CHICAGO, IL.--(MARKET WIRE)--Dec 6, 2005 -- PowerShares Capital Management LLC continues to "Lead the Intelligent ETF Revolution" with the launch of four new Exchange Traded Funds (ETFs) today, December 6, 2005, at the American Stock Exchange. This launch includes the PowerShares Value Line Timeliness™ Select Portfolio and three industry group portfolios. The new PowerShares ETFs and ticker symbols are listed below.
-- (AMEX:PIV - News) PowerShares Value Line Timeliness™ Select Portfolio
-- (AMEX:PHO - News) PowerShares Water Resources Portfolio
-- (AMEX:PHW - News) PowerShares Dynamic Hardware & Consumer Electronics
Portfolio
-- (AMEX:PTE - News) PowerShares Dynamic Telecommunications & Wireless
Portfolio
The PowerShares Value Line Timeliness™ Select Portfolio is based on the Value Line Timeliness™ Select Index, which chooses securities using Value Lines' proprietary ranking systems of Timeliness™, Safety™ and Technicals™. The index seeks to identify companies that have the potential to outperform the overall U.S. equity market. The Value Line Timeliness™ Select Index has outperformed the S&P 500 benchmark over the past 1, 3, 5 and 10 year periods. (See table below)
Index History (%) as of 9/30/05 1 Year 3 Year 5 Year 10 Year
------------------------------- ------ ------ ------ -------
Value Line Timeliness™Select
Index 29.84 24.77 4.06 16.95
------------------------------- ------ ------ ------ -------
S&P 500 Index + 12.24 16.71 -1.49 9.49
------------------------------- ------ ------ ------ -------
Russell 2000 Index + 14.57 18.13 -0.72 9.54
------------------------------- ------ ------ ------ -------
The Index performance results are hypothetical and index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown nor does the index lend securities, and no revenues from securities lending were added to the performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund.
+The S&P 500 and Russell 2000 Indexes are unmanaged indexes used as a measurement of change in stock market conditions based on the average performance of approximately 500 and 2000 common stocks, respectively.
The PowerShares Water Resources Portfolio is based on the Palisades Water Index which seeks to identify companies that focus on the provision of potable water, the treatment of water, and the technology and services that are directly related to water consumption.
The PowerShares Dynamic Hardware & Consumer Electronics and PowerShares Dynamic Telecommunications & Wireless Portfolios are both based on Intellidex indexes which incorporate advanced quantitative methodologies to discriminate between securities and select the stocks within an industry group identified as having the greatest capital appreciation potential.
"Today, for the first time investors will have access to Value Lines proprietary ranking systems in a low cost ETF format," said Bruce Bond, President of PowerShares Capital Management. "Our Water Resource and Hardware & Consumer Electronics Portfolios are also industry firsts for the ETF market. We're pleased to offer these new PowerShares portfolios providing investors with unique options to meet their personal financial goals. The launch of these four new ETFs brings the total number of PowerShares ETF portfolios to 35."
PowerShares Capital Management, LLC
PowerShares Capital Management, LLC provides institutional caliber asset management and market exposure through the replication of enhanced indexes. PowerShares delivers this sophisticated asset management in one of the more benefit rich investment vehicles available today, the exchange traded fund. The firm is committed to theoretically sound portfolio construction and empirically verifiable investment management approaches. PowerShares' asset management philosophy and investment discipline are deeply rooted in the application of intuitive factor analysis and model implementation to enhance investment decisions.
Risks of Owning PowerShares
PowerShares funds are made up of publicly traded securities that can and will move higher and lower with market movements. You should anticipate that the value of the shares of each fund will advance or decline more or less in correlation with the advance or decline in value of the applicable index. The funds are not actively managed and shares of the funds may trade at or below the funds' NAV. Exchange traded funds are subject to risks similar to those of stocks, including risks associated with short-selling and margin account maintenance.
An investor should consider investment objectives, risks, charges and expenses carefully before investing. A prospectus which contains more complete information about PowerShares, including, risks, fees and expenses can be obtained by visiting the PowerShares web site at www.PowerShares.com or by calling 800-THE-AMEX. The prospectus should be read carefully before investing.
The information in the prospectus is not complete and may be changed. The portfolio may not sell its Shares until the registration statement filed with the Securities and Exchange Commission is effective. The prospectus is not an offer to sell the portfolio Shares, nor is the portfolio soliciting an offer to buy its Shares in any jurisdiction where the offer or sale is not permitted.
ALPS Distributors, Inc. is the distributor of the PowerShares Exchange-Traded Fund Trust.
Contact:
For Media Inquiries Contact:
CTA Public Relations
Bill Conboy
303-665-4200 x 106
Email Contact
--------------------------------------------------------------------------------
Source: PowerShares Capital Management
Wednesday, December 7
Wednesday, November 16
New ETF Targets High Dividend Stocks
The SPDR Dividend ETF (SDY.A: Quote, Profile, Research) tracks the Standard & Poor's High Yield Dividend Aristocrats Index, which includes 50 high- yielding companies in the S&P Composite of 1,500 stocks that meet certain criteria and have increased their dividends every year for at least 25 years.
Howard Silverblatt, market equity analyst for S&P, said at a briefing at the Amex that dividends have been regaining favor with investors since late in 2002, after a long period in which they were out of fashion.
"Basically, companies were penalized for returning cash to their owners," he said. But the bear market of 2000-2002 brought a change in the way companies and investors viewed dividends, he said.
The components must have a minimum market capitalization of $500 million and must trade an average of 1.5 million shares or more per year.
Concentration limits prevent any stock from being more than 4 percent of the index weight at the time of a quarterly re-balancing. Those issues with the highest yield get the biggest weight in the index.
Most recently, the yield on the portfolio was about 3.4 percent.
"There are other dividend products out there that are very heavily weighted toward utilities and financial," said Jim Ross, co-head of the SSgA Advisor Strategies Group.
The SPDR Dividend ETF is currently about 26 percent in financial stocks, and utilities and financials together make up less than 50 percent.
Stock Market News and Investment Information | Reuters.com
Howard Silverblatt, market equity analyst for S&P, said at a briefing at the Amex that dividends have been regaining favor with investors since late in 2002, after a long period in which they were out of fashion.
"Basically, companies were penalized for returning cash to their owners," he said. But the bear market of 2000-2002 brought a change in the way companies and investors viewed dividends, he said.
The components must have a minimum market capitalization of $500 million and must trade an average of 1.5 million shares or more per year.
Concentration limits prevent any stock from being more than 4 percent of the index weight at the time of a quarterly re-balancing. Those issues with the highest yield get the biggest weight in the index.
Most recently, the yield on the portfolio was about 3.4 percent.
"There are other dividend products out there that are very heavily weighted toward utilities and financial," said Jim Ross, co-head of the SSgA Advisor Strategies Group.
The SPDR Dividend ETF is currently about 26 percent in financial stocks, and utilities and financials together make up less than 50 percent.
