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Top 50 Low-cost ETF’s

March 18, 2010 By: IS Category: Stock Opinions


One of our readers told us she would like to know what the best low-cost ETF’s are. So we started looking and were not sure how to go about it. In the end, we decided to use the 50 best ETF’s on US markets in the past year that had a maximum expense ratio of .20%. Obviously, this list comes after an incredible stock rally with almost all indexes gaining double digits.

Some of you might be surprised to see that no leveraged ETF’s were among the top 50. That would not be because of their performance but rather because in general the expense ratios of leveraged ETF’s are considerably higher.

Also a sidenote, some of these ETF’s have an expense ratio of 0%. While that is technically true, I will explain tomorrow how these fees can be presented in a misleading way. The ETF’s presented here all belong here from what I could see. But permitting ETF’s to present their fees in such a way can be a bit misleading. I will get into that tomorrow.

So here we go, here is the top 50!

TickerNameCUR_MKT_CAP(M)Price1Y RetRet YTDFees
VNQVanguard REIT ETF5523.69548.6798.197.2190.12
VBRVanguard Small-Cap Value ETF1496.49359.4988.2048.8290.11
RKHRegional Bank HOLDRs Trust181.403385.186.57310.9140
VBVanguard Small-Cap ETF3143.90462.56184.3578.7530.1
VBKVanguard Small-Cap Growth ETF1360.39965.180.8478.4850.11
HHHInternet HOLDRs Trust140.890560.0578.2522.3260
VXFVanguard Extended Market ETF884.338746.6376.9117.9190.08
OIHOil Services Holders Trust2096.315126.7676.6086.0950
IWRiShares Russell Midcap Index Fund5427.05588.7775.1836.8840.2
IJRiShares S&P SmallCap 600 Index Fund5841.9959.3475.0548.2240.2
VOVanguard Mid-Cap ETF2482.47464.5674.5736.9560.12
IJHiShares S&P MidCap 400 Index Fund7453.5978.6273.8687.9690.2
IWMiShares Russell 2000 Index Fund13206.8367.6473.7268.0880.2
IAHInternet Architecture HOLDRs Trust49.4895651.670.9872.4170
QQQQPowershares QQQ19639.5147.3965.2923.2570.2
VGKVanguard European ETF2649.22948.0365.261-2.0010.16
VEAVanguard Europe Pacific ETF4558.94734.4263.95500.15
IVEiShares S&P 500 Value Index Fund3938.15555.9160.5614.9240.18
VPLVanguard Pacific ETF1410.71653.9659.9264.4820.16
IWDiShares Russell 1000 Value Index Fund9270.16960.5259.3194.8780.2
VTIVanguard Total Stock Market ETF14314.7759.0959.0164.40.07
ELGSPDR Dow Jones Large Cap Growth ETF197.203651.3358.6333.4920.2
IWViShares Russell 3000 Index Fund3035.18468.3458.2084.2130.2
IYYiShares Dow Jones US Index Fund596.378257.893457.8954.080.2
ISIiShares S&P 1500 Index Fund317.201552.4757.4134.1280.2
VTVVanguard Value ETF3451.52349.9657.3374.1260.1
IWBiShares Russell 1000 Index Fund5280.82564.0157.3173.9630.15
VVVanguard Large-Cap ETF2584.15252.8356.3323.7690.07
VUGVanguard Growth ETF4168.92355.11255.4273.60.1
IVViShares S&P 500 Index Fund/US22920.95116.3455.3463.640.09
SWHSoftware HOLDRs Trust72.762342.0955.3250.4320
SPYSPDR S&P 500 ETF Trust72165.63115.9555.3123.6340.0945
IWFiShares Russell 1000 Growth Index Fund11408.9551.5355.223.1290.2
JKDiShares Morningstar Large Core Index Fund262.362266.506853.6713.3140.2
BHHB2B Internet HOLDRs Trust2.101280.4753.6532.2510
MGKVanguard Mega Cap 300 Growth ETF320.026343.3353.3782.890.13
MGCVanguard Mega Cap 300 ETF235.05639.9352.9043.0650.13
MGVVanguard Mega Cap 300 Value ETF211.482536.4352.4053.3620.13
IIHInternet Infrastructure HOLDRs Trust10.118723.045452.18116.8580
DIASPDR Dow Jones Industrial Average ETF Trust8413.977106.7351.4922.6630.17
IVWiShares S&P 500 Growth Index Fund5656.64359.4750.7912.2930.18
OEFiShares S&P 100 Index Fund2660.81153.149.622.8380.2
SMHSemiconductor HOLDRs Trust738.913527.5649.247-3.4150
RTHRetail HOLDRs Trust356.917299.8748.6756.6110
XLGRydex Russell Top 50 ETF346.356185.7145.8611.9860.2
NYiShares NYSE 100 Index Fund70.938556.7644.8993.2150.2
MKHMarket 2000 HOLDRs Trust21.4320948.842538.127-1.1060
WMHWireless HOLDRs Trust22.8891346.2534.517-2.7970
PPHPharmaceutical HOLDRs Trust646.730866.109934.4931.1820
BDHBroadband HOLDRs Trust16.8691511.42230.054-9.7830

Top stock Picks: Currency ETF’s

March 11, 2010 By: IS Category: Stock Opinions


We’ve discussed the current crisis in Greece and that has had a very powerful impact on the FX markets. There is an increasing amount of options available for FX investors that wish to use ETF’s. No surprise in the fact that a double short Euro ETF has the best return so far this year. Apart from the Euro, few currency ETF’s have moved much this year. But take a look at the 1 year returns and you will notice very impressive returns for the Australian Dollar, the South African Rand and the Brazilian Rand.

