ETFs/Mutual Funds On The Cutline – Updated Through 3/1/2013

Ulli ETFs on the Cutline Contact

Below are the latest ETF Cutline reports, which show how far above or below their respective long-term trend lines (39 week SMA) my currently tracked ETFs/MFs are positioned.

The first report covers the ETF Master List from Thursday’s StatSheet and includes 398 ETFs, of which currently 344 (last week 354) of them are hovering in bullish territory.

The second report includes only High Volume ETFs. To clarify, High Volume (HV) ETFs are defined as those with an average daily volume of $10 million or higher.

These ETFs are generated from my selected list of some 93 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. 72 ETFs (last week 80) have managed to remain in bullish territory after the recent market volatility.

The third report covers Mutual Funds on the Cutline. There are currently 803 (last week 801) above the line and 56 below it out of the 859 that I follow.

Take a look:

1. ETF Master Cutline Report

2. ETF High Volume Cutline Report

3. MF Cutline Report

In case you are not familiar with some of the terminology used in the reports, please read the Glossary of Terms.

Last Week In Review: ETF News And Blog Posts To 3/3/2013

Ulli Market Review Contact

In case you missed it, here’s a summary of the ETF topics and market reviews I posted to my blog during the week ending on 3/3/2013.

Again, early this past week we had a sharp sell off in the indexes caused by the outcome of the Italian elections and the constant fear mongering in the main stream media about the upcoming sequester and how devastating these tiny cuts will be to our economy.

Given the size of the debt this country has accumulated and the $1 trillion we need to borrow every year to make ends meet, the $80 billion in forced cuts are hardly more than a rounding error on a balance sheet.

After Monday’s 1.8% drop in the S&P 500, the markets found some support, and we ended the past week a couple of points higher with the month of February being another positive one as far as the stock indexes are concerned.

Over past week, we covered the following:

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One Man’s Opinion: Will Sequestration Have A Negligible Effect On Global GDP?

Ulli Market Commentary Contact

92835431The effect of sequester on US GDP is sizable but not huge, and we need to care about it, says Georg Grodzki, credit research head at Legal & General Investment Management in London.

Even if the effect is 0.5 percent (on the downside), which is the consensus reading, it’s not an insignificant number. The good news is that the US economy has shown very good signs of life so far this year. The US consumer sentiment is strong while latest data show the overall housing market has bounced back from the bottom.

The US economy is clearly in a much better position to take such a hit than it was a year ago. So at the end of the year, we could see an impact of 0.2 to 0.3 percent on the GDP, which is deplorable, but not that bad, Georg noted. Many investors in the US may actually find it encouraging that the government finally gets on the job of cutting deficits even though it’s doing so in a haphazard fashion, he added.

When pointed out the equity markets clearly didn’t price in the spending cut, as demonstrated by the recent rally, Georg said if you look at the global picture, growth is certainly going to be positive this year. The share of US economy in the global GDP is shrinking; so a 0.3-0.4 percent decline in US economy translates into less than 0.1 percent decline globally and hence one could shrug it off. Nonetheless, it’s significant and can’t be overlooked completely, he observed.

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New ETFs On The Block: SPDR Russell 1000 And Russell 2000 Low Volatility ETF (LGLV, SMLV)

Ulli Low Volatility ETFs Contact

88338768State Street Global Advisors, the Boston, Massachusetts-based second largest ETF provider globally, has launched two low volatility funds, the SPDR Russell 1000 Low Volatility ETF (LGLV) and the SPDR Russell 2000 Low Volatility ETF (SMLV), marking its entry into the low-volatility large-cap and small-cap US equity space.

The funds track the low volatility versions of the widely followed Russell 1000 and Russell 2000 indexes, which measure the performances of the large-cap and small-cap low volatility segment of the US market and were once used in Russell ETFs that were liquidated last year. Both the funds are designed to neutralize factors such as beta and momentum while managing turnover, according to the company’s press release. The Russell 1000 Low Volatility Index contains no more than 200 securities while the Russell 2000 Low-Vol Index contains no more than 400 securities. Both the indices are reconstituted monthly to maintain focus on low volatility.

