New ETFs On The Block: Pyxis/Iboxx Senior Loan ETF (SNLN)

Ulli Income ETFs Contact

 

Pyxis, the Dallas-based money manager that spun off from Highland Funds Asset Management at the beginning of the year, is making its first foray into the ETF space with its Pyxis/iBoxx Senior Loan ETF (SNLN).

Highland already has a lineup of 20 open-ended mutual funds and traditional closed-end funds while Pyxis aims to serve up access to senior loans through an ETF strategy that will attract investors looking for income without taking on too much risk in this time of low interest rates.

The fund will replicate the Markit iBoxx USD Liquid Leveraged Loan Index and will invest primarily in below investment-grade senior loan portfolios of domestic and foreign corporations and partnerships. To improve liquidity, the fund seeks exposure in the 100 most liquid loans.

SNLN will compete against the PowerShares Senior Loan ETF (BKLN), the only other ETF focused on the senior loan universe. For people unfamiliar with this type of fixed-income instruments, senior loans, also known as leveraged loans, have risk profiles similar to below investment-grade securities and provide debt capital to a company.

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11-09-2012

Ulli Newsletter Archives Contact

ETF/No Load Fund Tracker Newsletter For Friday, November 9, 2012

ETF/No Load Fund Tracker StatSheet

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

https://theetfbully.com/2012/11/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-11082012/

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Market Commentary

Friday, November 9, 2012

MAJOR INDEXES SNAP LOSING STREAK BUT SUFFER THEIR WORST LOSS IN 5 MONTHS; EUROPE SLIPS ON GREECE WORRIES

US equities eked out modest gains Friday spurred by a strong read on American consumer confidence, but all the three major equity averages still finished lower more than two percent for the week.

After starting to the downside on what appeared to be a third straight session of losses, stock indexes recovered as preliminary consumer confidence data from the University of Michigan for November came in at 84.9, topping forecasts of 82 and up from 82.6 in October.

The Dow Jones Industrial Average (DJIA) nudged up 4 points to 12,815, snapping a two-day losing streak. Breadth within the 30-stock benchmark turned positive with winners outpacing losers 18 to 12 on the blue-chip index.

Logging a 2.1 percent weekly loss that also marked its third straight down week, the Dow posted its worst weekly performance in nearly five months.  The S&P 500 Index (SPX) rose 2 points to 1380, still down 2.4 percent for the week.

The benchmark 10-year Treasury yield was little changed at 1.61 percent while yield on 30-year Treasury bonds fell one basis point to 2.75 percent. 10-year yields have dropped 10 basis points on the week while 30-year yields are at a two month low.

The US dollar advanced for the third day as worries over a potential political gridlock over fiscal policies spiked demand for safer assets. The euro edged lower as hopes for an early decision to release Greece’s next tranche of bailout money faded after news reports suggested continued differences among euro-zone’s finance ministers that may push back a decision until later this month.

Meanwhile, European stocks retreated Friday, capping losses at 1.7 percent in an otherwise volatile trading week. The pan-European Stoxx Europe 600 index slipped 0.1 percent, extending losses into the third straight day. Early optimism over strong industrial output and retail sales in China was offset by growth worries over France.

A monthly report from the Bank of France said Europe’s second largest economy runs the risk of slipping into recession as economic output may decline by 0.1 percent in the fourth quarter.

Also Greece’s parliament will vote Sunday on its 2013 budget after approving an additional EUR 13.5 billion in austerity measures earlier this week. The Athens General Index jumped 0.9 percent, cutting losses to 0.1 percent for the week.

Dragged down by banking shares, the DAX 30 index lost 0.6 percent in Frankfurt, off 2.7 percent for the week. Commerzbank AG sank 6.9 percent while Deutsche Bank lost 2.4 percent.

In the ETF space, the SPDR S&P Biotech ETF (XBI) surged 2.19 percent as biotech, semiconductor and internet stocks rallied today. Also energy commodities traded mostly higher as oil prices breached the $86 a barrel mark. The United States Oil Fund (USO) finished 1.44 percent higher for the day.

The Teucrium Soybean Fund (SOYB) tumbled 2.49 percent after US Agriculture Department predicted a rise in production, pushing soybean futures price crashing.

Our Trend Tracking Indexes (TTIs) headed closer to a potential trend line break, which so far did not happen. Any more slipping and sliding in the indexes will most certainly end this bullish domestic cycle and very likely the international one as well.

Stay tuned for the latest details, which I will post on a daily basis.

We ended the week as follows:

Domestic TTI: +0.72% (last week +1.34%)

International TTI: +1.45% (last week +3.24%)

Have a great week.

