High Volume ETFs On The Cutline—Updated Through 4/20/2011

Ulli ETFs on the Cutline Contact

As reported last week, here’s a slightly different version of the original “ETFs On The Cutline” report. It includes only High Volume (HV) ETFs, which I define as those with an average daily volume of $10 million or higher.

These ETFs are generated from my selected list of 90 that I use in my advisor practice. It cuts out the “noise,” which simply means it eliminates those ETFs that I would never buy because of their volume limitations.

Short ETFs are not yet included but will be in the future. Take a look at the table:

Read More

5 ETF Model Portfolios You Can Use—Updated through 4/19/2011

Ulli Model ETF Portfolios Contact

This past week has shown some volatility, especially with Monday’s pullback, but all model portfolios gained with the exception of the income portfolio, which dropped slightly.

Again, there is no right or wrong, or better or worse, when it comes to portfolios; the only thing that matters is what’s appropriate for your particular circumstances.

Let’s take a look at the first one:

Read More

Mutual Funds On The Cutline—Updated as of 4/18/2011

Ulli Mutual Funds On The Cutline Contact

Here’s the latest update, which includes the cutline pricing information after yesterday’s sell off. What’s interesting is that 2 bear market funds have broken above the cutline and moved into the +12 and +13 placement positions.

The momentum figures clearly show that it’s too early to make a commitment to the short side. But when is the right time?

First, let’s take a look at the latest cut line table for mutual funds:

Read More

ETFs On The Slide

Ulli Market Commentary Contact

There’s no question which news event ruled the day. From the get go, it was S&P’s announcement that it is cutting its outlook on U.S. government debt to negative, which could threaten its pristine AAA rating.

The major market ETFs dropped like a rock, but afternoon bargain hunting limited losses somewhat. Good thing there wasn’t another negative news report, or this could have been a truly ugly day.

Gold was the beneficiary and hit a new closing high of $1,492.90, while sneaking up on the $1,500 level. Surprisingly, bonds rallied as interest rates sank while the dollar rose. The combination of higher gold and bond prices served us well, as our core holding PRPFX slipped only by -0.23% vs. the S&P 500’s -1.10%.

Read More

ETFs On The Cutline—Updated through 4/15/2011

Ulli ETFs on the Cutline Contact

In this latest edition, you’ll notice again that ETFs do not remain in the same position in relation to the cutline for very long when market weakness sets in. For example, DFJ, which had a +1 placement last week, sold off sharply and ended up in the -12 position.

The lesson is that you need to have ETFs move above the cutline by a decent margin before considering them as a buy. Additionally, you want to make sure that all momentum numbers across are positive.

Take a look at this week’s table:

Read More

ETFs On A Wild Ride

Ulli Low Cost ETFs Contact

The WSJ (subscription required) had some interesting thoughts in “Exchange Traded Funds Gone Wild:”

Exchange-traded funds had such a humble start, it’s hard to believe what a crazy mélange they’ve become.

Back in 1993, the Standard & Poor’s Deposit Receipt (SPDR, pronounced Spider) launched, giving investors a fresh way to invest in the Standard & Poor’s 500-stock index. And, for a long time, ETFs matched this kind of simple, index-tracking investing.

But in the past few years, ETF providers (with the permission of the Securities and Exchange Commission) have sliced and diced investment ideas to such an extent that an investor can find an ETF for just about anything. According to the Investment Company Institute, a trade group, there were 956 ETFs at the end of February, with more than $1 trillion in assets in all.

While choice is generally a good thing, a good chunk of the nearly 1,000 ETFs should be avoided by most investors. They are too narrow, too risky and oftentimes simply faddish. Expect more of these mind-bending ETFs in the future.

The industry is gearing up to launch ETFs that focus on the automotive industry, bank loans and single-country sovereign bonds.

Read More