Stock Market News and Investment Information | Reuters.com
Monday, November 14
Beware The Faults in Homebuilding ETF
PowerShares recently came out with an ETF aimed at the red hot housing sector. It's the Building and Construction Portfolio trading under the symbol PKB. At first it seemed like a great way to trade a basket of homebuilders, but as you will see upon examination, it's much broader than homebuilding stocks.
Here is a good indepth article that talks about the broad makeup of the portfolio.
Beware Faults in Homebuilding ETF
Here is a good indepth article that talks about the broad makeup of the portfolio.
Beware Faults in Homebuilding ETF
SMH Rallied & So Did The Nasdaq
After getting to the middle of the range at 32.50 the Semiconductors staged a sharp rally that brought the SMH back over $35. The semiconductors haven't been leading the nasdaq's moves higher this year, but have been providing downward pressure. The fact that they had a sharp snap back rally, allowed the nasdaq to rally back toward it's highs.
Notice, the QQQQ (Nasdaq 100) has actually rallied to new highs for the year which means Large Cap Tech is leading the market. Another area of leadership has been the Dow Jones Transportation Index, which is surprising considering the high energy prices. If you are a believer in Dow Theory, a break out in the Dow Jones Industrials this fall would be very bullish!
The Dow Jones Utilities just completed the most incredible 3 year rally that looked more like a tech or biotech rally. But they have cooled off in recent weeks as the bond market moved lower.
Notice, the QQQQ (Nasdaq 100) has actually rallied to new highs for the year which means Large Cap Tech is leading the market. Another area of leadership has been the Dow Jones Transportation Index, which is surprising considering the high energy prices. If you are a believer in Dow Theory, a break out in the Dow Jones Industrials this fall would be very bullish!
The Dow Jones Utilities just completed the most incredible 3 year rally that looked more like a tech or biotech rally. But they have cooled off in recent weeks as the bond market moved lower.
Friday, October 28
SMH Has Been Pressuring The Nasdaq
If you are looking for the source of weakness in the nasdaq, you need to look no further than the Semiconductors ( SMH ). After breaking out of it range (above $35) the SMH recently failed and broke back down through that level. It appears to want to test the bottom end of that range around $30. If that takes place it will continue to weigh on the nasdaq for the time being. A move back above $35 would allow the nasdaq to regain it's footing.
Here is the chart, for now it's rather ugly:
Here is the chart, for now it's rather ugly:
Thursday, May 26
Semiconductor ETF ( SMH ) Testing Top Of Range
After holding the bottom end of it's range near $30 the SMH ( Semiconductor Holdr ETF ) has rallied to the upper end of this year's trading range at $35. A convincing breakout above $35 would open the door to an extended rally in both the semiconductor index and the Nasdaq in general. As you can see however, the rsi is approaching 80 so some consolidation would be likely before a major breakout.
Here is a chart of the SMH over the past 6 months:
Here is a chart of the SMH over the past 6 months:
Wednesday, May 18
Nasdaq & qqqq breakout!
The Nasdaq 100 index has broken and retested the downtrend line that has been in place all year. Today it also cleared the 200 day moving average. The Nasdaq 100 is represented by the qqqq etf. Each share of qqqq represents 1/40th of the index, in other words it would take 40 shares to equal 1 share of each stock in the Nasdaq 100 index.
The Semiconductors have been leading the way since holding support at the bottom end of their trading range. You can see that SMH ( The semiconductor holdr) broke out prior to the Nasdaq 100.
Breakouts like this can often be "fake outs" but in this case nearly every index is breaking out at the same time so that adds validity to the situation.
The Semiconductors have been leading the way since holding support at the bottom end of their trading range. You can see that SMH ( The semiconductor holdr) broke out prior to the Nasdaq 100.
Breakouts like this can often be "fake outs" but in this case nearly every index is breaking out at the same time so that adds validity to the situation.
Friday, May 13
Rydex Investments Launches Mega-Cap Exchange Traded Fund (ETF) Benchmarked to Russell Top 50(TM) Index
Press Release Source: Rydex Investments
Rydex Investments Launches Mega-Cap Exchange Traded Fund (ETF) Benchmarked to Russell Top 50(TM) Index
Tuesday May 10, 8:24 am ET
New ETF to Track the 50 Largest Companies in the U.S.
ROCKVILLE, Md., May 10 /PRNewswire/ -- Rydex Investments today announced the addition of a second ETF to its fund line up: Rydex Russell Top 50 ETF (Ticker: XLG). The fund, listed on the American Stock Exchange, tracks the newly created Russell Top 50(TM) Index and is designed to give investors exposure to the 50 largest companies in the U.S. These 50 mega-cap companies represent approximately 40% of the total U.S. market capitalization. The smallest security in the index has an approximate market cap of $46 billion.
"Russell's outstanding reputation in the industry, coupled with the experience of the American Stock Exchange and the innovation that Rydex has brought to the industry make this a particularly attractive product for certain investors (although no investment strategy can eliminate risk or guarantee investment returns)," commented Steve Sachs, director of trading, Rydex Investments. "There is certainly some belief in the market that large- caps have the potential to outperform given current market and economic conditions. A mega-cap fund has the potential to provide enhanced returns relative to other major market indices."
Rydex Russell Top 50 ETF is the only ETF of its kind focusing on the top 50 mega caps. This new ETF provides exposure to America's largest companies through one fund and has the potential to outperform in periods of mega-cap rallies, a common occurrence during a time of economic expansion. The Russell Top 50(TM) Index is reviewed annually and reconstituted in an effort to ensure the appropriate mega-cap exposure. In addition, companies are selected solely on their market cap, regardless of their sector or industry representation.
"At Rydex, we listen to our advisors and strive to respond to their investment needs -- and to those of their clients -- by providing innovative and timely solutions. This product is in direct response to those needs," said Carl Verboncoeur, chief executive officer, Rydex Investments. "Until now, there has been a gap in the ETF marketplace for a mega-cap investment option. We feel that this product fills that gap nicely."
XLG comes less than two years after the successful launch of Rydex's first ETF, Rydex S&P Equal Weight ETF (Ticker: RSP), which has garnered over $740 million in assets. While each fund has its own, unique investment strategy, both provide investors with the same benefits that are obtained by investing in an ETF. ETFs can be a relatively low cost investment vehicle and trade throughout the day on an exchange, much like a stock. However, like a stock, ETFs are subject to market risk and price fluctuation. In addition, the ETF structure can be an extremely tax-efficient investment and may reduce the risk, volatility, time and attention that could be involved in owning stock in individual companies.
About Rydex
Rydex Investments, the investment advisor to Rydex Funds, is a leader in developing specialized investments that are essential components of a modern portfolio. Through continuous innovation, Rydex attempts to anticipate the evolving needs of investors. Rydex is committed to helping investors and investment advisors maximize the value of our investing tools and strategies and to providing an outstanding level of customer service. Rydex manages $14 billion in assets via 45 mutual funds, two ETFs -- Rydex S&P Equal Weight ETF and Rydex Russell Top 50 ETF -- as well as Rydex SPhinX Fund, which is a registered fund of hedge funds.
For more complete information regarding Rydex funds call 800.820.0888 or visit http://www.rydexinvestments.com for a prospectus. Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. The fund's prospectus contains this and other information about the fund. Please read the prospectus carefully before you invest or send money.
