nasdaq-100 Index tracking stock (tracks Nasdaq's top 100 non-financial stocks) iShares Russell 200 index fund (tracks small-cap stocks) The CME ETF futures not only offers investors access to premier, highly liquid ETFs, but also the capital requirements for this investment are far lower than purchasing an ETF. Read on to learn more about ETF futures and how they are used. SEE: Introduction To Exchange-Traded Funds ETFs and FuturesETFs were created in the U.S. and Canada to offer investors products that were similar in scope to index-based mutual funds but were less expensive and more easily tradeable. ETFs trade like stocks, whereas mutual funds can only be traded at end-of-day prices, or net asst value. Also, ETFs offer tax advantages over mutual funds and can be shorted on a downtick. SEE: Advantages Of Exchange-Traded Funds Investors use ETFs as a quick and easy way to get exposure to a sector or an emerging market, thus changing their asset allocation. There are many different strategies that can be used with ETFs thanks to their flexibility, ease of entry and wide coverage of investment styles, sectors and geographic locations. S&P 500 Depositary ReceiptsAlso known as the SPDRs, or spiders, the S&P 500 depositary receipt was the first ETF introduced in the U.S. It began trading in 1993 and by 2007, it was the largest ETF in terms of assets with just under $50 million under management. The S&P 500 depositary receipt is composed of the 500 stocks in the composite index and trades roughly 50 million shares a day. Nasdaq 100 Index Tracking Stock The Nasdaq100 Index tracking stock, also known as the QQQQ, first traded back in March of 1999. It is made up of the top 100 non-financial companies listed on Nasdaq by market capitalization. iShares Russell 2000 Index FundThe Russell 2000 Index is one of the world's major benchmarks for small-cap stocks. As of 2007, the Russell 2000 ETF trades more than 80 million shares daily and has more than $10 billion under management. ETFs Vs. Futures on ETFsThere are several differences between ETFs and their futures counterparts, from the trading units to expiration to delivery. Let's take a look at some of the most important differences here: Trading UnitETFs trade in shares, which are ownership in a trust or portfolio, whereas ETF futures trade in contracts of 100 shares that represent a legally binding agreement to buy or sell in the fut
Views: 54 ETFs
A FANG ETF Comes to Life
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do The investment landscape is littered with acronyms, but few in the world of equities have received the adulation and scrutiny as FANG – the quartet comprising the storied internet and technology stocks Facebook, Inc. (FB), Amazon.com, Inc. (AMZN), Netflix, Inc. (NFLX) and Google parent Alphabet Inc. (GOOG). Plenty of exchange-traded funds (ETFs) offer exposure to some or all of the FANG stocks, with some of the legacy internet ETFs available to U.S. investors featuring substantial FANG exposure. Prior to this week, however, there was not a dedicated FANG ETF. That changed with the debut of the AdvisorShares New Tech and Media ETF (FNG). Actively managed, the AdvisorShares New Tech and Media ETF is designed to invest in the companies that are driving economic growth in the modern era, and can adapt to changing leadership by maintaining the ability to invest in the next generation of technology and media companies leading the equity markets, according to AdvisorShares. (See also: Why FANG Stocks Can Extend Their July Rally.) Investors should note that FNG's holdings expand beyond Facebook, Amazon, Netflix and Alphabet. The ETF holds just over 25 stocks and can also be said to be a FAANG and FAAMG ETF because it holds shares of Apple Inc. (AAPL) and Microsoft Corporation (MSFT). Other well-known holdings in the new ETF include NVIDIA Corporation (NVDA) and Alibaba Group Group Holding Limited (BABA). The portfolio manager seeks to identify additional constituents with similar characteristics using technical analysis, sampling and broad-based fundamental reviews to enhance the exposure of the portfolio, according to AdvisorShares. This approach will be dynamic, enabling the portfolio management team to use a repeatable and scalable process that consistently seeks out the next industry leaders in technology and media as those faces change over time. (See also: Forget the FAANGs! These Are Tech's Real Winners.) Each of the primary FANG stocks are up 20% or more year to date, but the group has recently retreated along with the broader technology space, stoking concerns that the FANG quartet is richly valued. Despite those concerns, the Nasdaq-100 Index has bounced back in admirable fashion, jumping 3.5% over the past week. That could be a sign that the debut of FNG is not marking a top in the technology and internet spaces. The FANG stocks combine for over one-quarter of the Nasdaq-100's weight. (See also: U.S. Stocks in 2017 Face a Rocky Second Half.)
