A.I.M. For Exchange Traded Funds (ETFs)

[EZ2]

kavi ~~ well, it finally happened..................

GOT my WatchList "buy" ALERT level via email on IFN !!!!

(( I think I'll be patient and let it "come to me" ! ))

================================================================================

Yahoo! Alerts Yahoo! Finance - My Alerts - Edit Alert




Current info for IFN on 12 June 2006 at 2:23PM ET:
Last Change %Change Prv Cls High Low Volume

40.00 -2.00 -4.76 42.00 41.75 40.00 557000

[EZ2]

PowerShares performance...............

Press Release Source: PowerShares Capital Management

PowerShares Inaugural ETF Portfolios Outperform Over Initial Three Year Period, Earning Morningstar Ratings
Monday June 12, 6:00 am ET


-- PowerShares Dynamic Market Portfolio (AMEX: PWC)

-- PowerShares Dynamic OTC Portfolio (AMEX: PWO)


CHICAGO, IL--(MARKET WIRE)--Jun 12, 2006 -- PowerShares Capital Management LLC, continues to "Lead the Intelligent ETF Revolution," announcing today that the first two PowerShares ETFs launched on May 1, 2003, have both significantly outperformed their respective benchmarks.
During the three-year period ended April 30, 2006:

PowerShares Dynamic Market Portfolio (AMEX:PWC - News) had an annualized return of 21.96% and cumulative return of 80.57%, outperforming the S&P 500 with an annualized return of 14.69% and cumulative return of 50.87%. PWC exhibited similar risk characteristics over the period with a beta of 1.05 when compared to the S&P. For the 3-year period ending May 31, 2006, the PowerShares Dynamic Market Portfolio earned a Morningstar Rating(TM) of 5 stars when compared to the 1473 U.S.-domiciled Large Cap Blend mutual funds. Past performance does not guarantee future results and the fund is subject to market risk, including the possible loss of principal. Please see the standardized performance table below for complete performance information.*

PowerShares Dynamic OTC Portfolio (AMEX:PWO - News) had an annualized return of 23.39% and cumulative return of 87.84%, outperforming the NASDAQ Composite with an annualized return of 16.40% and cumulative return of 57.72%. PWO exhibited similar risk characteristics over the period with a beta of 1.03 when compared to the NASDAQ Composite. For the 3-year period ending May 31, 2006, the PowerShares Dynamic OTC Portfolio earned a Morningstar Rating(TM) of 3 stars when compared to the 818 U.S.-domiciled Mid-Cap Growth mutual funds. Past performance does not guarantee future results and the fund is subject to market risk, including the possible loss of principal. Please see the standardized performance table below for complete performance information.*

The PowerShares Dynamic Market Portfolio and the PowerShares Dynamic OTC Portfolio have accomplished this three-year performance record with no capital gains distributions.

"We are very pleased with the performance of the two initial PowerShares," said Bruce Bond, CEO of PowerShares Capital Management LLC. "We believe that their performance further substantiates PowerShares' leadership role in the ETF industry and highlights the unique value proposition on which PowerShares is built."

As the first two PowerShares XTFs listed, PWC and PWO are the foundation on which the PowerShares Intelligent ETF business is built. The PowerShares family of 37 ETFs continues to grow and currently represents over $6 billion in assets under management. Click the link below to read the new Alta Vista White Paper which takes an in-depth look at the structure and performance of the PowerShares Dynamic Market Portfolio. PWC_whitepaper.pdf

Performance Summary
Initial 3-Year Period
5/01/2003 - 4/30/2006

PowerShares Dynamic
Market Portfolio 1 2 3 Cumulative
Year Year Year Sharpe Beta
Inception
---------------- ------ ------ ------ ---------- ------ ----
PWC - NAV 23.32% 17.61% 21.96% 80.57% 1.56 1.05
PWC - Share Price 23.40% 17.57% 22.45% 80.72% 1.48 1.00
S&P 500 Index 15.40% 10.78% 14.69% 50.87% 1.12 1.00
Russell 3000 18.08% 12.39% 16.49% 58.09% 1.25 1.00


PowerShares Dynamic
OTC Portfolio 1 2 3 Cumulative
Year Year Year Sharpe Beta
Inception
---------------- ------ ------ ------ ---------- ------ ----
PW0 - NAV 26.63% 21.09% 23.39% 87.84% 1.22 1.03
PW0 - Share Price 26.58% 21.01% 24.09% 87.87% 1.21 .92
Nasdaq Composite 20.85% 9.98% 16.40% 57.72% 0.89 1.00
Nasdaq 100 Index 19.70% 10.16% 15.17% 52.78% 0.74 1.00


Standardized Performance
Average Annual
5/01/2003 - 3/31/2006
1 Year 2 Year Inception
(As of (As of (As of
PowerShares Dynamic Market Portfolio 3/31/06) 3/31/06) 3/31/06)
------------------------------------ -------- -------- --------
PWC - NAV 19.03% 15.63% 22.47%
PWC - Share Price 19.01% 15.63% 22.44%
S&P 500 Index 11.72% 9.18% 14.62%
Russell 3000 14.28% 10.62% 16.57%


1 Year 2 Year Inception
(As of (As of (As of
PowerShares Dynamic OTC Portfolio 3/31/06) 3/31/06) 3/31/06)
------------------------------------ -------- -------- --------
PWO - NAV 18.91% 14.38% 23.31%
PWO - Share Price 19.14% 14.29% 23.26%
Nasdaq Composite 17.03% 8.32% 17.21%
Nasdaq 100 Index 14.92% 8.83% 15.71%

Source: PowerShares Capital Management LLC

Performance Summary figures as of 4/30/2006. Standardized performance figures as of 3/31/2006. Fund Inceptions 5/01/2003. Performance data quoted represents past performance. Past performance is not a guarantee of future results; current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and shares may be worth more or less than their original cost when sold or redeemed. See powershares.com to find the most recent month-end performance numbers and information regarding premiums and discounts. Price returns are based on closing market prices.

