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ETF Spotlight Newsletter
A sampling of research & data from AltaVista Research
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In This Issue
Chart of the week
Fund focus
New coverage
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Coverage at a glance
No. of ETFs
653

Total Mkt Cap ($bns)
$790.1

Avg. daily value traded ($bns)
$51.5
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May 23, 2011
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. 

In this week's issue

globeSector Rotation Underway  
  • Chart of the week: Change in shares outstanding by sector since the start of Q2  
  • Fund Focus: iShares DJ US Health Care Providers (IHF)
  • Revisions, asset flows & short interest
  • 2011 Sales per share estimates, annual change, and P/Sales ratios for major ETFs
  • Market monitor - movers & categories
To download the full newsletter click here.

Chart of the week
Sector Rotation Underway

A rotation into defensive sectors appears to be underway as the Fed nears the end of "QE II" just as recent economic data suggests a weak patch. Cyclical sectors have come off their highs in recent weeks while defensive sectors are hitting new ones. Fund flows data between the Sector SPDRs appears to confirm the trend.

ETF shares outstanding rise and fall for a number of reasons, but rarely do they present such a clear pattern. Since the start of Q2, defensive sectors such Health Care (XLV) and Consumer Staples (XLP) have seen increases of 34% and 31%, respectively, in the number of shares outstanding. Meanwhile cyclical sectors like Energy (XLE) and Financials (XLF) have seen their shares outstanding decline substantially. 


Download the full newsletter here.    

Chart: Change in shares outstanding by sector since April 1, 2011   
Shrs Out by Sector
Source: AltaVista Research  
Fund Focus
iShares DJ US Health Care Providers (IHF)HC provider
 

Estimates have risen notably as firms in IHF reported record Q1 profits, saying lower utilization rates lead to a drop in the firms' medical loss ratios. And despite soaring stock prices valuations still appear quite reasonable. However this subset has outperformed the broader Health Care sector and as a result we think even better values can be found among the mega-caps of the Health Care SPDR (XLV). 


To download the full newsletter, click here.

New coverage
 
We recently  added coverage of 40 new ETFs since our last newsletter, bringing the total to 653 funds. Check ETF Research Center for details on any of them.

TickerFund Name
SCHHSchwab US REIT
SCHMSchwab US Mid Cap
GGGGGlobal X Pure Gold Miners
TSXVGlobal X S&P/TSX Venture 30
XOILGlobal X Oil Equities ETF
ARGTGlobal X FTSE Argentina 20
WSTEGlobal X Waste Management
FLGFocus Morningstar Large Cap
FMMFocus Morningstar Mid Cap
FOSFocus Morningstar Small Cap
FBMFocus Morningstar Basic Materials
FCQFocus Morningstar Communication Services
FCLFocus Morningstar Consumer Cyclical
FCDFocus Morningstar Consumer Defensive
FEGFocus Morningstar Energy
FFLFocus Morningstar Financial Services
FHCFocus Morningstar Health Care
FILFocus Morningstar Industrials
FRLFocus Morningstar Real Estate
FTQFocus Morningstar Technology
FUIFocus Morningstar Utilities
HDViShares High Dividend
FNYFirst Trust Mid Cap Growth
FNKFirst Trust Mid Cap Value
FYTFirst Trust Small Cap Value
FYCFirst Trust Small Cap Growth
COLXMarket Vectors Colombia
EDIVSPDR S&P Emerging Markets Dividend
RSXJMarket Vectors Russia Small
GERJMarket Vectors Germany Small
MCHIiShares MSCI China
FDTFirst Trust Developed Markets ex-US
FPAFirst Trust Asia Pac Ex-Japan
FEPFirst Trust Europe
FLNFirst Trust Latin America
FKOFirst Trust South Korea
FJPFirst Trust Japan
FCAFirst Trust China
FBZFirst Trust Brazil
CROPIQ Global Agribusiness Small Cap
As always your questions & feedback are most welcome.
 
Sincerely,
 
Michael Krause
AltaVista Research