Coming off a year in which in U.S. automobile sales climbed 13 percent, sales are expected to rise again in 2013 as the U.S. and global economies recover. More fuel-efficient vehicles and fresher styles are among the catalysts that some analysts see as driving robust auto sales this year.

"Our fundamental outlook for automobile manufacturers is positive," said S&P Capital IQ in a research note. "We see U.S. automotive demand trending higher on a year-over-year basis. Sales should benefit from widespread availability of and lower cost of credit for consumers. In addition, sales should benefit from an aging vehicle fleet that needs to be replaced and by consumers' desires for newer, more fuel efficient vehicles, and/or fresher styles and the latest in-vehicle technology."

That optimism has been reflected in the recent returns of major auto stocks. In the past 90 days, shares of Ford (F), the second-largest U.S. automaker, have surged almost 24 percent. Shares of rival General Motors (GM) are up more than 13 percent over the same time period.

Despite history of the automobile business in the U.S. and the industry's importance to the economy here, there is just one ETF devoted to the sector. That fund is the First Trust NASDAQ Global Auto Index Fund (CARZ), which S&P has a Marketweight rating on.

CARZ, which debuted in May 2011, is reflective of the auto industry in that the ETF is global in its composition. Japan accounts for nearly 37 percent of the ETF's country weight with the U.S. and Germany combing for more than 34 percent. Germany and South Korea round out the fund's top-five country exposures and it is the global nature of CARZ that is worth keeping an eye on this year.

"While we expect to see uneven geographic progress, including declines in Europe and weakness in South America, we look for global demand to rise in 2013, led by China and the U.S. General Motors and Ford should see material losses again in 2013 from suffering European operations," said S&P Capital IQ. "We expect global sales volume growth to be in the low to mid-single digits in 2013. We think higher volume in the U.S. and abroad versus 2012 will outweigh European challenges, helping industry profits and cash flows."

S&P Capital IQ has four-star ratings on Ford and GM, the largest and tenth-largest holdings in CARZ, respectively. Other top-10 holdings in CARZ include Honda (HMC), Toyota (TM), BMW and Harley-Davidson (HOG).

Regarding CARZ, S&P Capital IQ said: "When it comes to Performance Analytics, it is ranked overweight relative to other equity ETFs ranked by S&P Equity Research. However, based on Cost Factors it is categorized as underweight. Based on Risk Considerations it is ranked marketweight."

CARZ, which has $10.5 million in assets under management, has an expense ratio of 0.7 percent. The ETF has gained about 21.5 percent in the past three months.

For more on ETFs, click here.

Disclaimer: Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

With over 1,400 ETFs and ETNs on the market today, it would appear that logical that all the good ETF ideas have been exhausted. That means new entrants to the game will be forced to copy previously existing concepts, and even if that is done with the promise of lower expense ratios, the first-to-market advantage is often too deep to overcome for many rookie ETFs.

Saying that most, if not all of the good ETF ideas have been used up in the industry's barely two decades of life is one way critics articulate that the pace of new ETF debuts has slowed in 2012.

"Just" 160 new ETFs have debuted to this point in 2012, down from 288 at the same juncture last year, the Wall Street Journal reported citing Lipper data. Clearly that must mean all the good ideas for new ETFs have been used up, right? Wrong. Here are some potentially attractive niches with existing voids ETF sponsors can fill in the years ahead. Just remember: These our ideas, not theirs.

Restaurant ETF Given the size and brand recognition of some publicly traded U.S. restaurant operators, the fact this ETF does not already exist is mind-boggling. There is no excuse because there is even a restaurant index just waiting to be used.

Think this concept would not work? Think again. Figure it this way. Panera Bread (PNRA) has nearly quadrupled in the past five years. Chipotle (CMG) has more than doubled while Buffalo Wild Wings (BWLD) has jumped over 170 percent. If the restaurant ETF had come along even three years ago, investors likely would have been treated to some stellar gains.

More Country ETFs There is no denying investors love international ETFs, particularly the emerging markets variety. And investors have started to embrace frontier markets as well.

Given the popularity of ETFs tracking Brazil, China and plenty of small emerging markets, one might think the market for global funds is tapped out. Not really. That point can be illustrated in the form of a trivia question. Did you know that 10 of the world's 50 largest economies do not have a U.S.-listed exclusively devoted to them? Sure, that group includes Venezuela and Iran, which probably will not be getting ETFs anytime soon, but it also includes the United Arab Emirates and the Czech Republic, both of which stand as valid options for their own ETFs down the road.