A Sharpe Ratio is the risk-adjusted return and is the return less the risk-free rate divided by the standard deviation of the return; Beta is a measure of relative risk and is the slope of the regression line; and Volatility is the annualized standard deviation of monthly index returns. Sharpe ratio, beta and volatility data is calculated daily. The S&P 500 Index and Russell 3000 Index are accepted benchmarks for the performance of the broad US stock market; the Nasdaq 100 Index and Nasdaq Composite are accepted benchmarks for the performance of the NASDAQ stock market. You cannot invest directly in an index.

About PowerShares Dynamic Exchange Traded Funds

The PowerShares Dynamic Market Portfolio and the PowerShares Dynamic OTC Portfolio are the first Exchange Trade Funds (ETFs) based on Enhanced or Intelligent Indexes.

The PowerShares Dynamic Exchange Traded Funds track enhanced indexes which utilize advanced quantitative methodologies to discriminate between securities and select the stocks identified as having the greatest capital appreciation potential. The indexes are rebalanced quarterly to include the highest ranked securities. In contrast, traditional benchmark indexes select stocks primarily for representation, regardless of their investment merit.

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.

Morningstar Rating

The Overall Morningstar rating for an open-end mutual fund is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating Metrics. Morningstar proprietary ratings reflect historical risk-adjusted performance as of 05/31/2006.

*The Morningstar Rating(TM) is calculated for funds with at least a three-year history. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in monthly performance (including the effects on sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. Morningstar then compares each fund's risk-adjusted return to the open-end rating breakpoints for that category. The overall rating for a fund is based on a weighted average of the time-period ratings. Rankings and ratings change monthly.

Morningstar Category identifies funds based on their actual investment styles as measured by their underlying portfolio holdings over the past three years. If the fund is less than three years old, the category is based on the life of the fund. As of May 31, 2006, the PowerShares Dynamic OTC Portfolio earned an Overall Morningstar Rating(TM) of 3 stars, when compared to the 818 U.S.-domiciled Mid-Cap Growth mutual funds. As of May 31, 2006, the PowerShares Dynamic Market Portfolio earned an Overall Morningstar Rating(TM) of 5 stars, when compared to the 1473 U.S.-domiciled Large-Cap Blend mutual funds.

© [2006] Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

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 800-983-0903. The prospectus should be read carefully before investing.

ALPS Distributors, Inc. is the distributor of the PowerShares Exchange-Traded Fund Trust.



Contact:
Media Contact:
CTA Public Relations
Bill Conboy
303-665-4200 x 106
Email Contact



--------------------------------------------------------------------------------
Source: PowerShares Capital Management

[EZ2]

Re: Gold funds?


The following link will take you to a website with a list of gold funds:http://www.eaglewing.com/fundlist.html
Then, go to morningstar to find their top 25 holdings.http://www.morningstar.com/?pgid=hetoplogo

[EZ2]

RE: emerging markets article:


http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B19A945AE%2D01F3%2D44BF%2DB5EF%2D075609AE2CC....

[OldAIMGuy]

I've been watching FVI for a while and it seems to do quite well in bullish markets and has some reasonable volatility during bearish periods like we've recently seen. It's off about 16% from its high reached around the 10th of May.

Looking at many of the other ETFs I follow, this one shows a bit more amplitude while still being in the same general pattern as the rest of the market. Since AIM loves amplitude, I'm thinking this might be a nice addition to my overall account.

I wish it had more history so that I could do some testing on it, but it only reaches back about 2.5 years.

Best regards, Tom

[EZ2]

misc. reading...............

http://www.miningweekly.co.za/min/news/today/?show=87538

[EZ2]

WE are on the "same page" !!!

8)

[kaviyarasu]

Re: kavi ~~ just a FYI! on general INDIA market

Thanks EZ. I have been following indian market closely too.
I think we are atleast 20% away from entry. SENSEX closed at 9800. I have been thinking about slowing getting when and if SENSEX touches 8000. I think with current valuation it is trading about forward P/E of 17. It is too much for a risky emerging market. I think, even after such a dramatic drop, INDIA still is the most expensive emerging market.

Kavi.

