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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 Nuclear Energy ETFs
- Chart of the week: EPS growth, Nuclear vs. Clean Energy ETFs
- Fund Focus: iShares S&P Global Nuclear Energy (NUCL)
- Revisions, asset flows & short interest
- 2011 EPS estimates, growth rates, and P/E 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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Nuclear vs. Clean Energy ETFs
One fallout from the partial meltdown in Japan's nuclear reactor has been a quick reversal in the fortunes of Clean Energy and Nuclear ETFs. All of the top five performers last week were Clean Energy ETFs, while the four Nuclear-related ETFs were the worst performers, all falling by double-digits (see page 5 in newsletter).
We think that may be overkill, but in any case a quick look at EPS growth forecasts for each of those funds shows wide variations; some are expected to accelerate next year while others will decelerate. But there's no generalization that can be made such as clean energy funds are expected to have faster growth than nuclear funds.
However, with the exception of the Global X Uranium fund (URA) the other three Nuclear Energy ETFs have very similar ALTAR Scores--our measure of an ETF's overall investment merit--while the Clean Energy funds range from a low of 4.7% to a high of 10.7% (see table, newsletter page 1).
Download the full newsletter here.
Chart: Nuclear vs. Clean Energy ETFs
EPS growth, 2011-12E
Source: AltaVista Research |
| Fund Focus |
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iShares S&P Global Nuclear Energy (NUCL)
We can't say what the ultimate impact of Japan's partial meltdown will be on global demand for nuclear over other sources of energy, but for now a revival of sorts is improving the fortunes of firms in NUCL (about 30% of which are Japanese). Both margins and ROE are rising leading to double-digit gains in EPS over 2010-12E. However, few of these firms are nuclear pure plays, and in any case at current valuations shares have an ALTAR Score of about average. Investors may do better by assembling similar exposure using the global sector ETFs for Utilities, Energy & Industrials.
To download the full newsletter, click here.
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| New coverage | |
We have added coverage of nine new ETFs. Go to the ETF Research Center for details on any of them.
| Ticker | Fund Name | | XTL | SPDR S&P Telecom | | XTN | SPDR S&P Transportation | | XHE | SPDR S&P Health Care Equipment | | FONE | First Trust Cea Smartphone | | VXUS | Vanguard Total International Stock | | AND | Global X FTSE Andean 40 ETF | | EMVX | Global X Emerging Market Value | | EMGX | Global X Emergin Market Growth | | ASEA | Global X Asean 40 |
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