EconoMarcus

The Next Big Thing: Emerging Asia

Alan, re availability of the DB fund in the US: Yes, it is not listed in the US. But it depends on one's broker whether one has access to it or not. I have read that e.g. through Fidelity it can be bought easily on the London Stock Exchange. On the contrary if one's broker is e.g. TD Ameritrade she/he will not be able to buy it because they don't grant direct access to European or Asian markets. But as I know that there are also quite a lot of non-US readers/writers (like myself) here on seekingalpha I hope my comment is still useful to some. In any case: I think you'll be quite happy with VNM as well.

At least I hope VNM can keep it up. Usually I just like to pick a product that has a certain track record. VNM of course has non yet; the DB fund has about two years, not much either but at least something. In this case the one ETF with the (although short) track record is also the one with the lower TER, or in other words: lower fixed costs that will weigh less heavy on any future *real* performance. So understandably my preference was and is obvious. But then again: Van Eck has shown in the past that they can put together pretty good ETFs as well and I do not doubt that VNM will do well also.

The Need for a New Security in Rare Metals New Production

Jack, I find it interesting that you estimate that Lynas would not be able to produce and *make a profit* (in contrast to GW and Avalon). May I ask: What makes Lynas potential production more expensive? Geology? Infrastructure? Something else?
Also: How would you classify Molycorp and its production costs or potential profitability once they resume production?

The Next Big Thing: Emerging Asia

"After tumbling around 70 percent in value early last year, the market has staged a bit of a recovery so far this year, and stocks look attractive there now."

A bit of a recovery? Attractive now? Are you kidding? While I strongly believe in Vietnam's mid- and long-term potential I wouldn't be surprised to see a consolidation/correction phase in the nearer term. The VN-Index is up almost 150% since its low in February!

BTW: A better Vietnam ETF than the VNM is in my view the db x-trackers FTSE Vietnam ETF of Deutsche Bank, launched in January 2008 already. It's a Vietnam pure-play (unlike VNM, which invests in companies that "predominantly are domiciled and primarily listed in Vietnam and which generate at least 50% of their revenues from Vietnam" and "also includes non-Vietnamese
companies that generate, or are expected to generate, at least 50% of their revenues from Vietnam") and with a TER of 0.85% it is cheaper than Van Eck's ETF with capped expenses of 0.99% until 05/01/2010 and even higher after that. Also its sector weighting is quite different. So far it is listed in the UK, Germany, France, Italy, Switzerland, Singapore (Ticker XFVT or DXS7) afaik. It is up 158% since its low in February.

Anyway, here are the fact-sheets; compare the two ETFs:
www.vaneck.com/sld/van...
www.dbxtrackers.de/pdf...

New ETFs Present New Opportunities

"Another interesting new entry is (VNM) the Market Vectors Viet Nam ETF, which offers exposure to a new emerging market that has also previously been unavailable to investors." Wrong! I wonder why everybody thinks the VNM is the first Vietnam ETF. It is not. There is still the (in my eyes more attractive) db x-trackers FTSE Vietnam ETF of Deutsche Bank, launched in January 2008. It invests in Vietnam *only* (unlike VNM, which invests in companies that "predominantly are domiciled and primarily listed in Vietnam and which generate at least 50% of their revenues from Vietnam") and with a TER of 0.85% it is cheaper than Van Eck's ETF with capped expenses of 0.99% until 05/01/2010 and even higher after that. Also its sector weighting is quite different. As a drawback in the eyes of some people: It isn't listed in the USA, but you can trade it in the UK, Germany, Italy, Switzerland (Ticker XFVT or DXS7) and I think some other exchanges. Anyway, here are the fact-sheets so that you can compare the two ETFs:
www.vaneck.com/sld/van...
www.dbxtrackers.co.uk/...

Van Eck's New Vietnam ETF: Why Investors May Be Interested

Michael, let me play the nitpicker for a second: VNM is *not* the first Vietnam ETF. There is still the db x-trackers FTSE Vietnam ETF of Deutsche Bank, launched in January 2008. It invests in Vietnam *only* (unlike VNM, which invests in companies that "predominantly are domiciled and primarily listed in Vietnam and which generate at least 50% of their revenues from Vietnam") and with a TER of 0.85% it's cheaper than Van Eck's ETF. Also its sector weighting is quite different. As a drawback in the eyes of some people: It isn't listed in the USA, but you can trade it in the UK, Germany, Italy, Switzerland and I think some other exchanges. Anyway, here are the fact-sheets to compare the two ETFs:
www.vaneck.com/sld/van...
www.dbxtrackers.co.uk/...

Back to Saigon: Vietnam ETF

Besides the VNM, there is still the db x-trackers FTSE Vietnam ETF of Deutsche Bank, launched in January 2008. It invests in Vietnam *only* (unlike VNM, which invests in companies that "predominantly are domiciled and primarily listed in Vietnam and which generate at least 50% of their revenues from Vietnam") and with a TER of 0.85% it's cheaper than Van Eck's ETF. Also its sector weighting is quite different. As a drawback in the eyes of some people: It isn't listed in the USA, but you can trade it in the UK, Germany, Italy, Switzerland and I think some other exchanges. Anyway, here are the fact-sheets to compare the two ETFs:
www.vaneck.com/sld/van...
www.dbxtrackers.co.uk/...