Which of these ETF’s do you think will profit the most in the next few months?

TickerNameMarket CapPriceReturn YTDFees1 year return
FXACurrencyShares Australian Dollar Trust67326000091.570.8218810.448.178
FXCCurrencyShares Canadian Dollar Trust60662440097.060.8539850.425.961
CYBWisdomTree Dreyfus Chinese Yuan Fund56055000025.270.2003250.450.159
CEWWisdomTree Dreyfus Emerging Currency Fund39373600022.12-0.8636390.55#N/A N/A
FXFCurrencyShares Swiss Franc Trust31124510092.92-3.96380.47.323
UDNPowerShares DB US Dollar Index Bearish Fund21374190026.7-2.9774930.7510.426
EUOProShares UltraShort Euro25537400020.419.9999940.95-18.646
BZFWisdomTree Dreyfus Brazilian Real Fund15852540026.42-2.9777640.4546.193
YCSProShares UltraShort Yen11259720020.11-3.8967130.95-21.609
FXBCurrencyShares British Pound Sterling Trust119352000149.18-3.3885720.48.315
DRRMarket Vectors Double Short Euro ETN5511562045.5710.2728580.65-18.36
FXSCurrencyShares Swedish Krona Trust41928000139.97-0.5812790.428.472
FXMCurrencyShares Mexican Peso Trust3963150079.312.2380470.428.346
CNYMarket Vectors-Renminbi/USD ETN3096940040.2250.1814880.55-0.236
ICIiPath Optimized Currency Carry ETN3033597046.93581.864850.656.68
ICNWisdomTree Dreyfus Indian Rupee Fund2839100025.810.6356770.4517.712
JYFWisdomTree Dreyfus Japanese Yen Fund1156800028.931.8881390.358.927
JYNiPath JPY/USD Exchange Rate ETN1117898065.132.1158510.411.204
SZRWisdomTree South African Rand Fund1124004028.2101-1.8259940.4553.318
EROiPath EUR/USD Exchange Rate ETN774954252.7898-5.2704690.48.688
INRMarket Vectors-Rupee/USD ETN681100038.921.3984140.5518.118
ULEProShares Ultra Euro958334827.28-9.7120060.9513.174
XRUCurrencyShares Russian Ruble Trust673800033.690.533420.424.137
PGDBarclays Asian and Gulf Currency Revaluation Note638830849.3-2.0677420.890.914
YCLProShares Ultra Yen411639927.562.1068450.9517.657
URRMarket Vectors Double Long Euro ETN408834030.51-10.3743010.6514.639
GBBiPath GBP/USD Exchange Rate ETN243600040.21-2.2547680.49.73

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Is Google a one tricky pony?

March 10, 2010 By: IS Category: Stock Opinions

It is well known by readers of this blog that I am generally bullish on Google. It has so much power in this new era thanks to its dominant position on the internet. Think about it for a few minutes… over half of the world’s internet users start their internet journey with a search through Google’s search engine. That gives it immense power in many different ways.

1-Advertising space

No doubt, Google has the premium space for advertisers. Where else can a company like GM expose itself to users who are thinking of “Best SUV”, and only those users? As technology has became more powerful, companies are now able to setup websites and offers targeted exactly to users that type a given keyword. Of course, this makes the user happy as they have an offer that is generally customized towards what they were looking for. But it is even better for advertisers. For years, they had been spending for spots on TV, radio and the print media among other places. Of course, that did have benefits but they were not as easy to quantify. Nowadays, Google can help you spend your advertising dollars but also track that saw your ad, who clicked and what they did next on your website. Did they join your mailing list? Buy your product? The possibilities are endless and it makes Google a perfect target for advertising dollars. This has led to an explosion of ad growth and continued growth thanks to happy advertisers and satisfied users.

2-Knowledge

This has been overlooked but thanks to search engines queries, email, its mobile services and all of its other products, Google has been able to get incredible knowledge of what users are doing, where they are, what they are thinking about and even how they are feeling. The company is still learning how to best use this data (and likely will continue to do so for many years still) but even now it is able to launch products that it knows its users are looking for. Small things such as tracking your flight departure time are now easier to do on Google as the company noticed what users were looking for. My bet is that this will be a game changer in an increasing way over the next decade or so.

3-Boosting its own products

Searching for a smart phone on Google? Don’t be surprised if you end up going to a website promoting Nexus One. And you might end up on Google Finance if you look for stock quotes. Google would be quick to object that they are not manipulating search results to favour their own. No matter if you believe them or not, you could certainly argue that the guys promoting a Google service probably have more information about ranking better on the powerful search engine than most (or perhaps any other) competitors. Being the start of a journey on the web means you have at least some influence in sending users in a direction or another and that is an amazing advantage.

Revenue distribution

All of that being said. What inspired this article is actually a very impressive graph published on BusinessInsider which breaks down Google’s revenues by area. You can draw many things from the chart but probably the most stunning part about it is how Google remains a one trick pony in the fact that almost all of its revenues come from one area; the search result ads.

Does that worry me? No. I was surprised but after thinking about it, it’s not a shocker. In most of Google’s activities, it is still more focused on gaining market share than selling products or ads. Think of Google Earth, a product that is being used increasingly by both consumers and the media. Google continues to offer free use through all kinds of different Medias without even putting many advertisements on it. Will that change in the future? Probably. But I think it’s refreshing to see a company focused on its long term profits (probably more dependant on its number of users than anything else) than a company dedicated to boosting short term earnings at any price.

