New ETFs On The Block: ProShares Merger ETF (MRGR)

Ulli Uncategorized Contact

ProShares, the Bethesda, Maryland-based premier provider of alternative ETFs and the world’s largest provider of geared (leveraged and inverse) exchange traded funds, has announced the launch of a merger-arbitrage ETF this week.

The ProShares Merger ETF (MRGR), the firm’s 13th launch this year, is listed on the BATS exchange and would compete with IndexIQ’s ARB Merger Arbitrage ETF (MNA).

MRGR will track the S&P Merger Arbitrage Index, a benchmark that holds up to 40 publicly announced deals within developed market countries through a combination of long and, in certain cases, short security positions, denominated in local currencies.

Additionally, the deal value (cash plus stock) will have to be at least half a billion dollars and average daily trading value must reach two million over the past three months for liquidity calculations.

The index provides exposure to a global merger arbitrage strategy and seeks to capture the spread between the price at which the stock of a company (the “target”) trades at after an offer has been made and the actual deal price that has been offered to the target’s shareholders and the management by the acquiring company.

Read More

ETF/No Load Fund Tracker Newsletter For Friday, December 14, 2012

Ulli Market Commentary Contact

ETF/No Load Fund Tracker StatSheet

————————————————————-

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

https://theetfbully.com/2012/12/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-12132012/

————————————————————

Market Commentary

Friday, December 14, 2012

US EQUITIES STUMBLE AS BUDGET STALEMATE CONTINUES; EUROPE EDGES LOWER

Equities ended lower Friday as the stalemate over federal budget negotiations overshadowed a rise in industrial production and upbeat economic data showing China’s manufacturing may expand at a faster pace.

The Dow industrials and the S&P 500 ended their longest weekly winning run since August despite economic data beating estimates in the US. Industrial production jumped 1.1 percent in November, the most in two years, a Federal Reserve report showed Friday, although economists attributed the better-than-expected rise in manufacturing to Hurricane Sandy.

Separately, a Commerce Department report showed consumer prices fell 0.3 percent in November while core CPI, which excludes more volatile components like food and gas, edged up 0.1 percent. The 0.3 percent drop is slightly higher than the 0.2 percent decline most economists had forecast. The numbers indicate inflation remain tame and are positive in keeping the Fed on track for further stimulus.

Read More

Weekly StatSheet For The ETF/No Load Fund Tracker Newsletter – Updated Through 12/13/2012

Ulli ETF StatSheet Contact

ETF/Mutual Fund Data updated through Wednesday, December 13, 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 bounced off its long term trend line (red) by +1.56% after recently having dipped slightly below it.

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 into my blog for the latest updates.

Read More

Heading South As Budget Logjam Saps Confidence; Europe Tracks Lower

Ulli Market Commentary Contact

[Chart courtesy of MarketWatch.com]

US equities fell today as the public standoff between the Republicans and Democrats in reaching a deal to avert recession-inducing tax hikes and spending cuts in the New Year overshadowed a drop in jobless rates and growth in retail sales.

Ohio Republican John Boehner criticized the Democrats for looking to punish small businesses through tax hikes while addressing a news conference on what is stalling negotiations to avoid the so-called fiscal cliff and blasted President Obama for not being “serious” about spending cuts.

Nevada Democrat and Senate Majority Leader Harry Reid retorted that Americans should not be held hostage to Boehner and his press events in a separate news conference. White House spokesman Jim Carney also entered the fray stating Republican opposition to higher taxes on the wealthiest two percent is holding up a deal. And so it goes tit-for-tat…

Read More

Index ETFs Erase Gains As Optimism Over Bernanke Talk Fades; Europe Holds Ground

Ulli Market Commentary Contact

The major index ETFs erased gains today as optimism over Federal Reserve plans to expand its balance sheet faded after Chairman Ben Bernanke warned the central bank doesn’t have the tools to shield the economy from the looming fiscal cliff.

Stocks rallied to session highs after the central bank said it would add $45 billion a month of Treasury securities starting January to its $40 billion a month purchases of mortgage-backed securities, and would keep the Federal Funds rate to near zero so long as the unemployment rate remains above 6.5 percent and inflation rate is not forecast to rise above 2.5 percent.

In its growth forecasts, the Fed said unemployment rate will fall between 7.4 percent and 7.7 percent by the end of 2013. GDP growth outlook for 2013 was lowered between 2.3 percent and 3 percent from its September forecast of at least 2.5 percent growth.

The rally faded after Bernanke said monetary stimulus can not offset the full impact of tax hikes and spending cuts set to go into effect in January should politicians fail to reach a budget deal.

Read More

7 ETF Model Portfolios You Can Use – Updated through 12/11/2012

Ulli Model ETF Portfolios Contact

Despite a lack of progress in the Fiscal Cliff negotiations, the major indexes managed to climb a wall of worry with the S&P 500 gaining some 1.5% since last week’s report.

Volume being the lowest of the year, as many retail investors have fled equities in droves, may very well be the main contributor as High Frequency Trading encounters no directional resistance. To be fair, hope still exists that Washington’s finest will come up with a solution.

However, time is running short as some news media have pegged the deadline for a resolution to be next Tuesday prior to recess.

As is to be expected, those model portfolios with exposure to bonds have been lagging the S&P 500 index, while the others (#5 and #7) have kept pace. However, I think it’s more prudent to be diversified as the markets maybe setting themselves up for a sharp pullback.

It is during those times when equities get clobbered that your bond holdings will hold up far better. That’s why you need to have a broad view and measure the value of a portfolio composition after you have gone through an entire bullish and bearish cycle and not get stuck on a short term equity run.

Here’s the latest update of our ETF Model Portfolios:

Read More