New Years Eve!

A short post as there is a lot of football work today. I received an invite to go to an NYSE bell ringing ceremony for GlobalX for the middle of next month. While I won’t be making the trip I was curious to see that on the invite they listed all of their Chinese sector ETFs including the Materials Sector ETF which will have ticker symbol CHIM. That fund is not out yet so the invite makes it seem like it could be out by January 20, we’ll see. I mention it because I think it has potential to be one of the more interesting of the bunch. Chances are that Jiangxi Copper (JIXAY) is going to be a big holding. I would also expect Shenhua Energy, which is a big coal company to be another. It will be interesting to see if the fund takes an agricultural turn, there are quite a few stocks in the industry in China so we’ll see. Along the same line I found a site, via Seeking Alpha, called Top Foreign Stocks which has a little commentary but a lot lists of ADRs from various countries, both NYSE and OTC, as a database of sorts. There were a couple of omissions I noticed but it would be very difficult to capture every single ADR. Also their lists so far are just ADRs not ordinary shares. The latest article in the Seeking Alpha Positioning For 2010 series was out yesterday. It is a writeup from Michael Johnston from ETFDatabase. It lists 10 ETF that ETFDatabase thinks “present compelling cases for investment in the new...

New Years Eve!

A short post as there is a lot of football work today. I received an invite to go to an NYSE bell ringing ceremony for GlobalX for the middle of next month. While I won’t be making the trip I was curious to see that on the invite they listed all of their Chinese sector ETFs including the Materials Sector ETF which will have ticker symbol CHIM. That fund is not out yet so the invite makes it seem like it could be out by January 20, we’ll see. I mention it because I think it has potential to be one of the more interesting of the bunch. Chances are that Jiangxi Copper (JIXAY) is going to be a big holding. I would also expect Shenhua Energy, which is a big coal company to be another. It will be interesting to see if the fund takes an agricultural turn, there are quite a few stocks in the industry in China so we’ll see. Along the same line I found a site, via Seeking Alpha, called Top Foreign Stocks which has a little commentary but a lot lists of ADRs from various countries, both NYSE and OTC, as a database of sorts. There were a couple of omissions I noticed but it would be very difficult to capture every single ADR. Also their lists so far are just ADRs not ordinary shares. The latest article in the Seeking Alpha Positioning For 2010 series was out yesterday. It is a writeup from Michael Johnston from ETFDatabase. It lists 10 ETF that ETFDatabase thinks “present compelling cases for investment in the new...

CNBC Today

I am scheduled to appear on CNBC 30-ish minutes after the close today to talk about five top picks for 2010. So far I have Red Sox in 6, Celtics in 6, Bruins in 7 and the Pats to win the Super Bowl. Hopefully I come up with a fifth by the time I go on the...

CNBC Today

I am scheduled to appear on CNBC 30-ish minutes after the close today to talk about five top picks for 2010. So far I have Red Sox in 6, Celtics in 6, Bruins in 7 and the Pats to win the Super Bowl. Hopefully I come up with a fifth by the time I go on the...

Narrow Based ETFs

IndexUniverse has a useful post up that compares the PowerShares Aerospace & Defense Portfolio (PPA) and iShares Dow Jones U.S. Aerospace & Defense Index Fund (ITA). Obviously the two cover a lot of the same ground and perform very similarly to each other. I have been a big believer of keeping a defense stock (or if you prefer, an ETF) in the portfolio as something that might go up in the face of certain types of external shocks. The article spells out some of the macro factors that make the space compelling as well, at least I find it compelling anyway. This is a pretty good example to support the case to go narrower than broad based index funds. In an equity portfolio with four or five broad based equity funds there is very little chance of creating any sort of zigzag effect in the portfolio. In the case of four broad funds you really have four funds that will move in the same direction but in different magnitudes and probably with different volatility characteristics. So they represent different market segments, broadly speaking, but the actual diversification is not that effective. In the face of certain external shocks gold and defense stocks have a pretty good chance of going up. This effect cannot be created with a combo of SPY, IWM and EFA. For anyone interested in going narrower in their portfolio construction and including defense stocks they either need to buy one of these ETFs or buy an individual stock. We have a bigger cap defense stock instead of an ETF and at times it outperforms the ETFs...