[EZ2]

kavi ~~ just a FYI! on general INDIA market:

India's Benchmark Index Drops 2.5 Percent
Tuesday June 6, 7:33 am ET
India's Benchmark Index Drops 2.5 Percent in Intraday Trading

BOMBAY, India (AP) -- Indian shares tumbled Tuesday, with the benchmark index dropping 2.5 percent and slipping below the 10,000 mark for the first time in 3 1/2 months as investors reacted to declines in global markets and a hike in domestic fuel prices.
The 30-company benchmark index of the Bombay Stock Exchange, the Sensex, fell 256 points to 9,957 points, its lowest close since Feb. 17, but up from an intraday low of 9,885. On the rival National Stock Exchange, the 50-share S&P Nifty index slipped 2.6 percent to 2,937.

The drop follows a 2.3 decline in the Sensex on Monday and continues the market's slide over the last four weeks. Since reaching a record on May 10, the index has now plunged 21 percent.

Investors were edgy due to steep drops on Wall Street on Monday and in other Asian markets like Japan.

The decline in the Sensex "is in sympathy with global markets and also because we had closed weak yesterday," said Rajesh Jain, the chief executive of Bombay-based Pranav Securities.

Investors were also reportedly spooked by a hike in government-controlled fuel prices that Indian officials announced Monday evening, after the markets had closed.

All but two of the 30 shares tracked by the Sensex were down. Oil & Natural Gas Corp. fell 5.6 percent and pharmaceutical major Ranbaxy was down 5.5 percent. Reliance Industries Ltd. slipped 2 percent.

Before their recent tumble, Indian stock prices had soared over the past year, driven by foreign investors eager to seize opportunities in one of the world's fastest growing economies, currently expanding at an 8 percent pace.

But the market has tumbled amid concerns that higher U.S. interest rates could spur a global slowdown.

Also, many stocks have simply risen too quickly over too short a period of time, and some analysts say the recent decline is a healthy correction.

Many predicted the market will remain volatile and fall further.

"Correction in a bull phase ... will not end in a matter of weeks. It could take two, three months or more," said investment strategist Gul Tekchandani.

Foreign funds have pulled out more than $2.7 billion from the Indian stock market in the last three weeks, contributing to the recent plunge.

It's expected to take time for foreign investors to return to the Indian market, despite the tremendous lure of its booming economy. And when investors do return, analysts doubt there would be the sort of rush as was seen in the past year, when foreign funds pumped a record $12.3 billion into Indian shares, fueling the market's rise.

[OldAIMGuy]

Hi EZ, It's the best thing about being in the Equity Warehouse business. It's always nice to have something to sell when people are buying!

Best regards, Tom

[EZ2]

U da' Man !!!!!!!!!!!!!!!!!!!!!!!!!!

8-)

[OldAIMGuy]

Hi EZ, All I can say is Buy from the Scared and Sell to the Greedy!




TV

[EZ2]

Assets Up, Prices Down For Energy Sector ETFs
Monday June 5, 7:00 pm ET
Marie Beerens

More money flocked to energy ETFs in May amid oil-price and stock-market swings.
Net assets of Energy Select Sector SPDR (AMEX:XLE - News) surged 26% during the month. By comparison, Financial Select Sector SPDR (AMEX:XLF - News) suffered a 20% outflow.

"What's interesting is that the energy sector is less than 10% of the S&P 500 ... yet it's 27% of assets of our trust," said Dan Dolan, director of wealth management strategies, Select Sector SPDRs.

These ETFs represent the nine sectors of the S&P 500. "It's not only an indication of long interest, it's clearly a lot of short interest that builds up."

After peaking at $75.35 a barrel at the end of April, crude has slipped closer to $70 in recent weeks, sending energy ETFs lower. But the sector is still among the best long-term performers.

Energy Sector Grows

"The energy sector 25 years ago was 28% of the S&P 500 and then it got down to about 6% five or six years ago," Dolan said. It is now at 9.9%. "It's had a nice run and everyone is worried: Is it done, is it overcooked? Looking at it historically, it's not there yet."

Oil Services Holdrs (AMEX:OIH - News) is the best-performing energy ETF with a year-to-date return of 21% and 64% over 12 months through June 2.

Baker Hughes (NYSE:BHI - News), its top holding, comprises 12% of the $1.6 billion fund's market cap. It dashed up 46% this year and 90% in the past 12 months. Second-largest holding Halliburton (NYSE:HAL - News) sprang 25% and 78% respectively. Weatherford International (NYSE:WFT - News) vaulted 49% and 104% during the same periods.

The next-best performing ETF is Energy SPDR. It has a 13% year-to-date and a 35% 12-month return under its belt.

The performance gap between the two funds stems from weakness among top holdings in the latter.

Drag On Performance

Exxon Mobil (NYSE:XOM - News), accounting for 16% of Energy SPDR's assets, is the worst-performing stock among the 29 constituents with a 10% return in the past 12 months.

The $370 billion market cap exploration firm's stock has been under pressure on the news about excessive management compensation and a massive $11 billion unfunded pension plan obligation.

Weatherford International, on the other hand, accounted for only 1.5% of Energy SPDR assets, while it was 6.3% of Oil Services Holdrs, contributing to its better performance.

A similar situation applies to Baker Hughes which represented only 3.8% of Energy SPDR assets vs. a 12% share of Oil Services Holdrs.

Among the three stocks, Exxon Mobil also has the worst Accumulation/Distribution Rating at D-.

