Michael Johnston

Michael Johnston is the director of ETFdb.com, where he contributes several articles each week. In 2009, after noticing a lack of free, useful analytical resources for ETF investors, Michael co-founded ETFdb.com and set out to build a site that could be used by investors of all types. Over the next several years, Michael oversaw the development of ETFdb's free ETF tools, including the ETF Screener.

Michael is one of the most widely-followed authors in the ETF world, and he is regularly quoted in publications such as Barron’s and the Wall Street Journal. His articles are syndicated in a number of online publications, including Fidelity.com, Yahoo! Finance, and Business Insider. Michael is also a contributor to TheStreet's Real Money product. Michael is a regular on the ETF conference circuit, having hosted panels at events such as Inside ETFs, Super Bowl of Indexing, and Global Indexing and ETFs. Michael also participated in the Barron's Alternative ETF Roundtable. 

Michael graduated with a degree in finance from the University of Notre Dame, and has completed the exam portion of the Chartered Financial Analyst (CFA) program. Michael lives in Chicago where he's an avid Cubs and Blackhawks fan.

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Michael Johnston

Is the US Stock Rally a Bubble?

by on March 28, 2013

US stocks are off to one of their best starts in years. Most indices are up 10% year to date, prompting many investors to ask: “Are we in another bubble?”

The answer is no, at least when it comes to equities. Here are three reasons why:

  • Most metrics suggest US stock valuations are at or below their long-term average. US large cap companies are trading at 2.25x book value and 15x trailing earnings, both valuations below the historical average.
  • Not only are valuations below average, they are well below peaks reached in 2000 and 2007. By way of comparison, US equity markets were trading for 3x book value in 2007 and 5x in 2000.
  • On a relative basis, even after the recent rally, US stocks still look cheap. The earnings yield on the S&P 500 is at a 30-year high relative to the yield available on an investment grade bond index. While this is more a function of bonds being expensive rather than of stocks being particularly cheap, the relative play still favors stocks. [click to continue…]

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3 Reasons Market Volatility Has Returned

by on March 5, 2013

By Russ Koesterich, CFA

The S&P 500 rallied over 5% in January, with small and mid-caps doing even better. Market strength continued into mid-February, with the market gaining another 2% between January 31st and the recent high on February 19th.

However, as I expected, gains have now become harder to come by. Over the last week stocks have pulled back and volatility has once again spiked. This pickup in volatility can be seen in the numbers. Since bottoming on February 1st, the one-month trailing realized volatility on the S&P 500 has nearly doubled and the VIX index – which measures implied volatility – has spiked over 50% from last week’s multi-year low. What happened?

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20 Must-Read Quotes About The ETF Industry

by on March 5, 2013

When it comes to investing, many look to industry experts for tips, tricks and advice on the markets. As far as the ETF industry is concerned, plenty have weighed in on these popular investment vehicles, though not all of them brought praise to the table. Below, we outline 20 of the most interesting quotes about [...]

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10 Questions About ETFs You’ve Been Too Afraid To Ask

by on February 5, 2013

As the exchange-traded world continues to expand, many investors find themselves asking the same questions about how these products work. Of course, not everyone is as vocal about their curiosities, leaving a number of unanswered questions in the space. In an ongoing effort to keep you educated about the ETF world, we mapped out ten questions [...]

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China ETFs: Closer Look Under The Hood

by on January 21, 2013

Over the past several years China has become an increasingly important component of U.S. investor portfolios, as it has become increasingly clear that the Asian economy is positioned to be the primary driver of global GDP growth for the foreseeable future. Those looking for exposure to the massive emerging market have embraced a number of [...]

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Global X Launches Junior MLP ETF

by on January 15, 2013

Global X, the firm behind the cheapest MLP ETF currently available to U.S. investors, announced today the launch of a fund targeting exclusively junior MLPs. The new Junior MLP ETF (MLPJ) will be linked to the Solactive Junior MLP Index, which includes about 25 companies that are engaged in the production, transportation and storage of [...]

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ETFs Then And Now

by on December 19, 2012

As the calendars get ready to flip to 2013, another chapter in the relatively short history of ETFs will be written. Next year will mark the official 20th birthday for ETFs, as SPY will enter its third decade as a publicly traded security. It’s remarkable to see just how much the ETF industry has changed [...]

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3 ETFs For Dividend-Seeking Commodity Bulls

by on December 10, 2012

In the current environment, there are many investors who are seeking out dividend-paying stocks to be core holdings within their portfolios as a way to both reduce overall volatility and enhance yield. Many investors are attracted to dividend-paying stocks since dividend payouts are often a sign that the stock is a healthy investment. Additionally, dividends [...]

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101 High Yielding ETFs For Every Dividend Investor

by on December 6, 2012

With interest expected to stay at near-zero levels for the foreseeable future, many investors have found it challenging to secure meaningful yields from asset classes that were once the core of income strategies. Gone are the days of Treasuries and high quality corporates yielding in excess of 5%; in the new era, sub-1% yields are [...]

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5 Best (And 5 Worst) ETF Performers Over The Last Year

by on November 28, 2012

This past year has been marked by uncertainty (though nothing compared to recent years), prompting investors to return in droves from safe haven accounts to the U.S. stock market. Investors have their eyes fixed on major indexes and other indicators to judge the overall health of our economy, but another judge of booming markets is [...]

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Where U.S. ETF Investors Invest Overseas

by on November 26, 2012

As the ETF industry has grown in recent years, the expansion has allowed U.S. investors to reach beyond their borders and establish positions in international markets of all shapes and sizes. As the growth prospects for the U.S. economy have gradually diminished, more and more investors have shed the “home country bias” that called for [...]

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7 ETF Innovations To Be Thankful For

by on November 22, 2012

Innovation has become standard in the ETF industry over the past several years, as a wide range of issuers have launched new and exciting products and pushed the envelope in their efforts to deliver a superior investing vehicle. As those investors in the U.S. celebrate Thanksgiving, we highlight seven innovations for which we’re particularly grateful [...]

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