Introduced in October 2012, the iShares core lineup will double in size on June 12th with the addition of 10 new and existing iShares funds.
Four new ETFs will roll out on Thursday to join the core lineup: iShares Core Dividend Growth ETF (DGRO), iShares Core MSCI Europe ETF (IEUR), iShares Core MSCI Pacific ETF (IPAC) and iShares Core GNMA Bond ETF (IUSB).
Six of the funds are existing and will undergo name and some will also see ticker changes: iShares Russell 3000 Growth ETF (IWZ) will become iShares Core U.S. Growth ETF under the ticker IUSG; iShares Russell 3000 Value ETF (IWW) will become iShares Core U.S. Value ETF under the ticker IUSV; iShares High Dividend ETF (HDV) will become iShares Core High Dividend ETF and continue to trade under HDV; iShares Credit Bond ETF (CFT) will become iShares Core U.S. Credit Bond ETF under the ticker CRED; iShares U.S. Treasury Bond ETF (GOVT) will become iShares Core U.S. Treasury Bond ETF and continue to trade under GOVT; iShares Barclays GNMA Bond ETF (GNMA) will become iShares Core GNMA Bond ETF and continue to trade under GNMA.
Barely in the green for the year at the moment, the S&P 500 could slide 10% between now and October, says the technician, but there's a stealth bear market already happening in the Nasdaq, S&P Mid-Cap, and Russell 2000, and when support breaks (less than another 2%), those indices could see 20-25% declines.
The situation reminds him of 1994 when the Dow and S&P were in a trading range all year, but things were falling apart underneath the surface.
Following the washout into October, though, Acampora sees a "very, very strong Q4."
Goldman is dealing with some upset clients after its overvaluation call on the S&P 500 last week.
"Most client responses attempted to justify personal expectations for continued multiple expansion in 2014 ... The low interest rate backdrop was the most common client justification for continued P/E expansion." Goldman, however, looks at P/E's vs. real rates over time and finds today's pricey no matter the rate environment.
"Many on the buy-side expect price gains of 10% to 20% this year ... the fact remains that market has rarely traded at a higher P/E outside of the tech bubble, or coming out of recessions when EPS were extremely low."
"I don't want to miss out." a Los Angeles real estate appraiser said in a note to his financial adviser last week after seeing one pundit up his DJIA forecast to 20K.
"Frankly, from 2009 until recently, I wanted to stay very conservative," says a technology sales manager. "I want to get more aggressive."
A Houston attorney and stock market skeptic was turned by her Schwab statement showing YTD gains of nearly 20%. She's planning on set aside more of her paycheck for stocks. "Sometimes you feel like it's too late. But it's probably never too late."
Investors poured another $12.4B into global equity funds in the week ended Wednesday, with BAML's Michael Hartnett saying another $8B-$9B of inflows over the next two weeks would trigger a contrarian sell signal in his firm's flow-based model.
This would coincide with BAML's Bull & Bear Index, which is getting a little to bullish for comfort. Fund manager cash levels were at 4.4% in October. A dip below 4% in November, says Hartnett, would trigger a bright red Sell alert.
Still coming to grips with the slightest hawkish twist to the FOMC statement yesterday afternoon, S&P 500 (SPY) futures are down 0.25% and the Nasdaq 100 (QQQ) is off 0.45%. Facebook soared after a big earnings beat last night, then actually turned red during the earnings call, but is now higher by 3% in the premarket.
Europe opened to the downside, but is now mostly higher, and Asia was solidly lower overnight.
Treasury yields have regained some of their composure, the 10-year yield falling 3 basis points to 2.51%, after shooting higher yesterday afternoon post-statement. Gold's off 1% to $1,.335 per ounce.
"The small cap valuation story has also deteriorated a bit," writes Credit Suisse's Calvasina and Mahaffy, noting the relative ratio between small caps and mid caps has gotten back in line with the long-term average.
A bigger issue though, is absolute valuations - small and mid cap stocks have become overvalued relative to large caps which themselves are overvalued.
Bottom line: The entire equity market has a valuation problem and the valuation of small and mid caps is little better or worse.
Don't settle on diversification, says BlackRock noting a traditionally diversified portfolio (60% SPY, 40% AGG) would have done decently over the last 15 years, but a truly diversified portfolio - 12% SPY, 12% mid-caps (IJH), 12% small caps (IJR), 12% MSCI EAFE (EFA), 12% emerging markets (EEM), and the rest fixed income (AGG, TLT, HYG) - would have done far better. Jun. 26, 2013, 11:58 AM|2 Comments
Mar. 18, 2013, 4:57 AM
Ron Rowland offers additional highlights on the recently expanded lineup of commission-free ETFs over at Fidelity including the following caveat: Funds not held for 30 days by retail investors or 60 days by RIAs using Fidelity as a custodian will be subject to a $7.95 per-trade commission. Some RIAs have complained that the longer holding period directed at them is unfair. Rowland spells out the full list of affected ETFs here. Mar. 18, 2013, 4:57 AM
Mar. 14, 2013, 8:44 AM
Guggenheim increases expense ratios on 4 ETFs on account of "higher acquired fund fees associated with the S&P benchmarks these ETFs track". The affected funds (with new expense ratio in parentheses) are: RFV (0.40%), RZV (0.38), EWMD and EWSM (0.43%). Two Russell and MSCI ETFs seeing a decline in fees are: EWRS (0.43%) and EWEM (0.70%). Mar. 14, 2013, 8:44 AM|1 Comment
Feb. 15, 2013, 3:41 AM
PowerShares expands its Low Volatility ETF suite with 2 new ETFs: S&P MidCap Low Volatility (XMLV) and S&P SmallCap Low Volatility (XSLV). The ETFs come with a 0.25% expense ratios, in line with counterpart IDLV (0.25%) and SPLV (0.25%), and slightly less than EELV (0.29%). Over the recent 1-year period, SPLV returned 16.36%, 68 basis points better than SPY, with an SD of just 8.6% vs. 12.8% for SPY. (pdf) Feb. 15, 2013, 3:41 AM|1 Comment
Oct. 15, 2012, 4:04 PM
After much conjecture, BlackRock (BLK) will indeed slash fees on 6 of its ETPs, including the iShares Core S&P 500 ETF (IVV), as it tries to regain market share from Vanguard, among others. The company is also reorganizing its ETF sales team, and, for the first time, rolling out TV ads. Oct. 15, 2012, 4:04 PM
Aug. 16, 2011, 2:22 PM
S&P announces Valassis Communications (VCI +3.1%) will replace Immucor (BLUD +0.2%) in its S&P 400 MidCap 400 Index (IJH -1.2%) after Thursday's trading.
Aug. 16, 2011, 2:22 PM
Jul. 19, 2011, 11:57 AM
Shares of Green Mountain Coffee (GMCR +4.5%) soar, tracking close to 52-week highs. John Markman of Markman Capital Insight Research likes the stock for technical reasons, viewing the iShares S&P MidCap 400 ETF (IJH +1.3%) (with component GMCR) as set for an upside breakout. Jul. 19, 2011, 11:57 AM|1 Comment