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. There will be no Spotlight newsletter next week due to the Labor Day holiday.
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In this week's issue
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 Hedge Finder for Stocks in the News
- Chart of the week: Hedge Finder for Stocks in the News
- Fund Focus: KBW Bank ETF (KBE)
- Revisions, asset flows & short interest
- 2011 DPS estimates, annual change, and yield 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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Hedge Finder for Stocks in the News
Many investors use ETFs to hedge single stocks. Our Hedge Finder tool can quickly find the ETFs with the greatest exposure to any stock, foreign or domestic.
Beyond an ETF's correlation to the stock in question, investors should also consider a fund's ALTAR Score. Funds with low ALTAR Scores (poor appreciation potential) may be better suited as hedges for long stock positions, while funds with high ALTAR Scores may be better hedges for short stock positions.
Download the full newsletter here. Figure 1: ETFs with the most exposure to Bank of America (BAC)
Source: AltaVista Research
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| Fund Focus |
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KBW Bank ETF (KBE) 
Despite trading at dirt-cheap valuations including the cheapest P/E in its history and a 30% discount to book value, KBE may still not be a bargain. The critical question is what kind of Return on Equity (ROE) banks can be expected to generate in the 'new normal' of ultra-low interest rates, Dodd-Frank and all the rest. In any case, the more diversified Financial Sector SPDR (XLF) appears to be a better investment at present. To download the full newsletter, click here. |
