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$GOLD/$USD 10-YR CORRELATION
IS GOLD TOAST? I hope so.
Trend: Accumulation, Markup, Distribution, Decline
Yes I know! The bum has been saying to buy SIRI because the merger was way overdue. He even had a stupid calander showing how many days overdue the merger was. Then on the day the merger happened he said not to buy the common stock because the common stock was going to take a beating.
Been holding pretty steady since then, IMO.
Boca_Bobby
Daily Correlations
ONLY PRICE PAYS
Did Cramer say not to buy SIRI? Wow, he's been saying to buy SIRI since last year. LOL
You just had to know that if Cramer said to not buy SIRI, we all need to take a serious look at picking up a few. That's the great thing about options, you can leverage yourself into a position while minimizing your risk in the case such as SIRI.
Nice find MT.....
Boca_Bobby
Citi: Sirius XM Is “Massively Undervalued”
http://seekingalpha.com/article/91109-citi-sirius-xm-is-8220-massively-undervalued-8221?source=front_page_most_popular_articles
ps. sorry about that video link, scroll down a bit and you'll find the right one, seems like they all link to the first video.
NEW ETFs: I'm working on getting these into the iBox
This site is pretty neat, they have a "whole world" ETF and a "whole United States Market" ETF. Check em' out.
http://www.vanguard.com/jumppage/etfs/index.html
http://vaneck.com/index.cfm?cat=1000&cgroup=ETF&LN=3&rfl=/etf&setGUID=done
ONLY PRICE PAYS
That's a great rule! Better to be diversified. This year I have mostly bought options. But I am evolving to where I see having stocks and options would have been a better strategy. It's just so hard to track more than two or three options during the trading day and the use of stop losses don't seem to work like I have wanted.
More to be revealed I guess.
Boca_Bobby
awesome, I'm really glad your with me on this one, maybe with a dip we can grab some at a penny. I don't want to spend any more than five hundred dollars, that is my new rule, lol
at least we will have about six months for it to work :)
I'm with you on this one MT. As a matter of fact I put in an order for 125 JAN09 $65/CALLS for $0.03. This was the last price they sold at and I see the daily chart is shaping up for a possible cup-n-handle with a $54 target on the short term. This looks like a nice long term play for us.
Boca_Bobby
New ETFs:
http://www.invescopowershares.com/
PLK PowerShares Active Low Duration Fund
PMA PowerShares Active Mega Cap Fund
PQY PowerShares Active AlphaQ Fund
PQZ PowerShares Active Alpha Multi-Cap Fund
What are Exchange-Traded Funds (ETFs)?
ETFs are one of the fastest growing investment products in the worldwide financial marketplace today. As of January, 2007, there are 387 ETFs listed in the U.S. alone, with $422 billion in assets under management. The ETF based on the NASDAQ 100 Index is the number one traded equity security in the world.
ETFs are funds that trade like individual stocks on all of the major exchanges, similar to securities of publicly held companies. They can be bought and sold at any moment during market hours. There are risks involved with investing in ETFs including possible the loss of money. The investment return and principal value of an investment in PowerShares XTF™ will fluctuate so that shares, when sold, may be worth more or less than their original cost.
What are PowerShares XTF™?
Until now, ETFs have been based on benchmark indexes that represent market segment movements. In contrast, PowerShares XTF™ are based on an intelligent index, the Intellidex™.
PowerShares XTF™ are based on Dynamic Indexes that use rules-based quantitative analysis. This Intellidex™ methodology chooses stocks for their capital appreciation potential, evaluating and selecting stocks based on multiple valuation criteria.
The Wisdom of Objective Portfolio Management
PowerShares XTF™ replicate a rules-based Intellidex™, thereby overriding the emotional conflicts that may interfere with sound investment decisions. This eliminates the subjective nature of securities research, which can also cloud the quality of recommendations, stock selection and portfolio management.
Actively-managed money has traditional risks such as Style Drift, Manager Turnover, Window Dressing and Investor/Manager Goal Misalignment. These are rarely concerns when investing in PowerShares XTF™ because of their purely objective, rules-based, transparent and emotion-free management structure.
What is Dynamic About the Intellidex™?
Dynamic Indexing is a rules-based selection process that expands upon traditional benchmark indexing. The Intellidex™ methodology is a sophisticated way of analyzing large groups of stocks in order to select specific stocks that have the potential for capital appreciation, and it provides market exposure to defined segments of the U.S. economy.
To pursue the goal of representing stocks with growth potential, the Intellidex™ utilizes rules-based quantitative analysis to evaluate and select securities using a wide variety of investment value determinants such as fundamental growth, stock valuation, timeliness and risk factors. This process is conducted quarterly to assure a consistent and accurate representation of a specific market segment.
Risk-Managed Design
PowerShares XTF™ are based on the Intellidex™ Index. The methodology of the Intellidex™ is designed to control individual stock risk by ensuring sufficient exposure to several securities within a given industry, sector, style or capitalization depending on the overall focus of the portfolio.
We further attempt to control risk through continual pricing and liquidity and by ensuring access to investor assets during market hours.
In addition, PowerShares XTF™ are exempt from the normal uptick rule on short sales. This allows for sophisticated risk management and hedging strategies not available on most other products.
Tax-Advantaged Product Design
Taxes may be the most overlooked and critical factor in wealth creation over time.
PowerShares XTF™ unique structure allows it to substantially mitigate and or possibly avoid capital gains distributions through an in-kind redemption process. Shareholders may be able to defer some, most or possibly all capital gains until they sell their shares.
PowerShares XTF™ accomplish this through a LI–FO (Lowest In – First Out) in-kind tax management strategy unique to ETFs. This method typically allows the fund manager, during the creation and redemption process, to purge the lowest cost basis stocks through in-kind, non-taxable stock transfers. This unique operational trait leaves the fund with the highest cost basis securities, which systematically reduces tax exposure.
Mutual Funds utilize a HI–FO (Highest In – First Out) pooled tax treatment strategy for managing most portfolios. This method typically creates embedded, unrealized capital-gain exposure and eventual taxable distributions. These distributions are declared and distributed annually and can occur regardless of whether the investor has made or lost money in the fund.
Separately Managed Accounts (SMAs) allow for customized tax planning and properly align a stock’s cost basis to each individual account, which is beneficial for wealthy investors. However, when adjusting their portfolios, SMAs lack an in-kind mechanism by which to purge embedded portfolio gains.
Finally, PowerShares XTF™ are tax efficient because they trade on an exchange— just like a stock where sellers are matched with buyers. These types of transactions between buyers and sellers do not require the fund to sell stock to meet redemptions. This substantially reduces fund expenses, cash on hand and the risk of unwanted capital gain distributions.
Low Ownership Cost
PowerShares XTF™ are able to provide lower ownership costs because of their efficient product structure.
PowerShares XTF™ have an established expense cap that includes expenses associated with the fund to make the cost of ownership clear and straight forward for investors. Usual brokerage commissions apply.
Transparency
With PowerShares XTF™, you always know exactly what securities are in your portfolio. The PowerShares XTF™ portfolio constituents are available on the PowerShares website through the holdings link provided on each product page. The Intellidex™ index holdings are also available at www.amex.com at all times. Knowing what securities are actually in your portfolio provides additional comfort when investing.
Liquidity and Convenience
PowerShares XTF™ trade daily on all U.S. Domestic Stock Exchanges and are listed on the American Stock Exchange, home of the largest and best-known domestic ETFs.
You can buy, sell, use limit orders, buy on margin or sell short on a downtick at any time during the trading day at that moment’s market price. PowerShares XTF™ are subject to risks similar to those of stocks, including those regarding short-selling and margin account maintenance.
ONLY PRICE PAYS
eSIGNAL: MIDAS INDICATOR
http://www.traders.com/Documentation/FEEDbk_docs/TradersTips/TradersTips.html#esignal
NEW TRADING BOOKS FOR AUGUST
http://www.traders.com/Documentation/FEEDbk_docs/Books/Books.html
ONLY PRICE PAYS
actually, come to think of it, I have a USD.CAD position, last time I checked it was up about $500. I use Interactive Brokers for stocks, bonds, futures, options, and forex. It's very easy when everything is all in one place. But mostly I use a corresponding ETF in place of actual forex trading.
Watch these IB commercials if you'd like:
http://individuals.interactivebrokers.com/en/general/about/tvCommercial.php?ib_entity=llc
I sure do! I think I heard something where the Bank of England was going to lower interest rates. Wouldn't that help the dollar also? I have been really itching to get into the Forex Markets. Do you trade currencies? If so, which broker do you use? I have ETrade and can create another account with them for there Global markets but forex.com is really easy to trade with.
Not sure yet what I will do. Any suggestions?
Boca_Bobby
nice chart work boca_bobby
very clean ascending triangles
what's your take on the $USD? [UUP]
DDM CHART:
Boca_Bobby
SSO CHART:
Boca_Bobby
Chartology: Tatro’s Analysis: DOW & S&P 500
http://www.cnbc.com/id/26224064
Good news for my Sep $3/CALLS! Thanks MT for the news.....
Boca_Bobby
The New SPDR International ETFs
http://seekingalpha.com/article/90960-the-new-spdr-international-etfs-are-top-heavy
ONLY PRICE PAYS
Sirius XM 2009 Debt Is a Non Issue for Investors
http://seekingalpha.com/article/90492-sirius-xm-2009-debt-is-a-non-issue-for-investors?source=front_page_most_popular_articles
WOO HOO! QQQQ $48.28 !!!!!
I CALLED THE MARKET THREE WEEKS AGO LOL SUCKERS. BACK IN BUSINESS BABY.
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=30987603
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=31163613
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=31142886
ONLY PRICE PAYS
VIDEO: Six Commodity ETFs
http://www.moneyshow.com/video/video.asp?wid=2222&t=3
Fibonacci Extremes
http://www.moneyshow.com/video/video.asp?wid=2211&t=3
Long-Term Investors Need Trends to Make Money
http://seekingalpha.com/article/87191-risk-management-in-trending-markets?source=wl_sidebar
QQQQ -- daily portrait, bear flag
DRYS
in portrait mode
QQQQ Futures
http://www.cmegroup.com/trading/equity-index/etf/powershares-QQQ_FO.html
regarding Futures, there are different months, like options, I suppose, just learning. I use Futures like a weather forecast for the market
NASDAQ 100 SEPT ND FUTURES CHART
I'm stuck in AUG QQQQ calls. even if I wanted to close them, they are worthless. and because of the 50% margin requirement, I haven't been able to trade anything for a week or two. losing many opportunities in this great up and down market. interestingly, when the underlying made a high of 46.15 on Thursday, my option calls didn't even begin to approach the pps at which I had purchased them when the underlying had been at least a 1.50 lower. implied volatility can sure work against you. regardless, based on the day chart, I remain hopeful for next week. semiconductors may start trading sideways, and QID, the double inverse of the Qs, has a rounding top reversal--after examining its chart, I certainly wouldn't feel comfortable going long on QID. but volume is picking up on the QQQQ red candles. usually volume tapers off as an ascending triangle develops. but in the end, only price pays.
