What’s Next For Europe?

by on December 10, 2011 | ETFs Mentioned:

Stock markets endured another choppy trading week as hope and anxiety over the Euro zone debt drama sparked rallies one day and sell-offs the next. The much anticipated summit in Brussels left investors with a plateful of good news to digest on Friday as European leaders agreed to closer fiscal ties, although the United Kingdom refused to take part in the accord. “As with other meetings, this one hasn’t solved everything and likely will leave some disappointed, but overall has been taken by the markets as a big step in the right direction,” said Colin Cieszynski, CMC Markets analyst. Gold slipped lower during the week, with futures prices settling near $1,715 an ounce. 

Actionable ETF Trade Ideas

Last Week’s Actionable ETF Ideas
Ticker Position Performance







Our picks from Monday’s Insider performed quite well this past week, with our two short positions turning in a profit, while our long recommendation didn’t pan out as expected. 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 30 all-ETF model portfolios].

Trade #1 Short XLU: Up 0.8%

This recommendation got off to a strong start as selling pressures on Monday afternoon set the scene for further declines as anticipated. XLU regained its lost ground on Tuesday, although it failed to hit our stop-loss at $35.50 a share. Profit taking paved the way lower for XLU in the following days as investor worries over the summit in Brussels intensified. XLU missed our intended price target at $34 a share, although this short position turned in a minor 0.8% gain  for the week.

Trade #2 Long SLV: Down 1.9%

SLV got off to a weak start as silver prices plunged as Wall Street’s opening bell rang on Monday morning. The precious metal reclaimed some of the lost ground on Tuesday, although selling pressures prevailed in the following days, bringing down SLV as low as $30.52 for the week. This ETF edged higher on Friday alongside broad equity markets, although its performance for the week was a bit disappointing, turning in a 1.9% loss.

Trade #3 Short MOO: Up 1.9%

This pick got off to a solid start as MOO declined lower on Monday alongside falling commodities prices. This ETF was fairly range-bound over the next two days, although its resilience wore off on Thursday as investors took profits before the high-profile summit in Brussels. MOO missed our price target, although our bearish suspicions proved to be correct. This short recommendation turned in a respectable 1.9% gain on the week.

ETFdb Portfolios

Retirement ETFdb Portfolios

Economic data releases on the home front continue to surprise to the upside, although the positive news has been largely overshadowed by the ongoing Euro zone debt drama. Volatility was prevalent across all corners of the market last week, including the fixed income market, which in turn hurt our most conservative, bond-heavy 30 Years Til Retirement portfolio.

ETFdb Portfolio Weekly Return
30 Years Til Retirement -1.25%
Aggressive -1.10%
20 Years Til Retirement -0.99%
10 Years Til Retirement -0.80%
Cheapskate -0.78%
Moderate -0.61%
5 Years Til Retirement -0.45%
Low Volatility -0.38%
Ready To Retire -0.21%

Regional ETFdb Portfolios

Our regional portfolios dipped into negative territory as choppy trading dominated price action all week, while Friday’s good news from Brussels failed to spark a monstrous rally like many had hoped for. Both our developed and emerging market oriented portfolios sank lower as selling pressures ran across every corner of the global equity market.

ETFdb Portfolio Weekly Return
Africa-Centric -2.21%
Euro Free Europe -2.08%
Asia-Centric -1.72%
Ex- U.S. -1.61%
Emerging & Frontier Markets -1.33%
LatAm-Centric -1.19%
Global Titans -1.14%
Easy-As-ABC -0.91%
Ex-Europe -0.69%

Themed ETFdb Portfolios

Our themed portfolios took a hit across the board, although several portfolios, including the Ben Graham 50/50 and our Better-Than-AGG Total Bond Market portfolio finished just barely in positive territory for the week. Our new Cheapskate Hedge Fund portfolio held its ground quite nicely during another volatile trading week on Wall Street. From a year-to-date perspective [see All Portfolio Returns] our defensive-themed portfolios, including Simple (But Effective) Safe Haven and The Sky Is Falling remain on top in terms of performance.