Third-best energy ETF was the iShares Dow Jones US Energy (AMEX:IYE - News), with a 12% year-to-date and a 31% one-year return. It represents the Dow Jones U.S. Oil and Gas Index. Exxon Mobil holds a 20% share, followed by Chevron (NYSE:CVX - News) and Schlumberger (NYSE:SLB - News).

[OldAIMGuy]

Thanks Don, I appreciate you posting the links.

Best regards, Tom
PS: are you a Southerner or a Northerner these days?

[OldAIMGuy]

Thanks EZ², Nice article............

Best regards, Tom

[EZ2]

good stuff, Don ~~~~~ THANKS !!!!

[DonCarlson]

Different Views of ETFs

1. New site with awesome, free sector specific and etf specific ADV-DEC, UpVol-DnVol, High-Low McClellan Osc and Summation info. Here's an example for IWM. Can't say how accurate the info is but check it out!

http://etfinvestmentoutlook.com/etf.php?s=IWM&c=breadth_volume_d

2. Click on the headings and rank according to whichever parameter you wish:
http://etfinvestmentoutlook.com/rank_breadth_advance_decline_d.php


3. This one is great for simple sorting of various time frames:
http://www.etfscreen.com/

[EZ2]

a little info...............




ETFZone.com
Small ETF Provider Carves Out Niche
Sunday June 4, 1:08 am ET
By Will McClatchy, ETFzone Editor

First Trust is carving out a niche as a provider of ETFs with more "punch" in selected markets. Recent introductions focus on high dividend yield and variations of the NASDAQ, and it plans three more ETFs for late June.

"We look for indices that are more strategic in nature, that allow stocks in the index to be more targeted," said Roger Starr, ETF specialist at First Trust Portfolios, known mostly in indexing as a provider of Unit Investment Trusts. "They will hopefully provide more alpha in the portfolio." This is done with quantitative screening not found in typical broad-based ETFs.


First Trust Morningstar Dividend Leaders (AMEX:FDL - News), FT NASDAQ-100 Equal weighted (NASDAQ:QQEW - News), and FT NASDAQ-100 Technology (NASDAQ:QTEC - News) have recently been launched. Soon to come are a biotech, Internet and modified S&P 500 ETF.


FDL takes a straightforward approach with a focus on high dividend yields. "Ours is a little more income, high-yield focused and a little bit less appreciation focused," he said. Most investors use dividend funds to capture high yields as a replacement for bonds. So why not maximize the key attraction of dividend yield plain and simple?


QQEW applies the well-understood principle of equal weighting to NASDAQ. Whereas the NASDAQ 100 (AMEX:QQQQ - News) weights by market capitalization, QQEW weights all 100 firms equally so that small firms occupy a much bigger role than they would otherwise. Small firms tend to be more volatile and to return more on average, so QQEW is appropriate for a very long time horizon or for a medium-term timing play at the start of an economic boom.


"In the short run it will be more volatile, but in the long run it will deliver more alpha," if history is a guide, said Starr.


QTEC is the pure-technology version of QQQQ. Many investors mistakenly use QQQQ as a kind of technology sector fund. There are actually only 42 technology firms, and QTEC captures them alone. It goes without saying that this is a risky fund and should be used with care for long-term investors as a modest portion of a long-term portfolio.


Both QQEW and QTEC are well-suited for hedging and speculative trading, since they distill what is most unique about the NASDAQ: its small high-growth and technology firms. Large swings can pay off handsomely and easily overcome trading costs.


A myriad of trades with varying levels of risk, from quite low to high, can be constructed with the two new ETFs and with the ubiquitous QQQQ. For instance, a hedge fund manager thinking that tech will rebound compared to other stocks but not confident about predicting a broad market direction could short the QQQQ and go long on the QTEC. The risk of market direction would disappear, leaving only the relative strength of tech vs. non-tech. Much more intricate options trades using collars, straddles and other techniques can be made. With hedge funds proliferating, these ETFs will surely attract interest from sophisticated professional traders.


Unit investment trusts, where First Trust has cut its teeth in indexing, is a fixed basket of stocks (not an evolving index) held for a predetermined time. It's a crude but efficient kind of ETF which invites analysis. First Trust expects to launch a biotechnology, Internet and enhanced value ETF in late June.


First Trust's campaign joins that of other smaller providers and helps put to rest notions that a few super-providers with one-stop shopping for generic styles and sectors will crowd out all other players. Smaller providers seem to be finding plenty of intriguing ways to add zip to generic indexes.


Co-founder of indexfunds.com, author of two books on investing, and founder of ETFzone.com. Will has been writing on indexing issues for 8 years. He holds an MBA from the University of Texas at Austin.

[EZ2]

WOW ~~ good catch, Tom ! That QQEW comp. is
"quite" significant !!

[OldAIMGuy]

Equal Weight Index Funds................

Here's one I'd not noticed before. It's the NASDAQ 100 Index on an Equal Weight basis - QQEW.

As the RSP differs from SPY, so does QQEW differ from QQQQ. Both the equal weight index funds have whipped their respective high profile weighted funds by sizable margins over time.

SPY vs RSP
http://stockcharts.com/webcgi/perf.html?rsp,spy

QQQQ vs QQEW
http://stockcharts.com/webcgi/perf.html?QQEW,QQQQ

With such large differences, why does the media spend so much more time following the weighted - underperfoming indexes?

