New ETFs On The Block: Cambria Global Asset Allocation ETF (GAA)

Ulli Bond ETFs Contact

104394781

Cambria Investment Management, the CA-based exchange-traded fund issuer better known for its alternative investment strategies (or Alts), did an encore recently by taking the “low-fee” concept a step further: it launched a zero-fee fund.

Cambria’s latest product – Cambria Global Asset Allocation ETF (GAA), charges 0.00 percent in management fees. Rather, it charges a modest 0.29 percent for meeting annual operating expenses to cover the average expense-ratio of the underlying 29 ETFs held by the portfolio.

GAA is essentially a “fund of funds” that invests in other ETFs. The actively-managed fund seeks to replicate the performance of a truly diversified global portfolio and invests in a basket of US and foreign equities, bonds, REITs, currencies and commodities.

Read More

01-23-2015

Ulli Newsletter Archives Contact

ETF/No Load Fund Tracker Newsletter For January 23, 2015

ETF/No Load Fund Tracker StatSheet

————————————————————-

THE LINK TO OUR CURRENT ETF/MUTUAL FUND STATSHEET IS:

https://theetfbully.com/2015/01/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-01222015/

————————————————————

Market Commentary

Friday, January 23, 2015

A DISAPPOINTING FINISH TO A FRUITFUL WEEK

Fri pic

[Chart courtesy of MarketWatch.com]

1. Moving the Markets

Stocks ended lower today but higher on the week, led primarily by the technology sector. Pushing markets higher in general was news from the European Central Bank. Earlier this week the ECB announced a larger-than-expected asset purchase (bond buying) program. The ECB plans to purchase at least €1.1 trillion (about $1.3 trillion) in investment-grade bonds and asset-backed securities from the secondary market, at least until September 2016. This is an attempt to spur economic growth to increase low inflation to the ECB’s 2% target.

In IPO news today, shares of online file sharing service Box (BOX) jumped more than 65% in their first day of trading. The initial price of the 12.5 million shares that were sold was set at $14 a share; however, the deal had been delayed for months. The company raised $175 million from its IPO and has clients such as General Electric (GE).

The highlight of the upcoming week will arrive on Wednesday, as the Federal Reserve FOMC two-day policy meeting ends and is followed by an announcement. The Fed has recently stated it would remain “patient” in increasing short-term policy rates as global economic growth has slowed and as inflation has stalled due to declining energy prices. Expectations are still for a midyear rate increase. Wall Street will certainly be looking for any change in the Fed’s statement.

All of our 10 ETFs in the Spotlight slipped today but most gained for the week. 6 of our funds remain on the plus side YTD as section 2 shows.

2. ETFs in the Spotlight

In case you missed the announcement and description of this section, you can read it here again.

It features 10 broadly diversified ETFs from my HighVolume list as posted every Monday. Furthermore, they are screened for the lowest MaxDD% number meaning they have been showing better resistance to temporary sell offs than all others over the past year.

Here are the 10 candidates:

MaxDD

The above table simply demonstrates the magnitude with which some of the ETFs are fluctuating in regards to their positions above or below their respective individual trend lines (%M/A). A break below, represented by a negative number, shows weakness, while a break above, represented by a positive percentage, shows strength.

For more ETF/Mutual fund choices, be sure to reference Thursday’s StatSheet.

Year to date, here’s how the above candidates have fared so far:

YTD

Again, the first table above shows the position of the various ETFs in relation to their respective long term trend lines (%M/A), while the second one tracks their trailing sell stops in the “Off High” column. The “Action” column will signal a “Sell” once the -7.5% point has been taken out in the “Off High” column.

3. Trend Tracking Indexes (TTIs)

Our Trend Tracking Indexes (TTIs) improved as this week’s rebound gathered steam. Today’s close was weak and can likely be attributed to some jitteriness ahead of the Greek elections this weekend.

Here’s how we ended up:

Domestic TTI: +2.81% (last Friday +2.20%)—Buy signal since 10/22/2014

International TTI: -0.47% (last Friday -1.93%)—Sell signal effective 12/15/14

Have a nice weekend.

Ulli…

Disclosure: I am obliged to inform you that I, as well as advisory clients of mine, own some of these listed ETFs. Furthermore, they do not represent a specific investment recommendation for you, they merely show which ETFs from the universe I track are falling within the guidelines specified.

————————————————————-

READER Q & A FOR THE WEEK

All Reader Q & A’s are listed at our web site!
Check it out at:

http://www.successful-investment.com/q&a.php

Reader Angela:

Q: Ulli: If I buy a stock at $50.00 and then, the stock goes up to $70.00, then it starts sliding down; if I am using a 7% SELL STOP, then I will be getting out at $65.10. This is all good, but my problem is that I don’t have the time, discipline to track and execute this transaction.

However, I have an option through my brokerage account to place a trade called “trailing stop on quote.”

I could place this type of order when the price of the stock reaches $70.00. There are two trail options, one is a percentage or points (price). Which one should I use?  What do you thing about using this type of trade to track by sell stops.

Thanks for your help.

A: Angela: There are various issues here.

First, my sell stop discipline does not work with individual stocks very well, since they are too volatile. My exit strategy is designed to be applied to broadly diversified mutual funds and ETFs.

Second, you need to track the high prices of your ETF/mutual fund every day. Say, you reach the $70 level, and then the price slips to $68 before resuming its trend and touching $72. Then $72 becomes your new high price from which to calculate your sell stop. You can’t do that with an automated system such as you describe.

Third, as I posted on various occasions, we only used day-ending prices for our calculations in order to avoid intra-day whipsaw signals and/or market manipulation.

