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Buying Stampede Winding Down? Tread Cautiously

check it here
finance.yahoo.com/echa...;range=2y;compare=xle;...

Buying Stampede Winding Down? Tread Cautiously

while he makes good points- there is one big problem with IRR- it will not act at all like the underlying stocks for the exact reasons he mentioned, it is hedged. IRR sells calls and buys puts...IRR's NAV is down 22% since 1/1/08 while XLE is down 43%...So this worked out great, but in a rising market, it will substantially underperform. I think IRR makes sense as a low beta fund, but don’t buy this for energy exposure because it won’t act like it.

James Colby: Muni ETFs Gain Assets in Face of Credit Crisis

If you're a bit more agressive, many Muni closed-end funds are selling for ~80 cents on the dollar. While leverage is a concern, if you're bullish on muni's, the leverage only makes sense combined with the potential (and likelyhood) of discounts narrowing substantially. Also, the enhanced yield due to discount is very attractive.

I would say that while muni's etfs are a great addition to the ETF space, it is my understanding they can't be shorted. While I could be wrong, it would be great if there was a structure that would allow investors to hedge muni exposure in closed-end funds using an ETF.

Average CEF Declines 9.9% in Another Bad Week for Market

I think CEFs are some of the best investments going right now; liquid, unleveraged equity names trading at 20%+ discounts. NAV's can be hedged through shorting or inverse ETFs. Do you have any favorite sectors Joe?

Short the Market with Options or ETFs?

This is great work. With all the attention of tracking errors with the 2x and 3x funds, i feel like options should be getting more attention. Kudos Dr. Kris.

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Should Investors Be Cautious with New Muni Bond ETFs?

good point, you can also look at some of the closed-end funds, ie NUV is unleveraged, trading near NAV. You will have to contend with premium/discount issues, however, there is pretty good liquidity.

ETFDesk.com

Shareholders’ Case for Tender, Liquidation or Conversion of Adams Express

You would think given the decline of assets, more CEFs are going to fold into ETFs, merge into parent owned open-end mutual funds or just liquidate...I thought HCE was a prime example, the volatility swap crushed their NAV beyond the market, and given the little assets left, it wasn't worth operating, so they liquidated. Id expect to see a lot more of this!

Average CEF Declined 10% in February

Joe, good post. just curious, are you weary of the covered call funds in this environment, where despite being cheap, their calls limit NAV upside? Specifically names like JSN that cover large portion of its portfolio...

PS. ETFDesk.com will be getting Closed-end fund data soon.

Winners and Losers from Oil Contango

that was prob the best synopsis I've read on the subject so far. Kudos for keeping it so simplistic.

3 Homebuilders ETFs for the New Housing Stimulus Legislation

Thomas, good points, but I think you may be early..Keep in mind EXISTING home inventory is ~3.6M units (~9.6months of supply) at current absorption levels, NEW homes (under construction and completed) is 312K (12.9months of supply). Foreclosures is ~1.9M (~1.5 years). (keep in mind this isn't an apples to apples comparison). Additionally, peoples biggest asset isn't their home, its their job. And therefore, as unemployment increases who is going to be confident to buy homes. Lastly, you reference being a landlord - maybe (REZ) iShares Resedential Index Fund is a better play...

ETFDesk.com

Why Schwab’s ETFs Could Open Doors

Tom, do you think there will be many more new companies in the space, or more consolidation? Just curious. Thanks,

USO: Death by a Thousand Contangos

Good points! There has been a lot written on this recently. USL (USO's sister fund) has longer dated contracts (12Months), lessening the futures role. USL has outperformed USO by a substantial margin YTD.

Here is one of the articles that mentions it
www.etfdesk.com/headli...

More on USL: www.etfdesk.com/fundDe...

What’s the Best U.S. Total Market ETF? Style? Sector?

why not just throw GLD in there too! or maybe some 3x leverages funds...

Earnings Drought May Stunt Deere and Agro's Growth

Mark, good article and use of piecing together various sources. I would tend to think to Ag co's don't really take off until oil starts to firm- I would expect there has to be strong correlation with corn prices due to ethanol / oil- and therefore corn prices probably has a large trickle down effect on other Ag products. While my commodities knowledge leaves much to be desired, I would also assume names like PXJ etfdesk.com/fundDetail... and PKB etfdesk.com/fundDetail... to also run with MOO when the time comes.
Lastly, good call with the "Kool Aid" comment

Emerging Markets Infrastructure ETF: A Different Way to Profit from Stimulus Plans

Thomas, I agree, I think infrastructure is a great play for this environment. Another idea is MGU- the Macqaurie Global Infrastructure Total Return fund www.macquarie.com/us/a...
- its a closed-end fund that users leverage and focuses more on developed countries but has the ability to invest in emerging . Another idea is PKB- which owns the domestic equivilent of the names you mentioned etfdesk.com/fundDetail...