Low-vol products have found favor with investors for their superior risk-adjusted returns and is likely to appeal to people who want to reduce their downside risks amid current state of affairs where geo-political risks run high both at home and abroad.

Read More

03-01-2013

Ulli Newsletter Archives Contact

ETF/No Load Fund Tracker Newsletter For Friday, March 1, 2013

ETF/No Load Fund Tracker StatSheet

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

https://theetfbully.com/2013/02/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-02282013/

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Market Commentary

Friday, March 1, 2013

US INDEXES RISE AS DATA OFFSETS SEQUESTER; EUROPE FALLS ON ECONOMIC DATA, CHINA

US indexes advanced Friday, wiping out earlier losses as upbeat manufacturing and consumer confidence data offset concern about government spending cuts.

The Institute for Supply Management’s manufacturing index rose to 54.2, the highest reading since June 2011 and a surprise improvement from January’s 53.1.

The University of Michigan/Thomson Reuters consumer sentiment index rose to a final February reading of 77.6, the highest since November.

Separately, government data showed consumer spending in the US rose in January even as incomes dropped the most in 20 years, showing households are so far weathering the hike in payroll taxes. Ahead of the US open, data showed China’s manufacturing slowed for a second month while factory-output in the 17-member euro area shrank for the 19th straight month.

Federal Reserve Bank of Chicago chief Charles Evans said the Fed should stick to its $85 billion in monthly bond purchases, warning a sudden withdrawal may undermine the recovery process.

As a result, the Dow Jones Industrial Average (DJIA) added 35 points to finish at 14,090, which is 75 points from its all-time closing high hit on Oct 9, 2007. The blue-chip index added 0.3 percent for the week.

The S&P 500 Index (SPX) rose 4 points to 1,518 with healthcare leading the gains and industrials sliding the most among its 10 business groups. The benchmark index is up 0.2 percent for the week.

Treasury prices rose for a second day, triggering the biggest weekly drop in 10-year yields since September, as investors grew weary the $85 billion of federal spending cuts will derail the economy’s recovery.

The euro fell below the key $1.30 level Friday, dropping to its lowest level this year as a wave of downbeat data from Europe spurred demand for safer assets.

Meanwhile, European bourses trimmed losses after upbeat US manufacturing and consumer confidence data helped counter record high unemployment in the euro zone and weak Chinese business activity reading in February.

The Stoxx Europe 600 index shed 0.3 percent to close at 289.02, but finished the week 0.2 percent higher to mark its second weekly gain in a row. European markets finished February with a ninth straight monthly gain as global central bank chiefs signaled continuation of the current loose monetary policies.

Our Trend Tracking Indexes (TTIs) showed a mixed picture as the Domestic TTI rose and the International TTI slipped a bit. Here are this week’s closing numbers:

Domestic TTI: +3.10% (last week +2.84%)

International TTI: +8.56% (last week +9.31%)

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 Steve:

Q: Ulli: Can you provide a basic explanation of your momentum (M-Index) without giving away your proprietary method?

A: Steve: All terms are described in the Glossary section, which is posted on the top of every StatSheet. In case you missed it, you can read it here:

http://www.successful-investment.com/GlossaryOfTerms.pdf

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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, March 1, 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/2013/02/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-02282013/

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Market Commentary

Friday, March 1, 2013

US INDEXES RISE AS DATA OFFSETS SEQUESTER; EUROPE FALLS ON ECONOMIC DATA, CHINA

US indexes advanced Friday, wiping out earlier losses as upbeat manufacturing and consumer confidence data offset concern about government spending cuts.

The Institute for Supply Management’s manufacturing index rose to 54.2, the highest reading since June 2011 and a surprise improvement from January’s 53.1.

The University of Michigan/Thomson Reuters consumer sentiment index rose to a final February reading of 77.6, the highest since November.

Separately, government data showed consumer spending in the US rose in January even as incomes dropped the most in 20 years, showing households are so far weathering the hike in payroll taxes. Ahead of the US open, data showed China’s manufacturing slowed for a second month while factory-output in the 17-member euro area shrank for the 19th straight month.

Read More