Views: 44 ETFs
USD vs. SOXL  Comparing Leveraged Semiconductor ETFs
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do After a decade of rapidly growing demand for semiconductors, the industry experienced slower growth in 2015. This trend is expected to continue in 2016, due to a slowdown in the personal computer market, a stronger U.S. dollar, economic contraction in Japan and weak economic conditions in Europe. The correction in Chinese stocks has hit the industry particularly hard, as China accounts for 50% of global semiconductor consumption. Slower growth may see consolidation within the industry, as companies look for ways to increase revenues and reduce costs. With the slowdown in the PC market, semiconductor companies must explore new markets, such as those in the automobile and medical industries, where semiconductor use may experience increased demand as new and innovative technologies emerge. Leveraged exchange-traded funds (ETFs) are a cost-effective way for short-term investors to take advantage of price fluctuations in the semiconductor industry by returning the daily performance of an index multiplied by the fund's leveraged amount. For example, if the fund is leveraged three times, it should theoretically return triple the performance of the benchmark index it tracks. Short-term investors who want to play the semiconductor industry on the long side with leveraged ETFs may want to consider either the ProShares Ultra Semiconductors ETF (NYSEARCA: USD) or the Direxion Daily Semiconductor Bull 3X ETF (NYSEARCA: SOXL). ProShares Ultra Semiconductors ETF The ProShares Ultra Semiconductors ETF attempts to provide two times the exposure to the Dow Jones U.S. Semiconductors Index before all fees and expenses. The index tracks the performance of large U.S. semiconductor companies. This ETF lacks liquidity compared to other leveraged sector funds. The fund's top stock holdings include Intel Corp. (NASDAQ: INTC) with a 22.16% holding, Qualcomm Inc. (NASDAQ: QCOM) with an 11.09% holding, Texas Instruments Inc. (NASDAQ: TXN) with an 8.37% holding and Broadcom Ltd. with an 8.31% (NASDAQ: AVGO). The fund has an annual turnover of 50%, which is lower than the category average of 165%. This ETF has $22.6 million in net assets, with an expense ratio of 0.95%, which is in line with the category average of 0.91%. The five-year, three-year and year-to-date annualized returns were 14.45%, 35.06% and -4.04%, respectively, as of April 20, 2016. USD is not suitable for risk-averse investors, due to its leveraged nature and low liquidity. Direxion Daily Semiconductor Bull 3X ETF The Direxion Daily Semiconductor Bull 3X ETF attempts to provide three times the exposure to the PHLX Semiconductor Sector Index before all fees and expenses. The index tracks the performance of companies that are involved in the design, distribution, manufacture and sale of semiconductors. While the fund primarily holds U.S. companies, foreign companies with American depositary receipts (ADRs) are eligible for inclusion. Returns are somewhat muted, as the fund limits the weighting at 8%. T
Views: 99 ETFs
Top 5 Emerging Market Bond ETFs (EMB, EBND)
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do An emerging market bond exchange traded fund (ETF) is comprised of fixed income debt issues from countries with developing economies. These include government bonds and corporate bonds in Asia, Latin America, Africa and elsewhere. Emerging market bonds normally offer higher returns than traditional bonds for two major reasons: they tend to be more risky than bonds from more developed countries; and developing countries tend to grow rapidly. Perhaps more importantly, emerging market funds do not correlate with traditional asset classes. An emerging market ETF allows investors to diversify positions in emerging market bonds like a mutual fund, yet it trades like a stock. If the underlying bonds in the ETF perform well, so too does the ETF (minus the fund’s costs and expenses). iShares JPMorgan USD Emerging Markets Bond ETF Launched with the help of iShares in December 2007, the iShares JPMorgan USD Emerging Markets Bond ETF (EMB) tracks the JPMorgan EMBI Global Core Index. EMBI Global Core is a very broad, U.S.