Best regards, Tom

[EZ2]

Ron,

YVW !! This is a good board....but, your a SMART man to do your own research/digging also ! Anyone who doesn't is in
the wrong arena......and sooner/later (more likely sooner)
will get bucked (and hard).

GLTY !!!

EZ

[EZ2]

good read......................

ETF INVESTING
Commodity ETFs forge ahead
Sector cools, but planned offerings look to success of oil, metals funds
By John Spence, MarketWatch
Last Update: 12:01 AM ET Jun 5, 2006


BOSTON (MarketWatch) -- Oil and precious-metals prices have lost momentum recently, but that isn't stopping exchange-traded fund providers from pressing forward with more commodity-related products.
"There's plenty of room for more commodities," said Cliff Weber, senior vice president of the ETF marketplace at the American Stock Exchange.
Among ETFs in registration is a fund from Barclays Global Investors, the largest ETF sponsor, designed to track the Goldman Sachs Commodity Index. Other providers have oil-linked ETFs in registration.
Meanwhile, Deutsche Bank AG (DBdeutsche bank ag namen ord
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DB ) is looking to follow its Deutsche Bank Commodity Index Tracking Fund (DBCdb commodity index tracking fd unit ben int
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DBC ) with new commodity-linked products. Those ETFs are still on the drawing board and not yet filed with regulators, said Kevin Rich, chief executive of DB Commodity Services LLC.
The Amex's Weber noted pent-up demand for commodities ETFs as diversification tools and to hedge geopolitical risk. The next step could be a move away from indexed approaches to more active strategies, and the Amex also wants to list options on commodity ETFs, he said.
There are currently five U.S. listed commodity ETFs, which collectively trade more than 8 million shares daily and hold about $10 billion in assets, Weber said on a recent industry conference call hosted by Institutional Investor.
The first domestic commodity ETFs -- StreetTracks Gold Trust (GLDstreetTRACKS Gold
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GLD ) and iShares Comex Gold Trust (IAUishares comex gold tr ishares
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IAU ) -- came to market less than two years ago. The trusts hold bullion in a vault while investors trade shares representing a fraction of an ounce of gold. Sibling iShares Silver Trust (SLVishares silver trust ishares
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SLV ) allows investors to own and trade silver without purchasing and storing the metal, or opening a futures account.
In February, commodity ETFs took a major step forward when the Deutsche Bank Commodity Index Tracking Fund began trading on the Amex. Like the exchange-listed metals trusts, the fund isn't a "true" ETF because it's structured as a commodity pool rather than a registered investment company, although it resembles an ETF in certain ways.
The Deutsche Bank fund was the first ETF-like product to invest in a broad basket of commodities through the use of futures, which industry observers expect say could open the floodgates for more commodity offerings. It invests in crude oil, heating oil, aluminum, gold, corn and wheat.
Then in April, the first ETF allowing U.S. investors to put money directly on the price of crude, U.S. Oil Fund (USOunited states oil fund lp units
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USO ) , launched on the Amex. It uses energy futures contracts, cash-settled options and other instruments to achieve the oil exposure. See full story.
Similar to the Deutsche Bank ETF, the oil fund holds Treasury bills as collateral, which also supply a yield used to offset management fees.
Bubbling over
Some observers have suggested these unique ETFs are fundamentally changing commodity markets because they allow new players, particularly individual investors, into what had been a difficult niche to enter.
Michael Lewis, global head of commodities research at Deutsche Bank AG, said commodities are gaining more credibility, likening them to the status of emerging markets in the mid-1980s.
"Back then few investors had exposure to emerging markets, but today no portfolio would be complete without them," he said.
One of the oft-repeated benefits of commodities is diversification, since the sector tends not to have much relationship with the performance of more traditional asset classes such as stocks and bonds. Strong global growth, rising interest rates and higher inflation are seen as bullish signs for commodities.
Still, both commodities and emerging markets are known for their above-average risk, and financial advisers generally recommend that each represent no more than about 5% to 10% of investors' portfolios.
The volatile nature of commodities has been driven home in the past few weeks. The two gold ETFs, for example, fell about 4% in the four weeks through June 1 and the silver trust plunged more than 13%, according to investment research firm Morningstar Inc. Meanwhile, the Deutsche Bank commodity basket lost almost 3% and the volatile oil ETF is also in negative territory.
Tough roll
Some commodity ETFs are also dealing with structural issues. Both U.S. Oil Fund and the Deutsche Bank commodity basket broke new ground because of their use of futures, but investors are learning the approach also has its drawbacks due to the need to continually "roll" the contracts.
Rather than take delivery of the physical commodity, these ETFs sell the near-dated contract and purchase a longer-dated one to maintain the exposure.
This activity can create so-called roll return, both positive and negative, on top of the movement of the spot price and the yield from the bond collateral.
In a situation known as "contango," the longer-dated contracts are trading at a higher price then the shorter ones. In this environment where traders expect more expensive future prices on supply and demand issues, commodity ETFs would suffer a negative roll return.
Conversely, when the futures with the more distant expiration date are trading cheaper, the market is said to be in "backwardation."
Highlighting the risk of roll return, the Deutsche Bank Commodity Index Tracking Fund announced last month that it was slightly altering the way it rolls futures contracts to fight the damaging effect of contango. The ETF now has more flexibility to roll into the futures contract which generates the highest roll return, rather than simply using the next month's contract, for example. See full story.
As a result, the ETF "is able to potentially maximize the roll benefits in backwardated markets and minimize the losses from rolling in contangoed markets," according to a regulatory filing.

