Greetings!
Below please find the ETF Spotlight newsletter for
the week of May 3rd, 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 foreign sales. Feel free to share it with others who may be interested. |
In this week's issue
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Foreign sales
- Chart of the week: Foreign sales as a %-age of total sales
- Fund Focus: iShares MSCI Spain fund (EWP)
- Revisions, asset flows & short interest
- Foreign sales, sales growth rates & P/S multiples for major ETFs
- Market monitor - movers & categories
To download the full newsletter click here. |
Chart of the week
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Foreign Sales as a %-age of totalForeign sales | Stocks tumbled last week, particularly those in
Spain and Italy, on fears of contagion from the Greek debt crisis.
But despite the tendency of many investors to relate a given country fund with that nation's economy, the extent of foreign sales as a percentage of total in some instances shows how relatively unimportant a firm's domicile is in the global economy.
As a result, stocks in some country funds may
be being unfairly penalized. The chart illustrates how the majority of sales for both Spanish and Italian firms are from outside their home
countries (as are the vast majority of sales for Euro-area firms). These global
businesses now trade at some of the cheapest multiples around (see page 2). To download the full newsletter, click here.
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Fund Focus |
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iShares MSCI Spain (EWP)
Given that foreign sales account for about 2/3rds of the total for firms in EWP, it's plausible that both sales and earnings will increase this year as forecast despite the country's looming debt crisis. So while not immune to domestic troubles, you can now buy these global businesses for some of the cheapest valuation multiples in Europe (especially P/CF), resulting in above-average appreciation potential
To download the full newsletter, click here.
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