New ETFs On The Block: State Street’s Crossover Corporate Bond ETF (XOVR)

Ulli Bond ETFs Contact

Boston-based ETF issuer State Street launched a crossover fixed income focused ETF last week as the market continues to rebalance its portfolio towards debt instruments.

The ETF industry has been quick to focus on segments that are often overlooked by investors through the launch of niche and novel products. The crossover segment of the bond market is one such example.

The SPDR BofA Merrill Lynch Crossover Corporate Bond ETF (XOVR) tracks the BofA Merrill Lynch US Diversified Crossover Corporate Index, a benchmark that includes both investment grade and junk corporate bonds with ratings between BBB and BB. The index components must have minimum one year to maturity with fixed coupon payments and at least $250 million in outstanding.

The benchmark is overweight on industrial bonds (more than 79 percent of total holdings) with a modified option-adjusted duration of 5.70 while yield-to-worst is estimated at a respectable 4.8 percent. Qualifying securities must be rated BBB1 through BB3, inclusive (based on average of Moody’s, S&P and Fitch) and XOVR is almost evenly split along the risk spectrum with 53 percent of the holdings rated Baa or higher.

Read More

ETF/No Load Fund Tracker Newsletter For Friday, June 29, 2012

Ulli Market Commentary Contact

ETF/No Load Fund Tracker StatSheet

————————————————————-

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

https://theetfbully.com/2012/06/weekly-statsheet-for-the-etfno-load-fund-tracker-newsletter-updated-through-06282012/

————————————————————

Market Commentary

Friday, June 29, 2012

EXUBERANCE RULES ON EU PLAN FOR SPANISH LENDERS — BUT WILL IT LAST?

US stocks soared Friday with the Dow recording its biggest monthly gain in 2012 as European leaders struck a ground-breaking deal to bolster the economies of the affected members, pushing all the three major indexes up by more than five percent in the first-half of the year. Supporting the rally were short covering and quarter ending window dressing.

EU leaders agreed to ease lending conditions for Spain’s struggling banks and relaxed terms of possible help for Italy while consenting to a $149 billion economic growth plan for the single-currency region. At this point, it’s all euphoria, as we’ve seen before, and it remains to be an open question if this plan not only has merits but can actually be implemented.

One analyst succinctly stated that “for now, party on and turn that hourglass over as more time has been bought, but only the symptoms are being fought as the underlying disease of excessive debt and lack of growth still remains.” Well said. Next week will show if this “surprise” announcement has the depth to alleviate the uncertainty that have gripped global markets.

Read More

Weekly StatSheet For The ETF/No Load Fund Tracker Newsletter – Updated Through 06/28/2012

Ulli ETF StatSheet Contact

ETF/Mutual Fund Data updated through Thursday, June 28, 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 +1.64%. 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.

Read More

US Equities Viagra Higher In Late Trading On EU Hope; XHS Rises, SLV Tumbles

Ulli Market Commentary Contact

[Chart courtesy of MarketWatch.com]

US stocks closed with only small losses after speculations of a breakthrough in the ongoing EU summit in Brussels fueled a late-session recovery.

The rumor over a possible progress in negotiations grew stronger after Bloomberg reported German Chancellor Angela Merkel has cancelled her scheduled press conference on Thursday night, raising hopes that European leaders will announce meaningful resolutions to tide over the present sovereign debt crisis.

Sure, let’s wait and see until tomorrow to ascertain if Germany caved in EU negotiations as much as they did in their soccer game vs. Italy.

Read More

Major Market ETFs Rise On Economic Data; FCG Explodes, VROM Sputters; Will The EU Summit Be Successful?

Ulli Market Commentary Contact

[Chart courtesy of MarketWatch.com]

Major Market ETFs rose for the second straight day on Wednesday following stronger than expected data on durable goods and housing, and ahead of a key European summit meeting starting tomorrow.

Treasuries remained near flat after the US government auctioned $35 billion in five-year notes with yields trading at less than a quarter percentage point above record lows amid relatively weak demand.

After rising about 112 points during the day’s trade, the Dow Jones Industrial Average (DJIA) vaulted 92.34 points. The blue-chip index has advanced in two sessions among three, thus clawing back nearly all the losses suffered Monday. 24 of the 30 components within Dow rose for the day.

Read More

7 ETF Model Portfolios You Can Use – Updated through 6/26/2012

Ulli Model ETF Portfolios Contact

In a complete reversal, the S&P 500 headed back down again since last week’s portfolio report by dropping -2.8%. The markets continue to rally off the latest hopeful news from Europe only to be disappointed when major announcements turn into nothing but hot air.

Additionally, the Fed’s continuation of operation twist caused disappointment on Wall Street as traders had hoped for the mother of all bailouts to be enacted which then was to be followed by a rally into the stratosphere.

Obviously, this did not happen, and we’re bouncing around aimlessly without clear direction. I expect this to continue until a major market disappointment will push our Domestic Trend Tracking Index (TTI) into bear market territory, after which all bets are off.

Here’s the latest model portfolio update:

Read More