From the monthly archives:

June 2012

A brutal quarter in the financial markets came to a close with a pop, rewarding investors who stuck with their risky asset allocations as stocks plummeted and no doubt frustrating those who recently made a move to safe havens. Not surprisingly, Europe was once again the catalyst for Friday’s rally, as investors cheered a rare event from the continent: an agreement that was generally considered to be a step in the right direction. But Friday’s summit outcome wasn’t enough to erase the woes of the second quarter completely, as many account statements will be drenched in red [see also How To Pick The Right ETF Every Time].

While the past week was very eventful on Wall Street, it was relatively slow in the ETF industry. New product activity will likely remain limited until after the July 4th holiday, and it’s likely that we’ll see very low trading volumes next week as well.

[click to continue…]

{ Comments on this entry are closed }

ALPS, the firm behind the Equal Sector Weight ETF (EQL), is debuting a new fund that combines aspects of equal sector weighting with high dividend-paying stocks. The new ALPS Sector Dividend Dog ETF (SDOG) will apply the well known “Dogs of the Dow” methodology to a broader index of stocks, drawing its components instead from the S&P 500.

The Dogs of the Dow strategy, popularized in the early 1990s by Michael O’Higgins, is a very simple strategy: it involves picking the ten components of the Dow Jones Industrial Average with the highest dividend yield each year. This strategy is premised on the idea that companies do not alter their dividend to reflect trading conditions, and that therefore the payouts made to shareholders are more indicative of long-term value. Using that logic, it follows that the companies with the highest yield should maintain the greatest price appreciation potential–while simultaneously delivering attractive current returns.  [click to continue…]

{ Comments on this entry are closed }

Five ETF Surprises From The First Half

by on June 28, 2012 | Updated July 27, 2012

As an up-and-down (and up again) first half of the year draws to a close, many portfolios have managed to squeeze out moderate gains so far in 2012. Looking around at the various exchange-traded products reveals some interesting results after what can only be described as an exciting six month stretch. While many ETFs have […]

{ Comments on this entry are closed }

After a slew of announcements early Monday prompted speculation that a decision on health care legislation was imminent, we learned that Thursday will be the day for one of the most heavily anticipated rulings in the last several years. The Supreme Court is expected to issue a ruling on the health care legislation that was […]

{ Comments on this entry are closed }

7 Most Useful Pages & Tools On ETFdb.com

by on June 27, 2012 | Updated July 27, 2012

As the ETF industry continues to expand at a rapid pace, investors are now introduced to some of the most intriguing and useful products available on the financial market. There are now over 1,400 exchange-traded products that allow you to gain cheap, liquid and highly transparent access to nearly every corner of the investable universe. Although the sheer magnitude […]

{ Comments on this entry are closed }

Data Back In Focus As Stimulus Hopes Fade

by on June 25, 2012

Stocks fell victim to back-and-forth trading last week as stimulus hopes collided with concerning economic data on the homefront along with unresolved debt drama in the European currency bloc. The much anticipated FOMC announcement failed to provide the necessary kick-start to beat down equity markets as many had hoped for; instead it added to the […]

{ Comments on this entry are closed }

Highlighting Seven Unique Dividend ETFs

by on June 25, 2012 | Updated July 25, 2012

Dividend-paying stocks continue to be a popular investment theme in the low rate, high volatility environment. With expectations for record low yields on traditional sources of income expected to continue for the foreseeable future, more and more investors (both large and small) are seeking out dividend payers as a critical component of their portfolios. While […]

{ Comments on this entry are closed }

The innovation continues to impress in the ETF industry, particularly in the fixed income corner of the market. Earlier this week, State Street launched two additional bond ETFs, including a fund that targets both major “buckets” of the corporate bond market and a fund that will focus on debt of emerging markets companies.

{ Comments on this entry are closed }

The markets took a couple of hard hits last week as less than cheery news on the homefront and from overseas rocked investors’ confidence. After several weeks of anticipation, the Fed finally announced that it will continue its Operation Twist in an effort to prop up the U.S. economy. The news managed to ease some […]

{ Comments on this entry are closed }

After a mostly down and up week on Wall Street, the ETF pop quiz returns this week with another round of questions about high yield debt, ETFs with big exposure to Europe’s problem spots, and a head-to-head comparison of two major emerging markets. As always, the answers to all the questions below (and many more) […]

{ Comments on this entry are closed }

As we come to the end of yet another tumultuous week in the stock market, one can only wonder if stability is in our sights. Negative news from the Philly Fed’s index of regional manufacturing combined with jobless claims and a fall in existing-home sales painted a bleak picture Thursday morning. Accordingly, the stock market […]

{ Comments on this entry are closed }

Stocks Simmer As Fed Twists Again

by on June 23, 2012 | Updated June 29, 2012

Stocks markets endured another week of back-and-forth trading as stimulus hopes collided with looming threats from Europe and concerning economic data releases on the homefront. The much anticipated FOMC announcement was rather anticlimactic as markets seemed apathetic to the Fed’s decision to extend Operation Twist. Chairman Bernanke did leave some hope on the table as […]

{ Comments on this entry are closed }