SubscribeArchive for Invest With An Edge
Smart Grid ETF Launched by First Trust Advisors
Amid the flurry of new ETFs coming to market this week, it appears I missed the launch of First Trust NASDAQ Clean Edge Smart Grid Infrastructure Index Fund (GRID) on Tuesday (11/17/09). This ETF focuses on stocks in the electric energy infrastructure and distribution grid subsector. The fund will typically invest in companies engaged in electric grid, metering equipment and devices, networks, energy storage and management, and enabling software used within the smart grid infrastructure.
The underlying index uses a modified capitalization weighting with “pure play” companies receiving an 80% allocation and “diversified” companies receiving just a 20% allocation. The expense ratio…
20Nov2009 | Invest With An Edge | 0 comments | ContinuedDollars Always Come Home
Asia is the focus this week as President Obama toured the region and met with various leaders. He spent a considerable amount of time in Beijing. This should surprise no one, given the ever-closer connection between China and the United States, financially and otherwise. Cynics portray the trip as Obama going hat-in-hand to beg for the Chinese to keep financing the U.S. federal deficit. There is some element of truth to this, but it is also true that the relationship goes both ways. The Chinese need us, too. Their entire economy revolves around exports to the West; this is why…
20Nov2009 | Invest With An Edge | 0 comments | ContinuedWill UNL Work Better Than United States Natural Gas Fund (NYSE: UNG)?
The official-sounding but totally private United States Commodity Funds has launched another ETF based on natural gas prices. United States 12 Month Natural Gas Fund (UNL) started trading Wednesday (11/18/09). It joins the firm’s previous offering, United States Natural Gas Fund (UNG) in an attempt to offer small investors an easy way to participate in the natural gas market.
The new fund is a response to certain structural problems of UNG that resulted in dramatic underperformance relative to its benchmark, particularly in the last few months. This chart of UNG vs. natural gas futures tells the story well. The issue is that futures contracts expire…
19Nov2009 | Invest With An Edge | 0 comments | ContinuedGoldman Sachs (NYSE: GS) Delivers for Shareholders
Few American companies are as vilified as Goldman Sachs (GS). Formerly an investment bank, Goldman is now a commercial bank, a change that allowed it to take billions in taxpayer assistance during the financial calamity of 2008. Some would debate the usefulness of keeping Goldman in business, saying the company doesn’t produce essential goods like automobiles, clothes, energy or food. Still others would argue that Goldman probably didn’t need the taxpayer money in the first place. Given the massive profits it was turning before the financial crisis and robust earnings so far in 2009, Goldman has done just fine.
Throw in…
19Nov2009 | Invest With An Edge | 1 comment | ContinuediShares Launches Its First Alpha Seeking ETF
The iShares Diversified Alternative Trust (ALT), a new multi-asset class multi-strategy ETF was launched yesterday (11/16/2009). Its stated objective is “to maximize absolute returns from investments with historically low correlation to traditional asset classes, while seeking to control the risks and volatility inherent in futures and forward contracts by taking long and short positions in historically correlated assets.”
The iShares product line has historically focused on providing “beta” exposure to various asset classes and indexes. By that, we mean its product offerings have tried to match various indexes from both a risk and reward standpoint.
The introduction of ALT is their first…
17Nov2009 | Invest With An Edge | 0 comments | ContinuedGet 6% On A Checking Account?
Looking for somewhere to stow your cash? If you’re concerned about stocks and bonds, there are some safe storage opportunities that offer more than minimal yields.
According to Inflation Data.com, inflation is non-existent right now. They currently post inflation at -1.29%. Deflation has reigned for the last three quarters. Although they see the trend heading in the other direction right now, I wouldn’t be surprised if we see another quarter of deflationary activity. Bear in mind, the “official” Consumer Price Index differ from non-official tallies, but any way you look at it, inflation is weak.
That’s one reason to consider cash investments. …
17Nov2009 | Invest With An Edge | 2 comments | ContinuedGoldman Sachs (NYSE: GS) Really Does Rule The World
In Wednesday’s edition of the Invest With An Edge newsletter (to which you really should subscribe if you haven’t already), our Quote of the Week came from Goldman Sachs CEO Lloyd Blankfein. He said “We’re very important… I’m doing God’s work.”
Yes, Blankfein really said this. Follow the link above if you don’t believe it. Even more amazing, he said it to a reporter, during a scheduled interview, knowing whatever he said was on the record.
Now I will admit that in context, Blankfein had a point. The financial system provides funding for new businesses and jobs for people. Most would agree these are…
16Nov2009 | Invest With An Edge | 0 comments | ContinuedBen and Barack Have Your Back
Signals from the Fed, the White House, the Treasury, and just about every other central bank and government around the world are pointing toward the same conclusion, which can be summarized in two words: “Easy Money.” Monetary policy will stay loose. Public money will flow freely. “Systemically important” financial institutions will be protected from failure at all costs. The light is green, and everyone should just step on the gas.
In hindsight, last week’s Fed statement may have revealed too much. By defining specific criteria by which it intends to make decisions – namely capacity utilization, i.e. unemployment – the Federal…
12Nov2009 | Invest With An Edge | 0 comments | ContinuedWell-Timed Launch For New Junior Gold ETF: GDXJ
Investment success often lies in timing. Van Eck Global may have hit the nail on the head with today’s introduction of Market Vectors Junior Gold Miners ETF (GDXJ). With gold bullion breaking above $1,100 earlier this week, gold stocks are flying.
GDXJ follows the also very successful Market Vectors Gold Miners (GDX), launched back in 2006. The difference lies in that word “Junior.” GDX includes large-cap global mining companies; GDXJ is focused on much smaller gold miners and prospectors. The weighted average market capitalization of GDX constituents was $15.2 billion as of 9/30/09. In the index tracked by GDXJ, it was…
12Nov2009 | Invest With An Edge | 0 comments | ContinuedThree “Recovery Investing” ETFs to Consider: IYW, VCR, IYT
Last week the Labor Department reported an unemployment rate above 10% for the first time since the early-1980s. The market seemed unconcerned, closing with a gain on the day the numbers came out. Plenty of people seem to think the worst is behind us. After all, if government reports are to be believed, the Great Recession ended last quarter.What should investors do if the market is turning around? There’s still plenty of upside potential before we hit October 2007 highs. Two sectors that performed well the past 52 weeks and are poised to continue moving upward in a recovering economy…
10Nov2009 | Invest With An Edge | 0 comments | Continued
Loading ...