-dollar denominated, emerging-markets debt benchmark. It is also highly diverse – no single debt instrument comprises more than 2% of total holdings, and most fall short of 1%. Nearly three-quarters of the EMBI Global Core is emerging government debt, with most of the rest focused on high-yielding corporate bonds. The expense ratio is in line with what you’d expect from an iShares ETF at 0.60%. The iShares JPMorgan USD Emerging Markets Bond ETF is best suited for investors who don’t mind exposure to BB- debt (AKA junk bonds) and are looking for a diversified path to high-yielding fixed income. SPDR Barclays Capital Emerging Markets Local Bond ETF This ETF only tracks government debt for emerging market countries. It also tracks them in their local currency, which adds volatility and arbitrage opportunities. Based on the Barclays Capital EM Local Currency Government Capped Index, the SPDR Barclays Capital Emerging Markets Local Bond ETF (EBND) historically has a very good bid/ask when compared to other local currency-denominated, high-yield bond ETFs. The returns of EBND should generally correspond to the price and yield performance of its benchmark EM Local Currency Capped Index, minus fees and expenses. The expense ratio is 0.50%. This ETF is particularly attractive to investors who want exposure to Brazil. PowerShares Emerging Markets Sovereign Debt Portfolio An Invesco PowerShares issue, the PowerShares Emerging Markets Sovereign Debt Portfolio (PCY) was established in October 2007. This ETF tracks the DB Emerging Markets USD Liquid Balance index, which normally has 80% of its underlying assets in dollar-denominated government debt. The tracking function of the DB Emerging Markets USD Liquid Balance Index is somewhat unique. All sovereign debt in the index is chosen through a proprietary index methodology and subsequently measured against the potential returns from a theoretical portfolio. The entire portfolio is rebalance
Views: 97 ETFs
What Are White Label ETFs and Who Creates Them
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do There has been a virtual explosion in the number of exchange-traded funds (ETF) in recent years, with hundreds of new funds being created that can satisfy virtually any type of investment objective. But not all ETFs are issued by the major contenders such as Fidelity Investments and iShares. Many smaller ETFs find their way into the market through the use of a white label service. These third-party services provide new ETF providers with a package of turnkey services that enable them to launch and operate their fund in a more cost-efficient manner. Sam Masucci, head of ETF Managers Group, explained how white label ETFs work in a recent interview with ETF.com. (For more, see: How Big is the Global ETF Market?) How White Labeling Works Masucci explained that ETF producers who want to bring a new fund to market on their own will typically need at least $2 million to $3 million and launching the fund can take up to two years. Then there is the matter of finding skilled and experienced employees to run the fund’s operations, compliance and portfolio management and do the accounting and legal work. Furthermore, the costs to run just one or two of these funds is almost as high as it is to run 20 of them, so providers who are only launching one or two funds will face much higher expense ratios. White label organizations like ETF Managers Group can do all of those things for the ETF provider and allow them to get up and running much sooner and at a much lower cost. Providers who come to ETF Managers Group can get their fund up and running within about 75 to 90 days if the fund is a traditional instrument that is governed by the Investment Company Act of 1940. The cost is about $250,000, which covers all operational expenses. Providers can bring new products to market in a much more cost effective manner with far less headaches. Masucci also explained how the money is distributed from the fund. He said that the fund usually doesn’t pay anything to his company, unless the assets in the fund fall below the break even point. However, the company does get the gross management fee, although it pays a portion of this back to the fund company. The company also pays NASDAQ and all third-party expenses. (For more, see: The Main Attractions of ETF Investing.) If the fund fails to accumulate enough assets under management to justify its existence, the provider client is the party that absorbs the cost. The company has the authority to shut down the fund, but it obviously won’t do this except as a last resort. For this reason, the company is very choosy about the funds that it will manage. Whenever a provider comes to them with an idea for a fund, the company carefully analyzes the fund’s portfolio and examines the investment theme. The company ideally is looking for ideas that aren’t already being duplicated by other funds. Masucci asserts that his company offers services other white label providers do not have. For instance, we're the only one
Views: 26 ETFs
Small Cap Index Fund  NAESX (ETF) vs. SLYG (Mutual Fund)
