Complete ETF List - March 2010

ETF Planet has just released its updated "Complete ETF List" for the first quarter 2010. The list is in excel format, and is free to download, modify, and use as you please. All data was freely obtained from www.morningstar.com, which is a great resource for ETF information. The list now contains 972 funds, including exchange traded notes. The file has two drop down menus: "Family Name" and "Morningstar Category", and displays the 3 month, 12 month, and 3 year performance.

Visit http://www.etfplanet.com to download

3rd Annual "Inside ETFs Conference" kicks off

The 3rd Annual "Inside ETFs Conference" kicked off today in Boca Raton, Florida. The full agenda can be seen here.

The Inside ETFs’ program is designed to bring financial advisors up to speed on all the latest developments in the ETF marketplace. Over two-and-a-half days, our expertly chosen panels of investors, industry experts, academics and analysts will examine how ETFs can be used to create stronger risk-adjusted returns. Topics include:

How to choose the best ETF in each asset class
How to trade ETFs to get the best executions
How to build and/or select the best model ETF portfolios
Leveraged ETFs, commodity ETFs, fixed-income ETFs and other “hot topics”


2009’s event was voted a resounding success. 2010’s event will build on that success with an expanded format featuring dual tracks in the afternoon sessions. In addition, this year’s event features refined and deepened ETFs 101 and Advanced ETFs workshops on Sunday afternoon. Also in response to your feedback, the 2010 event will make expanded use of PowerPoint presentations, enabling speakers to better convey certain technical ideas and to share data more effectively.

Complete ETF List - Q4 2009

ETF Planet has just released its updated "Complete ETF List" for the fourth quarter 2009. The list is in excel format, and is free to download, modify, and use as you please. All data was freely obtained from www.morningstar.com, which is a great resource for ETF information. The list now contains 952 funds, including exchange traded notes. The file has two drop down menus: "Family Name" and "Morningstar Category", and displays both the 3 month and 12 month performance.

Visit etfplanet.com to download the file

Best and Worst ETFs of 2009

Another year has come and gone, the dust has settled, and now its time to see who made our top ten best and worst ETFs for the year. To avoid duplication, we’ve eliminated the lesser known ETFs that essentially track the same assets as the more popular issues, as well as funds with built in leverage. As you can probably imagine, the top ten list was saturated with energy and emerging market related names. The best overall performer was the Market Vectors Coal ETF (KOL) which was up over 144% for the year. Other top performers in the list were the Market Vectors Russia ETF (RSX), the iShares MSCI Brazil Index ETF (EWZ), and the Market Vectors Steel ETF (SLX).

Best Performers for 2009:
1) 144.6% - Market Vectors Coal ETF (KOL)
2) 139.2% - Market Vectors Russia ETF (RSX)
3) 121.4% - iShares MSCI Brazil Index ETF (EWZ)
4) 112.8% - Market Vectors Steel ETF (SLX)
5) 103.8% - SPDR S&P Emerging Latin America (GML)
6) 102.9% - iShares MSCI Turkey (TUR)
7) 99.0% - SPDR S&P Semiconductor (XSD)
8) 96.6% - Claymore/AlphaShares China Small Cap (HAO)
9) 95.6% - B2B Internet HOLDRs (BHH)
10) 95.1% - WisdomTree India Earnings (EPI)

This year’s dogs are mostly long fixed income, and a few banking related ETFs. The worst performer, was the Vanguard Extended Duration Treasury (EDV) which is sporting a solid -35% return year to date. Following close behind at -23% and -22% were the PowerShares Dynamic Banking (PJB) and the SPDR KBW Regional Banking (KRE), respectively.

Worst Performers for 2009:
1) -35.6% - Vanguard Extended Duration Treasury (EDV)
2) -22.9% - PowerShares Dynamic Banking (PJB)
3) -21.9% - SPDR KBW Regional Banking (KRE)
4) -21.8% - iShares Barclays 20+ Year Treasury (TLT)
5) -13.4% - SPDR Barclays Capital Long Term Treasury (TLO)
6) -11.1% - PowerShares 1-30 Year Laddered Treasury (PLW)
7) -10.9% - iShares Dow Jones US Regional Banks (IAT)
8) -9.1% - iShares Barclays 10-20 Year Treasury (TLH)
9) -7.8% - PowerShares FTSE RAFI Utilities (PRFU)
10) -7.8% - PowerShares Dynamic Aggressive Growth (PGZ)

Our top ten best and worst lists were created using data pulled from Morningstar.com

Market Correction Looming?

