This week poor earnings reports from both technology and materials sectors lead the downward charge for indexes overall, as analysts try to decide what this will mean for the market overall. Tech has often been seen as the “canary in the coal mine” for future market conditions, causing many to exit early on Friday. Overseas, after weeks of Spain mulling over the idea of an European Central Bank loan, German Chancellor Angela Merkel has put her foot down and stated that the currency and transitive inflation Spain wants to add into its country will not be a part of this ECB bailout plan, and Spain is on its own. This would mean more debt on the already overburden Spanish economy, but would keep the rest of the eurozone from following them into debt all over again [see Citigroup Rally Lifts Financial ETFs].
Four new unique ETFs launched this week, including Vanguard’s take on inflation protection with VTIP, solid emerging market exposure from EG Shares through EMCR, UBS tracking leveraged mortgages by using MORL, and finally PowerShares new product focusing on high American dividend companies with SPHD. There were no closures this week, and next week seems poised for even more product introduction.
Below we outline the three best stories from around the ETF space this past week:
1. Google Earnings Fiasco Plagues Internet ETFs at Market Watch:
Investors who forgot to put a stop loss order on Google stock are kicking themselves now, as share price tanked Thursday and Friday after an accidental pre-release of a less-than-amazing quarter for the internet giant. This early release mistake on Google’s part has taken its toll on the whole tech industry, including the ETFs that had major holdings in the company. Benzinga brings the ETFs hurt worst into the spotlight and discusses how the fall of this giant tech firm could affect other areas of the market.
2. 5 Essential ETF Resources for Commodity Investors at CommodityHQ:
Commodity investing can yield amazing returns in the hands of well informed investors and spell disaster for those who aren’t. ETFs offer at-home investors exposure to everything from coffee futures to physical gold with leverage and inverse funds for every product imaginable. Jared Cummans outlines the best resources on ETFdb for first-time visitors or veteran commodity investors looking to brush up on specialty sectors.
3. TDIV: Where Technology Meets Dividends at ETF Database:
While technology might not be having the best week, historically stocks in this sector can be highly lucrative for investors willing to take a chance. However, tech companies are not known for high dividends, so with First Trust’s release of the NASDAQ Technology Dividend Index Fund (TDIV), many investors are left scratching their heads. Stoyan Bojinov spoke with Ryan Issakainen of First Trust earlier this week to hash out what’s so special about this fund.
Disclosure: No positions at time of writing.