India Bond ETFs Considering that India is the "I" in BRIC and the tenth-largest economy in the world, the country does not issue bonds at pace comparable to that of some other major economies. That coupled with previously tight restrictions on foreign ownership of Indian corporate and sovereign debt has made tapping the Indian bond market difficult, particularly through ETFs.

The WisdomTree Asia Local Debt Fund (ALD) offers a 5.6 allocation to India and that is the largest weight to the country among U.S.-listed bond ETFs. Interestingly, India just increased foreign ownership limits on its debt. The country raised the limit on corporate bonds issued by non-infrastructure companies by $5 billion to $25 billion and the total foreign investment allowed in Indian bonds to $75 billion from $65 billion, according to the Wall Street Journal.

It might take a while, but it is not unreasonable to expect the Indian debt market to become attractive to ETF sponsors in the coming years.

For more on ETFs, click here.

Disclaimer: Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

With inflows to exchange-traded products on a record pace this year, industry observers and market participants are turning to their heads to what 2013 has in store for ETFs. Following $15.6 billion in inflows last month, which bring the year-to-date total to $154 billion, the year ahead for ETFs looks bright in the eyes of some.

"While many forecasts for 2013 are tied to the state of the U.S. economy and the likelihood of Congress having resolved the fiscal cliff, S&P Capital IQ believes the ETF industry will continue to gather assets," said S&P Capital IQ in a research note.

The research firm points to expense ratio reductions as one driver of inflows to ETFs, calling 2012 "the year of the expense ratio cut." In September, Charles Schwab (SCHW) cut fees on all of its lineup. BlackRock's (BLK) iShares, the world's largest ETF sponsor, would fire back with its own fee reductions. In late November, PowerShares, the fourth-largest U.S. ETF sponsor, cut fees on six of its ETFs.

Of course, it cannot be forgotten that Vanguard, often viewed as the low-cost leader in the ETF space, announced index changes for 22 of its ETFs in October. Those changes are aimed at lower investor costs and position Vanguard to potentially lower fees on those products next year.

S&P Capital IQ did note that emerging markets ETFs appear poised to thrive again in 2013.

"One prediction we will make is that diversified international and emerging market products will continue to garner attention as investors seek out low-cost, diversified ways to take on added risk in hopes of achieving higher returns," the firm said in the note.

S&P Capital IQ highlighted the PowerShares S&P Emerging Markets Low Volatility Portfolio (EELV) and the iShares Core MSCI Emerging Markets ETF (IEMG) as newly minted funds that could provide competition to the Vanguard MSCI Emerging Markets ETF (VWO). IEMG debuted in October as lower cost alternative to VWO. The iShares offering has an expense ratio of 0.18 percent compared to 0.2 percent for VWO. IEMG now has $130.1 million in assets under management.

EELV, which debuted in January, has accumulated $86.5 million in AUM. That fund along with the iShares MSCI Emerging Markets Minimum Volatility Index Fund (EEMV) have benefited from investors' appetite for low volatility ETFs. While both EELV and EEMV have slightly higher expense ratios than VWO, both have delivered superior returns in 2012.

Bond ETFs will continue to be asset-gathering juggernauts, in S&P's opinion. Inflows to the group totaled $3.8 billion last month and stand at $48 billion for the year. The research firm highlighted the inflows to the PIMCO Total Return ETF (BOND) and the SPDR Barclays Capital Short Term High Yield Bond ETF (SJNK). Those two ETFs debuted earlier this year and have gathered assets at break-neck speed. BOND could end the year with $4 billion in AUM while SJNK has attracted $551.6 million since its mid-March launch.

More established bond funds also have the potential to thrive again next year, S&P noted.

"With the yield on the 10-year Treasury note likely to remain below 2% in 2013, we think investors will continue to see the benefits of these ETFs and more established and diversified ones such as iShares Core Total Return US Bond Market ETF (AGG) and the Vanguard Total Bond Market ETF .

For more on ETFs, click here.

Disclaimer: Neither Benzinga nor its staff recommend that you buy, sell, or hold any security. We do not offer investment advice, personalized or otherwise. Benzinga recommends that you conduct your own due diligence and consult a certified financial professional for personalized advice about your financial situation.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

ATP Oil & Gas unicorn_rails worker[7] -c /data/seekingalpha/shared/config/unicorn.rb -E production -D - This small-cap stock has traded in a range between $5.53 and $21.40 in the last 52-weeks and also has some attractive properties for daytrading - namely, the stock's high short interest, and beta (3.1). ATPG is also quite liquid for such a small name, with a 3-month daily average volume of 2.27 million shares.
 