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do The Vanguard Small-Cap Index Fund Investor Shares (NAESX) and the SPDR S&P 600 Small-Cap Growth ETF (NYSEACRA: SLYG), these two funds share a small-cap focus, but a look under the hood shows that they are not the same. One must be diligent in examining factors such as the components of the portfolio, the management style and expenses, to determine which of the two funds may be preferable for an investor’s specific situation. Portfolio Composition Both of these funds are benchmarked to small-cap indexes, but each one approaches its chosen benchmark differently. The SPDR ETF benchmarks to the Standard & Poor’s (S&P) Small-Cap 600 Growth Index, whereas the Vanguard fund benchmarks to the Center for Research in Security Prices (CRSP) U.S. Small-Cap Index. It may seem like a minor difference, but it’s potentially significant. The S&P Small-Cap 600 Growth Index focuses on more growth-oriented stocks, and this focus tends to make the index a bit more volatile. The CRSP U.S. Small-Cap Index includes both growth and value stocks, making it less aggressive. One of the big differences between the two funds is the small-cap stock universe on which they focus. Sector composition is also a difference between the two funds. Both funds have financials as their biggest sector holdings, but beyond that, there are some notable disparities. The SPDR ETF holds 20% of its portfolio in health care stocks, as of March 11, 2016. That’s double the allocation of the Vanguard mutual fund. The SPDR ETF is also more heavily weighted in technology than the Vanguard fund. The ETF has 18% of assets in tech versus 12% for the mutual fund. Conversely, the Vanguard fund has much more invested in the consumer sector, with a 21% asset allocation, than the SPDR ETF, with 15% dedicated to consumer companies. The Vanguard Small-Cap Index Fund has 1,499 securities in its portfolio compared to 345 holdings in the SPDR S&P 600 Small-Cap Growth ETF. Expenses Fund expenses are an important consideration, since they come directly out of the investors’ pockets. High expense ratios can result in a fund significantly lagging its benchmark over time. Many index funds are able to limit the expenses that get charged, since they don’t require the cost that comes with active fund management. Both Vanguard and State Street Global Advisors (SSGA) are well known for their low-cost funds. The Vanguard Small-Cap Index Fund and the SPDR S&P 600 Small-Cap Growth ETF both have rock-bottom expense ratios. The Vanguard fund charges 0.20%, and the SPDR ETF assesses 0.15%. Yields Small-cap stocks may not be as quickly regarded as large caps when it comes to dividend yields, but both of these portfolios provide investors with meaningful, if not high, dividend yields. The Vanguard Small-Cap Index Fund has a dividend yield of 1.6% compared to the 1.1% yield of the SPDR S&P 600 Small-Cap Growth ETF. Conclusion The Vanguard Small-Cap Index Fund and the SPDR S&P 600
Views: 46 ETFs
Passive Investing vs. Smart Beta  What s the Difference
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Both passive investing in mutual funds and smart beta investing in exchange-traded funds (ETFs) have strong and weak points, but there are situations where one may become more advantageous than the other. An example of a passive mutual fund is the Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX), and a notable smart beta ETF is the WisdomTree Europe Hedged Equity Fund (NYSEARCA: HEDJ). Index Tracking and Market Risk Passive mutual funds aim to track the growth of a particular market through its market-weighted index, giving importance to large-cap companies that generate the majority of the market's cash flow. However, the Vanguard Total Stock Market Index Fund offers more than large-cap exposure. The Vanguard Total Stock Market Index Fund gives investors an opportunity to invest their capital in a fund exposed to the entire U.S. stock market, which includes stocks of all market cap sizes, as well as value stocks. This passive mutual fund is famous for its low expense ratio, wide room for tax cuts and massively diverse portfolio. The index this fund follows is relatively more volatile than most passive mutual funds, and its investors can be categorized as considerably risk-hungry. An investor can choose this as a main investment that can be offset by steadier investments or as a standalone one that can be dealt with hands-on. A smart beta ETF applies smart beta, a rule-based index tracking strategy founded on empirical data of individual index constituents. These investment vehicles capitalize on the volatility and imbalance in the market. This is exactly what the WisdomTree Europe Hedged Equity Fund does. The WisdomTree Europe Hedged Equity Fund provides exposure to European stock markets. The fund is designed specifically to be able to hedge exposure to currency volatility in the euro/USD exchange rate. Normally, when the U.S. dollar is stronger than the euro, the fund performs on a higher level compared to a similar fund without the currency hedging feature. The opposite happens when the U.S. dollar's value relative to the euro plummets. The fund behaves like this because the index it tracks is