Rydex Russell Top 50 ETF and Rydex S&P Equal Weight ETF are subject to risks similar to those of stocks and may not be suitable for all investors. Shares can be bought and sold through a broker and the selling shareholder may have to pay brokerage commissions in connection with the sale. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than original cost. Shares may only be redeemed directly from the fund by Authorized Participants via Creation Units. The elimination of the bias toward large-cap companies in the fund also lessens the impact of large-cap gains as compared to those reflected in funds benchmarked to the S&P 500 Index. Additionally, Rydex Russell Top 50 ETF is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity markets as a whole. Please see the prospectus for more details.
The fund is not sponsored, endorsed, sold or promoted by the Russell Investment Group, the creator of the Russell Top 50(TM) Index. Russell makes no representation regarding the advisability of investing in the fund.
"S&P®" and "S&P 500®" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Rydex Investments and its affiliates. Rydex S&P Equal Weight ETF is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of investing in the fund.
Rydex SPhinX Fund may not be suitable for all investors. Rydex SPhinX Fund invests primarily in unregistered hedge funds that are not subject to the regulations and standards afforded registered securities. These underlying hedge funds may use speculative investment strategies, such as leverage, derivatives and short sales of securities that involve significant risk. Shares of the fund are available only to eligible investors, are subject to restrictions on transferability and re-sale and have limited liquidity. Share repurchase offers are made at the sole discretion of the board. Shares repurchased within one year of the investor purchase date may be subject to a fee of 1%. Please see the prospectus for additional information.
Any overviews herein are intended to be general in nature and for current interest. While helpful, these overviews are no substitute for professional tax, financial or legal advice. Investors should seek such professional advice for their particular situation. Neither Rydex Distributors, Inc. nor any of its affiliates or representatives is providing tax, financial or legal advice.
Rydex Distributors, Inc., an affiliate of Rydex Investments, is the distributor of the Rydex funds.
--------------------------------------------------------------------------------
Source: Rydex Investments
Rydex Investments Launches Mega-Cap Exchange Traded Fund (ETF) Benchmarked to Russell Top 50(TM) Index
Tuesday May 10, 8:24 am ET
New ETF to Track the 50 Largest Companies in the U.S.
ROCKVILLE, Md., May 10 /PRNewswire/ -- Rydex Investments today announced the addition of a second ETF to its fund line up: Rydex Russell Top 50 ETF (Ticker: XLG). The fund, listed on the American Stock Exchange, tracks the newly created Russell Top 50(TM) Index and is designed to give investors exposure to the 50 largest companies in the U.S. These 50 mega-cap companies represent approximately 40% of the total U.S. market capitalization. The smallest security in the index has an approximate market cap of $46 billion.
"Russell's outstanding reputation in the industry, coupled with the experience of the American Stock Exchange and the innovation that Rydex has brought to the industry make this a particularly attractive product for certain investors (although no investment strategy can eliminate risk or guarantee investment returns)," commented Steve Sachs, director of trading, Rydex Investments. "There is certainly some belief in the market that large- caps have the potential to outperform given current market and economic conditions. A mega-cap fund has the potential to provide enhanced returns relative to other major market indices."
Rydex Russell Top 50 ETF is the only ETF of its kind focusing on the top 50 mega caps. This new ETF provides exposure to America's largest companies through one fund and has the potential to outperform in periods of mega-cap rallies, a common occurrence during a time of economic expansion. The Russell Top 50(TM) Index is reviewed annually and reconstituted in an effort to ensure the appropriate mega-cap exposure. In addition, companies are selected solely on their market cap, regardless of their sector or industry representation.
"At Rydex, we listen to our advisors and strive to respond to their investment needs -- and to those of their clients -- by providing innovative and timely solutions. This product is in direct response to those needs," said Carl Verboncoeur, chief executive officer, Rydex Investments. "Until now, there has been a gap in the ETF marketplace for a mega-cap investment option. We feel that this product fills that gap nicely."
XLG comes less than two years after the successful launch of Rydex's first ETF, Rydex S&P Equal Weight ETF (Ticker: RSP), which has garnered over $740 million in assets. While each fund has its own, unique investment strategy, both provide investors with the same benefits that are obtained by investing in an ETF. ETFs can be a relatively low cost investment vehicle and trade throughout the day on an exchange, much like a stock. However, like a stock, ETFs are subject to market risk and price fluctuation. In addition, the ETF structure can be an extremely tax-efficient investment and may reduce the risk, volatility, time and attention that could be involved in owning stock in individual companies.
About Rydex
Rydex Investments, the investment advisor to Rydex Funds, is a leader in developing specialized investments that are essential components of a modern portfolio. Through continuous innovation, Rydex attempts to anticipate the evolving needs of investors. Rydex is committed to helping investors and investment advisors maximize the value of our investing tools and strategies and to providing an outstanding level of customer service. Rydex manages $14 billion in assets via 45 mutual funds, two ETFs -- Rydex S&P Equal Weight ETF and Rydex Russell Top 50 ETF -- as well as Rydex SPhinX Fund, which is a registered fund of hedge funds.
For more complete information regarding Rydex funds call 800.820.0888 or visit http://www.rydexinvestments.com for a prospectus. Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. The fund's prospectus contains this and other information about the fund. Please read the prospectus carefully before you invest or send money.
Rydex Russell Top 50 ETF and Rydex S&P Equal Weight ETF are subject to risks similar to those of stocks and may not be suitable for all investors. Shares can be bought and sold through a broker and the selling shareholder may have to pay brokerage commissions in connection with the sale. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than original cost. Shares may only be redeemed directly from the fund by Authorized Participants via Creation Units. The elimination of the bias toward large-cap companies in the fund also lessens the impact of large-cap gains as compared to those reflected in funds benchmarked to the S&P 500 Index. Additionally, Rydex Russell Top 50 ETF is subject to the risk that large-capitalization stocks may underperform other segments of the equity market or the equity markets as a whole. Please see the prospectus for more details.
The fund is not sponsored, endorsed, sold or promoted by the Russell Investment Group, the creator of the Russell Top 50(TM) Index. Russell makes no representation regarding the advisability of investing in the fund.
"S&P®" and "S&P 500®" are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by Rydex Investments and its affiliates. Rydex S&P Equal Weight ETF is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of investing in the fund.
Rydex SPhinX Fund may not be suitable for all investors. Rydex SPhinX Fund invests primarily in unregistered hedge funds that are not subject to the regulations and standards afforded registered securities. These underlying hedge funds may use speculative investment strategies, such as leverage, derivatives and short sales of securities that involve significant risk. Shares of the fund are available only to eligible investors, are subject to restrictions on transferability and re-sale and have limited liquidity. Share repurchase offers are made at the sole discretion of the board. Shares repurchased within one year of the investor purchase date may be subject to a fee of 1%. Please see the prospectus for additional information.
Any overviews herein are intended to be general in nature and for current interest. While helpful, these overviews are no substitute for professional tax, financial or legal advice. Investors should seek such professional advice for their particular situation. Neither Rydex Distributors, Inc. nor any of its affiliates or representatives is providing tax, financial or legal advice.
