New ETFs On The Block: New 1-10 Year TIPS ETF (TIPX)

Ulli Income ETFs Contact

156288184The ETF universe continues to massively grow not only in asset size but also in number of funds. There are now almost 1,500 ETFs available with total assets of over $1.5 trillion.

With many investors are trying to improve the returns of their holdings in this zero interest rate environment, it’s no surprise that ETFs promising higher yields are expanding rapidly. Many of these newcomers will have to prove themselves first over time and show that their volume and yield makes them worthy contenders.

Nasdaq describes the latest ETF addition as follows:

The SPDR Barclays 1-10 Year TIPS ETF (TIPX) looks to follow the Barclays 1-10 YearGovernment Inflation-linked Bond Index which tracks the 1-10 year inflation protected sector of the United States Treasury market. In order to be included in this benchmark, the securities must be TIPS (Treasury Inflation Protected Securities) and have at least one year remaining to maturity and less than 10 years to maturity on the index rebalancing date.

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05-31-2013

Ulli Newsletter Archives Contact

ETF/No Load Fund Tracker Newsletter For Friday, May 31, 2013

ETF/No Load Fund Tracker StatSheet

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

https://theetfbully.com/2013/05/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-05302013/

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Market Commentary

Friday, May 31, 2013

BEARS SHOW UP FOR THE SPANKING OF THE BULLS

It feels as if this is the beginning of a correction, as stocks ended the month of May with big losses, with the Dow Jones Industrial Average and Standard & Poor’s 500 Index posting their worst one-day drops since mid-April.

After moving between small losses and gains for most of the day, the stock market started to drift lower in afternoon trading. The sell-off accelerated in the final hour. The Dow lost 208 points (1.3%) to 15,116, the S&P 500 Index declined 24 points (1.4%) to 1,631, and the Nasdaq Composite descended 35 points (1.0%) to 3,456.

Today, there was both encouraging and disappointing news on the economy. Data showed consumer confidence advanced in May, improved 0.8 points to the highest level in almost six years. The full-month gain was 8.1 points, the most since October 2006. This argues for continued expansion in the current cycle.

Separate reports showed business activity rebounded this month after declining for the first time in more than three years in April, while consumer spending in the U.S. unexpectedly declined last month. Personal consumption expenditures fell 0.2% in April, down for the first time in nearly a year and by the most since September 2009. Economists expected a smaller 0.1% slip.

All ten sectors settled in the red as two defensive groups, consumer staples and health care, led to the downside. Consumer staples endured selling pressure throughout the week, as the group declined 3.2%, which erased its May gain.

Elsewhere, the health care sector fell 2.2% and trimmed its year-to-date gain to 20.1%, surrendering its spot atop this year’s sector leader board to financials. Even with today’s 1.6% loss, the financial sector ended the week with a gain of 5.9%. Technology stocks also enjoyed a strong week, but unlike financials, the group held up relatively well through the selloff.

The European equity markets finished lower, pulling back to three-month lows, in the wake of a plethora of economic reports in the region, while digesting record high euro zone unemployment.

Stocks finished to the downside amid a volatile week of mixed data and uncertainty regarding the Federal Reserve tapering off its asset purchases. For the week, the Dow fell 1.2 percent, the S&P 500 lost 1.1 percent and the Nasdaq dipped 0.1 percent.

For the month of May, the Dow rose 1.9 percent and the Nasdaq gained 3.8 percent. Economic data fostered mixed reactions. Meanwhile, a lowered global growth outlook from the Organization for Economic Cooperation and Development added to the wild ride for the markets this week.

And last not least, Japanese markets added to the volatile theme, with the Nikkei 225 Index posting a more than 5% one-day drop. What’s next: Correction, pullback or crash?

As I have posted repeatedly, we are in unchartered territory due to the Fed’s reckless policies so anything is possible. That’s why it’s important to stay with the major trend until it reverses at which time our sell stops will point the way to the exit door. Some of our holdings are getting close but none were triggered.

