SPDR DJ Wilshire Large Cap ETF (ELR)
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ELR Forum Topics
- All Comments on ELR
- General Discussion on ELR
- What Will Become of the 'Most Endangered' ETFs? [view article]
- Core Building Blocks: Large, Mid & Small Cap US ETFs [view article]
- ETF Fund Revenues: A View from the Bottom [view article]
- These Market Internals Make It Hard To Be a Bear [view article]
- Fundamentally Weighted ETFs: Mixed Performance in '07 [view article]
- Will 2008 Be the Year of the Quant ETF? [view article]
Recent ELR Articles
- ETF Update: Agriculture ETFs in Trouble; Comparing Large-Cap ETFs
- What Will Become of the 'Most Endangered' ETFs?
- ETF Fund Revenues: A View from the Bottom
- These Market Internals Make It Hard To Be a Bear
- Fundamentally Weighted ETFs: Mixed Performance in '07
- Will 2008 Be the Year of the Quant ETF?
- Smallcaps, Consumer Stocks Furthest Below 52-Week Highs
- Core Building Blocks: Large, Mid & Small Cap US ETFs
- Full List of Articles »
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What Will Become of the 'Most Endangered' ETFs? [view article]
This article would make more sense if all 136 were listed. ReplyCore Building Blocks: Large, Mid & Small Cap US ETFs [view article]
It seems to me that Vanguard's VV (Large Cap) effectively includes VO (Mid cap) -- reading their description, the VV tracks MSCI Prime 750, which the VO tracks MSCI Midcap 450, and the MSCI site says that the Prime 750 includes the Midcap 450! Does anyone have any idea why they "double-up" the midcap? I.E. My initial plan was to split 33% of my US allocation to each of VV/VO/VB, but on further examination I see that this would give me overexposure to the midcaps. Thoughts/comments? Thanks! ReplyTiedeman
ETF Fund Revenues: A View from the Bottom [view article]
Nice data! Thanks! ReplyThese Market Internals Make It Hard To Be a Bear [view article]
This is why I always use charts and always believe in them.You can take the best ETF chart and follow its signals as it goes up and down with the markets.
Charts show me how to make money!
Bear markets make me money and bull markets make me money. Reply
These Market Internals Make It Hard To Be a Bear [view article]
This is why I never follow charts and don't believe in them.You can take the best ETF chart and it goes up and down with
market.
Regardless of charts!
Bear markets always out pace bull markets. Reply
These Market Internals Make It Hard To Be a Bear [view article]
It is always good to sell something you don’t own, forget about futures that big players use all the time even smaller players have the luxury of a short with ETF’s like SDS and DXD, SRS all these are ultra short products and provide necessary juice of liquidity in a down turn a long portfolio can be shorted in no time without losing out any long position. The very availability of these instruments have kind of acted as a bottom under the market, in presence of wide variety of short instruments the internal strengths of the markets is a very important indicator rising internal moving averages indicate that a short term bottom is in place, .. $/Yen is stabilising - one needs to look at the carry trade, if carry trade is back in play we will have a move Above 12600 ReplyThese Market Internals Make It Hard To Be a Bear [view article]
It is always good to sell something you don’t own, forget about futures that big players use all the time even smaller players have the luxury of a short with ETF’s like SDS and DXD, SRS all these are ultra short products and provide necessary juice of liquidity in a down turn a long portfolio can be shorted in no time without losing out any long position. The very availability of these instruments have kind of acted as a bottom under the market, in presence of wide variety of short instruments the internal strengths of the markets is a very important indicator rising internal moving averages indicate that a short term bottom is in place, .. $/Yen is stabilising - one needs to look at the carry trade, if carry trade is back in play we will have a move Above 12600 ReplyTiedeman
These Market Internals Make It Hard To Be a Bear [view article]
A short term bottom was put in. This is obvious. The question is, where will the economy be in 6 months? This will equate in large part to where the DOW is in one year... ReplyHawthorne
These Market Internals Make It Hard To Be a Bear [view article]
"Hope-based" rallies in the context of bear markets can be as frustrating as they can be profitable... However, I believe that your thesis more or less begs the question... Price action improves as market internals improve as price action improves, &etc.Your study is interesting, but I would look for other technical indicators like RSI, OBV and MACD for confirmation, and in this case, it is lacking... Reply
Loscalzo
These Market Internals Make It Hard To Be a Bear [view article]
what about volume? it's going down and not up. The indicators are therefore stretched without volume ReplyThese Market Internals Make It Hard To Be a Bear [view article]
Actually, it's quite easy to be a Bear. ReplyThese Market Internals Make It Hard To Be a Bear [view article]
Actually, it's easy to be a bear.Reply
Editors
General Discussion on ELR
Is this a buy or a sell? ReplyFundamentally Weighted ETFs: Mixed Performance in '07 [view article]
I think it is time to see through the veil of what a cap-weighted index really is……a glorified momentum index. WAIT! That is comment is sacrilegious! Defend yourself!Okay, one only needs to look at the sector mix of an index to see the change in market weight caused by the momentum effect. As an example, In December of 2002 the E-Trade Russell 2000 Index Fund composition was approximately 70% small-cap value/ 30% small–cap growth. Three years later (December 2006) the index was approximately 20% small-cap value/ 80% small–cap growth. Imagine trying to beat the small-cap index as a small-cap value manager during those three years!
Let’s take it a step further; pretend you were a small-cap growth manager during this booming three year run. Your track record looks good as you capitalized on this momentum and you soundly beat the small-cap index. On the wings of good fortune you get hired by the institutions and investors. Then the enviable happens, the sector rotates back to small-cap value (and/or some other asset class) and your performance drops and you fall out of favor.
In this example its evident indexing small-cap stocks using a cap-weighted approach capitalizes on the change in momentum while fundamental indexing would have given a more accurate description of how the small-cap securities actually performed.
I don’t have enough data points to judge weather fundamental indexing is better or worse than cap-weighting indexing but I do believe the momentum effect may favor cap-weighting, albeit with more volatility. So the trade-off of risk-adjusted returns is open for debate. What is clear to me is that cap-weighting is nothing more than a momentum strategy masked in the guise of a passive strategy. I’m sure if this were a chat log I’d burn in flames! I applaud Rob Arnott’s work on fundamental indexing and appreciate anyone challenging the norms of convention wisdom.
Reply
Fundamentally Weighted ETFs: Mixed Performance in '07 [view article]
Yeah, goos stuff. I am a staunch Wisdomtree supporter and ETF owner. I experienced the brunt of the underperformance. For now, I am giving the beenfit of the doubt to the strategy. There needs to be a much larger sample than one year. The backtesting of the funds shows a much different story.That being said, last years underperfomance was very diappointing to me. I walked through my doubt and fear and actually accumulated more.
I am a holder of DHS, EZY, DPN, DND, DGS and the WSDT tree stock itself. My positions are long term, I am a buy and hold investor. Reply