composed of equities of European companies with high export revenues. A higher euro against the U.S. dollar will not do European exports any good. Expense Ratio, Costs and Fees Passive mutual funds enjoy massively marked-down fees and costs, although small penalty fees may still apply if the turnover occurs too early. The Vanguard Total Stock Market Index Fund Admiral Shares offers the lowest costs and fees in the industry. The management fee for this fund is only 0.04%, while the net expense ratio is kept at 0.05%, and the minimum required initial deposit is $10,000. Its younger brother, the Vanguard Total Stock Market Index Fund Investor Shares, bring the minimum initial deposit down to $3,000, however the expense ratio is 0.16%. Smart beta ETFs possess higher expense ratios, making them suitable for small capital investors wh
Views: 17 ETFs
Using Short ETFs to Battle a Down Market
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do With the stock market currently falling, you may be tempted to sell your stocks to take in some gains. But there's another way to protect against loss in your portfolio: short selling. Shorting a stock can be risky and difficult to accomplish. You have to cover many bases, including getting a margin account, selecting the stock you want to short, and finding another party willing to loan you the equities. It's a lot of work and if you aren't a financial professional, the time you spend could easily add up to the equivalent of a part time job. There is another way to see the benefits of selling short and it takes less work: Use a short ETF, which essentially does the short selling for you. (For related reading, see: Short Selling Tutorial.) Short ETFs look to give you the inverse return of the index or category that they are following. Thus, if you believe the market is going to continue to decline, you could purchase an ETF that shorts the S&P 500. If the market goes down by 10%, the short ETF would increase by 10%. When shorting you can also choose to be short more than one times the index. For example, you can short the S&P 500 by two or three times, thus increasing your gains on the market decline. When searching for these ETFs you will see them labeled as 2x, 3x, or Ultra Short. You can also use short ETFs to hedge against downturns in commodities, bonds and sectors of the stock market. (For related reading, see: How Short Selling Works.) Things to Keep in Mind Short ETFs can't offer an exact inverse relationship due to fees and daily adjustments to the ETF. Fees on some of these ETFs can be high, which eat into your return no matter what the investment. (The list below targets ETFs with an expense ratio of 1.25 or lower.) This is not a long term approach to investing. Overall the market typically goes up, so over time this strategy will not be beneficial. Using a short position is best for when you believe things are overvalued and want downside protection without selling out of your long position. Short selling is a timing issue. You may believe the market is overvalued and go on to place the trade, but you might be six months ahead of a downturn. You can lose a lot of money in the time before your belief becomes reality. These tools can be very illiquid, meaning you may not be able to sell out when you want. Look at the trading volumes to ensure you can get out if you need liquidity. Here are some ideas for short ETFs in the three asset classes, but remember to use these as starting points to your own research: (For related reading, see: Downtrending Stocks to Short or Sell.) In the equities area you can try the ProShares Short S&P 500 (SH) to do a simple short of the market or the Proshares Ultra Short S&P 500 (SDS) to get a double inverse of the overall market. For sector short selling there are many options. Some include Proshares Short Oil and Gas (DDG), ProShares Ultra Short FTSE China 50 (FXP), Proshares Sho
Views: 18 ETFs
How to Day Trade Sector ETFs Every Day
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Sector exchange-traded funds (ETFs) provide a day trading strategy where the trader always knows which ETF (sector) to buy in upward trending conditions, and which ETF to short if a downtrend develops. By tracking several sector ETFs each day, a trader will have a potential trade, no matter which way the market goes. Day trading sector ETFs doesn't require homework or research outside of market hours (once you know and have practiced the strategy), because which sector ETF you will trade is determined each morning just after the open. Here's how to pick sectors ETFs to trade each day, and how to day trade the sector ETFs you pick. Sector ETFs and Relative Strength Sector ETFs represent the price movement of stocks from various segments of industry, called sectors. Each sector performs differently based on economic conditions and the business