ERC banner
ETF Spotlight Newsletter
A sampling of research & data from AltaVista Research
In This Issue
In This Issue
Chart of the week
Fund focus
New coverage
Special Offer
One month
Free Trial

Sign up here
Quick Links
Coverage at a glance
No. of ETFs
653

Total Mkt Cap ($bns)

$780.5

Avg. daily value traded ($bns)

$55.7
Join Our List
Join Our Mailing List
June 6, 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

globeGrowth for a Slowing Economy  
  • Chart of the week: Relative P/BV multiple of Growth stocks vs. S&P500 
  • Fund Focus: iShares S&P500 Growth (IVW)
  • Revisions, asset flows & short interest
  • 2011 Cash flow per share estimates, cash flow vs. EPS, and P/CF multiples for major ETFs
  • Market monitor - movers & categories
To download the full newsletter click here.

Chart of the week
Growth in a Slowing Economy

Although our ALTAR Score rating indicates stocks in the the iShares S&P500 Value fund (IVE) appear to be a better investment than their counterparts in the Growth fund (IVW) over the long term, we see some near-term appeal to Growth in the face of recent weak economic data.

First, the rotation into defensive sectors we described in the last Spotlight may help, since IVW offers greater exposure to Health Care (XLV) and Consumer Staples (XLP), and far less to Financials (XLF) and Energy (XLE). And second, while stocks in IVW of course trade at a premium price-to-book value multiple versus the S&P500 (SPY), the relative multiple is now as cheap as it has been since at least the start of 2006 (chart). Meanwhile the relative P/BV multiple for stocks in IVE (not shown here) has somewhat of a mirror image. 


Download the full newsletter here.    

Chart: Relative P/BV multiple, iShares S&P500 Growth (IVW) / S&P500 SPDR (SPY)  
 
PBV Rel, IVW vs SPY
Source: AltaVista Research  

Fund Focus
iShares S&P500 Growth (IVW)growth stocks
 

Although their counterparts in the Value fund (IVE) enjoy a higher ALTAR Score--indicating better appreciation potential in the long run--the stocks in this Growth index may be better suited to weather another economic slowdown given the sector tilt towards Tech, Health Care and Staples, and away from Financials and Energy. As a result, margins and ROE are both higher and more persistent, and stocks deserve and receive a premium multiple. On an relative basis, however, premiums are significantly lower than they have been in recent years. 


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