Posts filed under “ETFs”

World’s Biggest ETF/Contrarian Indicator: GLD > SPY

GLD was briefly the world’s biggest exchange-traded fund. In August 2011, GLD had assets of more than $77 billion, surpassing SPY (SPDR S&P 500 ETF) for a short time. The SPDR Gold Trust’s market capitalization rose to $76.7 billion  — gold briefly topped $1,880/ounce. At the same time, SPY’s “capitalization” was ~$74.4 billion.

I missed this detail in real time (I caught the Bond version in 2003). With the benefit of hindsight, its easy to say this was a contrarian signal. Not that you should short GLD, although that surely was a wonderful trade. But rather, that SPY was attractive, as this was a sign of extreme dislike for equities.

Have a look at the SPY chart and GLD (and Apple as well). click charts to enlarge them

 

SPY Weekly Chart 2008-2013

 

GLD Weekly Chart 2008-2013

 

And for a little comparison, here is Apple — GLD looks somewhat similar . . .

 

AAPL Weekly Chart 2008-2013

Category: Contrary Indicators, ETFs, Gold & Precious Metals, Technical Analysis

Coming Soon: TBTF ETF

TBTF ETF Backtest (Red) Source: Bespoke   I am putting together a new ETF that consists entirely of companies that have become so large and systemically important that they are guaranteed survival regardless of their own incompetency. It is a market cap weighted index (naturally) so that those names that represent the greatest threat to…Read More

Category: ETFs, Humor

Romancing Alpha (α), Breaking Up with Beta (β)

Since it is a Friday (following Valentine’s Day), I want to step back from the usual market gyrations to discuss a broader topic: The pursuit of Alpha, where it goes wrong, and the actual cost in Beta. For those of you unfamiliar with the Wall Street’s Greek nomenclature, a quick (and oversimplified) primer: When we…Read More

Category: ETFs, Investing, Philosophy

The Ongoing Rise of ETF Assets

click for larger charts

Source: Bianco Research

 

In my year end column for the WaPo (10 trends to watch in finance for 2013), the very first trend was “ETFs are eating everything.”

Some of the charts nearby, courtesy of Bianco Research, put it into perspective visually.

Just last month, ETF assets passed the $2 trillion dollar milestone.  And today, Schwab announced they are allowing “investors to trade over 100 ETFs commission-free.”

By way of their simplicity, low cost and passive indexing, ETFs are becoming the most dominant product in finance.

 

Read More

Category: ETFs, Technical Analysis

Jack Bogle on Investing

Experts Grade the Recent Rally


Mon 04 Feb 13 | 08:06 AM ET

Category: ETFs, Investing, Video

Investors Continue to Pick ETFs over Active Funds

Source: FT.com   This was part of theme of my presentation this week — while equity markets in general have seen huge outflows, ETFs in general — and Vanguard in particular — have seen large inflows .  . .    

Category: ETFs, Investing, Mutual Funds

U.S. Equity Sector ETF Weekly Performance (1.18.13)

(click here if charts are not observable)  

Category: ETFs, Think Tank

U.S. Equity Sector ETF Weekly Performance – January 11 2012

  (click here if charts and table are not observable)

Category: ETFs, Markets, Think Tank

U.S. Equity Sector ETF Performance December 21, 2012

        (click here if charts and table are not observable)  

Category: ETFs, Markets

U.S. Equity Sector ETF Performance

  (click here if charts are not observable)

Category: ETFs, Investing, Markets