Threats (Bing, Social)

That being said, there are some threats to Google that should be considered when thinking about buying the stock. I would not consider threats to products such as Google Docs or other smaller products right now because those are not significant revenue contributors right now so any change no matter how big, would likely have little to no effect on Google’s stock. So in my opinion, threats are two fold:

-Search engine competition: Right now, the only threat even worth mentioning is Microsoft’s Bing. It is gaining some ground although it is spending a lot of cash to do so. It is unclear for now if Google should be worried and I will certainly monitor the situation. But currently, I would not consider it a threat as Google’s market share has not suffered and it is unlikely that even Microsoft can keep up this level of spending for long enough. Opponent? Yes. But not a threat for now.

-Change in web use: This has been discussed and has certainly been a source of many worries at Google. There is a threat that users could start using the web in a different way using social web sites such as Facebook and Twitter as their start point instead of search engines such as Google. This has probably been the cause of recent mis-launches such as the one for Google Buzz or Google Wave. There continues to be chatter that Google wants to buy Twitter and that would certainly be of huge help to this threat. Will it happen? Difficult to say but I would hope to see Google get more involved very soon.

GOOG direction…Future growth?

But the main reason why I am still a believer in Google’s stock is that I think there will continue to be an important shift for advertisers from traditional media to the internet and a major portion of that money will go through Google’s hands no matter how it ends up being spent. Google remains the king of the web and has such an influence that it is difficult to imagine this changing anytime soon. Will it grow at 50% per year like some smaller competitors such as Baidu are doing? No, I don’t think so. But I do expect Google to show stronger growth in the next 2-3 years which warrants a much higher price for its stock.

And you are you bullish regarding Google?

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China ETF Stock Picks

March 05, 2010 By: IS Category: Stock Opinions

China has been the story of economic growth in the past decade and has blasted through the rankings. Not long ago, China was seen as an emerging economy. Yes, it still is according to many standards, but don’t forget that thanks to very strong growth, China is now the #3 economy in the world behind Japan and the US. Of course the main difference is that the Chinese economy is growing several times faster than the US and seems poised to do so for some time.  So it’s not surprising to hear that China has many many good investment opportunities. It is not without risk though. For almost every China believer, you will find someone in doubt because of potential bubbles in real estate, in the stock market and elsewhere. And there is no doubt, there will be bubbles over the years in such a fast growing country. It is almost impossible to time investments so I think the best way to play this is through longer term investment.


The question I’ve been asking myself in China as in other emerging countries is how to best play it.  A few months ago, there was only one option really, owning the entire Chinese stock market, through an ETF like FXI. FXI, managed by IShares is by far the most important China ETF. But like many other countries, China is seeing increasing possibilities as you can now invest in specific sectors of the Chinese market, thanks to new ETF’s such as the ones from GlobalX which offers a consumer ETF, an energy ETF, financials ETF, industrials EF, materials ETF and even a Chinese technology ETF. I will personally be on the sidelines for a few months on these sector ETF’s as I simply find it challenging enough to choose an emerging country without having to play a specific sector.

What are your thoughts on these China ETF’s? Any favourites?

TickerLONG_COMP_NAMEMarket Caplast priceReturn YTDFUND_EXPENSE_RATIO
FXIiShares FTSE/Xinhua China 25 Index Fund799632900041.07-3.2180.73
GXCSPDR S&P China ETF55146000070.68-2.0460.59
PGJPowershares Golden Dragon Halter USX China Portfolio44130010023.9837-0.3320.69
FXPProShares UltraShort FTSE/Xinhua China 254248711008.38010.9540.95
HAOClaymore/AlphaShares China Small Cap Index ETF32906720026.710.4180.88
YAOClaymore/AlphaShares China All-Cap ETF7653931024.6901-2.4580.7
FCHIiShares FTSE China HK Listed Index Fund5723040047.692-2.7660.72
TAOClaymore/AlphaShares China Real Estate ETF5708880017.62-2.7730.78
XPPProShares Ultra FTSE/Xinhua China 254658500066.55-7.2780.95
CHIXGlobal X China Financials ETF3521550013.81-4.0490.65
CZMDirexion Daily China 3X Bull Shares2796803034.96-4.9270.95
CHIIGlobal X China Industrials ETF2594200015.26-2.8090.65
CHIQGlobal X China Consumer ETF2130700016.39-0.970.65
CQQQClaymore China Technology ETF1833300026.21.7450.7
CHIMGlobal X China Materials ETF930299913.29#N/A N/A0.65
CZIDirexion Daily China 3X Bear Shares794203939.71-6.7140.95
CHXXINDXX China Infrastructure Index Fund420940021.047#N/A N/A0.85
CHIBGlobal X China Technology ETF304398015.21990.0660.65
CHIEGlobal X China Energy ETF286798014.3399-5.670.65

Why I keep bashing Yahoo(YHOO) and AOL(AOL)

March 03, 2010 By: IS Category: Stock Opinions

I might be one of the more vocal critics of Yahoo and AOL (and of web conglomerates in general) but to be honest, these companies are not making it easy for those defending them. It seems like almost every week I hear news that is truly stunning (not in a positive way) about these 2 stocks. If would love nothing more than to have someone come here to argue that these companies have a bright future. Both of them used to own the web in some way, and used to be the most influential companies at their prime. But that time seems like decades ago already. Here are a few examples from the past week:

2/24/2010: Yahoo announces a content partnership with Twitter. Remember when Google was blamed for copying Microsoft’s move a few months ago to do just that? Google had answered within 24 hours about its intentions to do the same. Why then did it take Yahoo so much more time? Was everyone asleep? Better late than never? Sure…but why be late if you can actually do it at the same time as competitors?

