Global X, the New York-based provider of exchange traded funds best known for its emerging market funds, has rebranded its Global X S&P/TSX Venture 30 Canada ETF to play the global small-cap miners niche.
The Global X Junior Miners ETF (JUNR) tracks the Solactive Junior Miners Index and is the first ETF to provide access to small cap mining companies globally. The benchmark is comprised of 96 companies that are involved in the mining of both precious and base metals like gold, silver, copper, nickel, iron, titanium and other base metals/materials.
The index is well diversified with the top holding accounting for only 2.6 percent of total assets. Companies from more than 10 countries contribute to the benchmark including Canada (34 percent), Australia (26 percent), US (18 percent), UK (7 percent) and China (4 percent).
Although commodity prices have been under pressure for much of 2012 due to a sluggish global economy, many have witnessed a change in fortune after central banks around the world initiated accommodative policies, and the trend is expected to continue in the short-term.
MAJOR INDEXES FINISH WEEK HIGHER ON FED STIMULUS; EUROPE RALLIES TO 15-MONTH HIGH
US equities capped gains Friday to extend its winning ways for the second week in a row that pushed the three indexes to multi-year highs as investors sought refuge in riskier but higher yield assets over worries the latest stimulus from the Federal Reserve will spur inflation.
After rising as much as 113 points, the Dow Jones Industrial Average (DJIA) settled 54 points higher at 13,593, up 2.15 percent on the week while the S&P 500 Index (SPX) added 6 points to settle at 1466 with energy outperforming among its 10 business groups.
Treasury prices tumbled Friday, pushing yields on 10-year securities the highest in six months while the yield on 30-year Treasury bond surged the most in a week in three years as the as investors dumped safe havens over concerns the Fed’s latest move will accelerate inflation.
The USD lost further ground Friday, erasing its gains for 2012 as the Federal Reserve’s stimulus plan was seen as dollar-negative in the short-run. The dollar index, a gauge that measures the greenback against a basket of six global currencies, dropped to 78.864 from 79.254 on Thursday, the least since May. The index has shed 1.7 percent for the week while the euro gained 2.4 percent over the same period.
The big question in your mind is probably what the implications of an open-ended QE program by the Fed are. For an interesting and candid interview, here is Ex-Fed governor Kevin Warsh on the Fed’s “all-in” move:
Meanwhile, stocks in Europe rallied Friday following the FOMC announcement on Thursday, settling at a 15-month high. The pan-European Stoxx Europe 600 index leapt 1.3 percent on the day with risk-sensitive sectors like banks and miners pacing the gainers.
In Germany, the DAX 30 index rose 1.3 percent Friday, up 2.7 percent for the week. The FTSE 100 rose 1.6 percent for the day, propelled by gains in the banking and energy sector. The London index added 2.1 percent on the week.
In the ETF space, basic and precious metals-linked funds surged as investors rushed to buy the yellow metal to hedge against inflation. The Market Vectors Gold Miners ETF (GDX) and the Market Vectors Junior Gold Miners ETF (GDXJ) were among the biggest percentage gainers, adding 2.55 percent and 2.62 percent, respectively.
The SPDR S&P Homebuilders ETF (XHB) jumped 2.25 percent while the iShares Dow Jones US Home Construction Index Fund (ITB) rose 2.54 percent after shares of homebuilders, including PulteGroup, Hovnanian Enterprises and Toll Brothers continued to rise following the Fed’s mortgage buying news yesterday.
In a surprise move, the so-called fear-tracking CBOE volatility index (VIX) jumped 3.27 percent. VIX typically moves in opposite direction to the market, which could very well indicate a temporary upcoming trend reversal.
Our Trend Tracking Indexes (TTIs) rallied higher with the indexes, but the international TTI, which is far more volatile, really took off as the closing numbers indicate.
Here’s how we ended this week:
Domestic TTI: +3.80% (last week +3.75%)
International TTI: +6.24% (last week +3.67%)
Have a great week.
