This Week In ETFs: January 15th Edition

by on January 15, 2011

This past week saw no shortage of major, market moving, events as equities rose on solid bond auctions in Europe but fell back again thanks to a lack of job creation back in the States. Starting the week off, the 800 mile Trans-Alaska pipeline was temporarily shut down due to a leak detected at one of the system’s pumping stations. As a result, oil prices shot up above $91 per barrel, but prices were calming down as the pipeline resumed its status as the major source of America’s crude later in the week. On Tuesday, Verizon Wireless officially announced that it will be servicing the iPhone come next month, though some analysts think the move may cause more damage than good for the telecom giant. Nevertheless, telecom shares remained in focus for much of the week as investors sold of shares in Verizon, AT&T, and even Sprint on the news of this announcement. This week also saw major earnings reports from Intel and JP Morgan crush their marks, pushing equities into the green and leaving many to believe that a continued economic recovery was well underway.

Below, we highlight three of the best ETF stories from around the Web during the last week:

Leveraging Equity Analysts for ETF Ideas at Morningstar:

The basis for this article comes from delicate research conducted at Morningstar in which ETF sectors were measured by the sum of the value of their securities, to determine which sectors were under or over valued. Based on this research, Michael Rawson found that, currently, the two cheapest sectors on the exchange traded market are financials and health care, while the two most expensive are energy and materials. The article goes on to outline specific ETFs in each of these sectors to show investors where some dangers and bright spots may currently exist in the sector corner of the exchange traded world.

ETFs for the FASTEST Growing Emerging Markets at Money and Markets:

For most U.S. investors, China is the go to emerging market investment, but according to Ron Rowland, many are overlooking another key emerging nation; India. It used to be that investing in this booming economy yielded too few choices, but now, with the help of exchange traded products, the number of choices may overwhelm investors. In this article, Rowland outlines the numerous India options to help investors choose the right fund for their portfolio.

How To Deal With ETF Closures: Q&A With Paul Weisbruch at ETF Database:

With the rapid expansion of exchange traded products, it is only inevitable that some funds will fail to attract significant assets, and be forced to close their doors. But not all investors are sure how to react when one of the funds they own announces that it will be shutting down. Recently, ETF Database had the pleasure of talking with Paul Weisbruch, VP of ETF/Options Sales and Trading at Street One Financial, a firm that specializes in educating, evaluating, and trading ETFs, equities, and options. In this interview, Weisburch outlines how investors can react to, and play funds that will soon be shutting down as well as some key factors that advisors need to remember when they experience a fund closure.

Disclosure: Jared is long VZ.