Rydex Distributors, Inc., an affiliate of Rydex Investments, is the distributor of the Rydex funds.
--------------------------------------------------------------------------------
Source: Rydex Investments
Wednesday, May 4
SPY Breaking Downtrend Line
The S&P 500 ETF (SPY) looks like it will close above the downtrend line that has been in place since the beginning of the year. With a strong close today the RSI will close above 50% and at it's highest level since March.
Tuesday, May 3
Double Bottom Formed In IBB
As we discussed last week, the iShares Biotechnology ETF (IBB) contains a very diverse group of smaller biotech companies with the only large position being 16% in Amgen. It has been a tough year for biotech outside of Genentech (DNA) which has scored two product approvals in the past 60 days.
But now IBB has made a double bottom on the charts at $62 and change, which is just above the 52 week low of $61.22. This could be a sign that the downward pressure on the sector is subsiding.
In Semiconductor land, the iShares ETF (IGW) also held the bottom end of it's recent trading range at $47. Additionally, SMH (the semiconductor holdr) held the bottom of it's range near $30. These two sectors have significant corelation with the Nasdaq index, so if these sectors have found support it should help out the broader indices as well.
But now IBB has made a double bottom on the charts at $62 and change, which is just above the 52 week low of $61.22. This could be a sign that the downward pressure on the sector is subsiding.
In Semiconductor land, the iShares ETF (IGW) also held the bottom end of it's recent trading range at $47. Additionally, SMH (the semiconductor holdr) held the bottom of it's range near $30. These two sectors have significant corelation with the Nasdaq index, so if these sectors have found support it should help out the broader indices as well.
Thursday, April 28
No DNA Found In IBB!
Over the past 6 weeks the most explosive company in the Biotech industry has been Genentech (DNA). I assumed when I was hearing the good news that I was participating in the gains through my investments in Biotech iShares (IBB)in my retirement account. But recently I pulled up a chart and saw that while DNA and the BBH (Holdr) had both skyrocketed to new yearly highs, IBB was still skidding along the lows for the year. I was in shock!
It turns out that ALL ETF's ARE NOT CREATED EQUAL!
In fact, the differences between BBH and IBB are absolutely striking! The reason I purchase IBB shares is because they accept fractional share purchases from accounts like FolioFN and Sharebuilder. But with such sharp differences in investment styles these two ETF's show absolutely no correlation to each other!
In BBH their position in DNA makes up just over 40% of their portfolio today and Amgen is the second biggest holding making up over 24%. When I searched through the daily holdings report for IBB I couldn't find any position in DNA! Could this be possible? The only large position in IBB is in Amgen and that is only 16%, the next largest position is 4.19% position in Gidead (GILD). A biotech ETF having no position whatsoever in the company that has pulled ahead of Amgen to the #1 Biotech Company in the world? It seems impossible but you can check for yourself and you can look at the charts below and see that it appears to be true! How disappointing...... From now on I will examine the fund holdings much more closely before investing.
Here is the chart for Genentech ( DNA )
Here is the Chart For the BBH Holdr over the same period
Sadly, here is the Chart for the IBB iShare ETF over the same period
It turns out that ALL ETF's ARE NOT CREATED EQUAL!
In fact, the differences between BBH and IBB are absolutely striking! The reason I purchase IBB shares is because they accept fractional share purchases from accounts like FolioFN and Sharebuilder. But with such sharp differences in investment styles these two ETF's show absolutely no correlation to each other!
In BBH their position in DNA makes up just over 40% of their portfolio today and Amgen is the second biggest holding making up over 24%. When I searched through the daily holdings report for IBB I couldn't find any position in DNA! Could this be possible? The only large position in IBB is in Amgen and that is only 16%, the next largest position is 4.19% position in Gidead (GILD). A biotech ETF having no position whatsoever in the company that has pulled ahead of Amgen to the #1 Biotech Company in the world? It seems impossible but you can check for yourself and you can look at the charts below and see that it appears to be true! How disappointing...... From now on I will examine the fund holdings much more closely before investing.
Here is the chart for Genentech ( DNA )
Here is the Chart For the BBH Holdr over the same period
Sadly, here is the Chart for the IBB iShare ETF over the same period
Wednesday, April 27
SMH Held Bottom End Of Trading Range
The Semiconductor ETF (SMH) appears to have held support at the bottom of it's trading range which is $30. After a steep decline in 2004 SMH has been range bound between $30 and $35 for the past several months.
Oil Sector Appears To Be Topping
Oil prices plunged today as the weekly inventory report once again showed a higher than expected build in crude oil inventories. Supplies of crude oil are actually well above the 5 year average, but traders have kept the market near all time highs based on a shortage of refinery capacity. It appears that the spectulators headed for the exits after todays numbers.
"Oil plummeted $2.59 to $51.61 on the New York Mercantile Exchange following the government's weekly inventory report, which showed a 5.5 million barrel increase in crude supplies, but a 300,000 barrel draw on gasoline; analysts had been hoping for a build. The energy stocks in the S&P 500 collectively shed 2.58 percent on the news, according to the ETF that tracks the sector; Exxon Mobil Corp. dropped 1.5 percent, or 89 cents, to $58.38, making it Dow's worst performing stock for the day."
The XLE ( Energy Services ETF ) has been one of the best performing of the year, but closed down over $1 today on heavy volume.
"Oil plummeted $2.59 to $51.61 on the New York Mercantile Exchange following the government's weekly inventory report, which showed a 5.5 million barrel increase in crude supplies, but a 300,000 barrel draw on gasoline; analysts had been hoping for a build. The energy stocks in the S&P 500 collectively shed 2.58 percent on the news, according to the ETF that tracks the sector; Exxon Mobil Corp. dropped 1.5 percent, or 89 cents, to $58.38, making it Dow's worst performing stock for the day."
The XLE ( Energy Services ETF ) has been one of the best performing of the year, but closed down over $1 today on heavy volume.
Thursday, March 24
ETF Short Interest Rises In February
According to the monthly report from Morgan Stanley, the percentage of the outstanding ETF shares sold short rose to 17.3% in February from an 18 month low of 16.8% in January. This indicates that a few market participants have turned bearish, but overall the level of optimism remains at lofty levels.
In other news, the growth of ETF's and ETF assets remained strong. 12 new ETF funds have been launched this year and Global Daily Trading volume has increased 19.4% year to date. Additionally, total ETF assets rose to $313.6 Billion which represents an increase of 1.7% over the previous month.
ETF's continue to be the fastest growing sector of the Investment MarketPlace as more and more people choose them for the flexibility and low fee structure. As more and more funds come to market, investors are able to customize their portfolios to fit their individual investment styles and objectives. As long as innovation continues the growth in assets should also.
In other news, the growth of ETF's and ETF assets remained strong. 12 new ETF funds have been launched this year and Global Daily Trading volume has increased 19.4% year to date. Additionally, total ETF assets rose to $313.6 Billion which represents an increase of 1.7% over the previous month.