Ulli…
Disclosure: No holdings
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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:
Q: Ulli: Recent news from Porter Stansburry, Addison Wiggins, and others suggest the USA’s Dollar is about to see rapid degradation in value, and it going to lose its place as the worlds reserve currency? If this posture is valid, what moves need be made to preserve or grow wealth?
A: Joe: While that maybe a possibility in the future, I don’t see this as an issue right now. The dollar, as represented by UUP, is in bullish territory as the flight to safety out of Europe continues.
We need to wait until that trend reverses to make an informed decision as to what other asset classes maybe heading north at that time. Trying to predetermine any potential outcomes right now is simply a gamble since there are way too many variables that could influence market direction.
Wait for the trend to give you a better picture.
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MAJOR INDEXES FINISH WEEK HIGHER ON FED STIMULUS; EUROPE RALLIES TO 15-MONTH HIGH
US equities capped gains Friday to extend its winning ways for the second week in a row that pushed the three indexes to multi-year highs as investors sought refuge in riskier but higher yield assets over worries the latest stimulus from the Federal Reserve will spur inflation.
After rising as much as 113 points, the Dow Jones Industrial Average (DJIA) settled 54 points higher at 13,593, up 2.15 percent on the week while the S&P 500 Index (SPX) added 6 points to settle at 1466 with energy outperforming among its 10 business groups.
Treasury prices tumbled Friday, pushing yields on 10-year securities the highest in six months while the yield on 30-year Treasury bond surged the most in a week in three years as the as investors dumped safe havens over concerns the Fed’s latest move will accelerate inflation.
The USD lost further ground Friday, erasing its gains for 2012 as the Federal Reserve’s stimulus plan was seen as dollar-negative in the short-run. The dollar index, a gauge that measures the greenback against a basket of six global currencies, dropped to 78.864 from 79.254 on Thursday, the least since May. The index has shed 1.7 percent for the week while the euro gained 2.4 percent over the same period.
The big question in your mind is probably what the implications of an open-ended QE program by the Fed are. For an interesting and candid interview, here is Ex-Fed governor Kevin Warsh on the Fed’s “all-in” move:
ETF/Mutual Fund Data updated through Thursday, September 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 broken above its long term trend line (red) by +4.12%. 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.
Extending their winning ways for the third straight session after the US Federal Reserve opted for a third round of quantitative easing to boost growth, the S&P 500 rallied to its highest level since 2007 Thursday.
The Dow Jones Industrial Average (DJIA) leapt 207 points, the highest since December 2007. Within the blue-chip index, breadth remained absolutely positive with all the 30 components closing the day higher.
The S&P 500 Index (SPX) jumped 23 points with financials leading the day’s gainers that included all the 10 business sectors. Today’s close also marked the index’s highest since December 2007.
Personally, I did not expect the Fed to put QE-Extreme on the table at this point. You could argue that it was an act of desperation as the jobs situation is not improving at all. With the major indexes hovering at 4 year highs it makes me wonder what ammunition, if any, the Fed has left in its arsenal should the markets head south and reach a point where a Fed assist is needed.
We have now catapulted further into bubble territory as economic fundamentals have been totally ignored, which means that these levels are supported by nothing more than hot hair. Is the Fed’s goal to reflate the stock market bubble?
US markets extended gains for the second straight day Wednesday, ending marginally higher after the German Constitutional Court ruling on the euro-area bailout fund, while investors remained cautiously optimistic on further monetary stimulus, as the Federal Reserve two-day policy meeting got underway in Washington.
Risk appetite improved after a German Constitutional Court ratified Europe’s Permanent bailout fund-The European Stability Mechanism (ESM), prompting investors to move away from safe havens.
Treasury notes retreated for the second day with the benchmark 10-year Treasury yield jumping five basis points to 1.76 percent while 30-year Treasury bond yield surged six basis points to 2.92 percent.
In Europe, bank stocks pushed ahead following Germany’s top court’s refusal to block the region’s emergency funding mechanism while defense firm BAE Systems Plc soared after it confirmed merger talks with Airbus parent EADS NV. The pan-European Stoxx Europe 600 index finished 0.1 percent higher for the day.
Contributing some reality about the Euro crisis was Nigel Farage with his always entertaining yet spot on observations in the following video:
