Morgan Chase ( JPM ) gets moving next Tuesday with the launch (visit site) of the firms first fund, according to a just-released exchange filing . JPMXF Diversified Return Global Equity ETF, we reported ,is built with four attributes in mind: (1) finding stocks which exhibit low volatility, (2) stocks with value characteristics, (3) momentum and (4) size. Bloomberg Going passive Back in February, this blog previewed a lineup that the giant bank has no problem calling smart beta. The term has come under fire in the ETF industry and elsewhere for being vague , overpromising and something of a hash by fund marketing departments. Do you really want to call these ETFs smart beta? I put the question toBob Deutsch, head of JPMs ETF business, earlier this year. Here was the response : Its a term the industry uses, and I dont have something to offer in terms of a better one, Deutsch said, adding, I do think there is a recognition that traditional market cap weighted index funds have unintended biases, and that because of those unintended biases, investors should at least consider other ways to invest.
ETF Chart of the Day: An Energetic Friend | ETF Trends
Youre missing 99% of the companies in the market, Hougan told MarketWatch. And where the Dow ETF becomes a little bit dangerous, he added, is that some investors might think theyre getting broad exposure when they buy it. Instead, theyre getting a 30-stock fund thats 8% Visa /quotes/zigman/502306/delayed /quotes/nls/v V and underweight sectors like tech and consumer non-cyclicals, while overweighting industrials. Hougan deploys words like dinosaur and nice historical artifact to describe the Dow. Its a bicycle with a giant wheel in the front, he said Tuesday. That type of old-timey bicycle is shown in the adjacent photo. So why is the Dow ETF even around?
JPMorgan’s ETF Debut Set for Tuesday – Focus on Funds – Barrons.com
gross domestic product number. The first quarter is going to be weaker. Stephen Stanley, chief economist at Pierpont Securities LLC, argues that second-quarter growth prospects are also negative as the government will have to re-evaluate how the Affordable Care Act, or so-called Obamacare, is affecting consumer spending. Stanley expects the downward revisions to push first quarter GDP numbers to minus 2%. In an environment of economic complacency, yet another downward revision to 1Q growth could cause enough of a psychological effect to move the markets, and evidence is mounting that the 2Q bounce will be much smaller than originally thought, Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC, said in the article. ETF investors can track the health care providers and services sub-sector through the SPDR S&P Health Care Services ETF ( XHS ) . The ETF includes a 31.6% allocation toward health care services, 31.2% in health care facilities, 22.1% in managed health care, 14.7% in health care distributors and 0.3% in health care REITs.
The monthly, weekly, and daily relative performance analysis plays an important role in my selection of ETFs and stocks. The best signals come when all three are in agreement but I will often make recommendations when the daily and weekly have signaled that they are new market leaders. The continued improvement in the monthly relative performance, line c, was one of the reasons that the technology sector was a favorite at the March 2009 lows. The RS line actually bottomed in 2006 and then formed higher lows in 2008 and 2009. It moved through its resistance (point 2) and at the end of January 2009, which was a positive sign.
Semiconductor ETF Up 3 Straight Weeks (SMH, INTC, XSD, OVTI)
The largest holding is OmniVision Technologies (NASDAQ: OVTI ) at 2.8 percent. Both ETFs are now sitting at extremely overbought levels based on a variety of technical indicators, which should not be a surprise considering the rally that both have enjoyed. The long-term outlook for the industry looks bullish, however buying today may not be the best strategy. Nothing goes straight up and a healthy pullback is overdue.
XLE has had notable inflows YTD, taking in >$3 billion and is now a >$12 billion fund. This ETF is also the largest Energy Equity ETF in the space by a mile as well, trumping the second largest VDE (Vanguard Energy, Expense Ratio 0.14%) which only has about $3.2 billion in AUM. XOM and CVX by nature are Value stocks, with 2.70% and 3.50% yields respectively, and managers that may have been fortunate to either buy the stocks outright or via an Energy ETF with sizable weightings towards them like an XLE for example, three, six, or twelve months ago, have seen not only steady dividends roll in but also impressive breakout price performance which has recently trumped the broad market indices. In any case, whether the future story is Bull or Bear, it seems like now is the best time to pay attention and stay focused not only on these stocks but the sector given the Iraqi situation as well as looming earnings season for XOM, CVX and related names, which is really not that far off (end of July), as well as the typical seasonality of Gasoline prices around Labor day. Even though most eyes today may be focused on the U.S. Energy Select Sector SPDR For more information on Street One ETF research and ETF trade execution/liquidity services, contact Paul Weisbruch at email@example.com .