ETF's continue to be the fastest growing sector of the Investment MarketPlace as more and more people choose them for the flexibility and low fee structure. As more and more funds come to market, investors are able to customize their portfolios to fit their individual investment styles and objectives. As long as innovation continues the growth in assets should also.
Tuesday, March 15
Stock ETF inflows jump as fund sales sluggish
"Meanwhile, cash flooded into exchange-traded funds that invest in domestic equities, as ETFs took in $4.8 billion last week after gathering $740 million the prior week. ETFs are baskets of securities that trade on exchanges like stocks.
ETFs and mutual funds are both seeing solid demand for international stocks, taking in $1 billion and $1.5 billion last week, respectively.
Two large and established ETFs investing in U.S. stocks, the S&P 500-tracking SPDR Trust ( SPY ) and the Nasdaq-100 Trust ( QQQQ ) , were hot sellers last week, gathering $2.3 billion and $1.2 billion."
Stock ETF inflows jump as fund sales sluggish
ETFs and mutual funds are both seeing solid demand for international stocks, taking in $1 billion and $1.5 billion last week, respectively.
Two large and established ETFs investing in U.S. stocks, the S&P 500-tracking SPDR Trust ( SPY ) and the Nasdaq-100 Trust ( QQQQ ) , were hot sellers last week, gathering $2.3 billion and $1.2 billion."
Stock ETF inflows jump as fund sales sluggish
Wednesday, March 9
SMH Showing Strength & BBH Showing Weakness
In the decline these past couple days one of the weakest sectors of the market remains the Biotechs. BBH (Biotech Holdr) at 134.28 are pushing four month lows and are in striking distance of 52 week lows which stand at 127.79. The biotechs were already under pressure at the time Biogen dropped their bombshell last week.
Semiconductors on the other hand as represented by the SMH (Semiconductor Holdr)has rallied back to multi-month highs and signigicant resistance in the $35 area. It's been a nice bounce off the sub $30 January lows, but to create a major breakout it will have to close above $35.
Semiconductors on the other hand as represented by the SMH (Semiconductor Holdr)has rallied back to multi-month highs and signigicant resistance in the $35 area. It's been a nice bounce off the sub $30 January lows, but to create a major breakout it will have to close above $35.
Sunday, March 6
Is Inflation Back?
"As recently as 2003, many U.S investors were worried about deflation. Investors feared that the US economy, characterized by falling prices for technology products, sky-high productivity growth and spare capacity would beging to resemble the moribund economy of the Japanese. In Japan, it was thought, interest rates already at .025% meant that economic stimulus had failed. A deflationary climate meant that businesses lacked pricing incentives and an already sluggish consumer was further encouraged to postpone. But hardly two years later, with US productivity growth slowing, oil hitting all-time highs, and the dollar collapsing, worries about deflation in the US economy seem a far-away dream. Investors are just starting to awaken to another possibility, the so-called I-word: inflation. While it is not clear that it is here yet, an attentive ETF investor will be aware of, and possibly prepared for, an inflationary economy."
Is Inflation Back?:
Is Inflation Back?:
Tuesday, March 1
January's ETF short interest lowest since April 2003
ETF Short Interest has once again fallen to levels not seen since April 2003. This means that investors are confident that the market is not going to decline significantly. This coincides with multi-year lows in volatility and a general complacency among traders. It will be interesting to see if the market can breakout above it's recent trading range without first experiencing a decline in order to rattle investor confidence.
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"January's level of short interest for U.S. exchange-traded funds as a percentage of shares outstanding was the lowest in nearly two years, according to a Monday report from Morgan Stanley.
The last time that ETF short interest dipped below January's level was in April 2003, when it was 500.5 million shares or 16.7 percent of shares outstanding, Morgan Stanley said.
ETF short interest peaked in March 2004 at 1.2 billion shares, or 34.3 percent of shares outstanding. Since then, it has steadily declined each month.
Short interest in publicly traded companies is normally much lower than ETFs, averaging 1 percent to 2 percent of market capitalization."
"The higher the short interest, the more investors are expecting a downturn," said Morgan Stanley analyst Deborah Fuhr. "Short positions tend to fall in value as stocks rise, and vice versa."
Read The Full Article:
January's ETF short interest lowest since April 2003 - Financial - Specialty Finance - Financial Services - Markets/Exchanges - Mutual Funds - Market News:
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"January's level of short interest for U.S. exchange-traded funds as a percentage of shares outstanding was the lowest in nearly two years, according to a Monday report from Morgan Stanley.
The last time that ETF short interest dipped below January's level was in April 2003, when it was 500.5 million shares or 16.7 percent of shares outstanding, Morgan Stanley said.
ETF short interest peaked in March 2004 at 1.2 billion shares, or 34.3 percent of shares outstanding. Since then, it has steadily declined each month.
Short interest in publicly traded companies is normally much lower than ETFs, averaging 1 percent to 2 percent of market capitalization."
"The higher the short interest, the more investors are expecting a downturn," said Morgan Stanley analyst Deborah Fuhr. "Short positions tend to fall in value as stocks rise, and vice versa."
Read The Full Article:
January's ETF short interest lowest since April 2003 - Financial - Specialty Finance - Financial Services - Markets/Exchanges - Mutual Funds - Market News:
Sunday, February 27
Jan. ETF assets fall to $222.9B
"The combined assets under management of U.S. exchange-traded funds were down $3.3 billion to $222.9 billion in January, the Investment Company Institute, the fund industry's main trade group, reported Friday."
Jan. ETF assets fall to $222.9B
Jan. ETF assets fall to $222.9B
Thursday, February 17
Green Energy ETF To Spring Soon
A new energy ETF should benefit from rising oil prices, but it wonÂ't contain the typical oil refiners. ThatÂ's because it will follow an index of renewable or "greener" energy companies.
PowerShares WilderHill Clean Energy Portfolio (AMEX:PBW - News) is a bet on the emergence of green energy as a major economic force beyond its current niche markets. Component firms have gathered much of the knowledge of how to produce, sell and maintain state-of-the-art alternative energy systems including solar, wind and fuel cells. The fund is expected to trade in February or March 2005.
Green Energy ETF To Spring Soon
PowerShares WilderHill Clean Energy Portfolio (AMEX:PBW - News) is a bet on the emergence of green energy as a major economic force beyond its current niche markets. Component firms have gathered much of the knowledge of how to produce, sell and maintain state-of-the-art alternative energy systems including solar, wind and fuel cells. The fund is expected to trade in February or March 2005.
Green Energy ETF To Spring Soon
Wednesday, February 16
Rydex RSP - An ETF With A Balanced Approach To The S&P 500
You may already know that the S&P 500 index is a market capitalization weighted index. That means the largest capitalization companies, make up the largest percentage of the index. It also means that "booming" sectors can become overweighted in the S&P 500 as well. In 1999-2000 for example both Telecom and Internet sectors became heavily overweighted in the index. Both have since fallen back to more reasonable levels, but that caused severe downward pressure on the S&P during the correction.