3/1/2010: Arguable Yahoo’s most valauble property, Flickr had its photo editing partner, Picnik, purchased by Google, which will make it akward for Flickr but will also help Google better compete. Of course today, Yahoo’s CEO announced they would be focusing on small acquisitions. Couldn’t you have thought about buying one of your main partners before competitor Google jumped in?

3/1/2010: AOL announces the sale of Buy.at for $17 millions. What’s bad about it? They actually bought it two years ago for $125 millions. And no, this did not happen during a dot com bubble or anything of the kind. A recession? Yes. But how many assets do you know that lost over 85% of their value? Bravo AOL once more.

3/2/2010: AOL CEO now says that its revenues will be shrinking in Q1, because of a tough environment. Analysts meanwhile say the problem is at AOL and that other web companies will show growth….

3/2/2010: Yahoo CEO Carol Bartz when asked why its compaany was not as “hot” as Facebook: “Remind me what’s their revenue?”. Seriously? You are dissing one of the top 2-3 companies on the internet? Let’s have this revenue discussion in a year or two….


Remember that all of this happened in just a few days… Just a reminder of how bad things are for these two companies. What made my day though was reading an article suggesting that Yahoo should buy AOL. Why not right? Surely things can’t get worse right?

Any thoughts? I would love someone to come defend AOL here.

Tags: ,

March 2010 Top US dividend stocks in the S&P500!

March 01, 2010 By: IS Category: Stock Opinions

It is the time once again to do an update of what has become one of the more anticipated posts on IntelligentSpeculator as we do a summary of the best candidates for dividend stocks when investing in the broad US markets and more specifically in the S&P500 index!

As always, I urge investors to look at the dividends offered but also the general health of the company to ensure that they will be able to maintain a high payout! You better look at the entire list to find the rare companies that are not only paying dividends but also who keep taking up their dividend offering a solid long term growth perspective.

As was the case in past months, many communication companies dominate these charts as they have kept up the payments despite being in a rocky environment with lots of competition! I personally would strongly consider a company like Verizon(VZ) which does have issues but is generally still a solid player in the mobile industry and offers a dividend yield close to 7%!

What are your favourites on this list?

Top March 2010 Dividend stocks

LONG_COMP_NAMElast priceDividend YieldReturn MTD
FTRFrontier Communications Corp7.7912.836970472.365307
WINWindstream Corp10.139.871668312-1.745881
CTLCenturyTel Inc34.278.4622121250.7644873
QQwest Communications International Inc4.567.01754370310.26101
MOAltria Group Inc20.126.9582503791.309165
RAIReynolds American Inc52.86.818181638-0.7518826
TAT&T Inc24.816.771462908-2.168774
VZVerizon Communications Inc28.936.567576827-1.665533
PGNProgress Energy Inc38.296.476886965-1.744933
HCPHCP Inc28.786.4628214533.26081
HCNHealth Care REIT Inc42.366.4211520980.1685904
POMPepco Holdings Inc16.826.4209277222.436051
PBIPitney Bowes Inc22.96.37554601811.23357
AEEAmeren Corp24.716.232294463-3.287672
TEGIntegrys Energy Group Inc44.086.1705989766.922188
NINiSource Inc15.026.1251665565.403512
CINFCincinnati Financial Corp26.95.8736061071.932551
DUKDuke Energy Corp16.355.8715595020.3749481
CNPCenterPoint Energy Inc13.385.829596199-2.725004
PNWPinnacle West Capital Corp36.415.7676459891.647125
LLYEli Lilly & Co34.345.707629698-1.044214
FEFirstEnergy Corp38.655.692108791-10.25703
EDConsolidated Edison Inc42.755.56725173-0.8862749
SOSouthern Co31.775.508341202-0.7187486
LEGLeggett & Platt Inc18.955.4881264483.778754
LOLorillard Inc73.045.47645126-2.219023
SCGSCANA Corp36.055.2704576321.235604
RRDRR Donnelley & Sons Co19.895.2287579780.3531771
BMYBristol-Myers Squibb Co24.515.2223581040.6157619
TETECO Energy Inc15.335.218525844-0.2014026
MCHPMicrochip Technology Inc27.065.0406502696.157815
PPLPPL Corp28.484.915730253-3.424891
DTEDTE Energy Co43.424.8825423443.282581
AEPAmerican Electric Power Co Inc33.624.878048738-1.760715
DDEI du Pont de Nemours & Co33.724.8635824014.712961
EXCExelon Corp43.34.849884306-3.945567
VTRVentas Inc44.194.8427248364.715635
DDominion Resources Inc/VA37.994.8170572332.618646
PMPhilip Morris International Inc48.984.7366270587.624701
XELXcel Energy Inc20.814.7092744790.1443637
PCLPlum Creek Timber Co Inc35.734.701931003-0.0834309
PLDProLogis12.894.6547713253.539434
PEGPublic Service Enterprise Group Inc29.724.60969046-2.844069
KIMKimco Realty Corp13.894.60763128710.0634
SESpectra Energy Corp21.84.5871559633.830575
NYXNYSE Euronext26.384.54890086312.68688
GASNicor Inc41.654.4657863492.788749
HCBKHudson City Bancorp Inc13.524.4378699993.069873
AVBAvalonBay Communities Inc81.424.3846719896.278551
KMBKimberly-Clark Corp60.744.3463946412.273114

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Stock reviews: Internet content companies

February 26, 2010 By: IS Category: Stock Opinions

I often see all internet companies classified together and honestly it’s just not right to group them all together. One of the categories that is easier to understand is the web content companies. These are companies that are basically media companies, they do not sell products or services, they generally do two simple things:

-Produce content
-Sell advertising

Of course, some companies are larger and have other activities but I would say that in general, their main revenue generator is advertising. Among the companies that I track, here are the main companies I would describe as “content companies”:

IAC Interactive(IACI)
WebMD(WBMD)
The Knot(KNOT)
YHOO(YHOO)
AOL(AOL)

What are these content companies?