Hovanian Enterprises unicorn_rails worker[7] -c /data/seekingalpha/shared/config/unicorn.rb -E production -D - This homebuilder has seen its market cap dwindle to just $146.18 million. Its small-size, sensitive industry, and high short interest has made it a very volatile name with a beta of 3.5. The stock is also liquid enough for smaller daytraders to move in and out. HOV has a 3-month daily average volume of 1.28 million.
 

James River Coal unicorn_rails worker[7] -c /data/seekingalpha/shared/config/unicorn.rb -E production -D - This is a very volatile small-cap energy name (which was up approximately 10% on Tuesday). The stock has a beta above 2, and around 30% of its float has been sold short, making it susceptible to large short-term price moves. Like the others on this list, JRCC has sufficient volume for traders with a 3-month daily average of 2.1 million shares.
 

Coffee Holding Co. unicorn_rails worker[7] -c /data/seekingalpha/shared/config/unicorn.rb -E production -D - This was one of the best daytrading stocks of 2011, and millions upon millions of dollars were made and lost by short-term traders in this name over the last year. The stock has a 52-week range of $3.72 to $30.98 and currently trades at $8.16 (volatile enough for you?). Unfortunately, liquidity has dried up as the stock price has collapsed, but the name still offers opportunity every now and again. JVA has a 3-month daily average volume of around 756,000, a beta of 2.72 and short interest of 27%.
 

Liz Claiborne (LIZ) - Small-cap retailers are often good trading hunting grounds when the broader market is moving. LIZ, in particular, has some attractive properties. The stock has a very high beta of 2.25, driven in part, by the 29% of its float that has been sold short (and must eventually be bought back). It is also a liquid name with a 3-month daily average volume of 3.75 million. Over the last 52-weeks, LIZ has ranged between $4.02 and $9.18, so this name has yielded plenty of opportunity for swing traders as well.
 

Saks unicorn_rails worker[7] -c /data/seekingalpha/shared/config/unicorn.rb -E production -D - This is another small-cap retailer that is very active. Saks currently has short interest of around 28%, and a beta of 2.5. The name is liquid with a 3-month daily average volume of 2.8 million and has traded in a range between $7.67 and $12.97 in the last 52-weeks.
 

VirnetX Holding (AMEX: unicorn_rails worker[7] -c /data/seekingalpha/shared/config/unicorn.rb -E production -D - This is a very interesting small-cap name which has recently become extremely volatile. In the last 5 years, VHC is up nearly 2,800%. The stock has a beta of 2.23 and around 33% of its float has been sold short. In just the last 3 months, VHC is up over 100%, so more movement in the next couple of months is likely. The stock has a 3-month average volume of 1.072 million.

Disclosure: I have no positions in any stocks mentioned and no plans to initiate any positions within the next 72 hours. 

By Jonathan Chen

What a difference a few days makes.

Family Dollar (FDO) reported better than expected earnings this morning, raised its guidance, and announced it would be buying back an additional $250 million worth of stock.

The Charlotte-based company reported earnings of 66 cents per share on $2.13 billion in revenues. Wall Street had been expecting earnings of 63 cents per share on $2.12 billion in revenues. In addition to the better than expected earnings, the company said it expects to earn 65 to 73 cents per share. Wall Street expects earnings of 66 cents per share. It also said it expects to earn $3.50-$3.75 per share for fiscal year 2012, as opposed to estimates of $3.57 per share.

“A year ago we launched an ambitious, multi-year plan to accelerate revenue growth, expand operating margins and optimize our capital structure, and I am pleased to announce that we have executed well against our plans in a very difficult operating environment,” said Howard Levine, Chairman and CEO.

"In fiscal 2012, we intend to accelerate investments to drive sales and profitability. We plan to open 450-500 new stores, a more than 50% increase over fiscal 2011 openings. We also intend to renovate, relocate or expand over 1,000 stores,” continued Levine. “I remain confident that these investments, combined with our strategy of providing customers with great value and convenience, will continue to deliver strong shareholder returns in fiscal 2012 and beyond.”

It looks as if the recent analyst reports from Deutsche Bank and Piper Jaffray were incorrect going into the quarter, as both investment banks were not buyers going into the quarter. Deutsche Bank actually said that it was a negative to have Bill Ackman and Nelson Peltz in the name. Just a little while ago, Deutsche Bank raised the price target on Family Dollar from $53 to $55, as the bank obviously underestimated the company.