Hey MT,
I'm loving CSIQ and POT today. I was stopped out of CSIQ yesterday for a 17% gain and I got back in today.
Boca_Bobby
Investing in Exchange Traded Funds (ETFs):
June 23rd, 2008
Investing in Exchange Traded Funds (ETFs):
DIAMONDs, SPDRs, Qubes, HOLDRs, VIPERs, iShares
They are simple and valuable investments with strange sounding names! Exchange Traded Funds (ETFs) essentially are mutual funds that trade like a stock. They are baskets of securities held in a trust (just like mutual funds) and can be traded as a listed security on a stock exchange (just like a stock).
Differences between mutual funds and ETFs
· Securities held in most mutual funds are actively managed. Securities held in ETFs track an index established by a stock exchange. Selection of securities is predetermined (i.e. passively managed). Accordingly, the cost of managing Exchange Traded Funds and their corresponding Management Expense Ratios (MERs) are significantly less than mutual funds.
· Mutual funds are priced once a day based on their net asset value at the end of the trading day. ETFs are priced in the market during the trading day based on their tracking value of the index that they represent.
· Mutual funds hold securities that are actively bought and sold during the year by managers who are using their expertise and experience to improve portfolio returns. ETFs, by definition, hold securities that are infrequently changed, and therefore tend to have lower capital gains distributions at the end of the year.
Differences between listed securities and ETFs
· Buying a diversified portfolio of individual securities, that approximately represents the market, can be time consuming and expensive. In contrast, buying an ETF, that holds a diversified portfolio of securities representing the market, can be completed easily in one trade.
· Transaction costs normally are lower for ETFs than for individual securities (particularly on broadly based ETFs) because bid/ask spreads for ETFs frequently are less.
Why the strange sounding names?
The names frequently are an acronym for an Exchange Traded Fund:
· SPDRs (also called SPDRS): Standard & Poor’s 500 index Deposit Receipts
· DIAMONDS: Dow Jones Industrial Average tracking unit.
· VIPERS: Vanguard Index Participation Equity Receipts
· Qubes: based on symbol for the NASDAQ 100 tracking units: QQQQ.
· HOLDRs: Holding Company Depositary Receipts
An Example using SPDRs
SPDRs are an Exchange Traded Fund that tracks the S&P 500 Index. SPDRs trade approximately at 1/10th the value of the Index. If the S&P 500 Index is trading at 1400, SPDRs (Symbol: SPY) will trade at almost exactly $140 per unit. The cost of 100 units will be $140 x 100 = $14,000 U.S.. If the S&P 500 Index rises to 1500, the price of SPDRs will increase to $150. The value of 100 units will improve to $15,000.
Types of Indices Tracked by ETFs
Six types are available:
· ETFs on broadly based indices (e.g. S&P 500 Index, Dow Jones Industrial Average, S&P/TSX 60 Index)
· ETFs on sector indices (e.g. health care, high tech, financial services)
· ETFs on style indices (e.g. growth, value, small cap, medium cap)
· ETFs on indices of countries or regions outside of North America (e.g. the Euro 350 Index, the EAFE Index)
· ETFs on bond indices.
· ETFs on commodities and currencies
· Leveraged, inverse and inverse leveraged ETFs
Currently, 389 U.S. equity based ETFs, 35 U.S. bond based ETFs, 123 international, 22 commodity-based ETFs and ETNs, 12 currency based ETFs, 6 actively managed ETFs, 54 Canadian equity based ETFs and 8 Canadian bond based ETFs trade on North American exchanges. A complete list is provided at the end to this report.
Reasons to own ETFs
· Easy to understand and to follow. The media frequently comments on events that influence the performance of broadly based indices such as the S&P 500 Index, the Dow Jones Industrial Average and the S&P/TSX 60 Index. Their comments also apply to performance of ETFs that track broadly based indices.
· A convenient way to build a diversified portfolio. Each ETF owns a basket of securities. For example, iUnits in the S&P/TSX 60 Index holds a diversified portfolio of Canada’s top 60 companies. Risks associated with ownership of individual securities in the basket are reduced.
· A low Management Expense Ratio (MER) relative to actively managed investments. The average MER on a broadly based Canadian or U.S. mutual fund actively managed by a Canadian based investment firm is 2.50%. In contrast, the MER on iUnits on the S&P/TSX 60 Index is only 0.17% and the MER on SPDRs is only 0.10%. A list of MERs on ETFs is provided at the end of this report.
· More tax efficient than actively managed investments. Capital gains distributions at year-end from U.S. traded ETFs currently are nil due to their legal structure. Capital gains distributions at year-end from Canadian traded ETFs are low and frequently are nil. The reason: changes in indices are infrequent and, therefore, chances of realizing a capital gain for tax purposes due to index changes are low. In contrast, a portfolio of actively managed investments frequently is adjusted and is more likely to distribute taxable capital gains at the end of the year.
· Easily bought and sold (particularly ETFs on broadly based indices). SPDRs were the most actively traded equity security in the world in 2007 based on value of trading. Qubes were the most actively traded security in the world in 2007 based on the number of shares that traded. Volumes in both ETFs rose in 2007. Average daily volume in i60s, Canada’s most actively traded ETF was approximately 2.3 million per day in 2007. In addition, bid/ask spreads on broadly based ETFs frequently are $0.10 per unit or less.
Better performers relative to most actively managed investments.
Standard and Poor’s recently issued its Canadian “Standard & Poor’s Indices
Versus Active Funds Scorecard” (SPIVA) report for the year ending December 2007. The report has been expanded to include Canadian Dividend & Income Equity, International Equity and Global Equity funds. The full report is available at http://www2.standardandpoors.com/spf/pdf/index/SPIVA_Canada_Q42007.pdf
The report once again confirms that most of Canada’s actively managed mutual funds have underperformed their benchmark indices. The exception is the relatively small “Canadian Small/Mid Cap Equity” category where active managers on average have slightly exceeded their benchmark. No joy there! The Small/Mid Cap equity category also has consistently underperformed the S&P/TSX Composite Index Total Return category.
Standard and Poor’s uses the following S&P indices as their benchmarks:
Category Comparison Index
Canadian Equity S&P/TSX Composite Index Total Return
Cdn. Small/Mid Cap Equity S&P/TSX Canadian Completion Total Return
Cdn. Dividend & Income Eq. S&P Cdn. Dividend Aristocrats Index Total Return
U.S. Equity S&P 500 Total Return C$
International Equity S&P/Citigroup EPAC PMI Index Total Return C$
Global Equity S&P/Citigroup World PMI Index Total Return C$
Results of the study revealed the following:
Percent of Active Funds Outperforming Index
Category One Year Three Years Five Years
Canadian Equity 24.29 13.26 8.42
Cdn. Small/Mid Cap Equity 51.85 N/A N/A
Cdn. Dividend & Income Eq. 37.04 3.23 0.0
U.S. Equity 41.84 14.74 14.92
International Equity 35.56 18.64 13.12
Global Equity 44.54 18.06 17.10
The report also indicates how much active managers missed their benchmark index:
Percent That Active Managers Missed Their Benchmark
Category One Year Three Years Five Years
(Annualized) (Annualized)
Canadian Equity 3.15 4.07 4.34
Cdn. Small/Mid Cap Equity (1.50) N/A N/A
Cdn. Dividend & Income Eq. 0.49 4.47 4.97
U.S Equity 0.66 1.90 1.73
International Equity 2.80 2.35 2.30
Global Equity 0.10 1.06 0.84
The cost of buying and selling ETFs
Investors can choose between buying and selling ETFs in a transaction-based account or in a fee-based account. Costs in a transaction-based account will be the regular commission charged by your broker for completing an equity trade. Costs in a fee-based account in most cases will be zero for the transaction, but a fee based on the value of the portfolio will be assessed periodically. Investors, who make most of their own investment decisions, probably will prefer a transaction-based account. Investors, who rely on their broker to offer investment advice on a continuing basis, may prefer to complete transactions through a fee-based account. A fee of 1.5% per year for an equity account valued between $100,000 and $500,000 is approximately “the going rate” by Canadian investment dealers.
Other features of ETFs
The following information was obtained from publicly available web sites:
· ETFs listed on the Toronto Exchange are 100% eligible as Canadian content in tax deferred accounts (e.g. RRSPs and RRIFs).
· Most ETFs pay a quarterly dividend.
· Dividends paid by ETFs with Canadian equity content listed on the Toronto Exchange are eligible for the Dividend Tax Credit.
· Trading hours correspond with the regular trading hours of the Toronto Exchange and U.S. exchanges (normally 9:30 AM – 4:00 PM Eastern time).
· All ETFs have redemption features. Holders with large positions in ETFs are allowed to exchange their units for shares that underlie the unit. Net result: units consistently trade at or near their net asset value.
· Many ETFs have listed options and Long term Equity APpreciation Securities (LEAPS). A list of optionable ETFs is provided at the end of this report.
· Dividend re-investment (DRIP) programs on broadly based ETFs are available through selected brokers.
· ETFs are marginable.
· ETFs can be shorted.
· ETFs are sponsored by well-known financial institutions.
Portfolio Strategies
Core and satellite investing
One of the more popular strategies! Investors place a large portion (i.e. the core) of their equity portfolio into Exchange Traded Funds. This portion acts as the anchor for the portfolio, ensuring that portfolio performance will approximate stock market returns. Size of the core depends upon the amount of stock market risk that the investor is willing to assume. Investors, who are satisfied with realization of returns that approximate “the market”, will place a larger portion of their portfolio into ETFs (say 40%-80%). Investors, who are willing to take more risk in order to improve prospects for “outperforming the market”, will place a smaller portion into ETFs. The remainder of the portfolio is invested into “special situations” with the potential to outperform the market. Choices include attractive equities, specialty mutual funds, sector ETFs, hedge funds, etc.