The Rydex RSP fund is different, it purchases an equal weighting of each of the stocks in the S&P 500. So .2% of the assets are invested in each of the S&P 500 stocks. At the end of each quarter, the fund is rebalanced to bring the equal weights back to .2% for each stock. This means the fund naturally buys under performing sectors and sells sectors that have outperformed the index at the end of each quarter. This in itself is a type of mechanical approach to "profit taking / bargain hunting". Also, by having .2% in each stock there is a greater emphasis on smaller stocks than there is in the traditional S&P 500 index.
These factors have lead to a steady RSP outperformance since it's inception when compared to the S&P 500 index. For more information please consult the fact sheet below and always remember to read the prospectus before making any investment decisions!
Rydex RSP Fund Fact Sheet
Rydex RSP Fund Prospectus
The Rydex RSP fund is different, it purchases an equal weighting of each of the stocks in the S&P 500. So .2% of the assets are invested in each of the S&P 500 stocks. At the end of each quarter, the fund is rebalanced to bring the equal weights back to .2% for each stock. This means the fund naturally buys under performing sectors and sells sectors that have outperformed the index at the end of each quarter. This in itself is a type of mechanical approach to "profit taking / bargain hunting". Also, by having .2% in each stock there is a greater emphasis on smaller stocks than there is in the traditional S&P 500 index.
These factors have lead to a steady RSP outperformance since it's inception when compared to the S&P 500 index. For more information please consult the fact sheet below and always remember to read the prospectus before making any investment decisions!
Rydex RSP Fund Fact Sheet
Rydex RSP Fund Prospectus
Monday, February 14
TIPS ETF offers solid hedge against inflation's bite
Article Excerpt:
"'TIPS investors benefit from a rise in inflation because their value changes in line with the Consumer Price Index,' said Matthew Tucker, head of enhanced and index fixed-income strategy at San Francisco-based Barclays Global Investors, which oversees the TIPS ETF.
TIPS can reduce overall portfolio risk because their prices tend not to move in lockstep with stocks and conventional bonds.
For example, buying a 10-year inflation-protected bond with a 2 percent coupon locks in a yield 2 percent above inflation. If inflation averages 3 percent over that decade, the bond's yield equates to a 5 percent 10-year Treasury - absent a portion of the risk."
A Link To The Complete Article:
ETF Investing: TIPS ETF offers solid hedge against inflation's bite - Financial - Financial Services - Bond Market - Economy - Markets/Exchanges - Mutual Funds - Market News:
"'TIPS investors benefit from a rise in inflation because their value changes in line with the Consumer Price Index,' said Matthew Tucker, head of enhanced and index fixed-income strategy at San Francisco-based Barclays Global Investors, which oversees the TIPS ETF.
TIPS can reduce overall portfolio risk because their prices tend not to move in lockstep with stocks and conventional bonds.
For example, buying a 10-year inflation-protected bond with a 2 percent coupon locks in a yield 2 percent above inflation. If inflation averages 3 percent over that decade, the bond's yield equates to a 5 percent 10-year Treasury - absent a portion of the risk."
A Link To The Complete Article:
ETF Investing: TIPS ETF offers solid hedge against inflation's bite - Financial - Financial Services - Bond Market - Economy - Markets/Exchanges - Mutual Funds - Market News:
Saturday, February 12
Energy ETF ( XLE ) Continues To Sizzle!
With crude oil prices stubbornly holding above $40 per barrel one of the hottest etf sectors is energy. As you look at the XLE top 10 holdings, you see a mixture of Big Oil and Oil Services companies that will continue to benefit from sustained high prices.
EXXON MOBIL CP XOM 20.89% ( Now rivals GE for the largest market cap )
CHEVRONTEXACO CP CVX 14.33%
CONOCOPHILLIPS COP 8.18%
OCCIDENTAL PET OXY 3.87%
SCHLUMBERGER LTD SLB 3.68%
DEVON ENERGY CP (OK) DVN 3.46%
BURLINGTON RESOURCES BR 3.2%
HALLIBURTON HLDG CO HAL 3.19%
APACHE CP APA 2.97%
ANADARKO PETROLEUM APC 2.94%
A quick look at the short term chart shows a continuous march into 52 week and all time highs for XLE
EXXON MOBIL CP XOM 20.89% ( Now rivals GE for the largest market cap )
CHEVRONTEXACO CP CVX 14.33%
CONOCOPHILLIPS COP 8.18%
OCCIDENTAL PET OXY 3.87%
SCHLUMBERGER LTD SLB 3.68%
DEVON ENERGY CP (OK) DVN 3.46%
BURLINGTON RESOURCES BR 3.2%
HALLIBURTON HLDG CO HAL 3.19%
APACHE CP APA 2.97%
ANADARKO PETROLEUM APC 2.94%
A quick look at the short term chart shows a continuous march into 52 week and all time highs for XLE
Semiconductor ETF ( SMH ) clears 200 day moving average
The weakest ETF of 2004 has finally managed to blast through it's 200 day moving average on heavy volume. The action in the semiconductors contributed directly to the strong performance of the Nasdaq on Friday. This could be the turn in semis that we have been waiting for.
Tuesday, February 8
Cash piles into real estate ETF
"Roughly $660 million of the $830 million that flowed into sector ETFs last week went to the iShares Dow Jones U.S. Real Estate (IYR: news, chart, profile) fund, according to research released Monday by TrimTabs Investment Research.
The real estate ETF gained 3.1 percent last week. "
ETF Focus: Cash piles into real estate ETF
The real estate ETF gained 3.1 percent last week. "
ETF Focus: Cash piles into real estate ETF
Thursday, February 3
Clean Energy ETF Launches Feb 4th
"An ETF based on an index of publicly-traded energy companies that focus on environmentally-friendly sources of energy and technologies is set to begin trading on the American Stock Exchange later this month.
The ETF, which will be managed by PowerShares Capital Management, will track the WilderHill Clean Energy Index, a benchmark calculated by the Amex that was launched in August. The Amex collaborated with index provider WilderShares, LLC in developing the index.
The index contains 37 companies that use greener and renewable energy alternatives such as wind, solar, and hydrogen fuel cells."
ETF Focus:
The ETF, which will be managed by PowerShares Capital Management, will track the WilderHill Clean Energy Index, a benchmark calculated by the Amex that was launched in August. The Amex collaborated with index provider WilderShares, LLC in developing the index.
The index contains 37 companies that use greener and renewable energy alternatives such as wind, solar, and hydrogen fuel cells."
ETF Focus:
New ETFs Focus on Social Responsibility
Socially responsible mutual funds have been around for years, not it's an ETF option also.
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"On Monday, the iShares KLD Select Social Index Fund began trading on the New York Stock Exchange.
The ETF's tracking index, maintained by Boston-based research firm Kinder, Lyndenberg, Domini & Co., contains 250 to 350 large-cap non-tobacco companies taken from the S&P 500 and Russell 1000 indexes.
The stocks are then overweighted or underweighted based on how they score on social and environmental factors. "
Yahoo! News - New ETFs Focus on Social Responsibility
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"On Monday, the iShares KLD Select Social Index Fund began trading on the New York Stock Exchange.
