IYM Forum Topics
- All Comments on IYM
- General Discussion on IYM
- ETF Update: Materials, Semiconductors, Homebuilders [view article]
- Outlook for Select Sector ETFs [view article]
- Primary US Sector ETFs [view article]
- ETF Update: Is It Time for Inverse Index Positions? [view article]
- In Search of Low (or Negative) Correlation Between Asset Returns [view article]
- ETF Update: Is There Any Place Left to Invest? [view article]
- Why the S&P SmallCap Index Consistently Beats the Russell 2000 [view article]
- ETFs: A Screened List [view article]
- Portfolio Investor: Clark Bullish on Energy, Materials [view article]
- Exchange-Traded Funds and Closed-End Funds by Asset Class, Type and Provider [view article]
- ETF Fund Revenues: A View from the Bottom [view article]
- Bullish on the Market, With Caution [view article]
loading ...Recent IYM Articles
- ETF Update: Materials, Semiconductors, Homebuilders
- ETF Update: Is It Time for Inverse Index Positions?
- ETF Update: Is There Any Place Left to Invest?
- Why the S&P SmallCap Index Consistently Beats the Russell 2000
- ETFs: A Screened List
- Portfolio Investor: Clark Bullish on Energy, Materials
- Bullish on the Market, With Caution
- John Hussman: Market Moves to the Risk Sectors
- ETF Fund Revenues: A View from the Bottom
- Materials and Energy Continue to Lead in Technical Strength
- Full List of Articles »
ETF Update: Materials, Semiconductors, Homebuilders [view article]
I don't know any "sector rotation" practitioners who can beat the all-sectored S&P 500 over time. Would be interested in hearing all about some successful sector switchers because even the big name guys like Sam haven't beaten the market over any meaningful stretch. ReplyConsidine
Outlook for Select Sector ETFs [view article]
Jonathan:As I say in the article--three years of trailing data is what I use. As far as getting rid of an under-performing sector, that will require study beyond QPP. The Financial sector is a great example. I have been very light on financials since well before the meltdown. I own some BAC, though, and it has gotten pounded. I am neither selling nor buying more. I invest for the long term and that is really what QPP is designed to help with. Over periods of less than a year, momentum tends to dominate--as I have discussed in some articles.
Personally, I do my homework up front and then I tend to get in for the long haul. I do not try to time my major investments in terms of selling out when they are down. When I am adding money, I will use data such as these to help provide ideas for sectors to look at.
The difference between under-valued and distressed is also apparent if you look at projected risk levels...
Geoff Reply
Sheinkop
Outlook for Select Sector ETFs [view article]
Geoff,Thank you for your uniquely academic approach. Can you be more specific in the length of the trailing time frames you use? As well, how often you look to make a change to a long term portfolio if a sector has just become a lead anchor? As you mention there is a difference between undervalued and distressed so when are you making your decision and acting upon it?
Thanks,
Jonathan Reply
Primary US Sector ETFs [view article]
What about iShares DJ US Tech (IYW)? ReplyETF Update: Is It Time for Inverse Index Positions? [view article]
I appreciate all the good information I get from you and Seeking Alpha but I've now decided at my age of 65 years to leave all this to my mutual fund company to figure out. I still read this blog with much interest. Keep up the good work. RoudMan ReplyReport
ETF Update: Is It Time for Inverse Index Positions? [view article]
We have been holding inverse positions like QID and PSQ for a couple of weeks now. Also holding short positions in SNCR, PPC, NCMI, PACW, TMX, CHDX, CTX, CQB, GM and CLMT. That's the easiest way to profit from a bear market. ReplyIn Search of Low (or Negative) Correlation Between Asset Returns [view article]
There is a promising new website called Asset Correlation (www.assetcorrelation.c...) which shows the correlation matrix for a host of different asset classes over the past 90 trading days. I have been tracking it for a few months and it is amazing how all the asset classes exhibited far higher correlation during the recent panic. As normalcy has gradually returned to the markets it is interesting to see how the historical scenario of lower correlation between asset classes has returned.A few months ago almost all the cells in the matrix were green and correlations were hovering around 80-90% for most of the major classes. As of today, there is far lower correlation between the classes (indicated by the larger number of yellow and red cells). It will be interesting to keep an eye on this website over the next few months.
Hopefully in the future they will add correlations for longer time periods because 90 days strikes me as too short a period.
Reply
ETF Update: Is There Any Place Left to Invest? [view article]
Saw the German ENVIRONMENT Minister today defending German development of new coal-fired power plants. At the same time, he was saying they hoped to close down all the remaining nuclear plants in Germany in the next 5 years.Go long KOL, and short NLR. Reply
Report
ETF Update: Is There Any Place Left to Invest? [view article]
KOL certainly looks like a buy as do coal stocks like PCX, ANR and MEE. ReplyWhy the S&P SmallCap Index Consistently Beats the Russell 2000 [view article]
Kevin -- if you do your own chart over a number of years, the data is indisputable. Of course if someone is trying to time the market, my conclusion is moot. But for those of us who want long term exposure to the small cap asset class with periodic rebalancing, I don't know why anyone would use a Russell index. ReplyReport
Why the S&P SmallCap Index Consistently Beats the Russell 2000 [view article]
This is very useful information for the buy & hold investor. Thanks for sharing. ReplyWhy the S&P SmallCap Index Consistently Beats the Russell 2000 [view article]
I don't know that his data is entirely correct. There are times when the 2000 outperforms the 600, and back and forth. It can depend on what time period you choose. When the Russell 1000 outperformed the S&P 500 for 3/5/7 year periods did we run an article or ad? No. It just depends on various factors.........As for the arbitrage game? The last couple/few years there has been NO game to play, those that did, got whacked.... Reply
Why the S&P SmallCap Index Consistently Beats the Russell 2000 [view article]
This is a great post, one of the best I've seen on Seeking Alpha by far. I like the S&P system because it is fair to everyone and can't serve as the easy to riches scheme for a hedge fund manager who wants his clients to think he is carrying out much more complex schemes than simple arbitrage. ReplyETFs: A Screened List [view article]
Bill (BILLB),I should have added that reasonable size is also determined by the investor's bit size. Someone who wants to put $10,000 into a position has different criteria than someone who wants to put $100,000 or $500,000 into a position.
I certainly would not be willing to be more than 10% of a single day's trading, and would prefer to be closer to unobservable in the volumes. Reply
ETFs: A Screened List [view article]
Personally, I like to see a rapidly moving tape for investments I make or make for others.For this screen I was more forgiving. I used the 1-minute charts and wanted to see all or most minutes with trading activity. I did it visually without a bright line test.
There are many newer ETFs with interesting objectives, but with so little trading that you may wait too long for a limit buy to execute and maybe longer for your limit sell to execute. Market orders on thinly traded ETFs are not a good idea.
It becomes a personal matter, but the best situations would allow you to exit whenever you please. You might also find unattractive Bid-Ask spreads in cases where trading is sporadic or limited. Reply