Portfolio Rebalancing
ETF positions can be adjusted easily when equity, fixed income and cash weights in a portfolio need to be rebalanced due to changing market conditions. With one trade in an ETF of a broadly based index, equity positions can be increased or reduced.
Sector Investing
Investors can choose, when timely, to over weight sectors that have better potential. Investors can choose between six Canadian sector ETFs and over 60 U.S. sector ETFs.
Seasonal Trend Investing
North American, European and Japanese equity markets tend to be strongest from the end of October to the end of March /April. Investors can take advantage by owning broadly based ETFs during the period of seasonal strength and by switching into treasury bills during the remainder of the year.
Sectors in equity markets also have seasonality and can be traded accordingly. See the Special Report section at www.dvtechtalk.com for background.
Risks
By definition, an investor holding an Exchange Traded Fund will never outperform the market. The investor will track the market (less a small MER).
Some ETFs have a high percent of their portfolio invested either in a sector or an individual security. Concentrations can influence the volatility and performance of the ETF.
A small number of ETFs hold a basket of securities that are known to be volatile. Most of these hold high tech securities with a history of significant price swings.
Monitoring ETFs through the Internet
The following web sites are useful for investors who are looking for more information about ETFs:
Sites for a quick overview and description of ETFs that trade on U.S. exchanges:
www.nasdaq.com
www.amex.com
www.nyse.com
ETF content and weights:
IShares U.S. information: www.ishares.com
iShares Canadian information: www.ishares.ca
Select sector SPDRs information: www.spdrindex.com
StreetTracks ETF information: www.streettracks.com
Merrill Lynch HOLDRs information: www.holdrs.com
Vanguard ETF information: www.vipers.vanguard.com/etf
PowerShares ETF information: www.powershares.com
FT Portfolios ETF information: www.ftportfolios.com
Proshares ETF information: www.proshares.com
Rydex Funds ETF information: www.rydexfunds.com
Wisdomtree ETF information: www.wisdomtree.com
Claymore Investments ETF information: www.claymoreinvestments.ca
XShares ETF information: www.xshares.com
ETF information: www.exchangetradedfunds.com
Index providers:
S&P indices: www.standardandpoors.com
Dow Jones indices: www.djindexes.com
MSCI International indices: www.msci.com
Russell indices: www.russell.com
Wilshire indices: www.wilshire.com
FTSE group indices: www.ftse.com
Index universe: www.indexuniverse.com
ETF Information and opinion sources
www.exchangetradedfunds.com
www.indexfund.com
www.globeinvestor.com
www.finance.yahoo.com/etf
www.etfguide.com
www.thestreet.com
www.marketwatch.com
www.morningstar.com
www.currencyshares.com
Exchange Traded Fund List
Equity Index Units Traded in Canada
Name SymbolMER Opt. Volume
(%) Daily
3 months
Jun 2008
(000)
IShares S&P/TSX 60 Index XIU 0.17 yes 5,000
IShares Composite Cdn. Eq Capped Index XIC 0.25 no 40
IShares S&P 500 C$ Index Fund XSP 0.25 no 200
IShares International C$ Index Fund XIN 0.50 no 150
iSharesDividend Index XDV 0.50 no 60
IShares S&P/TSX Canadian Capped Energy Index XEG 0.55 yes 600
ISharesS&P/TSX Canadian Capped Financial Index XFN 0.55 yes 400
ISharesS&P/TSX Canadian Capped Gold Index XGD 0.55 yes 400
iShares Income Trust Sector Index XTR 0.55 no 100
IShares S&P/TSX Canadian Capped Info.Tech. XIT 0.55 yes 50
iSharesMaterials Sector Index XMA 0.55 yes 150
IShares S&P/TSX Canadian Capped Midcap Index XMD 0.55 no 50
ISharesS&P/TSX Canadian Capped REIT Index XRE 0.55 no 200
iShares Cdn. Value Index Fund XCV 0.50 no 5
iShares Cdn. Growth Index Fund XCG 0.50 no 10
iShares Cdn. Janzi Social Index Fund XEN 0.50 no 10
iShares Cdn. Small Cap Index Fund XCS 0.55 no 10
iShares Cdn. Russell 2000 Index Fund XSU 0.35 no 10
Merrill Lynch CP HOLDRS HCH * no 1
Claymore FTSE RAFI Canadian Index Fund CRQ 0.65 no 20
Claymore Cdn Dividend and Income Achievers CDZ 0.60 no 10
Claymore U.S. Fundamental Index (C$ hedged) CLU 0.65 no 10
Claymore Oil Sands sector CLO 0.60 no 15
Claymore BRIC CBQ 0.60 no 50
Claymore International Fundamental CIE 0.65 no 10
Claymore Preferred Shares CPD 0.45 no 20
Claymore Japan Fundamental CJP 0.65 no 5
Claymore Global Water CWW 0.60 no 15
Claymore Global Mining CMW 0.55 no 15
Claymore Global Balanced Income CBD 0.70 no 2
Claymore Global Balanced Growth CBN 0.70 no 2
Claymore Global Agriculture COW 0.65 no 150
Claymore Global Monthly Yield Hog CYH 0.65 no 10
Claymore Cdn. Financial Services CEW 0.65 no 10
Horizon BetaPro 60 Bull + HXU 1.15 no 700
Horizon BetaPro 60 Bear + HXD 1.15 no 3000
Horizon BetaPro Financial Bull + HFU 1.15 no 250
Horizon BetaPro Financial Bear + HFD 1.15 no 150
Horizon BetaPro Energy Bull + HEU 1.15 no 125
Horizon BetaPro Energy Bear + HED 1.15 no 800
Horizon BetaPro Gold Bull + HGU 1.15 no 700
Horizon BetaPro Gold Bear + HGD 1.15 no 400
Horizon BetaPro Crude Oil Bull+ HOU 1.15 no 200
Horizon BetaPro Crude Oil Bear + HOD 1.15 no 2500
Horizon BetaPro Natural Gas Bull+ HGU 1.15 no 600
Horizon BetaPro Natural Gas Bear + HGD 1.15 no 500
Horizon BetaPro Comex Gold Bullion Bull+ HBU 1.15 yes 125
Horizon BetaPro Comex Gold Bullion Bear + HBD 1.15 yes 30
Horizon BetaPro S&P/TSX Global Mining Bull + HMU 1.15 no 10
Horizon BetaPro S&P/TSX Global Mining Bear + HMD 1.15 no 25
Horizon BetaPro Agriculture Bull + HAU 1.15 no 50
Horizon BetaPro Agriculture Bear + HAD 1.15 no 3
Equity Index Units Traded in the U.S.
Major Market ETFs SymbolMER Opt. Volume
(%) Daily
3 months
(000)
Broad Market Jun 2008
Total Stock Market VIPERs VTI 0.07 yes 1015
IShares Russell 3000 IWV 0.20 yes 337
IShares DJ US Total Market IYY 0.20 yes 48
IShares S&P 1500 ISI 0.20 yes 34
Fidelity NASDAQ Composite Tracking Stock ONEQ 0.30 yes 257
Extended Market VIPERs VXF 0.08 yes 233
StreetTRACKS Total Market TMW 0.20 yes 12
FTSE RAFI U.S. 1000 PRF 0.60 yes 100
Dynamic MagniQuant PIQ 0.60 yes 10
Large-Cap
Diamond Trust Series 1 DIA 0.18 yes 13,483
NASDAQ 100 Index Tracking Stock QQQQ0.20 yes 134,073
IShares S&P 100 OEF 0.20 yes 1,173
IShares S&P 500 IVV 0.09 yes 3,400
IShares NYSE 100 NY 0.20 yes 11
IShares NYSE Composite NYC 0.25 yes 16
Standard and Poors Depository Receipts SPY 0.10 yes 198,567
IShares Russell 1000 IWB 0.15 yes 1,211
Rydex S&P Equalweight RSP 0.40 yes 303
Large Cap VIPERS VV 0.07 yes 205
Morningstar Large Core JKD 0.20 yes 24
StreetTRACKS DJ Wilshire Large Cap ELR 0.20 yes 4
First Trust NASDAQ 100 Equal Weight QQEW0.60 yes 20
Rydex Russell Top 50 XLG 0.20 yes 49
Dynamic Large Cap PJF 0.60 yes 9
First Trust Large Cap Core AlphaDEX FEX 0.70 no 5
Vanguard Mega Cap 300 MGC 0.13 no 40
RevenueShares Large Cap RWL 0.49 no 10
PowerShares NASDAQ Next Q Portfolio PNXQ 0.70 no 27
Mid-Cap
IShares S&P MidCap 400 IJH 0.20 yes 563
S&P Midcap 400 Depository Receipts MDY 0.25 yes 5,576
IShares Russell Midcap IWR 0.20 yes 248
Mid-Cap VIPERS VO 0.13 yes 136
Morningstar MidCore JKG 0.25 yes 36
StreetTRACKS DJ Wilshire Mid Cap EMM 0.25 yes 5
Dynamic Mid-Cap PJG 0.60 yes 9
First Trust Mid Cap Core AlphaDEX FNX 0.70 no 3