Basically, these companies profits depend on:

-Revenues which are driven by:

-Visitors
-Advertising rates

-Expenses which are driven by:

-Cost of producing content
-Advertising expenses

Apart from Yahoo and AOL, I would consider these companies/websites to be very targetted and thus capable of getting high advertising rates. But that being said, traffic remains the core, especially when it is “organic growth”. Buying traffic is easy but not very financially viable long term. So the key is getting increased traffic with quality content. You can see graphs of Yahoo traffic (amazing how much steam it has lost in recent months) as well as a graph for WebMd and TheKnot (look at variations only, obviously many more users looking for medical advice than planning for a wedding). It is more difficult to do for companies like AOL and IAC Interactive which have dozens of different properties. Just take a look at IACI websites to get a feeling.



I have said it before and will say it again, I think it is increasingly difficult to be competitive when building websites in so many fields. You have dedicated teams working on one specific niche or subject and it becomes very difficult for “web conglomerates” such as Yahoo, AOL and IACI to compete. So yes, I have been doing and will probably continue to look for trades that will put me long a specialty website and short a web conglomerate.

Just out of curiosity, I did some comparisons between the two groups for a few different financial items (since AOL was only recently spun off, it id not included for lack of data):

Sales growth:

CQ1 2008CQ2 2008CQ3 2008CQ4 2008CQ1 2009CQ2 2009CQ3 2009CQ4 2009
YHOO8.725.901.07-1.40-13.07-12.52-11.81-4.12
IACI-75.13-76.2610.11-7.36-10.43-3.99-8.864.60
WBMD12.109.5912.4315.4111.9214.6815.2623.80
KNOT13.180.657.891.15-0.352.794.412.51

That being said, buying Knot(KNOT) at the current P/E ratio seems unreasonable (which explains why I am currently short) but I think by waiting for more “ideal” valuations, there are many trading opportunities. I do hope to add more of these companies to my trading radar in the future which will give even more possibilities.

PriceEarnings Per ShareP/E ratio current yearP/E ratio next year
VCLK9.500.7114.2412.63
IACI22.48-6.9829.5821.87
WBMD42.421.4037.1529.02
KNOT7.68-0.1571.1143.15
AOL24.782.3510.0612.09
YHOO15.240.4224.8620.96

The main risk that I see is always that since these specialised websites are more of a “One trick pony“, if a major competitor jumps in, they are obviously more vulnerable.

Do you agree that in general, these web conglomerates will underperform other specialised websites?

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Top 100 Commodity, Materials and Energy ETF’s

February 25, 2010 By: IS Category: Stock Opinions


I have written a few series about ETF’s but this time I went for another side of the story! I have been public about my good feelings for ETF’s and why they will eventually take over mutual funds but one of the most amazing things is how many different things can be done with ETF’s! You can do leveraged, inverse or straight but also invest in commodities in general or in a specific one like Oil, Gold, Copper and so many others!!

You can compare the fees charged by each but also returns and obviously this might give you a few different investment ideas!  Will you need more research? Obviously yes! But this can be a good starting point to finding the best ETF’s for 2010!

So without further wait, here are the ETF’s divided by sub-categories!

Agriculture

Lots of believers here think that as the global population continues to grow, foods like rice, soybeans and sugar will become in demand with little flexibility in supply… Resulting in prices going up!!!

TickerNameMarket Caplast priceReturn YTDFees
MOOMarket Vectors - Agribusiness ETF $2,036,156,032 $43.28-1.5760.59
PAGGPowerShares Global Agriculture Portfolio $64,152,000 $26.30-1.6450.75
DBAPowerShares DB Agriculture Fund $2,506,253,056 $25.41-4.9550.85
RJAELEMENTS Linked to the Rogers Comm. Index - Agri Tot Return $308,995,904 $7.52-5.290.75
JJAiPath Dow Jones-UBS Agriculture Subindex Total Return ETN $78,673,600 $42.37-7.5750.75
DAGPowerShares DB Agriculture Double Long ETN $67,353,000 $9.51-14.2050.75

Commodity

Instead of investing in one specific commodity and trying to pick the right one, many choose to go for broad indexes as countries like China buy up everything available pushing all prices up. That is basically what has been happening in the past few years! This is also a play on the dollar as commodities are generally inversely correlated to the dollar!