Having said that, you should be able to take a couple minutes at night to see if your sell stop, based on that day’s closing price, has been triggered or not. If it has, then you can place your order the next morning.

Hope this helps.

———————————————————-

WOULD YOU LIKE TO HAVE YOUR INVESTMENTS PROFESSIONALLY MANAGED?

Do you have the time to follow our investment plans yourself? If you are a busy professional who would like to have his portfolio managed using our methodology, please contact me directly or get more details at:

https://theetfbully.com/personal-investment-management/

———————————————————

Back issues of the ETF/No Load Fund Tracker are available on the web at:

https://theetfbully.com/newsletter-archives/

ETF/No Load Fund Tracker Newsletter For January 23, 2015

Ulli ETF Tracker Contact

ETF/No Load Fund Tracker StatSheet

————————————————————-

THE LINK TO OUR CURRENT ETF/MUTUAL FUND STATSHEET IS:

https://theetfbully.com/2015/01/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-01222015/

————————————————————

Market Commentary

Friday, January 23, 2015

A DISAPPOINTING FINISH TO A FRUITFUL WEEK

Fri pic

[Chart courtesy of MarketWatch.com]

1. Moving the Markets

Stocks ended lower today but higher on the week, led primarily by the technology sector. Pushing markets higher in general was news from the European Central Bank. Earlier this week the ECB announced a larger-than-expected asset purchase (bond buying) program. The ECB plans to purchase at least €1.1 trillion (about $1.3 trillion) in investment-grade bonds and asset-backed securities from the secondary market, at least until September 2016. This is an attempt to spur economic growth to increase low inflation to the ECB’s 2% target.

In IPO news today, shares of online file sharing service Box (BOX) jumped more than 65% in their first day of trading. The initial price of the 12.5 million shares that were sold was set at $14 a share; however, the deal had been delayed for months. The company raised $175 million from its IPO and has clients such as General Electric (GE).

The highlight of the upcoming week will arrive on Wednesday, as the Federal Reserve FOMC two-day policy meeting ends and is followed by an announcement. The Fed has recently stated it would remain “patient” in increasing short-term policy rates as global economic growth has slowed and as inflation has stalled due to declining energy prices. Expectations are still for a midyear rate increase. Wall Street will certainly be looking for any change in the Fed’s statement.

All of our 10 ETFs in the Spotlight slipped today but most gained for the week. 6 of our funds remain on the plus side YTD as section 2 shows.

Read More

Weekly StatSheet For The ETF/No Load Fund Tracker Newsletter – Updated Through 01/22/2015

Ulli ETF StatSheet Contact

ETF/Mutual Fund Data updated through Thursday, January 22, 2015

TOC 121514

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 10/22/2014

TTI

Our main directional indicator, the Domestic Trend Tracking Index (TTI), broke through its long-term trend line generating a “Sell” for this arena effective 10/14/2014, which was followed by a violent break back above the line on 10/22/14 generating a new “Buy.” It was a classic whipsaw signal, and you can read more on my blog as to the events as they were unfolding.

As of today, our TTI (green line in above chart) is positioned above its long term trend line (red) by +3.01% keeping us in the market with our established positions.

Read More

S&P 500 Ends Up On The Plus Side YTD

Ulli Market Commentary Contact

Thur pic

[Chart courtesy of MarketWatch.com]

1. Moving the Markets

Today’s rally shifted into overdrive this afternoon as the ECB announced their widely anticipated stimulus program in form of expanded asset purchases at the tune of some $60 billion per month until at least through September 2016.

The markets were expecting a shock-and-awe type of plan, so this was good news. Whether this idea will succeed in reviving stagnant economies in the Eurozone remains to be seen or if it simply is a round-about way of bailing out indebted reform-wary governments.

On the domestic economic side, things were negative as more Americans than expected applied for unemployment benefits. Nevertheless, 8 out of 10 of the major industries in the S&P 500 advanced with financial, technology and consumer discretionary taking the lead.

All of our 10 ETFs in the Spotlight joined the party and 3 of them even made new highs for the year. 6 of them are now showing gains YTD as the table in section 2 below shows.

Read More

3rd Straight Day Of Gains

Ulli Market Commentary Contact

Wed pic

[Chart courtesy of MarketWatch.com]

1. Moving the Markets

Stocks ended higher as investors were encouraged by reports that the ECB was poised to unveil further stimulus measures. Investors on Wall Street have been looking for more aggressive measures from central banks of recent, specifically the ECB, to combat the risk of deflation and a weakening euro zone economy. Domestic stocks would benefit from a program in support of a stronger euro zone economy because Europe is one of the United States’ most important trade partners.

UnitedHealth Group (UNH) was the leading Dow component after the nation’s largest health insurer reported earnings that beat Wall Street expectations and forecast better-than-expected 2015 results. Shares jumped 3.5%.

In Media and Entertainment news, Netflix (NFLX) jumped 17% to $408 a share after the streaming and rental video company posted earnings that were above expectations. The company also said it was growing faster overseas than previously expected. On the flip side, IBM shares fell 3.1% to $152.16 today after reporting lower-than-expected revenues and giving a 2015 profit target that was below estimates. The stock was among the biggest decliners on the S&P 500.

Overseas, a big rebound in Chinese shares helped lead most Asian stock markets higher today. The Shanghai Composite surged 4.7% to 3323.61 and Hong Kong’s Hang Seng index rose 1.7% to close at 24,352.58.

All of our 10 ETFs in the Spotlight closed up with RSP leading the pack to the upside. 4 of them are now showing green numbers YTD as you can see in section 2 below.

Read More