RevenueShares Mid Cap RWK 0.54 no 4
Small Cap
IShares S&P Small Cap 600 IJR 0.20 yes 1,468
IShares Russell 2000 IWM 0.20 yes 62,537
Small-cap VIPERS VB 0.10 yes 153
Morningstar SmallCore JKJ 0.25 yes 36
iShares Microcap IWC 0.60 yes 140
StreetTRACKS DJ Wilshire Small Cap DSC 0.25 yes 8
First Trust MicroCap FDM 0.60 yes 5
Zacks Small Cap PZJ 0.60 yes 9
Zacks Micro Cap PZI 0.60 yes 42
FTSE RAFI Small – Mid PRFZ 0.60 no 31
FT Dow Jones Select Microcap FDM 0.60 yes 5
Dynamic Small Cap PJM 0.60 yes 6
First Trust Small Cap Core AlphaDEX FYX 0.70 no 3
RevenueShares Small Cap RWJ 0.54 no 3
PowerShares FTSE Small Cap Portfolio PQSC 0.70 no 6
Style ETFs
Broad Market Growth
IShares Russell 3000 Growth IWZ 0.25 yes 56
First Trust Growth FPX 0.60 yes 13
Broad Market Value
IShares Russell 3000 Value IWW 0.25 yes 55
First Trust Equity Income FDL 0.60 yes 19
First Trust Multi Cap Growth AlphaDEX FAD 0.70 no 4
First Trust Multi Cap Value AlphaDEX FAB 0.70 no 2
Large-Cap Growth
IShares S&P 500/Barra Growth IVW 0.18 yes 1,486
IShares Russell 1000 Growth IWD 0.20 yes 1,820
StreetTRACKS DJ Wilshire Large Cap Growth ELG 0.20 yes 40
Growth VIPERS VUG 0.15 yes 311
Morningstar Large Growth JKE 0.25 yes 54
Dynamic Large Growth PWB 0.60 yes 212
Rydex S&P 500 Growth RPG 0.35 yes 11
First Trust Large Cap Growth AlphaDEX FTC 0.70 no 8
Vanguard Mega Cap Growth MGK 0.13 no 39
Large-Cap Value
IShares S&P 500/Barra Value IVE 0.18 yes 594
IShares Russell 1000 Value IWD 0.20 yes 1,820
StreetTRACKS DJ Wilshire Large Cap Value ELV 0.20 no 16
Value VIPERS VTV 0.15 yes 232
Morningstar Large Value JKF 0.25 no 43
Dynamic Large Value PWV 0.60 yes 82
Rydex S&P 500 Value RPV 0.35 yes 9
FT DB Strategic Value FDN 0.60 yes 16
First Trust Large Cap Value AlphaDEX FTA 0.70 no 5
Vanguard Mega Cap Value MGV 0.13 no 21
Mid-Cap Growth
IShares S&P MidCap 400/Barra Growth IJK 0.25 yes 214
IShares Russell MidCap Growth IWP 0.25 yes 742
Morningstar Mid Growth JKH 0.30 yes 50
Dynamic Mid Growth PWJ 0.60 yes 129
StreetTRACKS DJ Wilshire Mid Cap Growth EMG 0.25 yes 3
Rydex Midcap 400 Growth RFG 0.35 yes 5
Mid-Cap Value
IShares S&P MidCap 400/Barra Value IJJ 0.25 yes 111
IShares Russell MidCap Value IWS 0.25 yes 1,244
Morningstar Mid Value JKI 0.30 yes 22
Dynamic Mid Value PWP 0.60 no 23
StreetTRACKS DJ Wilshire Mid Cap Value EMV 0.25 no 1
Rydex Midcap 400 Value RFV 0.35 yes 4
Small-Cap Growth
IShares S&P SmallCap 600/Barra Growth IJT 0.25 yes 181
IShares Russell 2000 Growth IWO 0.25 yes 2.435
StreetTRACKS DJ SmallCap Growth DSG 0.25 yes 82
Small-Cap Growth VIPERS VBK 0.22 yes 136
Morningstar Small Growth JKK 0.30 no 19
Dynamic Small Growth PWT 0.60 yes 19
Rydex Small Cap Growth RZG 0.35 no 6
Small-Cap Value
IShares S&P SmallCap 600/Barra Value IJS 0.25 yes 158
IShares Russell 2000 Value IWN 0.25 yes 1990
StreetTRACKS DJ SmallCap Value DSV 0.25 yes 14
Small-Cap Value VIPERS VBR 0.22 yes 153
Morningstar Small Cap Value JKL 0.30 yes 24
Dynamic Small Cap Value PWY 0.60 yes 43
Rydex Small Cap Value RZV 0.35 yes 10
Sector ETFs
Consumer Discretionary
Consumer Discretionary Select Sector SPDR XLY 0.26 yes 4,917
IShares DJ US Consumer Cyclical Sector IYC 0.48 yes 62
Retail HOLDRS RTH 0* yes 6,207
Consumer Discretionary VIPERS VCR 0.28 yes 64
Dynamic Leisure and Entertainment PEJ 0.60 yes 34
Dynamic Retail PMR 0.60 yes 48
Dynamic Hardware and Consumer Electronics PHW 0.60 yes 7
SPDR Retail XRT 0.35 yes 4,758
Dynamic Consumer Discretionary PEZ 0.60 yes 4
Market Vector Environmental Services EVX 0.55 yes 12
Rydex Equal Weight Consumer Discretionary RCD 0.50 no 13
Consumer Staples
Consumer Staples Select Sector SPDR XLP 0.26 yes 2,802
IShares DJ US Consumer Non-Cyclical Sector IYK 0.48 yes 42
Consumer Staples VIPERS VDC 0.28 yes 59
Dynamic Food and Beverage PBJ 0.60 yes 43
FTSE RAFI Consumer Goods PRFG 0.60 no 4
Dynamic Consumer Staples PSL 0.60 no 7
Rydex Equal Weight Consumer Staples RHS 0.50 no 1
First Trust Consumer Staples AlphaDEX FXG 0.70 yes 2
Energy
Energy Select Sector SPDR XLE 0.26 yes 25,205
IShares DJ US Energy Sector IYE 0.60 yes 627
Vanguard Energy VIPERs VDE 0.28 yes 81
Oil Service HOLDRS OIH 0* yes 7,811
Dynamic Energy Exploration and Production PXE 0.60 yes 61
Dynamic Energy Sector PXI 0.60 no 9
Dynamic Oil and Gas Services PXJ 0.60 yes 127
iShares DJ Exploration & Production IEO 0.48 no 196
iShares DJ Oil Equipment IEZ 0.48 no 95
SPDR Oil and Gas Equipment and Services XES 0.35 yes 56
SPDR Oil and Gas Exploration and Production XOP 0.35 yes 618
FTSE RAFI Energy PRFE 0.60 no 11
Rydex Equal Weight Energy RYE 0.50 no 7
First Trust Energy AlphaDEX FXN 0.70 yes 4
First Trust ISE Revere Natural Gas FCG 0.70 yes 85
Market Vector Nuclear Energy NLR 0.65 no 128
Financials
Financial Select Sector SPDR XLF 0.26 yes 109,152
IShares DJ US Financial Sector IYF 0.48 yes 2,575
IShares DJ US Financial Services IYG 0.48 yes 246
Regional Bank HOLDRS RKH 0* yes 995
Financials VIPERS VFH 0.28 yes 210
StreetTRACKS KBW Bank KBE 0.35 yes 3,580
StreetTRACKS KBW Capital Markets KCE 0.35 yes 475
StreetTRACKS KBW Insurance KIE 0.35 yes 211
Dynamic Insurance PIC 0.60 yes 17
iShares DJ Broker Dealer IAI 0.48 yes 1,704
iShares DJ Insurance IAK 0.48 no 11
iShares Regional Banks IAT 0.48 no 127
SPDR Regional Banking KRE 0.35 yes 3,309
FTSE RAFI Financials PRFF 0.60 no 8
Dynamic Banking PJB 0.60 yes 70
Dynamic Financial PFI 0.60 yes 8
Rydex Equal Weight Financials RYF 0.50 no 5
First Trust Financials AlphaDEX FXO 0.70 no 2
Health Care
Biotech HOLDRS BBH 0* yes 148
IShares NASDAQ Biotech IBB 0.48 yes 1,077
iShares Biotech SPDRs XBI 0.35 yes 133
Amex Biotech FBT 0.60 yes 34
Dynamic Biotech and Genome PBE 0.60 yes 55
Health Care Select Sector SPDR XLV 0.26 yes 2,126
IShares DJ US Healthcare Sector IYH 0.48 yes 54
iShares Pharmaceuticals IHE 0.48 no 30
iShares Healthcare Providers IHF 0.48 no 81
iShares Medical Devices IHI 0.48 no 60
Pharmaceutical HOLDRS PPH 0* yes 591
Health Care VIPERS VHT 0.28 yes 41
Dynamic Pharmaceutical PJP 0.60 yes 21
SPDR Pharmaceutical XPH 0.35 yes 11
FTSE RAFI Health PRFH 0.60 no 4
Dynamic Healthcare Services PTJ 0.60 yes 60
Dynamic Healthcare PTH 0.60 yes 22
Rydex Equal Weight Health Care RYH 0.50 no 18
HealthShares Cardio Devices HHE 0.75 no 1
HealthShares Diagnostics HHD 0.75 yes 5
HealthShares Emerging Cancer HHJ 0.75 yes 3
HealthShares Enabling Technology HHV 0.75 no 3
HealthShares Patient Care Services HHB 0.75 no 1
HealthShares Metabolic-Endocrine Disorder HHM 0.75 no 1
HealthShares Autoimmune-Inflammation HHA 0.75 no 2
HealthShares Cancer HHK 0.75 no 2
HealthShares Cardiology HRD 0.75 no 2
HealthShares Composite HHQ 0.75 no 1
HealthShares GI/Gender Health HHU 0.75 no 1
HealthShares Respiratory/Pulmonary HHR 0.75 no 1
HealthShares Neuroscience HHN 0.75 no 1
HeathShares Ophthalmology HHZ 0.75 no 1
HealthShares European Drug HRJ 0.75 no 3
HealthShares Infectious Disease HHG 0.75 no 1
HealthShares Dermatology and Wound Care HRW 0.75 no 4
First Trust Health Care AlphaDEX FXH 0.70 no 3
Industrials
Industrial Select Sector SPDR XLI 0.26 yes 5,744
IShares DJ Transportation Average IYT 0.48 yes 1,441
IShares DJ US Industrial Sector IYJ 0.48 yes 70
Vanguard Industrials VIPERs VIS 0.28 yes 46