[mokew]

EZ2/Toofuzzy
Thanks a lot, as much as I trust guys on this board, I still do A LITTLE homework before I pull the trigger. Now I know where to find ETF info.
Thank again.
Ron

[EZ2]

WOW Fuzzy.......great catch !!! That's what I get for
practicing my SPEED READING ~~~ LOL !!! NOTE: all the
links I posted earlier were directly related to CLOSED
END FUNDS..........."not" ETF's !!

Sorry Mokew !! 8-

[Toofuzzy]

Hi Mokew Re Premiums (loads)

ETFs do NOT have loads. They do have opereration fees though just like most (all) funds.They have miniscule premiums/discounts which you don't even need to think about.

www.etfconnect.com

Closed End Funds do not have LOADS either but they may trade at a premium or a discount to the underlying price which can be quite substantian. Their operating fees can be quite high also.

www.closed-endfunds.com

Toofuzzy

[EZ2]

here are a couple of links:

http://www.etfconnect.com/sponsor/fundsponsor.asp

http://www.blackstone.com/
(this link is specific to IFN or GRR)

http://www.cefa.com/scripts/cesearch_b.asp


that may help you out a bit. And, in every
Saturday's Barron's edition all Closed End
funds are listed and include the "premium/discount"
applicable to each......usually around page M48
or so, depending upon content.

Finally, this provides a lot of info on funds....
but, I'm not sure the link works for everyone as
I have an online subscription:

http://online.barrons.com/quotes/key_facts.html?mod=9_2020&symbol=IFN

[kaviyarasu]

Re: PREMIUM on ETFs

You can find this info on www.etfconnect.com
For closed end funds, they don't update the ETFs real time,some time they update once a week, depends on the fund.

Kavi.

[mokew]

kaviyarasu
Could you tell me where I can find the "load" or "premium" on an ETF?
TIA

[EZ2]

I totally agree, kavi !! I am NOT going to pay that type of premium.....but, it sure is tempting ~~~ ie. has it bottomed?

Some nice bounce backs the past couple of days.....

Symbol Change Volume Trade Name Bid Ask Div/Shr Yield


^GSPC 2.51 (0.20%) 0 1,288.22 S&P 500 INDEX,RTH N/A N/A - -
CSQ 0.07 (0.50%) 279,600 14.08 CALAMOS STRGC TTL RT - - 1.17 8.30%
DVY 0.28 (0.44%) 368,500 64.19 ISHARES DOW SEL DIV - - 2.27 3.60%
EEM 0.98 (1.02%) 7,211,900 96.60 ISHARES MSCI E.M.I.F - - - -
EFA 0.64 (0.97%) 4,246,300 66.49 ISHARES MSCI EAFE FD - - 1.11 1.70%
EPP 0.01 (0.01%) 418,600 108.17 ISHARES MSCI EX JAP - - 3.70 3.40%
EWA 0.25 (1.21%) 360,100 20.96 ISHARE MSCI AUSTRALI - - 0.67 3.20%
EWG 0.10 (0.43%) 268,900 23.40 ISHARE MSCI GERMANY - - 0.12 0.50%
EWH 0.01 (0.07%) 1,615,900 13.51 ISHARE MSCI HONGKONG - - 0.36 2.60%
EWJ 0.16 (1.14%) 23,817,600 14.22 ISHARE MSCI JAPAN IN - - 0.06 0.40%
EWM 0.10 (1.31%) 1,670,100 7.51 ISHARE MSCI MALAYS F - - 0.29 3.80%
EWS 0.14 (1.62%) 942,800 8.76 ISHARE MSCI SINGAPOR - - 0.29 3.30%
FPX 0.142 (0.73%) 4,600 19.52 FIRST TRUST IPOX - - - -
FXI 0.86 (1.16%) 525,300 74.85 ISHARES TR FTSE INDX - - - -
GAU 0.00 (0.00%) 0 3.00 N/A - - - -
GDX 0.60 (1.56%) 276,600 39.13 MKT VECT GOLD MNRS - - - -
GIM 0.09 (1.00%) 372,600 9.10 TEMPLETON GLOBAL ICM - - 0.48 5.60%
GLD 0.94 (1.50%) 6,960,900 63.50 STREETTRACKS GOLD TR - - N/A N/A
GRR 0.26 (1.45%) 42,100 18.25 ASIA TIGERS FUND INC - - N/A N/A
IAU 0.90 (1.44%) 163,800 63.60 ISHARES COMEX GOLD - - N/A N/A
IFN 0.20 (0.41%) 763,300 48.95 INDIA FUND (THE) - - 4.46 8.70%
IGE 1.72 (1.73%) 86,500 100.93 ISHARES GS NAT RES - - 1.01 1.00%
IIF 0.38 (0.85%) 349,100 45.00 MS INDIA INV FD - - 3.88 7.60%
ILF 1.12 (0.83%) 292,600 136.39 ISHARES S&P LAT AM40 - - 1.69 1.20%
IVW 0.20 (0.34%) 191,900 59.37 ISHARE SP500 BAR/GRO - - 0.65 1.10%
IYH 0.14 (0.23%) 665,600 61.53 ISHARE DJ HLTHCR SC - - 0.47 0.70%
OSM 0.07 (0.30%) 3,000 23.40 SLM CPI LKD NT - - - -
PBW 0.11 (0.52%) 398,000 21.27 PS WILDERHILL ENRGY - - N/A N/A
PGJ 0.059 (0.37%) 112,300 16.129 POWERSHARES ETF - - N/A N/A
PHO 0.12 (0.68%) 322,800 17.71 PS WATER RESOURCE - - - -
PXJ 0.36 (1.72%) 156,100 21.25 POWERSHARES DYNAMIC - - - -
SLV 1.35 (1.12%) 380,700 121.75 ISHARES SILVER TRUST - - - -
TDF 0.37 (1.62%) 85,200 23.15 TEMPLETON DRAGON FND - - 1.16 5.10%
TRF 1.86 (2.53%) 61,700 75.30 TEMPLETON RUSS&EEUR - - 8.92 11.70%
USO 2.08 (3.11%) 443,500 68.90 U.S. OIL FUND ETF - - - -
VHT 0.28 (0.53%) 28,200 53.10 VANGUARD HEALTH CARE - - - -
VPU 0.89 (1.33%) 14,200 68.00 VANGUARD UTILITIES - - - -
XLE 0.83 (1.49%) 17,686,500 56.53 ENERGY SELECT SPDR - - 0.65 1.20%
XLF 0.19 (0.57%) 10,251,100 33.25 FINANCIAL SEL SPDR - - 0.71 2.20%
XLI 0.05 (0.15%) 2,146,200 34.34 INDUSTRIAL SPDR - - 0.51 1.50%
XLU 0.39 (1.21%) 4,726,200 32.54 UTILITIES SEL SPDR - - 0.97 3.20%