cycle. Also, certain sectors may be driven by a particular external factor. For example, oil and gas (energy sector) stocks are not only affected by how stocks are performing overall, but also by the price of oil and gas. The table below shows a family of sector ETFs issued by State Street SPDR, which work well for the strategy discussed below. State Street SPDR Sector ETFs Name Ticker Avg. Volume Financial Select Sector SPDR XLF 37 million Energy Select Sector SPDR XLE 16 million Utilities Select Sector SPDR XLU 13 million Industrial Select Sector SPDR XLI 10 million Technology Select Sector SPDR XLK 10 million Consumer Staples Select Sector SPDR XLP 9 million Healthcare Select Sector SPDR XLV 9 million Consumer Discretionary Select Sector SPDR XLY 6 million Materials Select Sector SPDR XLB 5.5 million Picking Sector ETFs to Day Trade Each day some sectors perform better than others, this is called relative strength. The goal of relative strength is to find strong sector ETFs to buy, while also finding the weakest sector ETFs to short sell. With ample volume, all the sector ETFs in the table are potential trade candidates on a given day, but it is much better to narrow it down to four ETFs. Looking for trades in four ETFs is easier than monitoring nine ETFs at one time. At 10 AM, compare all the ETFs on the same price chart, in percentage scale. Having nine ETFs on the same chart can be cluttered, so alternatively only view three or four at one time. Note the ETFs which are seeing the biggest moves to the upside and downside. Eliminate the ETFs in the middle until you are only left with the two strongest ETFs and the two weakest. (If you monitor the pre-market, the assessment of strength and weakness can be made earlier than 10 a.m., but only if all the ETFs are actively traded prior to the open. This won't always happen.) Now, nine ETFs have been reduced to the four that are showing the biggest gains and losses 30 minutes into the trading session. Only spend a few seconds choosing the two strongest and weakest sector ETFs. This isn't an involved analysis process. To speed up the process you may
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Top 5 Inverse Oil ETFs to Short Oil in August 2017
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do We have selected five exchange-traded funds (ETFs) that concentrate on shorting oil stocks. The funds were selected based on assets under management (AUM) as of August 11, 2017. You would use these when you think the price of oil will drop. Note that none of the ETFs short actual oil stocks, but instead seek performance that is the inverse of an index. Some of these ETFs are leveraged, meaning they may use derivatives, futures contracts, and other advanced investment vehicles to achieve their goals. Whenever you see 2X, Ultra Short, 3X or Double in the fund’s name, it is a leveraged fund. Because these funds try to beat an index by two times or more, they can lose twice or three times the amount of money as well. (See also: New Leveraged Oil ETFs Coming Soon.) Oil prices are currently hovering at around $50 per barrel, due in large part to agreements spearheaded by OPEC to limit oil production that failed to raise the price of oil. No commodity price rises in a straight line. Investors who anticipate short-term drops in the price of oil can use inverse oil ETFs to take advantage of the drops. That makes these ETFs short-term plays in the current oil environment. (See also: The Risks of Investing in Inverse ETFs.) Some investors use inverse oil ETFs to cover losses they incur in their long oil positions during down trends. Others abandon long positions during down periods and short an oil index to increase profitability from oil investments. Here is how the top five inverse oil ETFs break down: 1. VelocityShares 3x Inverse Crude Oil ETN (DWTI) This ETF attempts to beat the S&P GSCI Crude Oil Index ER by 300% to the downside. Managers use futures contracts to pursue this strategy. Though the stated goal is to beat the index by 300%, investors should not expect to achieve this result for longer than one day. Avg. Volume: 3,568,012 Net Assets: $208.24 million YTD Return: -71.38% Expense Ratio (net): 0.00% 2. ProShares UltraShort Bloomberg Crude Oil (SCO) The Bloomberg WTI Crude Oil SubindexSM provides the benchmark for this ETF. SCO has a goal of achieving the inverse of the index by 200%. This indicates the fund is leveraged and carries more risk due to its aggressive methods. Note that the target index tracks oil futures prices. Avg. Volume: 1,445,131 Net Assets: $155.44 million YTD Return: 14.06% Expense Ratio (net): 1.03% 3. DB Crude Oil Double Short ETN (DTO) The focus of DTO is light sweet crude oil. The fund's money managers utilize the Deutsche Bank Liquid Commodity index - Optimum Yield Oil Excess Return. This is a short play for investors who want to anticipate crude oil prices as directly as possible. However, since the fund is leveraged, it may hold investments that are aggressive and carry higher risk. Avg. Volume: 6,649 Net Assets: $42.16 million YTD Return: 19.24% Expense Ratio (net): 0.75% 4. United States Short Oil Fund (DNO) DNO focuses on West Texas Intermedia
