New ETFs On The Block: Wisdomtree US Dividend Growth Fund (DGRW)

Ulli Dividend ETFs Contact

94177589WisdomTree, the New York-based exchange-traded fund sponsor best known for its fundamental indexes, has further enhanced its offering of dividend focused ETFs with the recent launch of a dividend payout fund that tracks US companies showing good dividend growth prospects.

The new product, the WisdomTree US Dividend Growth Fund (DGRW), is likely to compete with other funds in the dividend growth niche, especially the Vanguard Dividend Appreciation ETF (VIG) and the S&P SPDR Dividend ETF (SDY), both which have more than $10 billion in AUM.

In keeping with the sponsor’s fundamental indexing approach, the new fund tracks the WisdomTree US Dividend Growth Index, a proprietary dividend-weighted benchmark that consists of about 300 companies that have a market capitalization of at least $2 billion. The constituents are selected based on both quality and growth factors that gives a holistic approach to dividend investing while blending characteristics of both active and passive management styles. The index is rebalanced annually to reflect the proportionate share of cash dividends each component is projected to pay in the coming year.

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06-07-2013

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ETF/No Load Fund Tracker Newsletter For Friday, June 7, 2013

ETF/No Load Fund Tracker StatSheet

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

https://theetfbully.com/2013/06/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-06062013/

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Market Commentary

Friday, June 7, 2013

BULLS CHEER UNEMPLOYMENT REPORT

A wild week of trading came to an end with U.S. markets closing nicely higher as the Dow Jones Industrial Average scored its best day since January 2, and the Standard & Poor’s 500 Index ended a two-week losing streak with the best two-day rally since January.

The Dow closed 208 points higher (1.4%) at 15,248, the S&P 500 Index increased 21 points (1.3%) to 1,643, and the Nasdaq Composite ascended 45 points (1.3%) to 3,469. Stocks rallied after a mixed May employment report, which may suggest that the Federal Reserve will at least maintain its current pace of asset purchases until the lukewarm U.S. economy can show substantial signs of improvement.

Nonfarm payrolls increased by 175,000 in May, close to the consensus of 169,000. The unemployment rate, however, ticked up for the first time in four months on rounding to 7.6% from 7.5%, above expectations of 7.5%. The average workweek remained at an upwardly revised 34.5 hours. The labor force expanded by 420,000, with 319,000 more people counted as employed and 101,000 more unemployed. Those not in the labor force fell by 231,000, the biggest decline in seven months.

While the headline number surprised to the upside, the increase in the unemployment rate suggests the Federal Reserve will maintain its accommodative policy course in the immediate term. Cyclical sectors ended among the leaders as financials, industrials, and discretionary shares all gained more than 1.7%. Boeing, Walt Disney and American Express added more than 2.4 percent. The industrial sector stood out as transportation and defense companies rallied broadly. The discretionary sector added 1.8% as retailers provided a measure of support to the growth-oriented space. Many of today’s outperformers included recent laggards.

Through the wild swings of the market action this week, U.S. stocks finished modestly in the green as data suggested the economy remains soft enough to keep the Fed from expediting its exit plan. For the week, the Dow gained 0.9 percent, the S&P 500 rose 0.8 percent, and the Nasdaq added 0.4 percent.

The ISM Manufacturing Index unexpectedly depicted contraction and construction spending and factory orders rose at smaller rates than expected, offsetting a relatively upbeat Fed Beige Book report and a slightly stronger-than-expected ISM non-Manufacturing Index.

Meanwhile, Japan and Europe added to the volatility. Japanese markets falling sharply and briefly hitting bear market territory, as the yen continued to rally amid the nation’s disappointing long-term economic strategy. At the same time, the European Central Bank held off on providing additional stimulus measures while offering a mixed economic growth outlook.

Will volatility continue as traders and investors keep grappling over the Fed’s exit plan? Right now, it seems to be a tug-of-war between bulls and bears but I believe the stance of the Fed will eventually determine whether the next leg in the markets will be up or down.

Our Trend Tracking Indexes (TTIs) went pretty much sideways and ended the week as follows:

Domestic TTI: +3.04% (last week +3.06%)

International TTI: +6.14% (last week +6.50%)

Have a great week.

Ulli…

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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

A note from reader Thomas:

Q: Ulli: Good morning. I need your opinion; I have a large share of my fixed income invested in HYG & JNK. Should I sell both positions at this time? Thank you.

A: Thomas: As you know, I let my trailing sell stops make those decisions for me, so that I don’t have to be emotionally involved. Depending on your risk tolerance, you can use a 5% or 7% trailing stop.

Figure out your high point from the time you purchased these ETFs, reduce that number by the dividends received, and then apply your sell stop. If it gets triggered, you sell; if not, you continue to hold. That’s what I would do.

