Greetings!
Below please find the ETF Spotlight newsletter for
the week of April 26th, containing highlights of the research and
data on www.etfresearchcenter.com
as well as a recap of the past week's action in the ETF market. The focus of this week's edition is earnings. Feel free to share it with others who may be interested. |
In this week's issue
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 Earnings: Not all boats lifted by rising tide
- Chart of the week: Funds with declining forecast earnings.
- Fund Focus: iShares MSCI Emerging Markets fund (EEM)
- Revisions, asset flows & short interest
- EPS estimates, growth rates & P/E multiples for major ETFs
- Market monitor - movers & categories
To download the full newsletter click here. |
| Chart of the week
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ETFs with forecast declines in 2010 EPSDeclining EPS  |
For most index funds, both in the U.S. and around the world, earnings are staging a comeback this year as the global economy recovers. But the rising tide isn't lifting all boats. We screened our coverage universe for funds where 2010E EPS is forecast to decline versus last year. The result: eight out of the top 10 funds are real estate-related. While news reports of some bright spots in the housing market may encourage investors to consider these real estate ETFs, we'd be cautious. All of the funds on the list have an ALTAR Score substantially below that of the S&P500 (SPY), suggesting valuations are not yet attractive enough to compensate investors for the risk of taking the plunge. To download the full newsletter, click here.
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Fund Focus |
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iShares MSCI Emerging Markets (EEM)
Firms in the MSCI Emerging Markets index saw a relatively modest decline in earnings during the downturn and recovered faster than their counterparts in developed markets. Further, while these stocks have rallied sharply they still trade at attractive valuation multiples in our opinion and appear to have above-average appreciation potential.
To download the full newsletter, click here.
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