Greetings!
Below please find the ETF Spotlight newsletter for
the week of August 9, 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 cash flow. Feel free to share it with others who may be interested. |
In this week's issue
|
|
 Cash flow
- Chart of the week: Cash flow vs. earnings
- Fund Focus: iShares Dow Jones Telecom (IYZ)
- Revisions, asset flows & short interest
- Cash flow estimates and P/CF multiples for major ETFs
- Market monitor - movers & categories
To download the full newsletter click here. |
| Chart of the week
|
|
Cash flow versus earnings
2011E Cash flow as a percentage of EPS
 |
Depreciation, amortization and non-cash charges are common expenses that affect earnings but not a firm's cash flow. While these items shouldn't be ignored, sometimes cash flow provides a very different picture of a company's health than earnings.
This week's fund screen shows the 10 ETFs with the highest cash flow in relation to earnings (i.e., the biggest differences between the two) based on 2011 estimates. Several are early-stage industries like the SPDR S&P Biotech fund (XBI) where hefty R&D expenses will be written off over many years. Others are capital-intense businesses like the iShares Dow Jones Telecom fund (IYZ), this week's Focus Fund.
To download the full newsletter, click here. |
|
Fund Focus |
|
iShares Dow Jones Telecom (IYZ)
Telecom remains a low margin, low return on equity business, due to the decline of the wireline industry and massive investments required to grow the wireless and fiber optics businesses. Despite this, IYZ trades at fairly lofty valuation multiples (with the exception of cash flow, thanks to huge depreciation) and has a very low ALTAR Score.
To download the full newsletter, click here.
|