Piper Jaffray was downright bearish, going into the quarter. In its note, it wrote, "We are maintaining our UW rating and $49 PT heading into FDO's Q4 earnings release on Wednesday. We expect in line Q4 EPS, and remain more concerned about the outlook and eventual results during the coming F12. We expect ongoing gross margin pressure as a result of supplier cost increases and FDO's push toward low- margin consumables within its mix. Also, we note expectations for out-year earnings growth heading into F12 are much higher compared to the two previous years, and this is coming off a year when FDO operationally missed its full year guidance." This obviously proved to be wrong.

Jefferies was proven right going into the quarter, and recently raised its earnings estimates for 2012. In its note, it wrote, "We are raising our FY11 and FY12 EPS estimates of $3.08 and $3.60 from $3.08 and $3.55, respectively. We are also introducing an FY13 EPS estimate of $4.15. We are anticipating comp store sales guidance for FY12 in the 4-6% range and 15-20% EPS growth."

Back in May at the Ira Sohn conference, Pershing Square's Ackman said that he thought the company was worth eventually $70 per share. He said the management needed to work on improving operating metrics, which it clearly has. The company added to its already existing $750 million share buyback program, and is now growing store count in a meaningful way.

Levin said the company is going to open 450-500 new stores, a more than 50% increase over 2011, and renovate over 1,000 stores. At the conference, Ackman said that the company spends around $325,000 on a new store, and the company earns anywhere from 37 to 50% on this investment. With renovations, the company spends $115,000, and earns between 30 and 40% on renovations.

With the earnings beat and raised guidance today, Family Dollar apparently is heeding Ackman's call for management to close the gap with its largest competitor, Dollar General (DG). At the conference, Ackman mentioned increasing private label goods, globally sourcing things, improved pricing, and cutting shrink. It loos as if the company is well on its way to getting its operating metrics where it can really compete with Dollar General. The increased guidance is especially important, as this is a strong sign for the growth of the company, as well as the space in 2012, and beyond.

With names like Peltz, Ackman and other major investors getting into the space, it looks even the investment banks who underestimated the name are getting "all in the family" this morning.

Perhaps even Archie and Edith will get on the piano to sing about these results.

ACTION ITEMS:

Bullish:
Traders who believe that Family Dollar will continue to outperform might want to consider the following trades:

• Shares are currently trading at 15 times 2012 earnings and sport a 1.4% dividend yield. Shares are still cheap when compared to its competitors.

• Also consider competitors like Dollar General and Dollar Tree (DLTR) which are doing well currently.

Bearish:
Traders who believe that the dollar stores will eventually lose market share to Wal-Mart (WMT) may consider alternate positions:

• Wal-Mart is well aware of its position being threatened by the dollar stores. If it decides to really attack the dollar store space with Wal-Mart Express, it could significantly hurt these companies.
  

By Logan Mohtashami

The beauty of a free market system is that eventually all players are held accountable.  Argue with the facts one might,  but the market is a cruel task master and will prove you wrong.   Unless facts change and you are right.     Now, I would have thought Jim Cramer of all people would know this.    He issued his call in 2009 that the bottom of the housing market was in.  He claimed in early 2011 that he was correct about his call,  and claimed he deserved apologies from people who criticized him for his prediction.    I argued otherwise.   In a published challenge at the beginning of this year,  I offered to buy him a Philly Cheese Steak Sandwich if I was wrong.  I also promised to publicly admit my misguidedness, in an article,  and give credit to Mr. Cramer for being right.   So where do the market facts stand for each of us today?   Consider that the other day I heard him complaining because he cannot qualify for a refinance.  Is this an admission that the housing recovery he claimed was in progress last year, has not materialized?  Sounds like it to me!   Mr. Cramer can now see what my mantra has been for a while. We don't have enough qualified home buyers to take on the massive inventory this country has.  Nor do we have enough people like Mr. Jim Cramer to take advantage of the low interest rates to refinance.   Mr Cramer saw what happened to Jerry Yang of Yahoo when he made a bad call by saying no to Microsoft's  47 Billion dollar offer.   More recently, The CEO of Netflix , Reed Hastings, issued a much more rapid Mea Culpa when his strategy backfired.  

Can Mr. Cramer admit he was wrong too?  Will he eat his words while I eat my Philly Cheese Steak Sandwich?   But, that was a gentleman's bet I made.  And I realize Mr Cramer had a bad week.    He had the frustration of being denied a loan like so many other Americans these days.  The Philadelphia Eagles had a crushing defeat by the New York Giants.    There is no glory in kicking a man when he's down.   I will go ahead and buy my own Philly Cheese Steak Sandwich.  And wish Mr Cramer and us all a better year in 2012!