Greetings!
Below please find the ETF Spotlight newsletter 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.
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In this week's issue
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 Winners' Circle
- Chart of the week: Best performers of 2010
- Fund Focus: Market Vectors Indonesia (IDX)
- Revisions, asset flows & short interest
- 2011 Sales per share estimates, margins, and P/Sales multiples for major ETFs
- Market monitor - movers & categories
To download the full newsletter click here.
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| Chart of the week |
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Best performers of 2010
Last week we examined the biggest losers from 2010; this week our chart shows the best performers from last year. The Market Vectors Junior Gold Miners (GDXJ) took the number one spot by gaining 67%, although it is nearly 20% off the high reached in December.
Beyond that, five emerging and frontier markets made the list, including the Market Vectors Indonesia ETF (IDX) which is the subject of this week's Fund Focus. These smaller emerging market funds all did better than the broader iShares MSCI Emerging Markets (EEM) fund.
Lastly, four of PowerShares' Dynamic funds made the top 10, in different industries. These are based on the "Intellidex," or intelligent index, that selects constituents "based on a variety of investment merit criteria, including fundamental growth, stock valuation, investment timeliness and risk factors," according to fund literature. This black box methodology worked well for these funds last year, but some of these like the Dynamic Networking (PXQ) fund now appear stretched, with an ALTAR Score™ of just 3.3%. Download the full newsletter here.
Chart: Best performers of 2010
among equity ETFs
Source: Bloomberg
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| Fund Focus |
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Market Vectors Indonesia (IDX)
IDX has nearly quadrupled in the two short years since listing. Investors, enthusiastic about Indonesia's prospects for replacing Russia in the "BRIC" quartet, have snapped up Indonesian stocks. While we agree that the country's economic and demographic outlook is brighter than Russia's, these stocks now appear richly valued, trading at multiples not only double those of the Russia ETF (RSX) in most cases, but also substantially higher than those of stocks in the iShares FTSE/Xinhua China 25 fund (FXI).
To download the full newsletter, click here.
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| New coverage | |
We have just added coverage of 18 new ETFs. Go to the ETF Research Center for details on any of them.
| Ticker | Fund Name | | EWRS | Rydex Russell 2000 Equal Weight | | EWRM | Rydex Russell Midcap Equal Weight | | EWEF | Rydex MSCI EAFE Equal Weight | | EWEM | Rydex MSCI Emerging Market Equal Weight | | KBWD | PowerShares KBW High Dividend Financial | | KBWX | PowerShares KBW International Financials | | KBWP | PowerShares KBW Property & Casualty Insurance | | KBWY | PowerShares KBW Premium Yield Equity REIT | | ECNS | iShares MSCI China Small Cap | | ERUS | iShares MSCI Russia | | REMX | Market Vectors Rare Earth/Strategic Metals | | VNQI | Vanguard Global ex-US Real Estate | | FLYX | Direxion Airline Shares | | URA | Global X Uranium ETF | | GLDX | Global X Gold Explorers ETF | | NORW | Global X Norway ETF | | ALUM | Global X Aluminum ETF |
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