TickerNameMarket Caplast priceReturn YTDFees
GCCGreenHaven Continous Commodity Index Fund $238,544,992 $25.56-3.4950.85
GSGiShares S&P GSCI Commodity Indexed Trust $1,715,277,952 $30.86-4.1170.75
DBCPowerShares DB Commodity Index Tracking Fund $4,510,601,216 $23.62-4.8330.85
CRBQJefferies TR/J CRB Global Commodity Equity Index Fund $76,525,248 $40.51-5.2450.65
DJPiPath Dow Jones-UBS Commodity Index Total Return ETN/United States $2,113,959,936 $40.33-5.490.75
DYYPowerShares DB Commodity Double Long ETN $20,927,500 $7.72(8.37)0.75

Energy

There was a recession but as thongs get back to normal we will get back to the debates about energy and the lack of it compared to exploding demand:

TickerNameMarket Caplast priceReturn YTDFees
ERYDirexion Daily Energy Bear 3X Shares $44,977,180 $11.574.4330.95
PXEPowerShares Dynamic Energy Exploration & Production Portfolio $55,737,000 $16.50-1.1460.63
FXNFirst Trust Energy AlphaDEX Fund $39,761,800 $16.59-1.6540.7
VDEVanguard Energy ETF $1,076,019,968 $81.58-2.7590.25
IYEiShares Dow Jones US Energy Sector Index Fund $724,670,976 $32.40-3.0690.47
RJNELEMENTS Linked to the Rogers Comm. Index - Energy To Return $48,204,000 $6.20-3.9370.75
DBEPowerShares DB Energy Fund $323,456,992 $25.36-4.7730.75
IXCiShares S&P Global Energy Sector Index Fund $1,043,702,016 $33.94-5.7740.48
DKAWisdomTree International Energy Sector Fund $44,650,000 $23.42-8.9840.58
ERXDirexion Daily Energy Bull 3X Shares $185,513,104 $36.01-10.8870.95

Oil

The resource that makes the headlines! It is volatile, makes the world run and is in short supply (even to those who do not believe in peak oil!)!

TickerNameMarket Caplast priceReturn YTDFees
DUGProShares UltraShort Oil & Gas $183,620,992 $13.063.5320.95
OIHOil Services Holders Trust $2,067,395,968 $120.852.2970
SCOProShares UltraShort DJ-AIG Crude Oil $48,708,192 $13.351.0980.95
XESSPDR S&P Oil & Gas Equipment & Services ETF $331,760,512 $28.900.7720.35
DTOPowerShares DB Crude Oil Double Short ETN $94,786,512 $64.210.3440.75
IEZiShares Dow Jones US Oil Equipment & Services Index Fund $395,500,512 $43.19-0.0460.47
IEOiShares Dow Jones US Oil & Gas Exploration & Production Index Fund $353,911,488 $53.45-1.7040.48
UGAUnited States Gasoline Fund LP $72,484,800 $36.52-2.0780.6
USOUnited States Oil Fund LP $2,188,809,984 $38.99-2.4190.45
DBOPowerShares DB Oil Fund $372,601,088 $27.16-2.8650.75
PXJPowerShares Dynamic Oil & Gas Services Portfolio $183,554,896 $16.49-2.8890.61
USLUnited States 12 Month Oil Fund LP $161,868,000 $39.67-3.3370.6
UCOProShares Ultra DJ-AIG Crude Oil $309,595,712 $12.27-6.3880.95
DIGProShares Ultra Oil & Gas $399,937,504 $32.47-6.7480.95

Natural Gas

Think oil is volatile? Try natural gas which has been gaining popularity in recent years thanks to speculators mainly!! UNG has made more headlines than any other commodity ETF but as you can see below, there are other options!

TickerNameMarket Caplast priceReturn YTDFees
FCGFirst Trust ISE-Revere Natural Gas Index Fund $479,009,600 $17.50-1.7060.6
UNLUnited States 12 Month Natural Gas Fund LP $34,489,000 $48.15-11.7220.75
UNGUnited States Natural Gas Fund LP $3,636,209,920 $8.87-12.6980.6
GAZiPath Dow Jones-UBS Natural Gas Subindex Total Return ETN $190,612,496 $12.25-15.4060.75

Dirty energy and nuclear

I know, they are not the same but just for presentation purposes, I am presenting them together. Think coal is dead? You are dead wrong and these ETF’s will be proof of that!

TickerNameMarket Caplast priceReturn YTDFees
PPLTETFS Platinum Trust $432,572,992 $150.37***new0.6
PKNPowerShares Global Nuclear Energy Portfolio $29,782,500 $18.24(1.95)0.75
PTME-TRACS UBS Long Platinum ETN $79,417,648 $17.90-2.3370.65
PKNPowerShares Global Nuclear Energy Portfolio $29,782,500 $18.24-3.3930.75
JJCiPath Dow Jones-UBS Copper Subindex Total Return ETN $154,230,800 $44.27-4.2140.75
NLRMarket Vectors - Nuclear Energy ETF $171,588,000 $21.67-4.7660.61
SLXMarket Vectors - Steel Index Fund $372,868,000 $58.58-4.860.55
PGMiPath Dow Jones-UBS Platinum Subindex Total Return ETN $122,370,896 $35.98-6.1240.75
KOLMarket Vectors - Coal ETF $391,699,488 $34.56-6.2570.62

Clean Energy

Are you green? You might be tempted of investing in these for social reasons but as the environment becomes more important, clean energy companies will benefit big time, the big question is when…

TickerNameMarket Caplast priceReturn YTDFees
PUWPowerShares WilderHill Progressive Energy Portfolio $55,786,500 $22.35-5.310.7
PZDPowerShares Cleantech Portfolio $150,126,000 $22.73-7.9870.67
QCLNFirst Trust NASDAQ Clean Edge Green Energy Index Fund $39,798,032 $14.33-10.9520.6
FANFirst Trust Global Wind Energy ETF $78,529,032 $13.14-12.5830.6
PBDPowershares Global Clean Energy Portfolio $180,802,400 $14.40-13.8660.75
PBWPowershares WilderHill Clean Energy Portfolio $680,454,976 $9.39-140.69
GEXMarket Vectors - Global Alternative Energy ETF $188,360,000 $21.38-14.320.62
PWNDPowerShares NASDAQ OMX Clean Edge Global Wind Energy Index Fund $37,324,000 $13.20-15.5740.75
KWTMarket Vectors - Solar Energy ETF $27,412,000 $11.57(16.44)0.65
ICLNiShares S&P Global Clean Energy Index Fund $71,574,912 $17.91-18.8610.48
TANClaymore/MAC Global Solar Energy Index ETF $167,238,000 $7.83-22.3410.7

Gold

Gold has been discussed over and over here and elsehwere, it remains very debated and has lost a lot of value in recent months but as inflation threats remain, it will remain a very discussed investment. Among possibilities are GLD, by far the biggest ETF on this list!

