This Week In ETFs: November 13th Edition

by on November 13, 2009 | ETFs Mentioned:

It’s been an interesting week in the world of ETFs:  major indexes trended higher despite an increase in the trade deficit and a lower number for the Consumer Sentiment Index. Here are the ETF Database staff picks of the week’s most important and interesting stories from around the Web:

Is $2,000/oz Gold’s Next Stop? at ETF Guide:

This article focuses on the reasons for gold’s ascent to $1,100/oz., and discusses why the yellow metal still has plenty of upside left. Thanks in large part to bailouts and record deficits, this precious metal has appreciated very quickly in dollar terms, sending GLD up 25% this year alone. However, despite this run-up the author has some reservations about a further gold appreciation: he notes that nearly 90% of all traders are bullish on gold, an unsustainable percentage, suggesting that investors should proceed with caution when dealing with this precious metal.

Beyond UNG: Alternative ETF Plays On Natural Gas at ETF Database:

We discuss several alternatives to the popular but often risky and volatile United States Natural Gas Fund (UNG). For investors worried about continued regulatory scrutiny of the fund two other options exist: iPath Dow Jones-UBS Natural Gas Sub-Index Total Return ETN (GAZ) and First Trust ISE-Revere Natural Gas Index Fund (FCG). The main difference between the two funds is that GAZ invests in natural gas futures while FCG invests in equities that are involved in natural gas delivery or production. We also discuss one indirect fund: the JP Morgan Alerian MLP Index ETN (AMJ), which tracks the price of several energy master limited partnerships, many of which own natural gas pipelines.

New Love for the Chinese Yuan ETF at ETF Expert:

While the Chinese Yuan is still pegged to the U.S. Dollar, there has been some talk recently out of Beijing suggesting that the Chinese might be more open to letting the Yuan appreciate against the greenback in the near future. This has caused the WisdomTree Dreyfus Chinese Yuan Fund ETF (CYB) to experience a tremendous volume increase, nearly 9 times its average volume as investors pile into the currency.

Investing In Obama With ETFs at Index Universe:

Discussed in this article are several ways to invest in sectors that should receive more attention thanks to Obama’s domestic program focus. The author specifically highlights two industries, healthcare and clean technology, that stand to benefit from Obamanomics. While nearly every American is familiar with the healthcare debate, many are unsure of which companies will actually benefit from the reform. The author proposes that a big beneficiary will be iShares Dow Jones U.S. Medical Devices ETF (IHI), since their base for sales will grow thanks to the increased number of insured. Meanwhile, on the energy front, the Claymore/MAC Global Solar Energy Index Fund (TAN), a well diversified solar fund, may be a good choice.

ETF Investors Fret Over Inflation, Weak Greenback at Morningstar:

This article gives investors a detailed report about money inflows and outflows in the Exchange Traded Fund industry in October. Overall, the ETF industry saw nearly $8 billion in net inflows for the month with the majority of the inflows going into fixed income ETFs. The iShares Barclays TIPS Bond Fund (TIP) pulled in more than half a billion dollars alone. Along with fixed income, international equity funds saw a large net increase with iShares JP Morgan Emerging Markets Bond Fund (EMB) taking in $300 million for the month. Meanwhile, domestic ETF funds were again the biggest loser: they saw net outflows again in October with a total of $3.8 billion fleeing American funds.

That’s it for This Week in ETFs: happy reading. Have a great weekend!