Ulli…

Disclosure: No holdings in ETFs discussed above

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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 Joe:

Q: Ulli: With the markets being in a tizzy fit and your TTIs getting close to triggering a ‘Sell,’ do you recommend establishing new positions for new money at this time?

A: Joe: Here’s how I handle it in my advisor practice. Since new money comes in all the time, I select the portfolios I want to use (right now, it’s some variation of model #2) and establish all bond positions, since they are in a “buy” mode.

Depending on the client, I may even set up a small equity holding to get started. I will now wait to see how market direction plays out before investing the balance in equity ETFs.

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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, November 9, 2012

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/2012/11/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-11082012/

————————————————————

Market Commentary

Friday, November 9, 2012

MAJOR INDEXES SNAP LOSING STREAK BUT SUFFER THEIR WORST LOSS IN 5 MONTHS; EUROPE SLIPS ON GREECE WORRIES

US equities eked out modest gains Friday spurred by a strong read on American consumer confidence, but all the three major equity averages still finished lower more than two percent for the week.

After starting to the downside on what appeared to be a third straight session of losses, stock indexes recovered as preliminary consumer confidence data from the University of Michigan for November came in at 84.9, topping forecasts of 82 and up from 82.6 in October.

The Dow Jones Industrial Average (DJIA) nudged up 4 points to 12,815, snapping a two-day losing streak. Breadth within the 30-stock benchmark turned positive with winners outpacing losers 18 to 12 on the blue-chip index.

Logging a 2.1 percent weekly loss that also marked its third straight down week, the Dow posted its worst weekly performance in nearly five months.  The S&P 500 Index (SPX) rose 2 points to 1380, still down 2.4 percent for the week.

The benchmark 10-year Treasury yield was little changed at 1.61 percent while yield on 30-year Treasury bonds fell one basis point to 2.75 percent. 10-year yields have dropped 10 basis points on the week while 30-year yields are at a two month low.

The US dollar advanced for the third day as worries over a potential political gridlock over fiscal policies spiked demand for safer assets. The euro edged lower as hopes for an early decision to release Greece’s next tranche of bailout money faded after news reports suggested continued differences among euro-zone’s finance ministers that may push back a decision until later this month.

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Weekly StatSheet For The ETF/No Load Fund Tracker Newsletter – Updated Through 11/08/2012

Ulli ETF StatSheet Contact

ETF/Mutual Fund Data updated through Thursday, November 8, 2012

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

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 broken above its long term trend line (red) by +0.71%. A break back below it will generate a Sell signal to move out of all domestic equity positions. Be sure to tune into my blog for the latest updates.

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More Downside Pain: A Swan Dive Into The Close; TTI’s Still Hang On To The Bullish Side Of The Trend Line—So Far

Ulli Market Commentary Contact

[Chart courtesy of MarketWatch.com]

The equity markets picked up where they left off yesterday and continued with their best imitation of a black diamond ski slope as the major averages got crushed for the second day in a row. Many traders had expected some kind of a rebound after Wednesday’s thrashing but, other than a quick peek higher after the open, it was all downhill.

To add insult to injury, not only did the S&P 500 imitate a perfect swan dive into the close, it also took out its psychologically important 200-day moving average of 1,380. It pierced through that level for the first time in 5 months even though by only a couple of points; however, closing at the low for the day is usually a sign of more weakness to come.

The Dow Industrials and the Nasdaq had already crossed their respective 200-day averages and are now stuck on the bearish side of their trend lines.

It’s no secret what was behind the sell off.

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Major Market ETFs Caught In Downward Spiral; TTIs Remain Above Their Trend Lines; Europe Heads South On German Worry

Ulli Market Commentary Contact

US stocks slumped Wednesday after a sell-off on Wall Street gained momentum as investors focused on the looming fiscal cliff and Europe’s debt crisis. The Dow Industrials logged its worst daily decline since November 2011 following President Barack Obama’s re-election Tuesday night.

Risk sentiment soured after violent protests broke out in Greece as the country’s parliament got ready to vote on further spending cuts and tax hikes. The European debt crisis came under focus after ECB President Mario Draghi said Germany, the region’s biggest economy that remained insulated from the crisis, has started to feel the pinch.

A European Commission report in Brussels revised the region’s growth forecast downwards to a paltry 0.1 percent in 2013, well below a previous forecast of one percent growth.

Led by JP Morgan (JPM) and Bank of America (BAC), the Dow Jones Industrial Average (DJIA) plunged 313 points, dipping below the 13,000 mark for the first time since September 4. Banks were the biggest drag on the blue-chip index on fears the stringent Dodd-Frank rules will come into effect in the next three to six months.

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