Our Trend Tracking Indexes (TTIs) headed south as well and ended the week as follows:

Domestic TTI: +3.06% (last week +4.08%)

International TTI: +6.50% (last week +8.29%)

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 Freden:

Q: Ulli: Thanks again for your wonderful site and amazing information…With the craziness in the markets, it is good to have a voice of reason. My question is this: Most portfolio allocations recommend a percentage of bonds – roughly 35% to be fully diversified. With BWX now well below your 5% sell stop recommendation would you sell it? How about BND if it drops below 5%?

A: Freden: Yes, in fact, I liquidated BWX in our Model ETF portfolio, as it had triggered its 5% trailing sell stop. While BND is still a hold, it may be next on the chopping block. Worries about higher interest rates persist, and we may very well see the bonds move into bear market territory before the stock market does.

In any event, I just simply let my trailing sell stops tell me when it’s time to step aside.

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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, May 31, 2013

Ulli ETF Tracker Contact

ETF/No Load Fund Tracker StatSheet

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

https://theetfbully.com/2013/05/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-05302013/

————————————————————

Market Commentary

Friday, May 31, 2013

BEARS SHOW UP FOR THE SPANKING OF THE BULLS

It feels as if this is the beginning of a correction, as stocks ended the month of May with big losses, with the Dow Jones Industrial Average and Standard & Poor’s 500 Index posting their worst one-day drops since mid-April.

After moving between small losses and gains for most of the day, the stock market started to drift lower in afternoon trading. The sell-off accelerated in the final hour. The Dow lost 208 points (1.3%) to 15,116, the S&P 500 Index declined 24 points (1.4%) to 1,631, and the Nasdaq Composite descended 35 points (1.0%) to 3,456.

Today, there was both encouraging and disappointing news on the economy. Data showed consumer confidence advanced in May, improved 0.8 points to the highest level in almost six years. The full-month gain was 8.1 points, the most since October 2006. This argues for continued expansion in the current cycle.

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Weekly StatSheet For The ETF/No Load Fund Tracker Newsletter – Updated Through 05/30/2013

Ulli ETF StatSheet Contact

ETF/Mutual Fund Data updated through Thursday, May 30, 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 +3.91% 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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Stocks Up Because Of Negative Economic News…!

Ulli Market Commentary Contact

Thur pic

[Chart courtesy of MarketWatch.com]

Somehow negative economic releases helped U.S. equities rise on Thursday, rebounding from the previous session’s losses, as tepid economic data eased concerns the Federal Reserve would begin to gradually scale back its policy of stimulating growth.

The Dow Jones Industrial Average gained 22 points (0.2%) to 15,325, the S&P 500 Index advanced 6 points (0.4%) to 1,654, and the Nasdaq Composite increased 24 points (0.7%) to 3,491.

Stocks opened with early gains with six of ten sectors ending in the black as financials and technology paced the broad market gains. Biotechnology constitutes a good portion of the health care sector, which outperformed its defensively-oriented peers. Another defensively-minded group, utilities, was up as much as 2.0% in early action before surrendering the bulk of its gains to settle up 0.2%.

The morning rally took place after NV Energy agreed to be acquired by Berkshire Hathaway’s MidAmerican for $23.75 per share, representing a 23.2% premium to yesterday’s closing price. Despite ending in the black, the utilities sector remains the weakest performer of the month, down 9.0%.

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Rising Bond Yields Take Down The Bulls

Ulli Market Commentary Contact

Wed pic

[Chart courtesy of MarketWatch.com]

Despite a strong spate of earnings and merger news, U.S. equities gave back a large portion of yesterday’s gains. Stocks backed off today as high-yielding dividend stocks lost some of their luster after recent increases in U.S. Treasury bond yields.

Equities slipped out of the gate as sellers drove the major averages to their lows 90 minutes into the session. This marked the return of bargain hunters, who helped the Standard & Poor’s 500 Index return to its opening levels.

However, the relative weakness of several influential groups kept the benchmark average from regaining its flat line. The Dow Jones Industrial Average lost 107 points (0.7%) to 15,303, the S&P 500 Index declined 12 points (0.7%) to 1,648, and the Nasdaq Composite descended 21 points (0.6%) to 3,467.

Indexes made up of consumer staples, health care, telecommunications and utilities shares all ended with losses larger than 1.5%. The defensive sectors have led the gains in this year’s market rally as investors favored high-dividend stocks over fixed-income securities in a low interest-rate environment.

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