Dynamic Building and Construction PKB 0.60 yes 15
iShares Home Construction ITB 0.48 no 1060
Homebuilder SPDRs XHB 0.35 yes 7,082
Dynamic Aerospace and Defense PPA 0.60 yes 73
iShares Aerospace and Defence ITA 0.48 no 51
FTSE RAFI Industrials PRFN 0.60 no 6
Dynamic Industrials PRN 0.60 yes 5
Market Vector Steel SLX 0.55 yes 282
PowerShares Aerospace and Defense PPA 0.60 yes 73
Rydex Equal Weight Industrials RGI 0.50 no 2
First Trust Industrials/Producer Durables AlphaDEXFXR 0.70 no 1
Information Technology – Broad Based
IShares DJ US Technology Sector IYW 0.48 yes 254
IShares Goldman Sachs Tech IGM 0.48 yes 85
StreetTRACKS MS High-Tech 35 MTK 0.50 yes 11
Technology Select Sector SPDR XLK 0.26 yes 4,374
Information Technology VIPERS VGT 0.28 yes 94
FTSE RAFI Telecom and Technology PRFQ 0.60 no 2
Dynamic Technology PTF 0.60 yes 12
Rydex Equal Weight Technology RYT 0.50 no 3
NYSE Arca Tech 100 NXT 0.50 no 1
First Trust Technology AlphaDEX FXL 0.70 no 1
Information Technology – Internet
Internet HOLDRS HHH 0* yes 100
B2B Internet HOLDRS BHH 0* yes 73
Internet Architecture HOLDRS IAH 0* yes 13
Internet Infrastructure HOLDRS IIH 0* yes 26
Dow Jones Internet FDN 0.60 yes 16
Information Technology – Other
IShares Goldman Sachs Networking IGN 0.48 yes 75
IShares Goldman Sachs Semiconductor IGW 0.48 yes 325
IShares Goldman Sachs Software IGV 0.48 yes 142
Broadband HOLDRS BDH 0* yes 123
Semiconductor HOLDRS SMH 0* yes 11,314
Software HOLDRS SWH 0* yes 45
Dynamic Networking PXQ 0.60 no 8
Dynamic Semiconductor PSI 0.60 yes 117
Dynamic Software PSJ 0.60 yes 9
Lux Nanotech PXN 0.60 yes 19
Semiconductor SPDRs XSD 0.35 yes 92
First Trust NASDAQ 100 Equal Weight Tech QTEC 0.60 no 9
Materials
IShares DJ US Basic Materials Sector IYM 0.48 yes 521
Materials Select Sector SPDR XLB 0.26 yes 11,652
Materials VIPERS VAW 0.28 yes 189
SPDR Metals and Mining XME 0.35 yes 1,104
FTSE RAFI Basic Materials PRFM 0.60 no 1
Rydex Equal Weight Materials RTM 0.50 no 3
Dynamic Basic Materials PYZ 0.60 yes 15
First Trust Materials AlphaDEX FXZ 0.70 yes 4
Market Vector Steel SLX 0.55 yes 282
Natural Resources
IShares Goldman Sachs Natural Resources IGE 0.48 yes 152
Real Estate
IShares DJ US Real Estate IYR 0.48 yes 7,436
IShares Cohen & Steers Realty Majors ICF 0.35 yes 942
StreetTRACKS Wilshire REIT RWR 0.25 yes 297
Vanguard REIT VIPERs VNQ 0.12 yes 632
First Trust S&P REIT FRI 0.50 no 3
iShares FTSE Industrial/Office FIO 0.48 no 5
iShares FTSE Mortgage REIT REM 0.48 no 22
iShares Real Estate 50 FTY 0.50 no 4
iShares Residential REZ 0.50 no 7
iShares Retail RTL 0.50 no 1
Adelante Re Composite ACB 0.58 no 1
Adelante Re Classics ACK 0.58 no 1
Adelante Re Growth AGV 0.58 no 1
Adelante Re Kings AKB 0.58 no 2
Adelante Re Yield Plus ATY 0.58 no 1
Adelante Re Shelter AQS 0.58 no 1
Telecommunications
IShares DJ US Telecom Sector IYZ 0.48 yes 527
Vanguard Telecommunication Services VIPERs VOX 0.26 yes 76
Telecom HOLDRS TTH 0* yes 50
Wireless HOLDRS WMH 0* no 5
Dynamic Media PBS 0.60 yes 27
Dynamic Telecommunications PTE 0.60 no 10
Utilities
IShares DJ US Utilities Sector IDU 0.48 yes 57
Utilities Select Sector SPDR XLU 0.26 yes 4,366
Utilities HOLDRS UTH 0* yes 38
Utilities VIPERS VPU 0.28 yes 29
Dynamic Utilities PUI 0.60 yes 11
FTSE RAFI Utilities PRFU 0.60 no 2
First Trust Utilities AlphaDEX FXU 0.70 no 5
Dividend ETFs
IShares Dow Jones Select Dividend DVY 0.40 yes 662
Power Shares Dividend Achievers Portfolio PEY 0.50 yes 91
SPDR Dividend SDY 0.30 yes 66
High Yield Equity Dividend Achievers Portfolio PEY 0.60 no 91
High Growth Rate Dividend Achievers Portfolio PHJ 0.60 yes 5
Dividend Top 100 DTN 0.38 no 32
Large Cap Dividend DLN 0.28 no 48
Mid Cap Dividend DON 0.38 no 31
High Yielding Equity DHS 0.38 no 48
Small Cap Dividend DES 0.38 no 24
Claymore Yield Hog CVY 0.60 no 16
Claymore/BBD High Income LVL 0.60 no 3
FT Morningstar Dividend Leaders FDL 0.45 no 19
Specialty ETFs
FT ValueLine FVI 0.60 no 1
ValueLine Timeliness Select PIV 0.60 no 38
ValueLine Industry Rotation PYH 0.60 no 8
FT ValueLine 100 FVL 0.60 no 19
Water Resources PHO 0.60 yes 599
Claymore Sector Rotation XRO 0.60 no 19
Claymore Sabrient Insider NFO 0.60 no 9
Claymore Sabrient Stealth STH 0.60 no 3
Claymore Spin-off CSD 0.60 yes 12
Claymore/Sabient Defender DEF 0.60 yes 2
Claymore/Ocean Tomo Patent OTP 0.60 yes 1
Claymore/Ocean Tomo Growth OTR 0.60 no 1
Claymore/Great Companies Large Cap Growth XGC 0.60 no 3
Claymore/Zacks Mid-Cap Core CZA 0.60 no 1
Claymore Morningstar Manufacturing MZG 0.40 no 2
Claymore Morningstar Information MZN 0.40 no 1
Claymore Morningstar Services MZO 0.40 no 1
Claymore/Zacks Country Rotation CRO 0.65 no 4
Claymore/Zacks Sector Rotation XRO 0.60 no 19
PowerShares Dynamic Market Portfolio PWC 0.60 no 37
PowerShares Dynamic OTC Portfolio PWO 0.60 no 11
Powershares Private Equity PSP 0.69 yes 56
Powershares CleanTech PZD 0.60 yes 47
Powershare Aggressive Growth PGZ 0.60 yes 4
Powershares Deep Value PVM 0.60 no 5
Powershares Buy Back Achievers PKW 0.60 no 11
Powershares Financial Preferred PGF 0.60 no 101
Powershares DWA Technical Leaders PDP 0.60 no 171
Powershares S&P 500 Buy Write PBP 0.75 no 8
Wilderhill Clean Energy PBW 0.60 yes 838
Wilderhill Progressive Energy PUW 0.60 yes 16
iShares KLD Select Social Index KLD 0.50 yes 7
First Trust NASDAQ 100 Ex-Technology QQXT 0.60 no 2
First Trust NASDAQ Clean Edge QCLN 0.60 no 22
WisdomTree Earnings 500 Index EPS 0.28 no 16
WisdomTree Earnings Index EXT 0.28 no 8
WisdomTree Midcap Earnings Index EZM 0.38 no 6
WisdomTree Small Cap Earnings Index EES 0.38 no 8
WisdomTree Top 100 Index EEZ 0.38 no 5
WisdomTree Low P/E Index EZY 0.38 no 5
First Trust ISE Water Index FIW 0.60 yes 33
Van Eck Agribusiness MOO 0.65 yes 988
FocusShares ISE SINdex PUF 0.60 yes 1
FocusShares ISE Homeland Security MYP 0.60 yes 3
FocusShares ISE Wal-Mart Supplier WSI 0.60 yes 1
Market Vectors Coal KOL 0.65 yes 317
Market Vectors Gaming BJK 0.65 no 2
Market Vectors Solar KWT 0.65 yes 49
Claymore Solar TAN 0.65 yes 337
International ETFs
Broad Based – International
IShares MSCI EAFE EFA 0.35 yes 10,497
BLDRS Development Markets 100 ADR ADRD 0.30 no 28
IShares MSCI Emerging Markets Free EEM 0.75 yes 14,586
BLDRS Emerging Markets 50 ADR ADRE 0.30 yes 463
Claymore BRIC EEB 0.60 yes 453
Claymore/Robeco Developed International Equity EEN 0.65 no 1
Vanguard FTSE All-World Ex U.S. VEU 0.25 yes 276
SPDR S&P Emerging Markets GMM 0.60 no 8
Dynamic International Opportunities PFA 0.75 no 24
FTSE RAFI Developed Markets ex U.S. Small-Mid PDN 0.75 no 7
FTSE RAFI Emerging Markets PXH 0.85 yes 40
International Listed Private Equity PFP 0.75 yes 8
iShares MSCI BRIC BKF 0.75 no 55
iShares MSCI Small Cap EAFE Index SCZ 0.40 no 22
iShares S&P Global Infrastructure IGF 0.58 no 37
iShares MSCI Kokasai Index TOK 0.25 no 14
iShares MSCI All Country World Index ACWI 0.35 yes 28
iShares MSCI All Country World Index ex U.S. ACWX0.35 yes 10
Regional – International
BLDRS Europe 100 ADR ADRU 0.30 no 6
Europe 2001 HOLDRS EKH 0* no 1
Fresco Dow Jones STOXX 50 FEU 0.30 no 46
IShares S&P Europe 350 IEV 0.48 yes 436
Fresco Dow Jones Euro STOXX 50 FEZ 0.30 yes 226
IShares MSCI EMU EZU 0.59 yes 527
