Markets Regain Footing

by on October 8, 2011 | Updated May 14, 2013 | ETFs Mentioned:

Investor worries eased up a bit this past week as concerns over Europe were quelled by the ECB following its most recent decision to keep interest rates unchanged. Wall Street posted an impressive three-day winning streak starting with an impressive, high-volume rally in the final hours of trading on Tuesday. However, stocks couldn’t hold onto gains on Friday, despite better-than-expected employment data. Media legend and Apple CEO, Steve Jobs, passed away last Thursday at the age of 56, leaving behind an iconic consumer brand that has helped shape all of our worlds. Gold prices remain stuck in a trading-range and futures for the precious yellow metal settled just below $1,650 an ounce on Friday.

Actionable ETF Trade Ideas

Last Week’s Actionable ETF Ideas
Ticker Position Performance







Our picks from Monday’s Insider were a mixed bag this week, with two of our recommendations posting small losses, while our technical analysis deterred us from entering into a fairly directionless trade. 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 25 all-ETF model portfolios].

Trade #1 Short IYT: Down 0.6%

This short trade didn’t pan out too well this week as equity indexes broadly climbed higher. IYT surged back above $75 a share near the closing bell on Tuesday, leading us to exit this short position, incurring a small loss. Our technical analysis served us well nonetheless, seeing as how IYT extended gains into Wednesday and Thursday, which would have only added to our losses had we not closed our short position.

Trade #2 Long IJK: No Trade

No trade here. IJK opened below our outlined support at $90 a share on Monday morning, voiding this long recommendation right from the start. We’re staying on the sidelines with this pick and we don’t recommend jumping back in until shares establish support above the $95 or $100 level, depending on individual risk tolerance.

Trade #3 Long BAB: Down 1.2%

This was our fundamentally defensive position for the week and it got off to a much stronger than expected start on Monday, missing our price target by only a few pennies. The rest of the week didn’t turn out too well for BAB, as investors regained some of their risk appetite and poured back into equities. BAB sank near support at $28 a share on Friday, although it managed to work its way higher during the day, re-affirming our bullish outlook on this product for the coming week.

ETFdb Portfolios

Retirement ETFdb Portfolios

Stocks climbed higher last week and our retirement portfolios held their ground surprisingly well, with our Aggressive Portfolio leading the way higher. From a year-to-date perspective, our conservative Ready To Retire portfolios is the only one in positive territory.

ETFdb Portfolio Weekly Return YTD Return
Aggressive 2.08% -12.01%
30 Years To Retirementt 1.67% -8.24%
20 Years To Retirement 1.52% -8.40%
10 Years To Retirement 1.45% -5.48%
Cheapskate 1.21% n/a
Moderate 1.10% -4.63%
5 Years To Retirement 0.96% -3.26%
Ready To Retire 0.62% 0.62%

Themed Portfolio

Our themed portfolios performed quite well during this past week, with our Better-Than-AGG Total Bond Market Portfolio being the only one to finish in red territory. The Emerging & Frontier Markets and RAFI portfolios led the way higher, gaining over two full percentage points each for the week. From a year-to-date perspective, our ultra-defensive Sky Is Falling Portfolio and our Simple (But Effective) Safe Haven Portfolio are still the only ones in positive territory.

ETFdb Portfolio Weekly Return YTD Return
Emerging & Frontier Markets 2.07% -16.17%
RAFI 2.05% -16.59%
Black Swan Hyperinflation 2.00% -5.79%
LatAm Centric 1.73% n/a
Ex-U.S 1.56% -13.40%
AlphaDEX 1.51% n/a
Asia-Centric 1.33% -12.84%
Actively-Managed 1.26% -5.41%
Alpha Seeker Portfolio 2.0 1.17% -7.03%
High-Tax Bracket 1.16% -5.67%
Simple (But Effective) Safe Haven 1.06% 3.82%
High Yield 1.05% -2.13%
Ex-Europe 0.93% -6.19%
Equal Weight 0.86% n/a
Global Titans 0.56% n/a
Small Cap 0.37% n/a
Ben Graham 50/50 0.19% n/a
The Sky Is Falling 0.02% 4.91%
Better-Than-AGG Total Bond Market -0.15% n/a

New ETF Highlights

The exchange-traded universe continues to expand as October has gotten off to a strong start, with several new products launching this past week, include a suite of “investment discipline ETFs” from Russell. Check out our ETF Launch Center for complete updates on all new ETFs.

ETF Launches

Small Cap Aggressive Growth ETF  (SGGG)

This ETF tracks an index that is designed to select securities intended to produce performance that is similar to professional investment managers using a small cap aggressive growth investment discipline. SGGG falls a bit towards the expensive end of the cost spectrum amongst Small Cap equity ETFs.

Small Cap Consistent Growth ETF  (SCOG)

This ETF is designed to follow a consistent growth discipline; component stocks are those with average to high consensus forecasted earnings and consistent earnings as measured by average to low earnings per share volatility over the last five years.

Small Cap Consistent Growth ETF  (SCLP)

This ETF offers exposure to small cap stocks that have low price-to-earnings multiples, a common value investing strategy that has been popular for decades [see SCLP fact sheet].

Small Cap Contrarian ETF  (SCTR)

This ETF is designed to select securities intended to produce performance that is similar to professional investment managers following a small cap contrarian, deep value investment discipline.

Leveraged Cloud Computing ETN  (LSKY)

  • Launch: October 6th
  • ETFdb Category: Leveraged Equities
  • Structure: ETF
  • Expense Ratio: 0.60%

UBS expanded its product lineup by rolling out a leveraged version of a recently launched, and wildly popular, Cloud Computing ETF SKYY. The new UBS ETN will seek to deliver monthly results that correspond to 200% of the change in the ISE Cloud Computing Index, a benchmark that consists of about 40 stocks.

TrimTabs Float Shrink ETF  (TTFS)

  • Launch: October 5th
  • ETFdb Category: All Cap Equities
  • Structure: ETF
  • Expense Ratio: 0.99%

AdvisorShares launched TTFS as the result of a partnership with a firm known for innovative research on the connections between stock liquidity and long-term performance. The TrimTabs methodology is based on the idea that stocks perform best when the total number of outstanding shares has decreased over the past four months or so [see TTFS Fact Sheet].

CurrencyShares Chinese Renminbi Trust (FXCH)

  • Launch: October 5th
  • ETFdb Category: Currency
  • Structure: ETF
  • Expense Ratio: 0.40%

Rydex expanded its popular line up of currency ETFs with the launch FXCH, which provides investors with exposure to Chinese currency. If the renminbi appreciates relative to the U.S. dollar, FXCH can be expected to appreciate as well.

Ultra VIX Short-Term Futures ETF (UVXY)

  • Launch: October 4th
  • ETFdb Category: Volatility
  • Structure: ETF
  • Expense Ratio: 0.95%

ProShares is continuing its push in the alternatives ETFs space, with the launch of two new products offering exposure to volatility-related strategies. UVXY will offer 200% daily leveraged exposure to the S&P 500 VIX Short-Term Futures Index, a benchmark that consists of first and second month VIX futures contracts. The counterpart to this new ETF is SVXY, which offers daily inverse exposure (-100%) to the same index.

Disclosure: No positions at time of writing.