Today the S&P 500 (SPY) is flirting with new highs, based on our research this price action is to continue and should cause the index to close at a brand new high for the year. The technical picture looks bleak. For the last month, the market has continued its rally on lower than average volume. Fundamentally, the facts show that although there are signs of improvement in the economy, the full extent of the recent rally is unjustified. The consumer will continue to be a drag on the economy. The average consumer is still in a deleveraging/saving frame of mind and does not have a strong appetite for new credit to finance larger purchases. With unemployment continuing to be a threat, and consumers racing to either save or pay down debt, our view of economic growth seems to be temporarily constrained. A good percentage of this year’s market rally can be justified fundamentally, relative to the desperately oversold levels we were in during February. Most companies have cut costs which in turn, has increased profitability, but the real question, and what we believe will hinder positive results this coming earnings season is top line growth. After all the major cost cutting efforts that occurred throughout the recession, companies are poised to meet and possibly beat expectations on the bottom line. Our focus this earnings season is on new revenue. If companies don’t improve the top line it only shows that any good result is a function of cost cutting efforts that simply will not be sustainable in the long term.

We expect to see a near term shortfall in the market in the range of up to 10%. A way to hedge your portfolio or make a play on this information, would be to short the S&P 500 (SPY) or put on a contrarian position on the temporarily media, and investor hated US Dollar (UUP). Going long the US Dollar (UUP) would temporarily hedge you against a market shortfall because it has been trading inversely to S&P 500 (SPY). Our long term view on the US Dollar is bearish for obvious reasons, but in the near term a short term rally in the US Dollar(UUP) is rather probable. The chart below shows a comparison between the recovery periods. The 1974-75 upswing vs. this year’s market rally. If you notice, there are many similarities between both time periods. When we started comparing both upswing back in August we used it’s .93 correlation to project the future moves of the S&P 500 (SPY). As of now it has been fairly accurate and following its course. If this analysis holds true, there is a slight pullback on the horizon.

Solar ETF Update: TAN vs. KWT

Over a year ago we took a look at the two most popular solar ETFs, Claymore’s Global Solar Energy Index (TAN) and Van Eck’s Market Vectors Solar Energy ETF (KWT). At first glance these two funds look to be quite similar, and in many aspects they are. However, a closer look reveals many of their differences in structure, size, and value.

The first solar energy ETF to hit the market was Claymore’s TAN, which tracks the MAC Global Solar Energy Index. This index has grown from 25 securities a year ago, to 30 today. The market cap size over the past year has drifted lower to small (51%), mid (38%), and large cap (11%) companies. Shortly after the launch of TAN, Van Eck’s KWT hit the market, which tracks the Ardour Solar Energy Index. This index is comprised of 29 securities, up from 27 a year ago, covering small (38%), mid (53%), and large cap (9%) companies. When looking at the top five holdings of the two funds as a percentage of the total fund, TAN’s top five have dropped from 34% to 25%, whereas KWT’s top five has dropped from 47% to 31% of the fund. Also worth noting is MEMC Electronic Materials (WFR) was previously absent from KWT, but is now the fund’s third largest holding.

On a value comparison, TAN’s average trailing P/E ratio is around 13, while KWT is sporting a 14 trailing P/E. When looking at the top three in country allocation, TAN is 30% China, 30% United States, and 27% Germany compared to KWT’s 35% United States, 27% Germany, and 27% China.

Over the past year both of these ETFs have shifted to a smaller average market cap, and have seen their P/E ratios drop significantly. Although KWT has become more diversified, Claymore’s TAN still seems to be the better choice.

PIMCO Battles iShares for Treasuries

The new PIMCO 1-3 Year US Treasury ETF (TUZ) has been trading for two days now, as the bond giant’s first stab at the ETF market. The 1-3 Year U.S. Treasury Index Fund is a passively managed exchange-traded fund comprising primarily the high-quality component securities of the Merrill Lynch 1-3 Year U.S. Treasury Index. Management fees are listed at 15 basis points, which is the same as its primary competitor, the $7 billion iShares Barclays 1-3 Year Treasury Bond Fund (SHY). Given PIMCO’s position in the bond community, it shouldn’t be too hard to chip away at the mammoth iShares fund over time.