Written by David Fabian, March 14th, 2017
The world of exchange-traded funds is filled with heavy weight indexes geared towards a variety of stock selection criteria. The venerable SPDR S&P 500 ETF (SPY) is the largest and most heavily traded of the top ten funds by asset size. SPY is known for its meaningful diversification, tremendous liquidity, and low costs. It’s the benchmark by which nearly every stock-focused strategy is ultimately compared against.
Having a benchmark is important because it allows investors the opportunity to compare similar investment styles to determine if a fund is meeting their expectations. It can easily identify consistent trends that are worthy of greater interest or evasion. One such outlier among the largest U.S. stock ETFs is the pattern of outperformance demonstrated by the PowerShares QQQ (QQQ) over the last decade.
Written by David Fabian, February 16th, 2017
The volatility in the biotech space over the last two years has been quite a sight to behold. I’m not strictly speaking of volatility in terms of downside either. There has been money to be made on both sides of the market for those that have been nimble in their trades.
Most ETF investors are probably familiar with trading the iShares NASDAQ Biotechnology ETF (IBB). This market-cap weighted giant has $8.2 billion dedicated to a basket of 164 stocks in the biotech research and medical services fields. As you can see on the chart below, this index has been on a rollercoaster ride of whipsaws in both directions over the last year.
Read the complete article at Seeitmarket.com
Written by David Fabian, January 04th, 2017
When looking over the last decade of sector returns on a year-by-year basis, it’s rare to see health care fall to the bottom of the stack. Yet that unusual event is exactly what occurred in calendar year 2016.
Over the last twelve month, the Health Care Select Sector SPDR (XLV) posted a total return of -2.76%. That final performance includes dividends and carries the stigma of being the only major S&P sector to finish the year in negative territory. To put things in perspective, energy stocks gained 28% in total return over the same time frame.
Written by David Fabian, August 19th, 2016
Social media companies may seem like an obvious avenue for growth in relation to the larger technology sector. However, the highly competitive landscape often resulted in a growing chasm between big winners and downtrodden losers in the public equity markets. The well-publicized success of Facebook Inc (FB) has become the benchmark from which all others are summarily measured. Read more
Written by David Fabian, March 17th, 2016
Those who have followed our blog for some time now know that we are big proponents of technical analysis in reading the trends of the market. This type of examination can also be applied when we are analyzing individual sectors or industries that have diverged from the conventional path of the market. Read more