TickerNameMarket Caplast priceReturn YTDFees
DGPPowerShares DB Gold Double Long ETN $333,671,200 $26.380.7190.75
IAUiShares COMEX Gold Trust $2,780,029,952 $107.420.550.4
GLDSPDR Gold Trust $39,774,289,920 $107.360.540.4
SGOLETFS Gold Trust $356,832,000 $109.470.530.39
DGLPowerShares DB Gold Fund $151,432,000 $39.170.3310.75
UGLProShares Ultra Gold $156,570,592 $44.2500.95
DZZPowerShares DB Gold Double Short ETN $86,336,000 $14.04-0.8870.75
OILiPath Goldman Sachs Crude Oil Total Return Index ETN $621,755,392 $25.77-2.280.75
DGZPowerShares DB Gold Short ETN $25,467,130 $19.97(2.45)0.75
GLLProShares UltraShort Gold $63,731,632 $10.11-3.2850.95
PSAUPowerShares Global Gold and Precious Metals Portfolio $36,825,000 $35.00-7.8780.75
GDXMarket Vectors - Gold Miners ETF $5,361,544,192 $42.25-8.0290.55
GDXJMarket Vectors Junior Gold Miners ETF $846,659,968 $23.32-9.4410.6

Materials

Not much explanation required, if you believe the economy is back on track, you will want to get your hands on materials!

TickerNameMarket Caplast priceReturn YTDFees
FXZFirst Trust Materials AlphaDEX Fund $89,194,040 $19.331.8580.7
SMNProShares UltraShort Basic Materials $153,800,192 $8.460.4710.95
IYMiShares Dow Jones US Basic Materials Sector Index Fund $693,680,000 $58.49-2.6710.47
VAWVanguard Materials ETF $481,124,800 $65.52-3.5390.25
PYZPowerShares Dynamic Basic Materials Sector Portfolio $44,054,400 $27.36-4.1340.65
UYMProShares Ultra Basic Materials $406,736,992 $30.37-6.5160.95
MXIiShares S&P Global Materials Sector Index Fund $836,406,528 $57.92-6.7820.48
DBNWisdomTree International Basic Materials Sector Fund $48,599,500 $25.94-7.2550.58

Metals

Every time you hear about China’s massive city buildings, try to picture all the metals involved! They are more and more in demand with often very limited supplies!

TickerNameMarket Caplast priceReturn YTDFees
BOSPowerShares DB Base Metals Short ETN $41,902,500 $22.997.9120.75
DBPPowerShares DB Precious Metals Fund $241,888,896 $37.17-1.0350.75
XMESPDR S&P Metals & Mining ETF $859,984,384 $50.09-1.8210.35
RJZELEMENTS Linked to the Rogers Comm. Index - Metals Tot Return $52,973,460 $9.51-4.2120.75
JJMiPath Dow Jones-UBS Industrial Metals Subindex Total Return ETN $55,126,900 $38.79-4.2660.75
DBBPowerShares DB Base Metals Fund $463,248,704 $20.68-8.6220.75
BDDPowerShares DB Base Metals Double Long ETN $30,580,200 $14.67-17.7240.75

Silver

Because it has gained so much importance in recent years, silver warrants a category of its own!

TickerNameMarket Caplast priceReturn YTDFees
ZSLProShares UltraShort Silver $79,695,072 $5.046.4720.95
SLViShares Silver Trust $4,890,082,816 $15.62-5.8590.5
SIVRETFS Silver Trust $133,463,200 $15.89-6.2240.3
DBSPowerShares DB Silver Fund $74,257,136 $28.25-6.3480.75
AGQProShares Ultra Silver $160,320,704 $48.62-14.1760.95

Water

I had written about water a while back, it remains one of the promising areas and is viewed increasingly as a “commodity”

TickerNameMarket Caplast priceReturn YTDFees
FIWFirst Trust ISE Water Index Fund $38,635,840 $18.44-1.7180.6
PIOPowerShares Global Water Portfolio $327,472,512 $17.48-4.2950.75
CGWClaymore S&P Global Water Index ETF/USA $236,938,800 $17.70-4.6690.7

Others

And finally, those that do not fit any other category

TickerNameMarket Caplast priceReturn YTDFees
PBEPowershares Dynamic Biotechnology & Genome Portfolio $187,780,800 $17.745.4050.62
COWiPath Dow Jones-UBS Livestock Subindex Total Return ETN $90,953,400 $28.641.5980.75
WOODiShares S&P Global Timber & Forestry Index Fund $47,834,580 $38.06-4.3850.48
SGGiPath Dow Jones-UBS Sugar Subindex Total Return ETN $34,178,288 $70.55-8.8720.75

Time to be a contrarian???

February 24, 2010 By: IS Category: Stock Opinions


Goldman Sachs recently published its list of the stocks most commonly held by Hedge Funds as of the end of last quarter which obviously makes a very interesting list. Hedge Fund managers are generally regarded as the best and smartest investors. Why? Because generally the best managers will end up there where high returns are best rewarded (in terms of pay of course!).

