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  • Junior Miners ETF Climbing The Mountain Of Impetus

    The precious metal world has started to place itself on good stands in the latest market. Gold, Silver, Copper, Zinc and Aluminum are all doing well in the metal market where there seems to be a surge relating to the growth of the economies around the world. China has especially located itself on the growth path and the requirement for the raw industrial inputs such as the preference for metals has started to see a brighter outlook. With this increase in demand for the precious metals, the positive effects have been passed on to the mining industries.

    The improvement in China's industrial output, playing an important role and impact in the global market, and the emergence of the European economies out of the sea on recession, has bought a booming effect on this side of the industry. Similarly the US markets are also getting to understand that the interest rates of the United States Federal reserve would continue to remain low and thus resulting in the dropping effect of the US dollar. This only helps the Mining Industry to make use of the current loophole standing in its favor! Encashing the prospects the broad category commodities are now turning as the latest attractions for the investor's portfolio baskets and invest in junior mining companies with a positive hope of good returns.

    The small cap mining companies are the dependency tool for the large cap industries. After the large cap companies get exhausted with the sources of metals, they look towards the small cap companies which have a very good networking spread across much larger areas than their own. This proves very potential towards the investments put into this sector. As the risks evolved in the small caps is definitely higher, it is surely assumed that the rewarding of the same would be very beneficial. So acting like the savior of the day, they are the most fruitful betting grounds to play on! Having a high risk reward ratio the investments in junior miners are a healthy resort and product to be added in the basket of diverse portfolios. The geopolitical news related to Egypt in the month of August shows positive signs towards the investment roads leading to the precious metals. Gold and silver prices are up to a figure long awaited for, and further anticipated to bring recovery in the precious metal industry.

    The small cap miner companies provide a fantastic exposure to the global companies associated with mining, extraction, exploration and smelting or refining materials of the metals.

    Most of the Holdings of the small cap mining companies are held in the Canadian, United States and Australian regions. These regions are the most potential regions where the explorations and investment put into the projects give a much higher probability. Geographically they are rich in abundance for the raw forms of precious metals that are ready to be explored and refined and put to use in the various industries that bank on the minerals for their outputs and productions. The five top most assets of the fund are held by Shougang Fushan Resources GroupLtd., Alamos Gold Inc., B2Gold Corp., Hecla Mining Co. and Stillwater Mining Co.

    Sep 25 2:17 AM | Link | Comment!
  • Investments In Southeast Asia In The Core Of Momentous Growth

    To initialize free trade and economic co-ordination the ASEAN members joined hands together. Today the ASEAN members comprise of the five initial members: Indonesia, Philippines, Malaysia, Thailand and Singapore later followed by Vietnam, Cambodia, Laos, Thailand, Malaysia, Philippines, Burma, East Timor and Brunei.

    Grippingly 23.1 percent of the preponderance of the allocation of the Global X ASEAN 40 Index ETF [ASEA] is inclined towards Malaysia and a 37.5 percent weight to allocation towards Singapore. Known to have a low beta, Malaysia scores well above the other emerging developing markets of this region. Off Lately the Fund has reported a market cap of 47.04m.

    The healthy trends in domestic consumption and capital spending of the economies of Southeast Asia especially the Philippines, Thailand and Indonesia have posed as winners for the inflow of foreign investments into this area. Their fiscal and monetary policies have helped to sustain and encouraged to invest in Southeast Asia. These markets belonging to the Southeast Asia block are pumping in the middle of rallies, which is quite visible in the figures relating to the net worth of the Market capitalization of the region. The IMF has a positive forecast for the respective economies. The region is predicted to show escalating wages and low levels of unemployment. The demographic welfare of the same is going good guns and is benefited by the positive attitude of the export-oriented trade ties among the ASEAN Members. Singapore's Ministry of Trade and Industry has scored exceedingly well and has banked on its erudite workforce.