[kaviyarasu]

Re: IFN

EZ - it is ridiculous still this fund has 33% premium.
It is like paying 33% load to a mutual fund. I can't convince myself to just throw away 33% of my money just to get into the ETF.


India Fund (IFN)
Closed-End ETFs
--------------------------------------------------------------------------------
Fund Quick Facts
As of 05/31/2006
Closing NAV: $36.47 Current Market Yield: 0.25%
Closing Share Price: $48.50 Premium/(Discount): 32.99%

[EZ2]

tempting right now !!!????!!!!!!!!!

INDIA FUND (THE) (NYSE:IFN) Delayed quote data

Pre-Market (RT-ECN): 50.10 1.35 (2.77%)

[OldAIMGuy]

Hi EZ², EPP vs FXI................................

While both probably reflect business inside of China to a degree EPP would be a lesser degree and much greater in its diversification.

FXI is China specific but represents only 25 companies that are part of the China 25 Index.

EPP has 65% of its assets deployed in Australia, 20% in Hong Kong, and about 10% in Singapore.

So while one is a pure play for a single country, the other is more diversified as to countries, industries and companies.

Best regards,
Tom

[OldAIMGuy]

Hi EZ², Re: Precious Metals funds..................

I think I'll let others comment on this subject. I'm not currently an owner of any of the precious metals funds and haven't been for a decade or so. I, instead switched those $$$$ to "black gold" funds. This wasn't to slight the shiny metals but because I felt energy and oil were as good a hedge on inflation, etc. It also gave me one less thing to think about!

Sorry I can't be of any further help here.

Best regards, Tom

[EZ2]

Thanks fuzzy !!!! I'm also interested ( as a result of pretty significant pullback )in what Tom's A.I.M. diagnostics have to say about SLV too.

[EZ2]

How does that contrast to FXI ?

[Toofuzzy]

Hi Ez

I read awhile ago that gold and silver prices "tend" to move down over the summer due to market dynamics. Most jewelry bought in December thru January, miners in Canada busy while weather good, and a few more excuses.

Sort of like "sell in May and go away" which works till it doesn't.

Toofuzzy

[EZ2]

Tom ~~~ any indicators on this ??

SLV -5.19 (4.11%) 415,700 121.09 ISHARES SILVER TRUST


TIA !!
EZ

[EZ2]

excerpt from broad based website:

"As a quick follow-up on the ETF trades I mentioned in my last couple of columns, all positions are now closed. About 60% of them were sold when the market bounced last Thursday, and the remaining near the close on Friday. Overall, these trades were losers, but by limiting my exposure, methodically continuing to scale in, and selling once the bounce occurred even though I wasn't back to breakeven, the losses ended up very small. It's about making money when you are right, and keeping losses small when you arenÂ't. I'll talk more about these trades in upcoming columns, since I believe there is a lot that can be learned from them."


=============================================================================================

[OldAIMGuy]

Hi Bdog, I'm using EPP (Pacific Rim less Japan) as my geo fund for that area. I don't see Viet Nam listed, so if there, it's less than 5% of total assets right now.

The iShares MSCI Pacific ex-Japan Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of publicly traded securities in the Australia, Hong Kong, New Zealand, and Singapore markets, as represented by the MSCI Pacific Free ex-Japan Index.