Looking through the list, I’m not surprised to see the 3 big technology giants in there with Apple(AAPL), Google(GOOG) and Microsoft(MSFT) all among the top 6 names owned. Apple has not been as unanimous since the announcement of its Ipad but I do think it remains a good pick (and do have a trade on Apple right now).

Pfeizer(PFE) at #2 is not that surprising either. While many point to its lack of new products, there are many things to like about it, especially its dividend yield which even after some decreases, remains very high (around 4%).

There are also 4 financial institutions, Bank of America(BAC), JP Morgan Chase (JPM), Mastercard(MA) and Wells Fargo (WFC). Honestly, I find it very difficult to judge these financial institutions right now. I had written about an Bank of America investment being similar to a visit to the casino and while things have improved, it’s still difficult to judge these stocks.

The final two stocks, I do not know as much about, as I have not considered investing in either DirecTV(DTV), or CVS Caremark(CVS), both are consumer players and could be viewed as defensive plays.

Buying or Selling these stocks?

The big question now is that with this info, would you rather assume that most of these funds are wrong (and sell) or jump on the bandwagon and get long assuming these guys are the brightest and they will probably turn out right? It’s actually a very difficult choice but I personally do not move either way really. I do think it’s interesting to see and am happy to not see Amazon (AMZN) on this list since I am short on the stock, but would I change my investing decisions based on these? I don’t think so no. How about you?

RankTickerNameIndustry SubgroupPriceReturn YTD
1AAPLApple IncComputers197.059-4.895315
2PFEPfizer IncMedical-Drugs17.67-1.919358
3BACBank of America CorpDiversified Banking Inst15.947.636113
4GOOGGoogle IncWeb Portals/ISP535.07-12.44879
5JPMJPMorgan Chase & CoDiversified Banking Inst39.88-4.183672
6MSFTMicrosoft CorpApplications Software28.33-5.30882
7MAMastercard IncCommercial Serv-Finance222.02-13.21549
8DTVDIRECTVCable/Satellite TV33.420.2098942
9WFCWells Fargo & CoSuper-Regional Banks-US27.291.291509
10CVSCVS Caremark CorpRetail-Drug Store34.156.296526

Google’s war taking the company in many new directions

February 11, 2010 By: IS Category: Stock Opinions

Wow, Google is not getting anything easily these days and with its stock down close to 15% so far this year, you would think that Google might be looking for alliances. But it continues on its quest to gain more ground no matter who stands in front of the company. The company is now waging war on tens of different opponents with few alliances to count on. Here are a few of the current opponents of Google.

Search: Microsoft & Yahoo

This is the ultimate battle for Google obviously as it defends its ground. Search is the core of Google and a battle it will give its all to win. The problem of course is that it is facing a very determined Microsoft in this battle. The Seattle based company is spending over 2 billion per year on marketing its search engine, recently renamed Bing. Is the operation profitable? No, as you can see in the chart below. But all this money is starting to show results as Bing continues to gain ground on Google. Bing had 11.3% of search market share in January compared with 10.7% in December with other search engines including Google losing market share. How long can Microsoft keep up the spending? Too long if you are Google.

Social Search: Twitter & Facebook

We have discussed the importance of social for Google and it is attempting once again to enter the market, this time through the launch of “Google Buzz”, a social network integrated with Gmail that tries to compete especially with Twitter. Critics have not been impressed much more than they were a few months ago when Google launched “Google Wave”.  It remains  unclear what Google’s strategy is and there remains many analysts who think the only way Google can get in the game is by purchasing “Twitter” although that alternative continues to become more expensive as months go by… Facebook, which is partially backed by Microsoft, also has been gaining ground on Google in several key measures such as users and time spent on its properties.

International: China & Iran

As if Google did not have enough enemies in the corporate world, Google is also battling it out with Chinese authorities because of hacking attempts that were supported or done by the Chinese government according to Google as well as the company’s refusal to filter search results. This could give enemy Baidu major help as it could concentrate on other markets if Google pulled out of China.

And today, the Iranian government officially banned the use of Gmail, Google’s email website. Of course, Iran is a not a very big market for Google but this does create more legal and logistical complications for a company that already has a lot on its plate.

Mobile: Apple, Research in Motion, Microsoft

The launch of Nexus One a few weeks ago is a clear signal that Google does not consider its operating system “Android” to be gaining market share fast enough and in the critical mobile space, it is important for companies to gain market share right now. Hence, Google launching its own phone (built by HTC) and entering the retail space for the first time.

Software: Microsoft, Sun, etc

It is no secret. Google has been trying to push its lower cost alternatives to Microsoft Office but also offering cloud computing solutions and despite very slow growth, it continues to place a lot of energy in these solutions in the hopes of being the leader in cloud computing.

Print media: Book publishers

Through its agreement to scan an incredible number of books and allow them to be scanned, Google placed itself in a position where many publishers & authors disagree with the principle and refuse to be part of the agreement. So far, Google has been tied up in many legal issues regarding these agreements. The justice department is now involved and it is very unclear how this issue will end.

High speed networks: Verizon, AT&T & Comcast

And finally, as if Google did not have enough on its plate, Google announced today plans to build a high-speed fiber-optic network to provide a faster and better internet, thus entering in competition with other high speed internet providers. “If Google went out and started delivering a gigabit per subscriber, it would show that anybody with fiber can do the same thing.” I’m certain opponents will love to hear this.

So the question clear is: Does Google have too much on its plate? Which battles are key and which ones will require the most energy?

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