Good Morning, Vietnam ETF

Besides the VNM, there is still the db x-trackers FTSE Vietnam ETF of Deutsche Bank, launched in January 2008. It invests in Vietnam *only* (unlike VNM, which invests in companies that "predominantly are domiciled and primarily listed in Vietnam and which generate at least 50% of their revenues from Vietnam") and with a TER of 0.85% it's cheaper than Van Eck's ETF. Also its sector weighting is quite different. As a drawback in the eyes of some people: It isn't listed in the USA, but you can trade it in the UK, Germany, Italy, Switzerland and I think some other exchanges. Anyway, here are the fact-sheets to compare the two ETFs:
www.vaneck.com/sld/van...
www.dbxtrackers.co.uk/...

Friday Roundup: Commodities, Emerging Markets

David and others interested in Vietnam:
Besides the VNM, there is still the db x-trackers FTSE Vietnam ETF of Deutsche Bank, launched in January 2008. It invests in Vietnam *only* (unlike VNM) and with a TER of 0.85% it's cheaper than Van Eck's ETF. Also its sector weighting is quite different. (BTW: Why is VNM 35% in Cash?) As a drawback in the eyes of some people: It doesn't trade in the US, only UK, Germany, Italy, Switzerland and I think some other exchanges. Anyway, here are the fact-sheets to compare the two ETFs:
www.vaneck.com/sld/van...
www.dbxtrackers.co.uk/...

Clint Cox: Digging for Opportunities in Rare Earths

Responding to the two statements below:
You may be right. I hope you are. But let's also be objective: CNMC has bought 51.6% of Lynas. Not 49%, not 80%, but just a bit more than 50%. Does this really look like a pure financial investment and not more? In the short term CNMC will likely play its "good guy" role. Why not? Lynas has yet to start large-scale production. Let them go on cranking up production. But what when China's need for REEs surpasses its own sources (and that might be pretty soon). The way I see China I have no doubt that they will make sure their country comes first. Good luck!

On Jun 27 05:29 PM Alan Young wrote:
> My thesis is that the Australian owners will make at
> least some of the production available to the non-Chinese
> markets, increasing demand for their output..

On Jun 27 06:44 PM jimp wrote:
> From the investor relations call, CNMC are acting as
> investors/shareholders, not to control or monopolize for China,
> but to make a profit.

Clint Cox: Digging for Opportunities in Rare Earths

I was interested in Lynas as well. But now CNMC (China Nonferrous Metal Mining) has bought about 52% of them. Since I wouldn't be too surprised if the Chinese government tried to secure Lynas' minerals below market price at some point my interest has moved away from Lynas. About 95% of the Rare Earths market are already in Chinese hands. Demand will grow and sooner or later the western world will realize that they need to, no, them *must* develop their own natural resources. So I think it might be more profitable to invest in projects outside of Chinese influence.

> www.lynascorp.com/
> Excellent information from an upcoming Rare earth producer/miner.

Clint Cox: Digging for Opportunities in Rare Earths

To all those complaining about missing investment ideas in this article: I do not really understand your problem. Look at the top of the article. There's a link to another companion article. But you'll have to click that mouse button on your own...

A-Power Energy Generation Systems: Headwind or Tailwind?

Initially the Chinese planned to have 5 GW by 2010. But they reached that first goal early. So they revised the plan to 10 GW by 2010 and 100 GW by 2020. But obviously real growth has again outpaced their plans. I don't know what the actual situation is, whether they have updated their plans again.

Thursday Outlook: Commodities, Global Markets

There is a Vietnam ETF:
Deutsche Bank's DB FTSE Vietnam Index ETF, belonging to DB's x-trackers family. In the US that's DBTRF.PK (virtually no volume), in the UK it's XFVT and in Germany it's DXS7.

Rogers Commodity Index: Price of Stuff Holds Up Pretty Well

B. Ray: I only know the ETNs: RJI, RJA, RJN, RJZ. And the Powershares-ETFs DBC, DBA, DBE have outperformed their Rogers-ETN peers. Only RJZ seems to perform better than its Powershares peer(s).

Here's the link to SAs list of commodity ETFs and ETNs:
seekingalpha.com/artic...

Intuitive Surgical: Great Company, Bargain Price

I would agree that ISRG is a great company. Yes, I even bought an initial position just below 90 after I had been waiting so long till it finally got back down to this support level.

BUT: I sold it again on Friday. Reality check: Look at the chart and look at the real world. Why would you buy a stock in a downtrend in times when the worldwide economy is more or less in free fall (although China pretends its exports are growing again - I just wonder where they're exporting to...) which is also reflected in about every relevant stock market index? It's still downwards everywhere.

Pretty hard to believe that ISRG alone can buck the overall trend, don't you think? I hope you'll be lucky to catch a counter trend rally on Monday, maybe even for a few days. I preferred to play it safe. Good luck!