The ETF's tracking index, maintained by Boston-based research firm Kinder, Lyndenberg, Domini & Co., contains 250 to 350 large-cap non-tobacco companies taken from the S&P 500 and Russell 1000 indexes.
The stocks are then overweighted or underweighted based on how they score on social and environmental factors. "
Yahoo! News - New ETFs Focus on Social Responsibility
Sunday, January 30
2nd Gold ETF Coming To Market
Investor's Business Daily: 2nd Gold ETF To Trade:
"Barclays Capital deposited 15,000 ounces of gold with a custodian for the initial baskets for the gold ETF, according to a regulatory filing.
The ETF is slated to trade on the American Stock Exchange under the symbol 'IAU.'
The ETF's trustee, the Bank of New York, will value the trust's gold on the basis of that day's announced COMEX settlement price for the spot month gold futures contract.
COMEX is the exchange market on gold futures contracts operated by Commodity Exchange, Inc., a subsidiary of New York Mercantile Exchange, Inc."
"Barclays Capital deposited 15,000 ounces of gold with a custodian for the initial baskets for the gold ETF, according to a regulatory filing.
The ETF is slated to trade on the American Stock Exchange under the symbol 'IAU.'
The ETF's trustee, the Bank of New York, will value the trust's gold on the basis of that day's announced COMEX settlement price for the spot month gold futures contract.
COMEX is the exchange market on gold futures contracts operated by Commodity Exchange, Inc., a subsidiary of New York Mercantile Exchange, Inc."
Wednesday, January 26
ETF Fans Await Their Prague Spring
ETF Fans Await Their Prague Spring
I find it amazing that there hasn't been enough evident demand for Eastern European investment vehicles to warrant an ETF....
"Eastern European stocks have been sizzling, but for ETF investors the region remains tantalizingly out of reach.
A leading index tracking shares in Russia, Poland, Hungary and the Czech Republic jumped 21.5% in local currencies in 2004. In dollar terms, last year's gain was 32.1% -- nearly triple the S&P 500's rise. "
I find it amazing that there hasn't been enough evident demand for Eastern European investment vehicles to warrant an ETF....
"Eastern European stocks have been sizzling, but for ETF investors the region remains tantalizingly out of reach.
A leading index tracking shares in Russia, Poland, Hungary and the Czech Republic jumped 21.5% in local currencies in 2004. In dollar terms, last year's gain was 32.1% -- nearly triple the S&P 500's rise. "
U.S. ETF assets at $226 billion in December
U.S. ETF assets at $226 billion in December:
"Equity-index ETF assets grew by $13.9 billion to $217.7 billion, with U.S. stock ETFs adding $10.7 billion, while international fund assets increased by $3.3 billion.
ETFs that invest in bonds saw assets grow $604 million to $8.5 billion, according to the ICI, the trade group for the mutual-fund industry.
In December, the value of all ETF shares issued exceeded that of shares redeemed by $8.7 billion. Stock-index ETFs experienced a positive net issuance of $8.2 billion, and bond ETFs also saw a positive net issuance of $557 million. "
"Equity-index ETF assets grew by $13.9 billion to $217.7 billion, with U.S. stock ETFs adding $10.7 billion, while international fund assets increased by $3.3 billion.
ETFs that invest in bonds saw assets grow $604 million to $8.5 billion, according to the ICI, the trade group for the mutual-fund industry.
In December, the value of all ETF shares issued exceeded that of shares redeemed by $8.7 billion. Stock-index ETFs experienced a positive net issuance of $8.2 billion, and bond ETFs also saw a positive net issuance of $557 million. "
Saturday, January 22
ETF short interest at lowest since April 2003
EFT short interest is becoming an excellent indicator for judging when the market reaches extremes. In March when the market was near it's lows for the year short interest grew to 34.3% of outstanding shares. By December, when the market was reaching a peak, EFT short interest had fallen to only 15.3%. This indicator will become more useful as history grows, it is currently being tracked by Morgan Stanley and you can read more about it at the following link:
ETF Short Interest Dries Up
ETF Short Interest Dries Up
Wednesday, January 19
Fixed Income ETFs in 2005
Watching the Yield Curve: Fixed Income ETFs in 2005
"One thing that most market watchers predict for 2005 is higher interest rates. Higher interest rates affect all ETFs, but none more directly than fixed income ETFs. In general, higher rates generally reduce the value of existing fixed income portfolios. Lower rates, in turn, generally boost the value of fixed income portfolios. However, rate changes affect neither all bonds nor all bond ETFs equally. Given an environment of rising rates, what fixed income ETFs can be expected to outperform in 2005?"
"One thing that most market watchers predict for 2005 is higher interest rates. Higher interest rates affect all ETFs, but none more directly than fixed income ETFs. In general, higher rates generally reduce the value of existing fixed income portfolios. Lower rates, in turn, generally boost the value of fixed income portfolios. However, rate changes affect neither all bonds nor all bond ETFs equally. Given an environment of rising rates, what fixed income ETFs can be expected to outperform in 2005?"
Monday, January 17
ETF Focus: Gold ETF continues to shine as assets near $2B
ETF Focus: Gold ETF continues to shine as assets near $2B - Financial - Financial Services - Commodities - Mutual Funds:
"In just the first eight trading days of the new year, the StreetTracks Gold Trust (GLD: news, chart, profile) added 47 tonnes to its gold holdings, or about half of the gold accumulated by the ETF between its launch and the end of 2004, according to a research note released Thursday by Mitsui Global Precious Metals analyst Andy Smith.
In other words, so far in 2005 the gold ETF has added three times last year's total sales of U.S. Eagle gold coins, or more than 1,500 tons on an annualized basis.
Through Thursday, the gold ETF had about 142.7 tonnes of the precious metal and a net asset value of more than $1.9 billion and 45.9 million shares outstanding, according to the StreetTracks Gold Shares Web site."
"In just the first eight trading days of the new year, the StreetTracks Gold Trust (GLD: news, chart, profile) added 47 tonnes to its gold holdings, or about half of the gold accumulated by the ETF between its launch and the end of 2004, according to a research note released Thursday by Mitsui Global Precious Metals analyst Andy Smith.
In other words, so far in 2005 the gold ETF has added three times last year's total sales of U.S. Eagle gold coins, or more than 1,500 tons on an annualized basis.
Through Thursday, the gold ETF had about 142.7 tonnes of the precious metal and a net asset value of more than $1.9 billion and 45.9 million shares outstanding, according to the StreetTracks Gold Shares Web site."
Tuesday, January 11
IGW: When Will The Pain End?
The iShares Goldman Sachs Semiconductor ETF and the Merrill Lynch Semiconductor HOLDR continue to be among the weakest sectors of the market. This is unusual considering the underperformance in 2004. This article from Jonathan Berstein of the ETFzone talks about the fundamentals behind the recent moves.
In my opinion the Nasdaq will have a hard time rallying significantly until it gets a little help in the form the semis.
IGW: When Will The Pain End?
In my opinion the Nasdaq will have a hard time rallying significantly until it gets a little help in the form the semis.
IGW: When Will The Pain End?
