All In Green

by on October 15, 2011 | ETFs Mentioned:

Wall Street started and ended last week on a positive note. Investors came back to the equity markets on Monday after French and German policymakers voiced their support to come up with a viable plan for restoring stability in the Euro zone by November. Meanwhile, on the home front, domestic equity indexes extended gains throughout the week as corporate earnings results got underway. Internet giant, Google, blew past analyst expectations, putting investors in a cheerful mood on Friday, with stocks broadly finishing higher in bright green territory for the week. Gold remains range-bound and the precious metal was unable to break above the $1,700 level. Futures prices for the yellow metal drifted higher during the week, closing around $1,680 an ounce as we approach the second half of October.

Actionable ETF Trade Ideas

Last Week’s Actionable ETF Ideas
Ticker Position Performance







Our picks from Monday’s Insider fared quite well this week, with all three recommendations posting solid gains. 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 Long GLD: Up 0.8%

GLD opened higher on Monday as expected, however, this pick was fairly directionless for the remainder of the week. Regardless, gold prices drifted higher during a strong week on Wall Street, and this resilience leads us to believe that gold is poised to continue its gradual rebound next week. Our price target of $170 a share remains unchanged for next week and we would advise conservative traders to exit this long position if GLD closes below $160 a share for two or more consecutive days, depending on individual risk tolerance.

Trade #2 Long EWG: Up 7.4%

This was our most profitable trade for the week as EWG got off to a strong start right off the bat on Monday morning. As a whole, European markets fared quite well this week after investor confidence was restored following Germany and France’s pledge to restore stability in the region. EWG dipped a bit on Thursday, although it held above outlined support at the $20 level. Our technical analysis served us well on Friday after our sell order at $21 a share was triggered, leaving us with a hefty 7.4% gain for the week.

Trade #3 Long EMB: Up 0.9%

This was our fundamentally defensive position for the week and it got off to a much stronger than expected start. In fact, EMB surged on Monday morning and climbed higher throughout the day; triggering our sell order at $106.30 a share, and leaving us with a conservative 0.95% gain in just a days time. Were keeping our eye on EMB and considering another long position if shares are able to establish support above the $108 level next week.

ETFdb Portfolios

Retirement ETFdb Portfolios

Stocks staged an impressive rebound last week and our retirement portfolios held their ground surprisingly well, with our Aggressive Portfolio leading the way higher thanks to its heavy allocation to equities. 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 6.30% -6.61%
30 Years To Retirementt 5.66% -3.26%
20 Years To Retirement 5.65% -3.44%
10 Years To Retirement 4.56% -1.47%
Cheapskate 4.36% n/a
Moderate 4.14% -1.06%
5 Years To Retirement 3.59% -0.04%
Ready To Retire 2.33% 2.67%

Themed Portfolio

Our themed portfolios performed quite well during this past week, with every single one finishing in positive territory for the week. The RAFI, LatAm Centric, and Ex-U.S. portfolios led the way higher, gaining over six 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 leading the way higher, while our High Yield Portfolio was able to claw its way back up into positive territory for 2011.

ETFdb Portfolio Weekly Return YTD Return
RAFI 7.58% -10.32%
LatAm Centric 6.38% n/a
Ex-U.S 6.03% -8.54%
Jim Rogers Wannabe 5.82% n/a
Emerging & Frontier Markets 5.78% -11.67%
Black Swan Hyperinflation 5.65% -0.82%
Small Cap 5.65% n/a
AlphaDEX 5.43% n/a
Global Titans 4.79% n/a
Asia-Centric 4.62% -9.20%
High-Tax Bracket 4.22% -2.02%
Alpha Seeker Portfolio 2.0 4.22% -3.13%
High Yield 4.16% 1.45%
Equal Weight 4.06% n/a
Ex-Europe 4.00% -2.73%
Actively-Managed 3.98% -1.84%
Simple (But Effective) Safe Haven 3.05% 6.84%
Ben Graham 50/50 2.64% n/a
The Sky Is Falling 0.76% 4.18%
Better-Than-AGG Total Bond Market 0.07% n/a

New ETF Highlights

The exchange-traded universe continues to expand in October, although this week was fairly quiet on new product launches with just one ETP hitting the markets over the past five days. Check out our ETF Launch Center for complete updates on all new ETFs.

ETF Launches

Market Vectors Renminbi Bond ETF (CHLC)

Van Eck ramped up its suite of international bond ETFs with the launch of the new Market Vectors Renminbi Bond ETF. CHLC is the cheapest product to join the fairly new “Dim Sum” bond ETF space, along with DSUM and RMB. This ETF will seek to replicate an index comprised of investment grade debt that is denominated in renminbi and available to investors outside of China.

Disclosure: No positions at time of writing.