Greek Drama Far From Over

by on May 12, 2012 | ETFs Mentioned:

Equity markets took a nosedive last week as resurfacing Euro zone debt woes welcomed back the bears on Wall Street. Political turbulence in Greece has sparked a wave of worry, with many fearing that the nation will have to face default unless the opposing parties agree to implement the proposed austerity measures. On the home front, economic data releases remain mixed; the latest consumer sentiment index came in better-than-expected, however, the labor market remains fragile [see also 5 Simple ETF Trading Tips].

Actionable ETF Trade Ideas

Last Week’s Actionable ETF Ideas
Ticker Position Performance
RSP

Long

-1.2%
PHO

Long

+0.7%
TLT

Long


+1.0%

Our picks from Monday’s Insider posted a strong performance during an otherwise dismal trading week on Wall Street. Below, we highlight how our trade ideas fared during the week [sign up for a free trial of ETFdb Pro to get actionable ETF ideas every Monday, as well as access to more than 40 all-ETF model portfolios].

Trade #1 Long RSP: Down 1.2%

This trade recommendation got off to an encouraging start as RSP inched higher on Monday, managing to clinch a minor gain on the day. Political drama stemming from the overseas currency bloc spilled over onto Wall Street on Tuesday however, and this ETF plunged as profit taking pressures grew. We stuck to our rules and cut our losses once RSP traded below our outlined stop-loss at $49.50 a share, leaving us with a minimal 1.2% loss on the week.

Trade #2 Long PHO: Up 0.7%

PHO started off on a weak note as shares drifted sideways on Monday, only to sink lower on Tuesday alongside broad equity markets. This ETF sank as low as $18.06 a share on Wednesday morning, missing our outlined stop-loss by just a few pennies. Nonetheless, PHO was able to regain momentum on Thursday and Friday, inching higher and managing to clinch a respectable 0.7% gain on the week.

Trade #3 Long TLT: Up 1.0% 

This defensive recommendation served us well given the resurfacing Euro zone debt drama that stole the headlines all week. TLT continued its uptrend from last week in the first two trading days. Selling pressures unraveled on Wednesday as equity markets managed to regain some lost ground, driving down demand for Treasuries. This ETF sank back down to $117.50 a share on Thursday, only to stage an impressive rally and hit a multi-week high at $119.6 a share near the closing bell on Friday. This trade recommendation left us with a nice 1.0% gain on the week.

ETFdb Portfolios

Retirement ETFdb Portfolios

Even our Low Volatility portfolio couldn’t escape all the profit taking pressures on Wall Street throughout the week. Not surprisingly, our equity-heavy retirement portfolios fared worse than our more conservative, bond-heavy ones. The worst performer was our 30 Years Till Retirement portfolio followed closely by our Aggressive strategy [see All Portfolio Returns].

ETFdb Portfolio Weekly Return
Low Volatility -0.78%
Ready To Retire -0.84%
5 Years Til Retirement -1.29%
Moderate -1.45%
10 Years Til Retirement -1.66%
Cheapskate -1.77%
20 Years Til Retirement -2.03%
Aggressive -2.15%
30 Years Til Retirement -2.18%

Regional ETFdb Portfolios

International equity markets suffered alongside domestic stocks as profit taking pressures spread globally. Our Ex-Europe portfolio was the most resilient one given its unique approach in excluding exposure to the troubled economic region. Our developed market-heavy Global Titans portfolio also held its ground well, while surprisingly our Euro Free Europe portfolio was the worst performer on the week.

ETFdb Portfolio Weekly Return
Ex-Europe -1.63%
Global Titans -1.90%
Emerging & Frontier Markets -2.21%
Asia-Centric -2.37%
Africa-Centric -2.67%
Ex-U.S. -2.82%
LatAm-Centric -2.87%
Easy-As-ABC -3.02%
BRIC-or-Bust -3.37%
Euro Free Europe -3.80%

Themed ETFdb Portfolios

Our themed portfolio endured a challenging week as looming uncertainties eroded investors’ confidence, sinking asset classes across the board. Amidst the flurry of trading activity on Wall Street, gold prices plunged lower breaking below the $1,600 level for the first time in a while. Not surprisingly, our GLD-Free Gold Bug portfolio took a nasty hit this week as futures prices for the precious yellow metal sank to multi-month lows.

ETFdb Portfolio Weekly Return
Better-Than-AGG Total Bond Market -0.15%
Cheapskate Hedge Fund -0.53%
The Sky Is Falling -0.55%
King Dollar -0.97%
Ben Graham 50/50 -0.99%
Equal Weight -1.14%
Financials Free -1.15%
Simple (But Effective) Safe Haven -1.15%
High Yield -1.22%
Actively-Managed -1.39%
Pure Value -1.60%
High Tax Bracket -1.68%
Small Cap -1.69%
Alpha Seeker 2.0 -1.75%
Baby Boomers -1.92%
Kitchen Sink -2.06%
Greedy When Others Are Fearful -2.15%
Socially Responsible -2.26%
AlphaDEX -2.50%
Pure Growth -2.55%
2012 ETFdb Portfolio -2.57%
RAFI -2.73%
Black Swan Hyperinflation -2.78%
Commodity Guru -2.96%
High Tech -3.22%
Energy Bull -3.24%
Futures Free Commodity  -3.47%
GLD-Free Gold Bug  -4.54%

New ETF Highlights

The exchange-traded universe continues to evolve as several issuers filed plans with the SEC for new products and several new fund hit the street this past week. Check out our ETF Launch Center for complete updates on all new ETFs.

ETF Launches

Dow Jones Global Yield ETF (GYLD)

ArrowShares, a newcomer to the ETF industry, launched their new Dow Jones Global Yield ETF, GYLD, which is linked to an index that includes 150 of the highest yielding securities across three primary asset classes: stocks, bonds, and alternative investments (including REITs and MLPs).

Market Vectors Emerging Markets High Yield Bond ETF (HYEM)

  • Launch: May 9th
  • ETFdb Category: High Yield Bonds
  • Structure: ETF
  • Expense Ratio: 0.40%

Van Eck debuted its new Market Vectors Emerging Markets High Yield Bond ETF, HYEM, which is designed to provide exposure to debt from issuers in a number of developing economies. The fund’s underlying index is comprised of U.S. dollar denominated debt from emerging market non-sovereign issuers that are rated below BB1.

Disclosure: No positions at time of writing.