Exchange Traded Fund (ETF) Trading Strategies

Friday, February 16, 2018

=WisdomTree (WETF) plans to close and liquidate nine of its ETFs

WisdomTree plans to close and liquidate nine of its ETFs - the Funds will no longer accept creation orders after Friday, March 16, 2018 
  • Includes: WisdomTree Japan Hedged Capital Goods (DXJC), WisdomTree Japan Hedged Health Care (DXJH), WisdomTree Japan Hedged Real Estate (DXJR), WisdomTree United Kingdom Hedged Equity (DXPS), WisdomTree ex-U.S. Hedged Dividend (DXUS), WisdomTree Strong Dollar Emerging Markets Equity (EMSD), WisdomTree Global ex-U.S. Hedged Real Estate (HDRW), WisdomTree U.S. Export and Multinational (WEXP), WisdomTree U.S. Domestic Economy (WUSA).

Saturday, January 13, 2018

ETF Composition - XES - Oil & Gas Equipment & Services (SPDR S&P)

Fund Name: SPDR® S&P® Oil & Gas Equipment & Services ETF
Ticker Symbol: XES

NameTicker% of net assets
1Noble Corporation plcNE3.75
2Nabors Industries Ltd.NBR3.63
3Ensco plc Class AESV3.58
4Oil States International Inc.OIS3.54
5TechnipFMC PlcFTI3.40
6Weatherford International plcWFT3.39
7Dril-Quip Inc.DRQ3.38
8Fairmount Santrol Holdings Inc.FMSA3.37
9Oceaneering International Inc.OII3.35
10Transocean Ltd.RIG3.35
11Diamond Offshore Drilling Inc.DO3.32
12Schlumberger NVSLB3.32
13Halliburton CompanyHAL3.32
14Helmerich & Payne Inc.HP3.30
15Baker Hughes a GE Company Class ABHGE3.30
16Rowan Cos. Plc Class ARDC3.28
17Superior Energy Services Inc.SPN3.26
18National Oilwell Varco Inc.NOV3.26
19Core Laboratories NVCLB3.22
20U.S. Silica Holdings Inc.SLCA3.14
21Patterson-UTI Energy Inc.PTEN3.13
22ProPetro Holding Corp.PUMP3.12
23C&J Energy Services Inc.CJ3.10
24RPC Inc.RES2.84
25McDermott International Inc.MDR2.56
26Helix Energy Solutions Group Inc.HLX2.32
27Keane Group Inc.FRAC2.27
28Forum Energy Technologies Inc.FET2.10
29Unit CorporationUNT1.75
30Frank's International NVFI1.65
31Basic Energy Services Inc.BAS1.61
32Bristow Group Inc.BRS1.36
33Matrix Service CompanyMTRX0.89
34Newpark Resources Inc.NR0.86
35Exterran Corp.EXTN0.85
36SEACOR Holdings Inc.CKH0.78
37Archrock Inc.AROC0.77
38TETRA Technologies Inc.TTI0.52


Thursday, September 28, 2017

=Invesco to buy Guggenheim's ETF business

  • The fourth-largest ETF provider is now better positioned to offer institutional clients the products and strategies they want, as well as create their own indexes.

Invesco Ltd. has agreed to purchase Guggenheim Partners' ETF business in a $1.2 billion deal that will be announced Thursday, according to sources with knowledge of the deal.

Atlanta-based Invesco will acquire Guggenheim's suite of 79 ETFs, which have $37 billion in assets. Invesco already has about $125 billion in ETF assets.

Guggenheim, which has headquarters in Chicago and New York, has a contingent of its ETF employees in the Windy City, thanks to its 2009 purchase of Lisle-based Claymore Group.

Guggenheim in recent weeks has declined to say how many ETF workers it has in Chicago, but one source familiar with the company puts the figure at about 20. Some of those ETF jobs, plus jobs in other locations, could be in peril as a result of the transaction, the source said.

The deal will expand and round out Invesco's ETF product line, bringing its global total to 195 ETFs and making it the fourth-largest ETF provider. Included in the deal will be Guggenheim's largest ETF, the $13.7 billion Guggenheim S&P 500 Equal Weight ETF (RSP). Invesco will also add Guggenheim's BulletShares fixed-income ETFs and the Guggenheim CurrencyShares series to its offerings.

Guggenheim, for its part, will notch a big gain on its ETF business, which it largely acquired via the Claymore acquisition and a separate purchase of Rydex in 2010. The deal will also let Guggenheim concentrate on its fixed-income mutual fund business, where it has several top-rated bond funds. Guggenheim's six bond mutual funds have seen an estimated net inflow of $7.5 billion this year – a particularly impressive feat, given the massive shift of investor cash from active to passive funds.

