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. Feel free to share it with anyone who may be interested.
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In this week's issue
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 P/Es after the meltdown
- Chart of the week: Average, Low & Current P/E ratios of stocks in the S&P500, MSCI EAFE & Emerging Markets indices
- Fund Focus: iShares MSCI EAFE Index (EFA)
- Revisions, asset flows & short interest
- 2011 EPS estimates, annual change, and P/E ratios 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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P/E ratios after the meltdown
The chart below P/E ratios on a 12-months forward basis for stocks in the S&P500 SPDR (SPY) and the iShares MSCI EAFE (EFA) and Emerging Markets (EEM) funds. They are broken down into the average P/E since the start of 2006, the lowest P/E over that time frame (until now), and the current.
The wild selloff of the past few weeks has taken the P/E ratios of U.S. and other developed markets to levels not seen since the depths of the global financial crisis in early 2009. In contrast, stocks in emerging markets, though well below their average P/E ratios and cheaper than developed markets, are still comfortably above the low P/Es from a few years ago.
Download the full newsletter here.
Chart: P/E ratios - average, low and current (12-months forward basis)
Source: AltaVista Research
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| Fund Focus |
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iShares MSCI EAFE Index (EFA) 
Stocks in the MSCI EAFE index trade at a valuation discount to their counterparts in the S&P 500 (SPY), although they have historically been less profitable as well. Net/net the ALTAR Score indicates EFA remains more attractive than SPY but we think investors can do even better focusing more exclusively on the "mega caps" in the iShares S&P Global 100 (IOO), which also provides reduced exposure to European banks. To download the full newsletter, click here. |
| New coverage | |
We recently added coverage of the following ETFs, bringing the total to 677 funds. Check ETF Research Center for details on any of them.
| LGEM | EGShares Basic Materials GEMS | | GGEM | EGShares Consumer Goods GEMS | | VGEM | EGShares Consumer Services | | HGEM | EGShares Health Care GEMS | | IGEM | EGShares Industrials GEMS | | QGEM | EGShares Technology GEMS | | TGEM | EGShares Telecom GEMS | | UGEM | EGShares Utilities GEMS |
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