    The trade is focused on the electronics and oil refineries sector as it serves as the biggest sea and air port in the region. The travel and tourism industry of the bloc is also in full boon. The area provides the best luxurious spots with the safest environments to its credit. The environment of the region is gratified and figures showing good GDP levels only support the economies further. The increase in the domestic demand has lead to investments in its infrastructure. The strong foreign direct investment has show the way to trends in credit growth and property prices. The local currencies are reflecting sturdy rates as compared to the US Dollars, and boosting up the confidence of the South bloc of Asia.

    The top ten holders of the assets of the fund are DBS GROUP HOLDINGS LTD., OVERSEA-CHINESE BANKING C, SINGAPORE TELECOMM, UNITED OVERSEAS BANK, MALAYAN BANKING BERHAD, KEPPEL, CIMB GROUP HLDINGS BERHAD, ASTRA INT'L, PT BANK CENTRAL ASIA and AXIATA GROUP BERHAD respectively. The major share of the assets belongs to the Financials, Telecommunication Services and Industrials sector followed by the Energy Sector. The combined percentage of these allocations comprises of approximately 82 % of the total assets of the Fund.

    The Post election scenario of Malaysia shows the foreign flow of investments has already shown an all time high. Prime Minister Najib Razak's victory has proved favorable to the economy, and the country is ready for a roller coaster ride. The Singapore ETF and Thailand ETF are fairing good in the same bandwagon and are in full control of their leadership.

    Sep 23 2:50 AM | Link | Comment!
  • Why Super Income ETFs Are Hot On The Heels

    For those investors that are looking for dependable sources of income in the form of investments but with very little risk involved, Preferred stock ETF also called and referred to as stock-bond hybrids give investors a broad exposure to the high-yield corner of the world. These forms of investments are no where correlated to bonds and common stocks. The preferred share investors receive fixed dividend payments which are decoded at the time of issuance of the portfolio. There are many benefits involved in this form of investment. Such as the tax benefits involved. As these forms of investments don't belong to the group of bonds they are offered tax benefits and only taxed on the dividends which are similarly taxed on preferential rates.

    The second benefit is the determination of rates of dividends. The amount of dividends is decided at the time of issuance of the fund. Serving as the most efficient and secure form of investment, preferred stock ETFs are the winners of the rally! At the time of turbulent waters the preferred stock investors are given their dues on priority bases and common-stock dividends holders are the first to be axed. This ensures the safety of the funds and thus the increase in their popularity among the higher age group, which likes to invest in the safe and secure forms of investments after their retirements.

    The SPFF comprises of the highest-yielding preferred securities listed in the U.S. and Canada with at least $250 million in market cap and the most popular among the band wagon of ETFs present in the market due to its dominance by fixed-income holdings.

    Most of its sector allocation is tilted towards the financial sectors blocking nearly 84% of the assets allocated with the portfolio. The remaining assets are placed in the materials and telecommunications sector.

    Investing in the companies individually is a rather complex strategy, and the only reason for the recognition and attractiveness of the Exchange Traded Funds is the simplicity involved in the funding system. A transparent analysis and valuation of the vehicles is always assessable in the respective stock indexes. Moreover the traditional modes of investment don't particularly offer good returns and also don't pose as hedging funds, an approach associated with the ETFs. The financial market is flooded with this latest trend of funding.

    This high yielding investment has certain risks also involved with it. As these funds have fixed interest rates and are prone to risks involved in the regulation changes, there is a good risk evolved in it. They are sensitive to downward changes in the interest rates. A rise in the interest rates will lead to a definite fall in the prices and valuations of these funds.

    The only similarities between the preferred stock mutual fund share with the bonds and equities is that just like the equities they have the capability to appreciate in value and offer the investors an additional source of income growth, and like the bonds they have the capacity to give stable dividends and regular distributions.

    Sep 23 2:49 AM | Link | Comment!
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