ETF Update - SPY Options Begin Trading
SPY is the most actively traded ETF and market participants have awaited SPY options to allow smaller participants to participate in the movement of the S&P 500. Below is information directly from the Philadelphia Stock Exchange.
PHLX Launches Trading of Options in SPDR's (SPY) on PHLX XL Streaming Monday, Jan. 10
PHLX XLSM is the new electronic options trading system from the Philadelphia Stock Exchange (PHLX) that will maximize liquidity, encourage price competition and rapidly execute orders of all sizes. PHLX XL combines the best attributes of electronic and floor-based trading enhancing the PHLX's position as the most versatile options trading marketplace.
The following PHLX XL features have been activated:
'What You See Is What You Get' Options Trading Eliminates the distinction between the size for which the Exchange is firm for customer orders vs. broker-dealer orders.
Book Match - Enables the system to automatically match incoming customer and broker-dealer orders with orders on the specialists' books.
The Book Sweep Function - Sweeps the specialists' books based on movement
in the specialists' quoted market.
As a result, our customers are seeing much faster executions with less manual intervention.
Stay tuned. There's more to come...
PHLX XL enables market makers to electronically deliver streaming quotes, increasing liquidity and producing tighter, deeper markets. Streaming quotes will dramatically improve speed of execution by raising the number of participants electronically interacting with orders, thereby increasing the amount of orders automatically executed.
PHLX XL enhances electronic access and execution for customers, broker-dealers and market makers while leveraging the advantages of a floor-based environment.
Connectivity
Connecting to PHLX XL is easy. For current PHLX order flow providers, the transition is handled seamlessly, requiring no modifications. For new liquidity providers, there is a wide variety of vendors who can provide a complete quoting interface to PHLX XL, or the provider can choose to connect their host trading application directly with no intermediate hardware or software required.
For questions about connecting to PHLX XL, contact Marty Sonntag at 215-496-5458.
SPY Options begin trading
PHLX Launches Trading of Options in SPDR's (SPY) on PHLX XL Streaming Monday, Jan. 10
PHLX XLSM is the new electronic options trading system from the Philadelphia Stock Exchange (PHLX) that will maximize liquidity, encourage price competition and rapidly execute orders of all sizes. PHLX XL combines the best attributes of electronic and floor-based trading enhancing the PHLX's position as the most versatile options trading marketplace.
The following PHLX XL features have been activated:
'What You See Is What You Get' Options Trading Eliminates the distinction between the size for which the Exchange is firm for customer orders vs. broker-dealer orders.
Book Match - Enables the system to automatically match incoming customer and broker-dealer orders with orders on the specialists' books.
The Book Sweep Function - Sweeps the specialists' books based on movement
in the specialists' quoted market.
As a result, our customers are seeing much faster executions with less manual intervention.
Stay tuned. There's more to come...
PHLX XL enables market makers to electronically deliver streaming quotes, increasing liquidity and producing tighter, deeper markets. Streaming quotes will dramatically improve speed of execution by raising the number of participants electronically interacting with orders, thereby increasing the amount of orders automatically executed.
PHLX XL enhances electronic access and execution for customers, broker-dealers and market makers while leveraging the advantages of a floor-based environment.
Connectivity
Connecting to PHLX XL is easy. For current PHLX order flow providers, the transition is handled seamlessly, requiring no modifications. For new liquidity providers, there is a wide variety of vendors who can provide a complete quoting interface to PHLX XL, or the provider can choose to connect their host trading application directly with no intermediate hardware or software required.
For questions about connecting to PHLX XL, contact Marty Sonntag at 215-496-5458.
SPY Options begin trading
Friday, January 7
ARE ETFS STILL RIGHT FOR YOU?
This is an interesting article from David Landis of Kipplinger that talks about the advantages and disadvantages of ETF vs No Load Index Funds. It seems the mutual fund industry is feeling some competition from the etf industry and accordingly has dropped fees on their indexed products. ETF's still have many advantages, but the article does have some interesting points.
"With the numbers so close, you'll have to weigh other factors to determine the better choice. The downside for ETFs is that, because they trade like stocks, you must pay a commission each time you trade. By contrast, you can buy or sell the Fidelity funds without paying commission. A plus for ETFs is that you can trade them any time the market is open. You can generally buy and sell regular funds just once a day, and fund companies discourage frequent trading.
High initial minimums also argue against regular funds. Fidelity requires $10,000 to invest in its Spartan line -- although the index-fund leader, Vanguard (800-635-1511), lets you in with just $3,000 (its Vanguard 500 Index charges 0.18% per year). Minimums are lower for retirement accounts. But you can buy as little as one ETF share at the going rate (recently $119 for the S&P ETFs), plus brokerage costs."
Kiplinger.com - are ETF's Still Right For You?
"With the numbers so close, you'll have to weigh other factors to determine the better choice. The downside for ETFs is that, because they trade like stocks, you must pay a commission each time you trade. By contrast, you can buy or sell the Fidelity funds without paying commission. A plus for ETFs is that you can trade them any time the market is open. You can generally buy and sell regular funds just once a day, and fund companies discourage frequent trading.
High initial minimums also argue against regular funds. Fidelity requires $10,000 to invest in its Spartan line -- although the index-fund leader, Vanguard (800-635-1511), lets you in with just $3,000 (its Vanguard 500 Index charges 0.18% per year). Minimums are lower for retirement accounts. But you can buy as little as one ETF share at the going rate (recently $119 for the S&P ETFs), plus brokerage costs."
Kiplinger.com - are ETF's Still Right For You?
Monday, January 3
Buying The Hot ETF's In The New Year?
Here is a completely different approach than the "Bargain Hunting" approach. It advocates buying the strongest indexes (Excludes Sector Funds) in the New Year.
"When it comes to investing in exchange-traded funds, buying last year's best performing ETF at the start of each and every New Year turns out to be a stellar strategy. The concept is so simple: buy whichever diversified ETF performed best in the previous year and, in the words of Bachman Turner Overdrive, 'Let it ride.'
The rewards, as demonstrated since January 2001 (where there were enough ETFs in existence to start tracking this strategy), are nothing short of eye-popping. But before I get to the strategy's details, and before I countdown to my Hot Hand ETF For 2005, let me throw a monkey wrench into my machinations.
While this strategy does reveal a healthy trend, the data only goes back four years; hardly long term. Also, I do not advocate sinking your entire stash into it. "
Jim Lowell: January surprise: A diversified ETF strategy
"When it comes to investing in exchange-traded funds, buying last year's best performing ETF at the start of each and every New Year turns out to be a stellar strategy. The concept is so simple: buy whichever diversified ETF performed best in the previous year and, in the words of Bachman Turner Overdrive, 'Let it ride.'
The rewards, as demonstrated since January 2001 (where there were enough ETFs in existence to start tracking this strategy), are nothing short of eye-popping. But before I get to the strategy's details, and before I countdown to my Hot Hand ETF For 2005, let me throw a monkey wrench into my machinations.
While this strategy does reveal a healthy trend, the data only goes back four years; hardly long term. Also, I do not advocate sinking your entire stash into it. "
Jim Lowell: January surprise: A diversified ETF strategy
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