Greetings!
Below please find the ETF Spotlight newsletter for
the week of September 13, 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 sales growth. Feel free to share it with others who may be interested. |
In this week's issue
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 Sales growth
- Chart of the week: Rapid sales growth at reasonable multiples
- Fund Focus: Market Vectors Solar Energy (KWT)
- Revisions, asset flows & short interest
- Sales per share estimates, growth rates and price-to-sales multiples for major ETFs
- Market monitor - movers & categories
To download the full newsletter click here. |
| Chart of the week
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Rapid sales growth at reasonable multiples
Fastest sales growth of funds with P/E less than 15X  |
Every investor likes to see rapid sales growth in the companies he or she owns, but when simply screening for stocks--or in our case ETFs--with the fastest sales growth, one ends up with a list of early-stage, mostly alternative energy and biotech funds, with little or any profits.
While these may have a place in investors' portfolios, they require a leap of faith. So instead we screened our universe for the funds with the fastest sales growth that also have a P/E ratio of 15x 2010E EPS or less, indicating sales that have already translated into sizable profits, and providing a basis for analysis as an investment.
Several China-related ETFs made the list and all had decent though not spectacular ALTAR Scores. However only one alternative-energy fund made the list; it is the subject of this week's Fund Focus.
To download the full newsletter, click here. |
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Fund Focus |
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Market Vectors Solar Energy (KWT)
With less than 1/3 of assets in U.S. firms, KWT is primarily a foreign investment with Chinese solar firms having the biggest allocation. It is also one of the few alternative energy funds where earnings are substantial enough that stocks can trade at a reasonable P/E multiple. Still, these firms are voracious consumers of capital with inconsistent levels of profitability. Over time we think investors may do better with a more diversified approach to alternative energy such as with the iShares Global Clean Energy ETF (ICLN).
To download the full newsletter, click here.
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