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The 3 Fastest Growing Vanguard ETFs (VOO)
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do With passive investment strategies on the rise, investment vehicles such as exchange-traded funds (ETFs) are gaining more popularity than ever before among institutional and individual investors. The Vanguard Group offers numerous ETFs that follow a specific benchmark at a very low cost that have attracted billions of new funds since 2014. The following three Vanguard ETFs received the most capital inflows from Dec. 31, 2014, to Feb. 29, 2016, in absolute terms according to FactSet Research Systems, Inc. Vanguard S&P 500 ETF The Vanguard S&P 500 ETF (NYSEACRA: VOO) increased in assets under management (AUM) by about $12.8 billion from Dec. 31, 2014, to Feb. 29, 2016. Started in September 2010, the ETF tracks the performance of the S&P 500 Index by using a full replication investment strategy and has $212 billion in AUM. The fund mimics the performance of the 500 largest U.S. companies operating in leading areas of the U.S. economy. As of Jan. 31, 2016, the fund's largest sector exposure includes information technology at 20.7% allocation, financial services at 16% allocation and health care at 14.7% allocation. The fund's portfolio is well diversified and tracks a widely observed U.S. equity index, which explains this ETF's popularity. The top 10 holdings of the fund have 19.2% allocation and include companies such as Apple, Inc. (NASDAQ: AAPL), Alphabet, Inc. (NASDAQ: GOOGL), Microsoft Corporation (NASDAQ: MSFT) and Exxon Mobil Corporation (NYSE: XOM). The fund's holdings exclude unprofitable companies and stocks of companies with recent initial public offerings (IPO). As of Feb. 29, 2016, the fund showed a year-to-date (YTD) loss of 5.10% and a one-year loss of 6.22%. VOO received a four-star overall rating from Morningstar in the large blend category for its straightforward investment approach. Its expense ratio is 0.05%, which is one of the lowest in its category. Vanguard Total Stock Market ETF The Vanguard Total Stock Market ETF (NYSEACRA: VTI) witnessed an approximately $3.6 billion increase in its AUM from Dec. 31, 2014, to Feb. 29, 2016. Created in May 2001, the Vanguard Total Stock Market ETF tracks the investment results of the CRSP US Total Market Index, which represents about 100% of the investable U.S. stock market. The fund holds a wide range of companies by market capitalizations and sectors, and has $390 billion in AUM. The largest sectors represented in the ETF's portfolio include financial services at 18.9% allocation, technology at 16.3% allocation and consumer services at 14.0% allocation. As of Jan. 31, 2016, the fund's portfolio has low concentration, with the top 10 holdings having 15.5% allocation. The wide broad exposure to the U.S. stock market coupled with a low expense ratio partly explains the popularity of this Vanguard ETF. The fund represents a good choice as a core U.S. stock holding for any investment portfolio. As of Feb. 29, 2016, VTI showed a YTD loss of 5.69% and a one-year loss of 7.93%
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Interested In Healthcare Stocks  Look At This ETF
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Healthcare has been one of the hottest sectors in the financial markets over the past few months. Key exchange-traded funds in this sector have seen returns ranging from 10.54% to 18.08%. Two of the most popular ETFs used by retail investors to track this sector are the iShares U.S. Healthcare ETF (IYH) and the Healthcare Select Sector SPDR ETF (XLV). The IYH ETF is used by many retail traders to gain exposure to U.S. healthcare equipment and services, pharmaceuticals and biotechnology companies. As of of June 25, 2014, the fund sector breakdown was divided between 68.18% pharmaceuticals & biotechnology and 31.70% healthcare equipment & services. Performance of IYH Taking a look at the chart of IYH, you’ll see that it has been trading within a very strong uptrend over the past five years. You’ll also notice that it is trading near all-time highs, and based on its chart, it doesn’t look like this trend will end anytime soon. Taking a look at the Relative Strength Index, the MACD and the bullish divergence between key long-term moving averages confirms that the upward momentum is likely to continue. Components of iShare U.S. Healthcare ETF When looking for ideas for investing in the healthcare sector, it's a wise move to investigate the