New ETFs On The Block: Guggenheim Large Cap Optimized Diversification ETF (OPD)

Ulli Equity ETFs Contact

91551519Guggenheim Investments, the eighth largest US issuer of exchange-traded funds with $27.5 billion in ETF assets-under-management, and the first to launch the so-called strategic/smart beta products, recently rolled out an ‘optimized’ strategic-beta product targeting the large capitalization US stocks.

The newly minted Guggenheim Large Cap Optimized Diversification ETF (OPD) seeks to replicate the performance of the Wilshire Large Cap Optimized Diversification Index, and pulls from the much broader Wilshire US Large Cap Index to target names that tend to show higher individual stock risk, and therefore lower correlation with the market or the parent index.

The portfolio constituents are weighted by correlation and dispersion in order to optimize the benefits of diversification, though the actual details are thin. The underlying index is constituted through a proprietary Wilshire algorithm and individual stocks are included to the extent they contribute to the fund’s overall diversification.

Read More

ETF/No Load Fund Tracker Newsletter For May 20, 2016

Ulli ETF Tracker Contact

ETF/No Load Fund Tracker StatSheet

————————————————————-

https://theetfbully.com/2016/05/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-05192016/

————————————————————

Market Commentary

SOLID FRIDAY, BUT FOURTH STRAIGHT WEEKLY LOSS FOR DOW

Fri pic

[Chart courtesy of MarketWatch.com]

1. Moving the Markets

The Dow closed the week with a rally on Friday, but the gains were not enough to push the index into positive territory for the week. This marks the fourth straight week of losses as investors remain focused on what the Federal Reserve will do in June.

In a sign of recent market risk aversion, asset flows to bond-related mutual funds and ETFs hit $4.57 billion in the week ended May 18, while stock-related funds suffered net outflows of $.49 billion, according to Reuters.

In corporate news, shares of The Gap (GPS) were up 4.2% to close at $18.01 after the retailer reported earnings in line with market expectations and announced a restructuring, which includes the closure of 75 Old Navy and Banana Republic stores, mostly of which are international locations.

Also, shares of Yahoo (YHOO) fell 1.4% to $ $36.50 amid media reports that suggest the Internet Company has received lower-than-expected bids for its core business from potential suitors.

Read More

Weekly StatSheet For The ETF/No Load Fund Tracker Newsletter – Updated Through 05/19/2016

Ulli Uncategorized Contact

ETF/Mutual Fund Data updated through Thursday, May 19, 2016

TOC051916

If you are not familiar with some of the terminology used, please see the Glossary of Terms.

 

1. DOMESTIC EQUITY MUTUAL FUNDS/ETFs: BUY — since 4/4/2016

TTI

Our main directional indicator, the Domestic Trend Tracking Index (TTI-green line in above chart) remains above its long term trend line (red) by +0.60% after having generated a new Domestic Buy signal effective 4/4/2016 as posted.

Read More

S&P 500 Falls Back Into Negative Territory For 2016

Ulli Market Commentary Contact

Thur pic

[Chart courtesy of MarketWatch.com]

1. Moving the Markets

Stocks fell despite a big earnings beat from retailer Wal-Mart (WMT)

Walmart (WMT) bucked the trend of many U.S. retailers this profit-reporting season, reporting that its earnings, revenues and sales all handily topped Wall Street’s estimates. Shares of the retailer gained almost 10% on the day. The positive news from the company suppressed fears that U.S. consumers are cutting back spending.

A better-than-expected quarterly profit report from Walmart offset some of the market’s lingering weakness sparked by the Federal Reserve on Wednesday, which noted to investors an interest rate hike might occur in June if U.S. economic data continues to strengthen.

U.S. crude was negatively impacted by the Fed statement that they are seriously considering their second rate hike since 2006 at its meeting next month. U.S. oil closed down at $48.60 a barrel.

The value of the USD continued to rise today, which is not in the best interest for exports. The rising valuation could negatively impact global sales of U.S. goods as they become more and more expensive. The currency is now once again at its highest level since March.

Read More

Markets End Flat On FOMC Minutes

Ulli Market Commentary Contact

Wed pic

[Chart courtesy of MarketWatch.com]

1. Moving the Markets

Volatility was minimal as we closed out the mid-week trading day.

We heard earnings reports from Target (TGT) today, which disappointed investors to say the least. The company missed analyst’s estimates on Q1 sales while delivering a disappointing forecast for the Q2. Corporate said it expects sales in the second quarter to be from flat to down as much as 2% as shoppers pull back their spending. Baby, kids, style and wellness continue to be the largest revenue streams for Target.

In tech, Apple’s (AAPL) stock gained about 1% today, but is still trying to fight its way back from a tremendous drop from its April high of $109 a share. Investors have seen $240 billion in wealth evaporate in their Apple holdings since that time. Some hope the big losses in Apple’s market value will attract back investors who see it as a value.

I am keeping my eyes on economic data and how it will impact the Fed’s decision regarding interest rates. The minutes suggest that economic data over the next few weeks, particularly the May jobs survey, will be critical in determining whether the Fed hikes rates again in June.

In a statement after the April meeting, the Fed gave no clear signal about whether a rate hike at its mid-June meeting is likely yet today the words were “most Fed officials saw a June hike ‘likely’ if economy warranted,” leaving everyone confused as to what will happen next.

Read More

Tuesday’s Slide Negates Monday’s Climb

Ulli Market Commentary Contact

Tue pic

[Chart courtesy of MarketWatch.com]

1. Moving the Markets

Today was a solid downward slide from yesterday’s gains on Wall Street, despite some good earnings reports from big players.

Inflation worries were spread all over news outlets today as we heard reports that April’s reading on consumer inflation (+0.4%) was the highest in three years. The move higher in inflation, due in large part to rising prices at the gas pump, is likely to heat up debate as to whether cost pressures are on the rise, a trend that could prod the U.S. Federal Reserve to raise interest rates at an earlier date than Wall Street now has priced in.

As I mentioned yesterday, this week is a big one for earnings reports and we heard some positive numbers from Home Depot (HD) today. The big home improvement retailer topped Wall Street estimates on both the top and bottom line and subsequently raised its full-year profit estimate. This somewhat suppressed fears sparked by weak retail earnings reports from Macy’s (M) and Nordstrom (NORD).

Still to come this week, is Target (TGT), Walmart (WMT), Gap (GPS) and FootLocker (FL) reporting later in the week.

Read More