"The deal will let Invesco get some benefits of scale and enable it to better compete with the big three ETF providers – iShares, State Street and Vanguard," said Todd Rosenbluth, senior director of ETF and mutual fund research at CFRA. Even with the Guggenheim ETFs, however, Invesco will still trail the big three, which have 83% of the ETF market, he said. iShares alone has 40% of the ETF market.

The deal is a good fit for both companies, in that their ETF lineups are fairly dissimilar, Mr. Rosenbluth said. Guggenheim's stock ETFs concentrated on equal-weighted funds and so-called pure investment styles, such as the Guggenheim S&P 500 Pure Growth ETF (RPG). Invesco's PowerShares had success with its quality and low-volatility offerings.

The deal should be closed in the second half of 2018. Dan Draper, managing director global ETFs at Invesco PowerShares, will run the expanded business lineup. The company will later evaluate its product lineup and any ETF overlap.

Friday, June 30, 2017

State Street Global Advisors to close 19 ETFs

State Street Global Advisors, the asset management arm of State Street (STT) announced that it was planning to close and liquidate 19 exchange-traded funds after the market's close on Friday, June 30, 2017.
  1. SPDR Bloomberg Barclays 0-5 Year TIPS (SIPE)
  2. SPDR EURO STOXX 50® Currency Hedged (HFEZ)
  3. SPDR MSCI Australia StrategicFactorsSM (QAUS)
  4. SPDR MSCI Spain StrategicFactorsSM (QESP)
  5. SPDR S&P® Emerging Europe (GUR)
  6. SPDR S&P Emerging Latin America (GML)
  7. SPDR S&P Emerging Middle East & Africa (GAF)
  8. SPDR S&P International Consumer Discretionary Sector (IPD)
  9. SPDR S&P International Consumer Staples Sector (IPS)
  10. SPDR S&P International Dividend Currency Hedged (HDWX)
  11. SPDR S&P International Energy Sector (IPW)
  12. SPDR S&P International Financial Sector (IPF)
  13. SPDR S&P International Health Care Sector (IRY)
  14. SPDR S&P International Industrial Sector (IPN)
  15. SPDR S&P International Materials Sector (IRV)
  16. SPDR S&P International Technology Sector (IPK)
  17. SPDR S&P International Telecommunications Sector (IST)
  18. SPDR S&P International Utilities Sector (IPU)
  19. SPDR S&P Russia (RBL)

The final day for share creations will be July 24 for most of these ETFs. The Emerging Europe, Emerging Latin America, and Emerging Middle East & Africa ETFs' final share creation day will be July 21. Trading of all of these will be suspended on the NYSE Arca on July 25.

Thursday, June 1, 2017

=EPOL : Tracks Poland, one of Europe's hottest markets

The broad Polish WIG index is up about 17% so far this year, easily outperforming the main indexes in France, Germany and Britain. Little wonder, iShares MSCI Poland Capped ETF (EPOL) joined the IBD ETF Leaders screen this month. It is trading at the highest levels in nearly two years.

Shares of the ETF broke out of a consolidation in January and sped up 18% from Jan. 11 to March 21. The ETF cooled its advance in late March and part of April as it pulled back to the 50-day moving average. Shares found support and resumed their advance. The ETF is currently too extended from buy areas, so investors must wait for a new opportunity to emerge on the chart.

IShares Poland Capped owns about 35 stocks traded in the Warsaw Stock Exchange. It's called a capped ETF because no single component can exceed 25% of the portfolio, and all components with more than a 5% weighting must not exceed 50% of the fund's total weighting.

More than 40% of the portfolio is invested in financial firms, with nearly 20% in energy companies and 11% in materials. The single largest holding, with 12% of the fund's weighting, is Polski Koncern Naftowy Orlen, an operator of refineries and gas stations that also provides aviation fuel, heating oil and other products.

The ETF has performed better than the WIG index this year. EPOL is up more than 30% and up nearly 40% in the past 12 months. The WIG is up about 30% in the past 12 months. In November, iShares Poland ETF began a sharp recovery after a deep slump that began in November 2013. Shares sank as much as 52% in that period.

Investing abroad involves certain risks that domestic investors don't face. As the ETF's prospectus warns, Poland's economy (the largest in Central Europe) depends largely on exports of raw materials and consumer goods. "As a result, Poland is dependent on trading relationships with certain key trading partners, including Germany and other EU countries."

In a report last November, the Organisation for Economic Cooperation and Development forecast GDP growth of 3% a year in 2017-18. Poland is trying to catch up with Europe's developed nations in terms of living standards and economic growth, says the World Bank, but must leverage technology and cope with a rapidly aging population.