ETFdb Portfolio Weekly Return
Ben Graham 50/50 0.85%
Better-Than-AGG Total Bond Market 0.29%
Equal Weight 0.17%
The Sky Is Falling 0.16%
Cheapskate Hedge Fund -0.25%
Actively Managed -0.43%
High Yield -0.55%
Kitchen Sink -0.55%
Alpha Seeker 2.0 -0.76%
High-Tax Bracket -0.81%
Small Cap -0.93%
Simple (But Effective) Safe Haven -1.17%
AlphaDEX -1.33%
High Tech -1.45%
RAFI -1.79%
Commodity Guru -1.85%
Future Free Commodity Portfolio -2.17%
Black Swan Hyperinflation -2.44%

New ETF Highlights

The exchange-traded universe continues to evolve and expand as several issuers rolled out first-to-market products over the past week. Check out our ETF Launch Center for complete updates on all new ETFs.

ETF Launches

DB US Inflation ETN (INFL)

  • Launch: December 5th
  • ETFdb Category: Long-Short
  • Structure: ETN
  • Expense Ratio: 0.75%

Invesco PowerShares launched their new DB US Inflation ETN, INFL, which tracks the DBIQ Duration-Adjusted Inflation Index. This benchmark aims to track changes in the market’s future expectations of inflation implied by the difference in yields between TIPS and US nominal Treasuries.

DB US Deflation ETN (DEFL)

  • Launch: December 5th
  • ETFdb Category: Long-Short
  • Structure: ETN
  • Expense Ratio: 0.75%

Invesco PowerShares introduced their new DB US Deflation ETN, DEFL, a counterpart to their latest inflation ETN, INFL. This fund seeks to isolate a short exposure to the market’s future expectations of deflation by measuring the duration-adjusted combined performance of a notional short position in a hypothetical portfolio of TIPS and corresponding long positions in U.S. Treasury bond futures contracts.


Global X launched their new NASDAQ 400 Mid Cap ETF, QQQM, which tracks the NASDAQ 400 Index. This benchmark seeks to capture the performance of the top 400 mid-capitalization, domestic and international non-financial securities listed on the Nasdaq.


  • Launch: December 6th
  • ETFdb Category: All Cap Equities
  • Structure: ETF
  • Expense Ratio: 0.48%

Global X introduced yet another ETF that tracks a Nasdaq index, the NASDAQ 500 ETF, QQQV. This fund aims to measure the performance of 500 of the largest domestic and international non-financial securities listed on the Nasdaq.

FTSE Greece 20 ETF (GREK)

  • Launch: December 8th
  • ETFdb Category: Europe Equities
  • Structure: ETF
  • Expense Ratio: 0.69%

Global X launched the first product to offer pure play exposure to Greece with their FTSE Greece 20 ETF, GREK. This find tracks the FTSE/Athex 20 Index, a benchmark that is designed to reflect Greece’s broad based equity market performance. The index invests in the top 20 companies that are domiciled in, principally traded in or whose revenues are primarily from Greece.

All Cap Insider Sentiment Shares (KNOW)

  • Launch: December 8th
  • ETFdb Category: All Cap Equities
  • Structure: ETF
  • Expense Ratio: 0.65%

Direxion launched their All Cap Insider Sentiment Shares ETF, KNOW, which tracks the Sabrient Multi-Cap Insider/Analyst Quant-weighted Index. This benchmark is comprised of 100 securities selected from the S&P 1500, which are weighted using quantitative methodology.

Large Cap Insider Sentiment Shares (INSD)

Direxion introduced their new Large Cap Insider Sentiment Shares ETF, INSD, an ETF similar to their recent All Cap Insider Sentiment ETF, KNOW. This fund utilizes insider sentiment indicators to achieve exposure to domestic large cap equities. INSD tracks the Sabrient Large-Cap Insider/Analyst Quant-weighted Index, a benchmark that uses a “quant-based” weighting methodology.

Disclosure: No positions at time of writing.