IShares MSCI Pacific ex-Japan EPP 0.50 yes 291
BLDRS Asia 50 ADR ADRA 0.30 yes 28
IShares S&P Latin America 40 ILF 0.50 yes 34,181
Vanguard Emerging Markets VIPERS VWO 0.30 yes 1,787
Vanguard European VIPERS VGK 0.18 yes 296
SPDR S&P Emerging Asia Pacific GMF 0.60 yes 33
SPDR S&P China GXC 0.60 yes 58
SPDR Emerging Europe GUR 0.60 no 69
SPDR Emerging Latin America GML 0.60 no 41
SPDR Emerging Middle East and Africa GAF 0.60 no 56
First Trust ChIndia FNI 0.60 yes 45
Dynamic Europe PEH 0.75 no 3
Wisdom Tree India EPI 0.88 yes 539
Style/International
ISharese MSCI EAFE Value EFV 0.40 yes 86
IShares MSCI EAFE Growth EFG 0.40 no 122
Asia/Pacific
IShares MSCI Australia EWA 0.59 yes 1,826
IShares MSCI Hong Kong EWH 0.59 yes 5,483
IShares MSCI Japan EWJ 0.59 yes 19,814
IShares MSCI Malaysia (Free) EWM 0.59 yes 3,569
IShares MSCI Singapore EWS 0.59 no 3,783
IShares MSCI South Korea EWY 0.74 yes 2,554
IShares MSCI Taiwan EWT 0.74 yes 12,051
IShares FTSE/Xinhuu China 25 FXI 0.74 yes 6,762
iShares MSCI Japan Small Cap SCJ 0.59 no 10
iShares MSCI Thailand IMI THD 0.74 no 117
PowerShares Golden Dragon USX China Portfolio PGJ 0.60 yes 438
Vanguard Pacific VIPERS VPL 0.18 yes 142
Streettracks Russell/Nomura Japan Prime JPP 0.51 yes 7
Streettracks Russell/Nomura Japan Small Cap JSC 0.56 yes 18
Dynamic Asia/Pacific PUA 0.75 no 10
FTSE RAFI Asia Pacific ex Japan Small-Mid PDQ 0.80 yes 3
S&P Asia AIA 0.50 no 23
PowerShares India PIN 0.78 yes 79
NETs Hang Seng Index Fund HKG 0.47 yes 10
NETs Singapore Straits Time Index Fund SGT 0.47 no 0
NETs Hang Seng China Enterprise SNO 0.47 no 1
NETs S&P/ASX 200 Index Fund –Australia AUS 0.47 yes 3
NETs TOPIX Index Fund - Japan TYI 0.47 no 1
Europe
IShares MSCI Austria EWO 0.54 no 85
IShares MSCI Belgium EWK 0.54 no 238
IShares MSCI France EWQ 0.54 no 319
IShares MSCI Germany EWG 0.54 yes 2,059
IShares MSCI Italy EWI 0.54 no 511
IShares MSCI Netherlands EWN 0.54 yes 92
IShares MSCI Spain EWP 0.54 yes 473
IShares MSCI Sweden EWD 0.54 yes 381
IShares MSCI Switzerland EWL 0.54 yes 300
IShares MSCI United Kingdom EWU 0.54 yes 1,075
Van Eck Russia RSX 0.69 yes 647
FTSE Europe Small-Mid PWD 0.75 no 2
NETs AEX Index Fund (Netherlands) AEX 0.47 no 1
NETs BEL 20 Index Fund (Belgium) BRU 0.47 no 1
NETs DAX Index Fund (Germany) DAX 0.47 yes 1
NETs CAC 40 Index Fund (France) FRC 0.47 yes 3
NETs FTSE 100 Index Fund (United Kingdom) LDN 0.47 yes 1
NETs PSI 20 Index Fund (Portugal) LIS 0.47 no 1
Americas
IShares MSCI Brazil EWZ 0.74 yes 12,950
IShares MSCI Canada EWC 0.57 yes 1,165
IShares MSCI Mexico EWW 0.57 yes 3,752
iShares MSCI Chile ECH 0.74 no 43
Emerging
IShares MSCI South Africa EZA 0.74 yes 161
iShares Turkey TUR 0.74 no 51
iShares Israel IMI EIS 0.74 no 125
NETs FTSE/JSE Top 40 Index Fund – South Africa JNB 0.47 no 1
NETs TA 25 Index- Israel TAV 0.47 no 2
Broad Based – Global
StreetTRACKS DJ Global Titans DGT 0.50 yes 12
IShares S&P Global 100 IOO 0.20 yes 313
Market 2000+ HOLDRS MKH 0* no 1
iShares S&P World ex U.S. property WPS 0.48 no 18
Sectors – Global
IShares S&P Global Energy Sector IXC O.65 yes 88
IShares S&P Global Financial Sector IXG 0.65 yes 60
IShares S&P Global Healthcare Sector IXJ 0.65 yes 55
IShares S&P Global Technology Sector IXN 0.65 yes 54
IShares S&P Global Telecommunications IXP 0.65 yes 65
PowerShares Global Nuclear PKN 0.75 no 52
Streettracks International Real Estate RWX 0.60 yes 140
Market Vector Global Alternative Energy GEX 0.55 no 95
PowerShares Global Clean Energy PBD 0.75 no 66
PowerShares Global Water PIO 0.75 yes 146
Claymore Global Water CGW 0.74 yes 90
Claymore Global Exchanges, Brokers and Asset EXB 0.65 yes 39
Claymore/SVM Canadian Energy Income ENY 0.65 no 18
FTSE Global Real Estate ex U.S. IFGL 0.48 no 9
FTSE Asia Real Estate IFAS 0.48 no 5
FTSE Europe Real Estate IFEU 0.48 no 2
FTSE Developed Small Cap ex North America IFSM 0.48 no 4
International Dividend
International Dividend Achievers Portfolio PID 0.60 yes 99
Pacific ex Japan Dividend DND 0.48 yes 13
Pacific ex Japan High Yielding DNL 0.58 no 5
Japan Total Dividend DXJ 0.48 no 5
Japan High Yielding Equity DNL 0.58 no 5
DIEFA DWM 0.48 no 60
International Dividend Top 100 DOO 0.58 no 21
International Mid Cap Dividend DIM 0.58 no 27
DIEFA High Yielding Dividend DTH 0.58 no 21
International Small Cap Dividend DLS 0.58 no 41
Europe Total Dividend DEB 0.48 no 7
Europe High Yielding Equity DEW 0.58 no 8
Europe Small Cap Dividend DFE 0.58 no 4
Japan Small Cap Dividend DFJ 0.58 no 8
Total International Dividend DTD 0.28 yes 14
Leveraged ETFs
Double returns
Ultra QQQ QLD 0.95 yes 13,058
Ultra S&P 500 SSO 0.95 yes 7,659
Ultra Dow 30 DDM 0.95 yes 1,451
Ultra Mid Cap 400 MVV 0.95 yes 333
Ultra Small Cap 600 SAA 0.95 no 24
Ultra Russell 1000 Growth UVG 0.95 no 4
Ultra Russell 1000 Value UKF 0.95 no 52
Ultra Russell MidCap Value UVU 0.95 no 4
Ultra Russell MidCap Growth UKW 0.95 no 15
Ultra Russell 2000 UWM 0.95 yes 930
Ultra Russell 2000 Growth UKK 0.95 no 16
Ultra Russell 2000 Value UVT 0.95 no 8
Ultra DJ Basic Materials UYM 0.95 no 53
Ultra DJ Consumer Goods UGE 0.95 no 7
Ultra DJ Consumer Services UCC 0.95 no 5
Ultra DJ Financials UYG 0.95 yes 14,840
Ultra DJ Health Care RXL 0.95 no 10
Ultra DJ Industrials UXI 0.95 no 13
Ultra DJ Oil and Gas DIG 0.95 yes 582
Ultra DJ Real Estate URE 0.95 yes 212
Ultra DJ Semiconductors USD 0.95 no 154
Ultra DJ Technology ROM 0.95 no 138
Ultra DJ Utilities UPW 0.95 no 8
Ultra Telecommunications TLL 0.95 no 1
Rydex 2x S&P 500 RSU 0.70 no 26
Rydex 2x S&P Midcap 400 RMM 0.70 no 6
Rydex 2x Russell 2000 RRZ 0.70 no 25
Inverse returns
Short QQQ PSQ 0.95 no 80
Short S&P 500 SH 0.95 yes 255
Short Dow 30 DOG 0.95 yes 214
Short Mid Cap 400 MYY 0.95 yes 19
Short Small Cap 600 SBB 0.95 no 6
Short Russell 2000 RWM 0.95 no 50
Short MSCI Emerging Market EUM 0.95 no 20
Double inverse returns
Ultra Short QQQ QID 0.95 yes 35,271
Ultra Short S&P 500 SDS 0.95 yes 20,511
Ultra Short Dow 30 DXD 0.95 yes 4,677
Ultra Short Mid Cap 400 MZZ 0.95 yes 426
Ultra Short Small Cap 600 SDD 0.95 no 71
Ultra Short Russell 1000 Growth SJF 0.95 no 14
Ultra Short Russell 1000 Value SFK 0.95 no 33
Ultra Short Russell MidCap Growth SJL 0.95 no 7
Ultra Short Russell MidCap Value SDK 0.95 no 14
Ultra Short Russell 2000 TWM 0.95 no 7,002
Ultra Short Russell 2000 Growth SKK 0.95 no 34
Ultra Short Russell 2000 Value SJH 0.95 no 27
Ultra Short DJ Basic Materials SMN 0.95 yes 1,384
Ultra Short DJ Consumer Goods SZK 0.95 no 17
Ultra Short DJ Consumer Services SCC 0.95 no 47
Ultra Short DJ Financials SKF 0.95 yes 10,884
Ultra Short DJ Health Care RXD 0.95 no 10
Ultra Short DJ Industrials SIJ 0.95 no 30
Ultra Short DJ Oil and Gas DUG 0.95 yes 15,808
Ultra Short DJ Real Estate SRS 0.95 yes 1,577
Ultra Short DJ Semiconductors SSG 0.95 no 47
Ultra Short DJ Technology REW 0.95 no 69
Ultra Short DJ Telecommunications LTL 0.95 no 2
Ultra Short DJ Utilities SDP 0.95 no 27
Ultra Short Emerging Markets EEV 0.95 yes 532
Ultra Short FTSE/Xinhua China 25 FXP 0.95 yes 2,562
Ultra Short MSCI Japan EWV 0.95 no 16
Rydex Inverse 2x S&P 500 RSX 0.70 yes 647
Rydex Inverse 2x Midcap 400 RMS 0.70 no 2
Rydex Inverse 2x Russell 2000 RRZ 0.70 no 25
Fixed Income ETFs
Fixed Income ETFs – U.S.