You might check the fund sponsor, I-Shares, to see if there's more info on what ETFs have minor representation of Viet Nam in the funds.

Best regards, Tom

[beigledog]

Thanks

[EZ2]

These are a few of my favorites ie. I previously owned all...but currently do NOT hold any of these ETF's. Tom
may chime in w/ what his 'potential' prospects are...but,
I believe he has very little (if any) buy signals right now.

- - - -
EWA 0.14 (0.67%) 153,300 20.85 ISHARE MSCI AUSTRALI - - - -
EWG 0.24 (1.05%) 133,800 23.07 ISHARE MSCI GERMANY - - - -
EWH 0.11 (0.83%) 74,300 13.36 ISHARE MSCI HONGKONG - - - -
EWJ 0.05 (0.36%) 1,580,100 13.95 ISHARE MSCI JAPAN IN - - -
EWM 0.01 (0.13%) 217,300 7.52 ISHARE MSCI MALAYS F - - - -
EWS 0.02 (0.23%) 114,200 8.65 ISHARE MSCI SINGAPOR


.
EZ

[beigledog]

Thanks a lot...That's a big help.

I figured I'd either go with Malaysia or go with the Pacific Rim. Malaysia hasn't had a big run up like the rest of the Asian ETFs.

[EZ2]

directly from John Spence ( ETF contributor from MarketWatch.com )...............

"Thanks for the kind words, there is not an ETF for Vietnam and I'm not
aware of any in the works. There are of course ETFs tracking individual
Asian countries like Japan, etc., and also some broader regional ETFs
that track Pacific Rim, etc."


EZ

[beigledog]

Yep that article is part of my thinking, but I've been looking for a 'Nam ETF for about a month now. Thanks for your help.

[EZ2]

OT: U.S., Vietnam Remove Last Trade Barriers

Wednesday May 31, 7:33 am ET
By Tini Tran, Associated Press Writer

U.S., Vietnam Remove Last Trade Barriers Between the 2 Countries With Pact; Vietnam Set for WTO

HO CHI MINH CITY, Vietnam (AP) -- The United States and Vietnam signed a trade pact Wednesday that removes one of the last major hurdles in Hanoi's bid to join the World Trade Organization.
The deal would knock down remaining trade barriers between the two countries, which saw bilateral trade rise 21.6 percent to nearly $8 billion last year, by ending U.S. quotas on Vietnamese textiles and garments and giving American companies greater access to a growing Southeast Asian market.

It also paves the way for Vietnam to reach its goal of becoming a member of the global trading body before Hanoi hosts the Asia Pacific Economic Cooperation summit in November, which President Bush is scheduled to attend.

A vote in the U.S. Congress is still needed for the pact to take effect.

Deputy Trade Minister Luong Van Tu and Deputy U.S. Trade Representative Karan Bhatia signed the agreement during a ceremony that was attended by Trade Minister Truong Dinh Tuyen and Deputy Prime Minister Vu Khoan as well as U.S. Trade Representative-designate Susan Schwab.

Calling it a "historic step forward," Bhatia said, "Today's signing is the culmination of years of hard work and preparation on both sides."

The United States was the last country that Vietnam had to negotiate a bilateral treaty with for WTO access but a final challenge remains: the U.S. Congress must vote to grant Vietnam permanent normal trading relations.

A vote is needed before Congress breaks in August or else the entire process could be delayed until next year due to U.S. elections in November. However, observers are hopeful that Hanoi will achieve its decade-long goal.

Bhatia said the U.S. Trade Representative's office will seek "prompt approval" for permanent normal trading relations for Vietnam, but said the climate in Congress was challenging, suggesting the deal may face some opposition.

"It's a tight time frame but I think it's doable," said Virginia Foote, with the U.S. Vietnam Trade Council, a Washington, D.C.-based business advocacy group. "This is a huge accomplishment for both sides but especially Vietnam."

The ceremony was held at the Reunification Palace where three decades ago Communist tanks barreled through to end the Vietnam War. But times have changed, and the former wartime adversaries are enjoying their strongest relationship in decades.

A historic bilateral trade agreement in 2001 pushed two-way trade from under $1 billion a year to $7.8 billion last year -- most of it exports from Vietnam.

This trade pact will help reduce barriers even further, with Vietnam agreeing to reduce tariffs to 15 percent or less on U.S. manufactured and agricultural goods and open up its telecoms, financial and energy services to foreign companies.

Vietnam also agreed to scrap a $4 billion government plan to improve its textile and garment industry, which the U.S. considered a subsidy.

However, observers are hopeful that Hanoi will achieve its decade-long goal.

[EZ2]

I would tend to agree w/ you. I will see if I can
dig up anything of "potential" from some of the ETF
distributors. If I find anything at all....I will
post it here.

Have a good one !

EZ

[EZ2]

Just a quick 'search' on Yahoo! resulted in:

FUNDS


No Funds were found containing viet nam



.

[beigledog]

I've been looking for a while, and I believe that Vietnam could be the next unknown emerging market.

[EZ2]

G/M !!! I am NOT aware of any country specific ETF
directed at VietNam. I'm sure Tom, kavi and others
will reply also........in the mean time, I will do
a little more resarch on it also.

EZ

[beigledog]

Is there such thing as a Vietnam ETF?