top holdings of key ETFs, such as IYH. The table below shows its top holdings. Company Weight (%) Johnson & Johnson Inc. (JNJ) 11.97 Pfizer Inc. (PFE) 7.60 Merck & Co. Inc. (MRK) 6.88 Gilead Sciences Inc. (GILD) 5.03 Amgen Inc. (​AMGN) 3.62 Source: iShares.com Taking a look at the chart of JNJ, which is the ETF’s largest holding, you’ll see that it is trading near all-time highs. Based on the technical indicators it doesn’t seem like this trend is about to reverse and it wouldn’t be surprising to see long-term traders protect their positions by setting a stop-loss order below the 200-day moving average, which is currently at $93.66. Given that there is no overhead resistance, the trend is definitely in the upward direction, and ETFs such as IYH will continue to benefit until key indicators confirm a reversal in the uptrend. (For more, see: The ABCs of Risk Management.) Another key holding of the IYH fund is Merck & Co., which is also trading near all-time highs and looks positioned to make a continued move higher. As you can see from the chart below, the 50-day and 200-day moving averages are diverging and the price is currently testing the near-term swing high of $59.39. If the bulls are able to send the price above this level on significant volume then there would be little overhead resistance that would prevent a move toward the mid $60 level. (For more on how to use these indicators, see: Trading With Moving Averages.) The Bottom Line As shown on the chart of the iShares U.S. Healthcare ETF above, companies within the healthcare sector seem to be poised to make a move higher. Based on the analysis of key holdings such as Johnson & Joh
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Are Vanguard ETFs a safe investment  (BND, VCIT)
https://goo.gl/QPCkqk - Start earning with binary options like millions of traders do Vanguard exchange-traded funds (ETFs) that focus on the bond market are good options for investors seeking safe investments. Bond funds generally have less risk than funds with exposure to the stock market. They pay a steady dividend yield, which is attractive for those seeking a return of income. However, they also have less potential for substantial price appreciation. Further, bond funds still do have certain risks, as do all investments. Vanguard funds have some of the lowest expense ratios in the industry, which is a very important factor. High expense ratios can eat into profits over time. Vanguard is well-known in the industry for minimizing its expenses as much as possible. Vanguard is the largest issuer of mutual funds and the second-largest issuer of ETFs in the world. The company launched its first fund in 1972 and it now has around $3 trillion in assets under management (AUM). Vanguard Total Bond Market ETF The Vanguard Total Bond Market ETF (NYSEARCA: BND) is one of the safest investments offered by Vanguard in terms of historical volatility. It has a very low monthly volatility of 0.21%. This is substantially lower than the volatility for the Vanguard Total Stock Market ETF (NYSEARCA: VTI) with a monthly volatility of 1.11%. The fund also has a very low standard deviation of 3% as of September 2015. VTI has a yield of 2.13% as of October 2015. This is a low yield, but it reflects the low interest rate environment mandated by the Federal Reserve since the 2008 financial crisis. The expense ratio for the fund is extremely low at 0.07%. This is 91% lower than the average expense ratio of funds with similar holdings. BND seeks to provide broad exposure to U.S. investment-grade bonds and reflect the performance of the US bond market. The ETF tracks the Barclays U.S. Aggregate Float Adjusted Index. It has 7,701 holdings with an average maturity of 7.9 years and an average duration of 5.7 years. Vanguard notes the fund is appropriate for those investors who are more risk-averse and are seeking a steady return for investment income. Vanguard Intermediate-Term Corp Bd ETF The Vanguard Intermediate-Term Corp Bd ETF (NASDAQ: VCIT) invests in high-quality corporate bonds with an average weighted maturity of five to 10 years. The fund tracks the performance of the Barclays U.S. 5-10 year Corporate Bond Index. The fund holds bonds issued by industrial, utility and financial companies. Corporate bonds have greater risk than U.S. government bonds. The U.S. government has never defaulted on its debt obligations while corporations have. VCIT has total net assets of $6.3 billion, with 1,685 bonds in its portfolio as of September 2015. The ETF pays a higher yield of 3.38%. The average effective maturity of the holdings is 7.4 years, with an average duration of 6.4 years. VCIT has a monthly volatility of 0.38%, which is slightly higher than that of BND. The standard deviation is also higher at 4.39%. VCIT has slightly higher risk
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