IShares Lehman 1-3 Year Treasury SHY 0.15 yes 780
IShares Lehman 7-10 Year Treasury IEF 0.15 yes 452
IShares Lehman 20+ Year Treasury TLT 0.15 yes 2,534
Ishares GS $InvesTop Corporate LQD 0.15 yes 189
Ishares Lehman Aggregate AGG 0.20 yes 524
IShares Lehman TIPS TIP 0.20 yes 492
iShares Lehman Short Term Treasury Bond SHV 0.15 no 108
iShares Lehman 3-7 year Treasury Bond IEI 0.15 no 91
iShares Lehman 10-20 year Treasury Bond TLH 0.15 no 18
iShares Lehman 1-3 Year Credit Bond CSJ 0.20 no 41
iShares Lehman Intermediate Credit Bond CIU 0.20 no 21
iShares Lehman Credit Bond CFT 0.20 no 7
iShares Lehman Intermediate Gov’t/Credit Bond GVI 0.20 no 10
iShares Government/Credit Bond GBF 0.20 no 5
iShares Lehman MBS Fixed Rate Bond MBB 0.25 no 46
iShares iBoxx $High Yield Corporate Bond HYG 0.50 yes 123
Vanguard Short Term Bond BSV 0.11 yes 86
Vanguard Intermediate Term Bond BIV 0.11 yes 42
Vanguard Long Term Bond BLV 0.11 yes 12
Vanguard Total Bond Market BND 0.11 yes 208
SPDR Lehman 1-3 Month T-Bill BIL 0.13 yes 83
SPDR Lehman Intermediate Term Treasury ITE 0.18 yes 14
SPDR Lehman Long Term Treasury TLO 0.13 yes 7
SPDR Barclays Capital Tips IPE 0.13 yes 20
SPDR Lehman Aggregate Bond LAG 0.13 no 25
SPDR Lehman Municipal Bond TFI 0.20 yes 129
SPDR Lehman High Yield Corporate Bond JNK 0.40 yes 93
PowerShares VRDO Tax Free Weekly Portfolio PVI 0.25 no 47
PowerShares Preferred PGX 0.50 no 82
PowerShares Corporate Bond PHB 0.50 no 9
Market Vectors Lehman AMT-free Int. Municipal ITM 0.20 no 9
Market Vectors Lehman AMT-free Long Municipal MLN 0.24 no 3
Bear Stearns Current Yield Fund YYY N/A no 1
SPDR International TIPS WIP 0.50 no 57
SPDR Barclays TIPS IPE 0.19 yes 20
Fixed Income ETFs – Canada
IShares on Canadian Short Bond Index XSB 0.25 no 100
IShares on the Scotia Mcleod Bond Index XBB 0.30 no 150
iShares Canadian Real Return Bond Index XRB 0.35 no 70
iShares Canadian Long Bond Index XLB 0.35 no 10
iShares Canadian Government Bond Index XGB 0.35 no 15
iShares Corporate Bond Index XCB 0.40 no 15
Claymore 1-5 year Laddered Government Bond CLF 0.15 no 15
Claymore Premium Money Market CMR 0.25 no 10
Commodity Based ETFs
World Gold Council Gold GLD 0.40 yes 10,490
iShares COMEX Gold (U.S.) IAU 0.40 no 344
(TSX) IGT 0.40 no 10
iShares Silver SLV 0.50 no 913
Deutschebank Commodity DBC 0.75 no 984
Crude Oil USO 0.50 no 10,204
Market Vectors Gold Miners GDX 0.55 yes 2,254
IShares GSCI Commodity Index GSG 0.75 no 239
Claymore Crude Oil (Up) UCR 1.60 no 286
Claymore Crude Oil (Down) DCR 1.60 no 4,177
Greenhaven Cont. IDX GCC N/A yes 19
PowerShares DB Energy DBE 0.60 yes 101
PowerShares DB Oil Fund DBO 0.60 yes 70
PowerShares DB Precious Metals DBP 0.60 yes 82
PowerShares DB Gold DGL 0.60 yes 42
PowerShares DB Silver DBS 0.60 yes 60
PowerShares Base Metals DBB 0.60 yes 80
PowerShares Agriculture DBA 0.60 yes 2,282
United States Natural Gas UNG 0.77 yes 1,496
Unleaded Gasoline UGA 0.60 no 30
Claymore Alberta Gas GAS 0.80 no 683
DB Gold Double Long ETN DGP 0.50 no 328
DB Gold Double Short ETN DZZ 0.50 no 290
DB Gold Short ETN DGZ 0.50 no 15
Currency Based ETFs
Rydex Euro FXE 0.40 yes 687
Rydex Mexican Peso FXM 0.40 yes 10
Rydex Swedish Krona FXS 0.40 yes 7
Rydex Australian Dollar FXA 0.40 yes 117
Rydex British Pound FXB 0.40 yes 48
Rydex Canadian Dollar FXC 0.40 yes 74
Rydex Swiss Franc FXF 0.40 yes 130
Wisdom Tree Chinese Yuan CYB 0.45 no 214
Wisdom Tree Indian Rupee ICN 0.45 no 14
Wisdom Tree Brazilian Real BZF 0.45 no 112
Wisdom Tree Euro IEU 0.45 no 8
Actively Managed ETFs
PowerShares Active Low Duration PLK 0.29 no 1
PowerShares Mega Cap PMA 0.75 no 2
PowerShares Alpha Q PQY 0.75 no 4
PowerShares Alpha Multi-Cap PQZ 0.75 no 6
PowerShares New Frontier Global DynamicGrowth PTO 0.25 no 23
PowerShares New Frontier Global BalancedGrowth PAO 0.25 no 18
PowerShares New Frontier Global Balanced PCA 0.25 no 14
*Expenses for HOLDRS consist of a custody fee of $2 per round lot (100 shares) per quarter. However, the trustee will wave that portion of the fee, which exceeds the total cash distribution.
Data Sources: Various website by sponsoring ETF distributors and exchanges as well as
www.yahoo.com
Comments on Exchange Traded Funds regularly appear at www.dvtechtalk.com
Disclaimer: Comments and opinions offered in this report are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered in this report is believed to be accurate, but is not guaranteed.
Source: http://dvtechtalk.com/specialreports/specialreport1.htm
Good morning, yes, another QQQQ chart (forgive me)
Is the VIX a Fear Index?
Awhile back, a reader posed what sounded like a basic question:
Isn't implied volatility a function of the size of the move, rather than direction? So why is VIX more commonly referred to as a fear index if high VIX can imply movements in both directions? I mean- HOW and exactly where does the direction get factored into VIX?
This question sounds as if it if might have an easy answer. The problem is that when you scratch the surface of implied volatility, a bunch of other questions have a tendency to pop up and all the tangents make it easy for the questioner’s eyes to glaze over. So, to make a long story a little shorter, I have decided that it is time to draft some detailed posts that look under the hood at both implied volatility and historical/statistical volatility. Not to worry, this won’t happen today; more likely I will tackle these subjects over the course of the next two or three weeks in a series of posts.
Getting back to the questions posed above, to set the context, historical volatility (also known as statistical volatility) looks backward at actual historical price movements and calculates volatility in terms of standard deviations over a given period of time. The result is expressed as an annualized volatility number (the percentage of one standard deviation), just like the VIX. Historical volatility does not care about the direction of the volatility, only the magnitude.
In theory, implied volatility should also be directionally agnostic. Investor psychology and the mechanics of the options marketplace, however, mean that reality diverges from theory as options are transacted. Recall that implied volatility is derived from actual options prices. When the other options pricing variables (strike price; price of the underlying; time to expiration; dividends; and risk free interests rate) of an option are frozen, this leaves implied volatility as the only remaining variable in the options pricing equation. This is how implied volatility is derived.
In the very short term, options prices are largely a function of the price of the underlying and implied volatility, as the other variables tend to change at a slow and/or predictable rate. When the price of the underlying is relatively stable, implied volatility has a tendency to drift down and bring options prices with them. When the price of the underlying (whether it be a stock, ETF, index or whatever) moves sharply, this is when things get interesting. If the underlying moves up quickly, it has a tendency to attract new buyers and sellers. Implied volatility usually rises with the move and so do most options prices.
Ultimately, implied volatility becomes a function of supply and demand for options at specific strikes and expirations. If new transactions keep hitting the ask price, then options prices will move quickly and implied volatility will adjust upward to accommodate the new prices. Sellers will also be inclined to keep raising their bids to account for this demand – again stretching prices and pulling implied volatility along for the ride. Generally, this will not result in a “panic buying” situation, particularly if the underlying is an index or an ETF. Greed is not instantaneous; it tends to build over time. There might be a concern with an individual stock that an acquisition is in the works, a legal matter has been settled, word of an FDA decision has leaked out, etc., but other than these scenarios (which do not apply to an index or an ETF), sharp upward moves tend to be orderly and have a relatively limited short-term psychological impact on the investor.
If you turn this scenario around and think of the move as a sharp selloff, some different dynamics come into play. First consider the maxim that stocks tend to fall faster than they rise. Second, when it comes to portfolio protection, the rush to buy puts to protect an existing position is much more dramatic than any sort of call purchases during a bull spike. Third, the worst case scenario for a bear move includes not only the scenarios noted in the paragraph above, but incorporates any number of potential disasters from a CEO/CFO resignation to accounting irregularities, lowered earnings guidance, new legal challenges, etc. Fourth, as the downward move gathers momentum, investors have a tendency to buy whatever puts they can, at the market, for whatever prices are available. It is this insensitivity to prices during a panic selling situation that tends to overwhelm the ask price and cause market makers to raise the prices of puts dramatically; this, in turn, triggers a sharp jump in implied volatility.
Ultimately, the same aspects of investor psychology and behavioral finance (i.e., loss aversion) that translate into more panic selling than panic buying also mean that the supply and demand imbalance for options is typically greater in sharp bear moves than in sharp bull moves. The result is that implied volatility tends to spike more with an X% drop than as a result of an X% rise. Statistically, these moves are identical, but psychologically and from a transaction perspective, spikes down will generally move implied volatility more than comparably sized spikes up. Since the VIX is essentially the implied volatility of the SPX, this is one of the reasons why the magnitude and direction of a market move determine the impact the move will have on the VIX.
Source: http://seekingalpha.com/article/88063-is-the-vix-a-fear-index
5 Best Ways to Get into Gold
Money Morning Editor’s Note: With stock markets in a downward spiral, gold has emerged as one of the safest and most profitable investments. This report put together by our Money Morning team contains the key steps to profiting in gold - including the five best "profit machines" to buy right away…
When times are tough, gold soars.
And frankly, the economy has been tough: $4 gasoline, the housing crisis, rampant inflation, plummeting stocks…
But all the while, gold prices vaulted a cool 43.25% in the past year.
Missing out on gold is already costing investors a pretty penny. What’s more, most experts are forecasting gold prices to rise at least another 56% by the end of this year.
