Year: 2014

Japan Hedged ETFs Ready To Shine Again

Japan Hedged ETFs Ready To Shine Again

A Seeking Alpha Contribution

Summary

  • The Japanese yen has fallen to a new 52-week low.
  • Pension funds are being urged to sell bonds and buy stocks.
  • The Bank of Japan is the largest holder and largest buyer of JGBs.
  • Conditions are ripe for another rally in currency hedged Japan ETFs.

With the Japanese yen falling to a new 52-week low, the next leg down for the heavily printed currency is under way.

The Case For a Weak Yen

In 1989, the Nikkei peaked above 40,000. It then entered a secular bear market and fell to nearly 7000 in 2009. It has currently broken out to over 10,000. Longer term, the yen has been advancing on the U.S. dollar for decades, rising to nearly 75 yen per dollar in 2011. During this period, the Japanese economy has been growing in real terms, but in nominal terms, it has been flat. Japan is currently at GDP levels seen in the mid-1990s, but adjusted for a smaller population and a stronger yen, the standard of living for average Japanese citizens has continued to improve….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.

Alibaba: Risk, Reward And The Best ETF

Alibaba: Risk, Reward And The Best ETF 

A Seeking Alpha Contribution

Summary

  • Alibaba is poised to benefit from the rebalancing of the Chinese economy.
  • The greatest risk comes from Jack Ma’s history of investor unfriendly decisions.
  • YHOO remains the best option ahead of the IPO, while KWEB will offer the best ETF exposure post-IPO.

Alibaba (Pending:BABA) is the behemoth of the Chinese retail Internet market. It operates online retailer Taobao, third-party retail site Tmall and group buy site Juhuasuan. In 2013, these three sites generated gross market value sales of $248 billion, or 82.7% of total revenues. The bulk of the other revenue came from Alibaba.com, a global wholesale B2B marketplace, 1688.com, a Chinese wholesale site, and AliExpress, a global consumer marketplace. One of the popular factoids about Alibaba is that it is larger than Amazon (NASDAQ:AMZN) and eBay (NASDAQ:EBAY) combined and more profitable, with earnings of $2.85 billion in 2013.

What makes Alibaba a compelling company isn’t only these retail holdings though, it is the profits it receives from its former Alipay subsidiary, the PayPal of China. It also highlights the greatest risk for investors in Alibaba: the “variable interest entity” and Jack Ma’s history of management…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.

Vanguard Dividend Appreciation ETF: The ETF For Future Income

Vanguard Dividend Appreciation ETF: The ETF For Future Income

A Seeking Alpha Contribution

Summary

  • VIG is a low cost fund with a solid history of dividend growth.
  • VIG holds financially superior firms that have greater ability to increase dividends.
  • VIG outperforms during periods of economic and financial stress.

Dividend investors face a choice when looking for income. One option is to look for higher current income, but this usually comes at the price of lower growth. The other choice is to look for higher growth, with the price of lower income today. For investors looking for growth, Vanguard Dividend Appreciation (NYSEARCA:VIG) is a solid choice.

Index

VIG tracks the Nasdaq US Dividend Achievers Select Index. The index tracks dividend paying companies and uses several criteria to select holdings. The first is that the firm must have paid dividends for 10 consecutive years and that those dividends must have increased each year. The index also uses criteria to screen for higher quality dividend payers… 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.

Wind ETF: A Less Volatile Alt Energy Fund

Wind ETF: A Less Volatile Alt Energy Fund  – A Seeking Alpha Contribution

Summary

  • FAN has considerable exposure to conglomerates and utilities.
  • The balanced portfolio makes for a lower beta.
  • Weakness in Europe and the U.S. wind market are priced in.

Investors have one choice when it comes to a wind ETF: First Trust ISE Global Wind Energy Index Fund (NYSEARCA:FAN). The ETF holds at least two-thirds of assets in firms that exclusively serve the wind energy industry. Companies that have a significant role in the industry make up the other one-third of assets. This split creates a portfolio that is more heavily weighted towards the smaller companies devoted to wind energy, rather than the conglomerates such as General Electric (NYSE:GE) or utilities that are major players in the industry, but for whom wind only represents a small slice of their business.

The biggest source of demand for new wind power remains the Chinese economy. China has to pursue an all-of-the-above energy strategy that includes coal, nuclear, hydro, natural gas, wind and solar, in order to meet its fast rising energy demand…. 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.