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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/

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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 Friday, June 7, 2013

Ulli ETF Tracker Contact

ETF/No Load Fund Tracker StatSheet

————————————————————-

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

https://theetfbully.com/2013/06/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-06062013/

————————————————————

Market Commentary

Friday, June 7, 2013

BULLS CHEER UNEMPLOYMENT REPORT

A wild week of trading came to an end with U.S. markets closing nicely higher as the Dow Jones Industrial Average scored its best day since January 2, and the Standard & Poor’s 500 Index ended a two-week losing streak with the best two-day rally since January.

The Dow closed 208 points higher (1.4%) at 15,248, the S&P 500 Index increased 21 points (1.3%) to 1,643, and the Nasdaq Composite ascended 45 points (1.3%) to 3,469. Stocks rallied after a mixed May employment report, which may suggest that the Federal Reserve will at least maintain its current pace of asset purchases until the lukewarm U.S. economy can show substantial signs of improvement.

Nonfarm payrolls increased by 175,000 in May, close to the consensus of 169,000. The unemployment rate, however, ticked up for the first time in four months on rounding to 7.6% from 7.5%, above expectations of 7.5%. The average workweek remained at an upwardly revised 34.5 hours. The labor force expanded by 420,000, with 319,000 more people counted as employed and 101,000 more unemployed. Those not in the labor force fell by 231,000, the biggest decline in seven months.

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Weekly StatSheet For The ETF/No Load Fund Tracker Newsletter – Updated Through 06/06/2013

Ulli ETF StatSheet Contact

ETF/Mutual Fund Data updated through Thursday, June 6, 2013

Table of Content082312

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 10/25/2011

TTI

The domestic TTI broke through its long-term trend line generating a Sell for this area effective 8/9/2011. Over the recent past, we’ve seen the TTI hovering slightly below and above this dividing line between bullish and bearish territory. The clear break to the upside occurred on 10/24/11 and, effective 10/25/11, a new Buy signal for domestic equities went into effect.

As of today, our Trend Tracking Index (TTI—green line in above chart) has bounced off its long term trend line (red) by +2.82% as part of the post election rebound.

To avoid a potential whip-saw, a Sell signal to move out of all domestic equity positions will be generated once we have clearly pierced the line to the downside. Be sure to tune in for the latest updates.

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Bulls Fight Off Bears To Shed The Red

Ulli Market Commentary Contact

Thur pic

[Chart courtesy of MarketWatch.com]

U.S. equities shed earlier losses and closed the trading session in positive territory, allowing stocks to snap their recent two-day losing streak and avoid giving the Dow its first three-session decline of the year.

The Dow Jones Industrial Average added 80 points (0.5%) to 15,041, the S&P 500 Index moved 14 points (0.8%) higher to 1,622, and the Nasdaq Composite increased 23 points (0.7%) to 3,424.

The Dow today slipped below its 50-day moving average of 14,923.91. That was the first time this year it happened for the 30-stock gauge. The S&P 500 also spent the first half of today’s session attempting to climb above yesterday’s afternoon highs. However, around midday, the index briefly slipped below its 50-day moving average of 1,604 – the first time the benchmark has dropped below that technical level since April 18.

By mid-afternoon, the S&P reversed course and ended the day up 0.9 percent. Cyclical sectors were whipsawed early in the session, but the afternoon advance helped five of the six growth-oriented groups register gains. The session’s best performers included financials and health care, with each ending up 1.4 percent. Homebuilders rallied broadly after displaying notable softness over the past few sessions.

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Stocks Slump As More Fears Of Less Fed Stimulus Mount

Ulli Market Commentary Contact

Wed pic

[Chart courtesy of MarketWatch.com]

Investors have sent stocks on a wild ride in recent sessions amid fears the central bank will trim stimulus while the economy remains weak. Recent selling could suggest the market may be moving away from its seven-month rally.

The Standard & Poor’s 500 Index moved 23 points (1.4%) lower to 1,609. Today’s loss came on the heels of yesterday’s weakness and the continued decline caused the benchmark average to fall 3.6 percent since its all-time closing high on May 21, a day before Fed’s Bernanke said the U.S. central bank may decide to taper its stimulus. The Dow Jones Industrial Average fell 217points (1.4%) to 14,961 and the Nasdaq Composite declined 44 points (1.3%) to 3,401.

All ten sectors ended in the red as declining issues outpaced advancers by a 4.4 to 1 ratio. Cyclical groups were among the main casualties of today’s selloff as four of six growth-oriented sectors saw losses in excess of 1.6%. Although cyclical sectors faced the bulk of today’s selling, defensively-oriented groups were not far behind. Consumer staples, utilities, and telecom services each lost between 0.9% and 1.2% while the health care sector slumped 1.4%.

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