So, how does one profit from gold? It’s simple. You don’t have to wade through a plethora of flashy web sites offering bullion or risk it all on a junior mining company.
Instead, this report covers the ideas any investor can use to start profiting from gold right away. It also includes research on the five best ways to profit, from the most lucrative to the least risky.
Gold Play #1: Triple-Digit Production Gains
Many gold investors are innately averse to risk, which is why some don’t consider buying stocks in mining companies as "buying gold," per se.
But unlike many other publicly traded companies, mining shares can rise sharply when the value of what they’re extracting is spiking.
In this case, gold miners today are getting 182% more for the yellow metal compared to spot prices five years ago.
And - barring the increased cost of oil - mining the gold costs relatively the same, further widening a mining company’s profitability.
South Africa’s Gold Fields Ltd. (GFI) is the world’s fourth-biggest gold producer - with about 90 million ounces in reserve from its operations in Africa, South America and Australia.
It recently reported that its fourth-quarter production would beat its previous forecast by up to 120%.
Overall, the company has a solid balance sheet and ample reserves. But if anything scares investors away, it’s Gold Fields’ location.
South Africa mines are frequently a political tool between the country’s labor unions and state-owned utility provider Eskom Holdings Ltd. [OTC: ESKAY], which controls 95% of the country’s power.
Eskom recently jacked electricity prices up 27.5%, and unions decided to hit the government where it hurts - by striking- thus gutting the government of taxes from its vast gold profits.
That is just one example of why this stock is a risky gold play. Gold could reach another record but Gold Fields may not see a penny of it if its miners are on strike.
Gold Play #2: All About "Cash Flow and Earnings"
When gold prices are high, investors should pay extra attention to mining companies with increasing production levels because they translate into a bigger bottom line.
For its second quarter this year, Yamana Gold Inc. (AUY) produced almost 10% more gold than it did in the previous quarter.
What’s more, its gold production is expected to double to 2.2 million ounces per year by 2012, primarily from its Brazil and Argentina mines.
That’s because Yamana Gold went on a spending spree in the past two years, buying up junior mines around the world to lock in reserves.
"Now it is about production, cash flow and earnings," Chief Executive Officer Peter Marrone told Reuters in May.
It’s also about dividends. The company recently kicked up its investor payout by 300%, a strong vote of confidence to its production and stock performance.
Unlike Gold Fields, Toronto-based Yamana Gold has operations in relatively stable parts of the world - making it less risky on the geopolitical front.
But despite its name, Yamana Gold isn’t purely a gold miner. It also produces copper, silver, and zinc. How well the company continues to mine those metals - as well as their fluctuating prices - will also affect Yamana’s stock value regardless of gold prices.
Gold Play #3: Multiplying Profits with "Free Oil"
Imagine how much money you’d save if you owned your own gas station. Just fill up. Go anywhere. Forget worrying about dishing out $100 a tank.
Now, multiply the size of your oil consumption by 3,600 barrels.
Then multiply that by 365 for each day of the year.
That’s how much "free oil" Toronto-based Barrick Gold Corp. (ABX) is going to have now that its $410 million takeover offer was accepted by Cadence Energy (CDSFF.PK), an oil and gas producer.
And that oil is sorely needed.
You see, gold prices have no doubt added billions to the bottom lines of mining companies. But 25% of the cost to mine that gold goes to oil.
Factor in gold’s projected 58% climb, and this company will have a huge profitability advantage over its mining peers and the average S&P 500 Index stock.
Like Yamana, Barrick has also been on a spending spree. Over the past year, it has gobbled up stakes in a half-dozen mines, multiplying its reserves and production capacities in light of record gold prices.
All totaled, Barrick owns 27 mines in five continents and produces over 8 million ounces of gold a year, making it the world’s largest gold miner.
We consider this a medium-risk investment because - despite its solid operations, profitability and efficiency - it’s vulnerable like any tradable stock.
But since it’s the world largest gold producer, its stock will move closest in line with gold compared to other gold miners.
And as an added bonus, it just kicked up its biannual dividend by 33%.
Gold Play #4: Tracking Gold Dollar for Dollar
Some investors want to buy gold but feel uneasy about storing it overseas, by another person… and for a commission nonetheless.
But on the same token, not many want to make their homes a burglary target by stashing gold reserves in their basements.
Enter SPDR Gold Trust (GLD), an exchange-traded fund [ETF] that trades like a stock, but whose value directly tracks the price of gold bullion.
Only 1.82 percentage points separate the gains made by gold price and Gold Trust in the past year.
Gold Trust has a $17 billion-plus market cap, giving it ample liquidity.
And with the ongoing skid in the U.S. dollar, investors have been fleeing the greenback and investing in gold. As it gains investors, the Gold Trust has continued to add to its gold holdings.
At the same time, central banks have been selling their gold reserves. That’s important to mention because it elevates Gold Trust’s status on the list of global gold holders.
Right now, it has the eighth-largest gold holding in the world - meaning that it has more gold than 97% of all the countries in the world. What does this mean?
Simply put, it’s the simplest way to buy gold without buying physical bullion or coins.
Gold Play #5: The Safest Gold Play Out There
Investors often shy away from bullion account providers because of their steep premiums and minimums. And reasonably so…
In addition to charging a 3% commission, Perth Mint also has a $250,000 minimum investment requirement - not exactly an amount many first-time gold investors have in between their couch cushions.
Kitco charges a 6% premium for 1 oz. Gold Eagle coins. Shipping and handling costs are also added, but varies on the size of the order.
Monex is perhaps the worst. On top of the 3% to 5% difference between what it buys and sells, there are commission rates ranging from 0.5% to 2.0%. Then there are shipping costs of $15 per transaction plus $1 per ounce. Then there are handling charges of $75 per unit ordered.
After all that, it’s hard to get excited about collecting profits.
That’s why we recommend an EverBank Select Metals Account.
First off, EverBank’s minimum deposit is 98% lower than its competitors, and its commission costs are up to 86% lower than other metals brokers and bullion banks.
Second, it offers two types of gold accounts:
Unallocated: Your purchased gold is pooled with that of other investors, eliminating storage and maintenance costs. The minimum deposit amount for unallocated accounts is a scant $5,000.
Allocated: You directly own the gold you purchase, held in your own private account. The minimum deposit for allocated accounts is $7,500.
Disclosure: We should point out that the publisher of Money Morning has a marketing relationship with EverBank, but that’s because its products are best in show.
Secretary Paulson: Support the Dollar Now
After a boomerang 266-point rally in the Dow Industrial Average Tuesday on the heels of a nascent U.S. Dollar rally, further extension of the crude oil mudslide, and a domestic stock rebound, there are still pundits a-plenty touting that the move in the local currency is a result of European economic weakness, not U.S. strength. That may be well and true but there is one weapon left in the arsenal that could change all that. Treasury Secretary Hank Paulson could put on his sheriff's hat, in the spirit of ol' James Garner, and announce active support of the U.S. Dollar.
Sound far-fetched? Similar currency interventions have occurred before. In fact, just recently, in June, Secretary Paulson himself refused to "rule out" dollar intervention, suggesting he might support the buying of dollars through proxies on Wall Street.
Such a tactic would probably involve selling gold as well, as was done by the London Gold Pool in the 1960s. Normally this would be viewed as bullish for gold long-term, as traders and investors would see this as an inherent sign of weakness for the dollar. Why would now be different? Because presently the dollar is rallying. By giving this nascent move a kick in the afterburners, a bottom could be put in the currency and a potential top in the commodity markets.
Obviously, this sort of plea does little for us as investors or traders unless we actually get action. I am long the U.S. Dollar but the position is largely ceremonial. The bigger benefit is to the U.S. economy and by proxy, U.S. stocks. In the past, this sort of intervention has made a difference. When the U.S. bought dollars between 1992 and 1995, it ultimately help mark the bottom in the currency. Note that the economy and the stock market underwent a period of unprecedented growth during this period. The dollar didn't roll over again until 2002.
The U.S. Treasury has also helped manipulate other currencies, to the detriment of the dollar, including buying the Japanese Yen against the dollar in the early 1990s. Using the dollar intervention tool again here, instead for our benefit, ala 1995, could have dramatic, positive effects on the economy.
Needless to say, there is a crucible of dynamic market forces at work presently in the financial system. The price of crude oil is rolling over after setting a peak of 148 dollars just weeks ago. This coincides with a massive correction in natural gas. Gasoline futures are plunging. Many other commodities, such as corn, have also seen parabolic moves. The Euro is rolling over on a sudden decline in Eurozone growth. Financials and homebuilders are nearing the back-end of a bloodletting from years of credit excess. Interest rates are low, real rates are negative - the Fed would love nothing more than to raise them. All of the dominos are in place.
A strengthening dollar would boost foreign investment into our markets, strengthening consumer and financial confidence, and re-establishing the U.S. as the nation to lead the globe out of an economic downturn.
Right now the rally in the dollar is nothing more than a "reaction" to these forces. However, with a fresh "buyer" - namely the United States Government - the move could take on a momentum of greater proportions. Our Federal Reserve, Treasury and SEC seemingly have no compunction whatsoever when it comes to interfering in the "free" markets. (Yes, that was sarcasm.) So the Treasury should have no issue performing a task it is familiar with, and stepping in to support the local currency as it has before in the past.
Strategic timing has long been a tool utilized by the Federal Reserve and the Treasury when undertaking market actions. The timing couldn't be more "strategic" right now.
While I am largely talking my book here, there is no question that the effect of dollar intervention on the health of the U.S. economy would be far greater and far more important than the benefit to any one trader betting on a change in the exchange rate.
However, as always there is a way to play this trade - simply buy shares or calls in UUP, an ETF that tracks the upward price of the U.S. Dollar. Owning shares in homegrown, domestic stocks also does the trick.
Disclaimer: The author is riding the current rally in the U.S. Dollar and the decline in oil via calls in the UUP (U.S. Dollar Index Bullish Fund ETF).
"Wednesday Outlook: Commodities, Emerging Markets"
http://seekingalpha.com/article/87896-wednesday-outlook-commodities-emerging-markets?source=more_author_recent_similar_articles
good morning, "Wednesday Outlook: Seesaw Action"
some nice annotated charts here...
http://seekingalpha.com/article/87897-wednesday-outlook-seesaw-action?source=headline1
UUP -- US DOLLAR ETF
(This ETF will make money when the dollar rises against global currencies.)
the QQQQ diamond bottom
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