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Posts Tagged ‘etfs’

Emerging Markets – Can’t get past the (inflation) hump?

February 7, 2011 Leave a comment

Where are emerging markets going? Do the emerging market central banks and Treasurers have the balls to stop inflation or they can’t live without the growth on stereoids?

The MSCI iShares Emerging Markets index has failed twice to break the 2008 highs… are we heading lower to test May 2010 levels or break the 2008 highs?

Technical Analysis of Canadian & US Financials

August 11, 2010 Leave a comment

I am going use the Financial Sector Spyder ETF XLF as a proxy for US financials and S&P TSX Capped Financials Sector ETF XFN (listed on TSX) as a proxy for Canadian Financials…

Since making a 52-week high in April 2010, the Canadian Financial Sector has tried to break the downtrend (50/200 day moving average) 4 times in the last 3 months and has failed each time…

Negative:

  • 4 failed attempts to breakout
  • Death Cross (the 50 day moving average crossed the 200 day moving average from above)
  • 50 & 200 day moving averages broken to the downside
  • Downtrend line broken to the downside

Positive: Support at current levels (21.27)

Chart showing technical analysis of XFN

Source: stockcharts.com

the US financials chart is pretty similar…

Negative:

  • 5 tries to breakout without any success
  • Death Cross
  • 50 & 200 day moving averages broken to the downside
  • MACD crossover

Positive: Downtrend support is still intact

Chart showing technical analysis of XLF

Source: stockcharts.com

All-in-all… technicals are similar for both financial sectors and are likely to follow the broader market trends…

…perhaps the fundamentals tell a different story

Performance of Commodity ETFs – worse than mutual funds?

July 26, 2010 Leave a comment

There has been a lot of chatter about the performance of commodity based Exchanged Traded Funds (ETFs)… Commodity ETFs surged in popularity circa 2006 making commodities a de facto asset class for the retail investor who was deprived of the higher returns… ETFs allowed retail investors to easily participate in the commodities boom-bust-boom cycle of 2007-2009…

Here is a roundup of articles on commodity ETFs

Amber Waves of Pain

Commodity Headwinds Disappear

The Limits Of Indexing

ETFs Imperil Commodity Investors

The following are links to Canadian ETFs listed on the Toronto Stock Exchange

TSX

ETF Encyclopedia

Yahoo ETFs

And here is a table of Commodity ETFs in Canada covering Oil, Natural Gas, Copper, Silver & Gold. The ones in bold are not leveraged, all other ETFs are leveraged…

There are plenty of ETFs that track equity indexes comprised of commodity stocks and will be a topic for another time

Name Ticker Type QMV (C$)
30-June-2010
Claymore Gold Bullion ETF CGL Commodity 516751697.2
Claymore Natural Gas Commodity ETF GAS Commodity 177625000
Horizons BetaPro COMEX Silver ETF HUZ Commodity 6360000
Horizons BetaPro NYMEX Crude Oil Inverse ETF HIO Commodity 5560050
Horizons BetaPro NYMEX Long Crude Oil/Short Natural Gas Spread ETF HON Commodity 7638000
Horizons BetaPro NYMEX Long Natural Gas/Short Crude Oil Spread ETF HNO Commodity 12361500
Horizons BetaPro Winter-Term NYMEX Crude Oil ETF HUC Commodity 5070000
Horizons BetaPro Winter-Term NYMEX Natural Gas ETF HUN Commodity 3475000
Horizons BetaPro Comex Copper Bear Plus ETF HKD Commodity
Leveraged
5216650
Horizons BetaPro Comex Copper Bull Plus ETF HKU Commodity
Leveraged
4805075
Horizons BetaPro COMEX Gold Bullion Bear Plus ETF HBD Commodity
Leveraged
4595500
Horizons BetaPro COMEX Gold Bullion Bull Plus ETF HBU Commodity
Leveraged
75926900
Horizons BetaPro COMEX Silver Bear Plus ETF HZD Commodity
Leveraged
3024000
Horizons BetaPro COMEX Silver Bull Plus ETF HZU Commodity
Leveraged
10230500
Horizons BetaPro NYMEX Crude Oil Bear Plus ETF HOD Commodity
Leveraged
35130200
Horizons BetaPro NYMEX Crude Oil Bull Plus ETF HOU Commodity
Leveraged
592141200
Horizons BetaPro NYMEX Natural Gas Bear Plus ETF HND Commodity
Leveraged
43544800
Horizons BetaPro NYMEX Natural Gas Bull Plus ETF HNU Commodity
Leveraged
539477400

ETFs were born out of trading wine securities

July 23, 2010 Leave a comment

 … surprised? I was too… go read the history of how ETFs were started and some of the benefits, disadvantages and how the giant commodity ETFs create a risk free arbitrage profit (read cash cow)for professional futures traders…

http://www.bloomberg.com/news/2010-07-22/etfs-imperil-commodity-investors-when-contango-conspires-with-pre-rolling.html

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