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ETF Spotlight Newsletter
A sampling of research & data on ETFs from AltaVista Research
In This Issue
In This Issue
Chart of the week
Fund focus
Quick Links
Coverage at a glance
No. of ETFs
527

Total Mkt Cap ($bns)

$608.8

Avg. daily value traded ($bns)

$68.5
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May 3, 2010
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

Charts1Foreign 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
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Chart of the week
Foreign Sales as a %-age of total
Foreign sales
FXSales


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).


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Fund Focus
iShares MSCI Spain (EWP)bullfighting

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

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As always your questions & feedback are most welcome.
 
Sincerely,
 
Michael Krause
AltaVista Research