Year: 2014

The iShares Select Dividend ETF Rises And Falls With Utilities

The iShares Select Dividend ETF Rises And Falls With Utilities

A Seeking Alpha Contribution

Summary

  • DVY is the second largest dividend ETF.
  • Income suffered from the 2008 financial crisis.
  • Post-2008, the fund is overweight the utilities sector and this largely determines how it performs relative to the market.

Dividend ETFs are more popular than ever thanks to the central banks of the world giving us zero interest rate policies (ZIRP), but the word “dividend” in an ETF means different things in different funds. Some funds target very high-yields, such as Global X SuperDividend (NYSEARCA:SDIV), but others such as Vanguard Dividend Appreciation (NYSEARCA:VIG) aim for growth, while WisdomTree has an entire lineup of ETFs that use dividends as a selection factor in their indexes. Investors benefit from having a wide range of choices among dividend funds, with sector and international exposure sliced and diced in many different ways.

With more than $13 billion in assets, one of the largest dividend ETFs is iShares Select Dividend (NYSEARCA:DVY). It is also one of the oldest, created in November 2003, and sets itself apart from the other big ETFs by having a portfolio that tilts towards mid caps and utilities….To Continue Reading, Please Click Here.

*Please note, this article was written and published as a contribution for Seeking Alpha. To finish reading the article you will be redirected to their site.

Best Multi-Asset ETFs

Best Multi-Asset ETFs

A Seeking Alpha Contribution

Summary

  • MDIV sets the bar for multi-asset ETFs.
  • GYLD offers more diversification, but takes some risks in the process.
  • MDIV can hold up if the U.S. dollar continues to rally.

Multi-asset ETFs offer investors diversification within a single ETF. Stocks, bonds, preferred stock, REITs, MLPs and commodities are some of the assets that can be found in a multi-asset fund. These funds are attractive to investors, due to the promise of diversification and sometimes high yields. After covering most of the multi-asset ETFs out there, it’s time to choose the best. Below are the funds covered… To Continue Reading, Please, Click Here.

*Please note, this article was written and published as a contribution for Seeking Alpha. To finish reading the article you will be redirected to their site.

Pass On Currency Hedged Emerging Market ETFs

Pass On Currency Hedged Emerging Market ETFs

A Seeking Alpha Contribution

Summary

  • A U.S. dollar rally and China slowdown are hitting emerging markets, particularly commodity exporters, very hard.
  • New ETFs offer currency hedged exposure to emerging market equities.
  • However, emerging market assets prices tend to be more highly correlated with currency moves, making hedging less attractive.

A U.S. dollar rally begun in July has yet to reverse, and combined with a slowing Chinese economy, commodity exporters and emerging markets have been hit hard. New ETFs propose to limit risk by hedging emerging market currency exposure, but will they work?

First, here’s a look at some of the worst-hit country ETFs. Funds such as WisdomTree Commodity Country Equity ETF (NYSEARCA:CCXE) are at ground zero. CCXE has the following country allocations:   To Continue Reading, Please Click Here.

*Please note, this article was written and published as a contribution for Seeking Alpha. To finish reading the article you will be redirected to their site.

Market Perspective for October 6, 2014

Stocks will be looking to carry the bounce on Friday into this week. Strong unemployment data on Friday sparked a big rebound in U.S. equities, but it also caused another jump in the U.S. dollar versus the euro and yen. The rise of the dollar has proven to be a significant headwind for foreign shares.

Earnings season does kick off this week, with Alcoa (AA) reporting on Wednesday. The firm is expected to announce earnings doubling from last year. Investors will be looking for Monsanto (MON) to report strong earnings and decent sales growth when it reports as well. The American consumer will be a topic this week when Costco (COST) and Family Dollar (FDO) report. Costco is expected to report an increase in earnings, while Family Dollar will likely see a decline. Finally, Yum Brands (YUM) and PepsiCo (PEP) are both expected to report earnings increases.

While these companies are major players in their sectors, the big earnings reports come next week when blue chip giants start reporting en masse. Currently, strength in the broader market is due to the financial, technology and healthcare sectors. Next week, major players in the latter two sectors, such as Intel (INTC), Google (GOOG) and Johnson & Johnson (JNJ) report.

Blue chips are the key to the equity market over the coming month. Both mid-caps and small-caps have sold off, but large caps continue to hold their bullish uptrend. The Russell 2000 may have made a triple bottom last week after again falling to the lows hit in February and May. If blue chips maintain the bullish trend, we should see small-cap and mid-cap stocks to begin to rally.

Finally, this week will be light on economic data. The most important piece of information released will be the minutes from the last Federal Open Market Committee meeting.