ETF Trends
06-17-2008, 07:30 PM
ETF Trends - Keeping a Grip on Exchange Traded Funds (ETFs)
http://www.etftrends.com/images/2008/06/17/pie_slice_2.jpg (http://etftrends.typepad.com/photos/uncategorized/2008/06/17/pie_slice_2.jpg)The past few weeks have been hard on investors and their sector-focused exchange traded funds (ETFs). But not all sectors are suffering equally.
A glance at the Diamonds Trust (DIA (http://finance.yahoo.com/q?s=dia)), which tracks the Dow Jones industrial average, shows that the benchmark-tracking ETF has fallen to a near six-month low, reports Jonathan Bernstein for ETFZone (http://biz.yahoo.com/ifunds/080614/20080615_sectoretfreviewt_com_etf_jb.html?.v=1). Year-to-date, DIA is down 6.6%.
The thesis for the lowered optimism toward the Dow revolves around certain economic factors: through-the-roof energy prices (http://www.etftrends.com/2008/06/corn-at-new-rec.html), unimpressive employment data, looming inflation (http://www.etftrends.com/2008/06/wholesale-price.html), and the $2.8 billion in writedowns (http://www.etftrends.com/2008/06/financial-sec-1.html) at Lehman Brothers (LEH (http://finance.yahoo.com/q?s=leh)), the nation's fourth-largest investment bank.
The largest sector represented in the Dow is industrial materials (hence the name, don't you know), which represents 25% of the index by market capitalization.
The Industrial Select Sector SPDR (XLI (http://finance.yahoo.com/q?s=xli)) has taken the Dow lower by around 10%, although the sector remains higher than it was three months ago. Year-to-date, it's down 5.6%.
Financial and energy are the next largest in the Dow, represented by the Financial Select Sector SPDR (XLF (http://finance.yahoo.com/q?s=xlf)) and the Energy Select Sector SPDR (XLE (http://finance.yahoo.com/q?s=xle)).
XLF has taken a nosedive, indicating that investors are wary that the credit crunch is not behind us. It's down 17.8% year-to-date. XLE has been saved by higher oil prices, up 9.8% year-to-date.
Overall, with the exception of financials and homebuilders, these sectors have yet to dip below the lows they saw in mid-March.
http://www.etftrends.com/images/2008/06/17/z_5.png (http://etftrends.typepad.com/photos/uncategorized/2008/06/17/z_5.png)
complete story here... (http://feeds.feedburner.com/~r/etftrends-feed/~3/314121812/etf-sectors---t.html)
http://www.etftrends.com/images/2008/06/17/pie_slice_2.jpg (http://etftrends.typepad.com/photos/uncategorized/2008/06/17/pie_slice_2.jpg)The past few weeks have been hard on investors and their sector-focused exchange traded funds (ETFs). But not all sectors are suffering equally.
A glance at the Diamonds Trust (DIA (http://finance.yahoo.com/q?s=dia)), which tracks the Dow Jones industrial average, shows that the benchmark-tracking ETF has fallen to a near six-month low, reports Jonathan Bernstein for ETFZone (http://biz.yahoo.com/ifunds/080614/20080615_sectoretfreviewt_com_etf_jb.html?.v=1). Year-to-date, DIA is down 6.6%.
The thesis for the lowered optimism toward the Dow revolves around certain economic factors: through-the-roof energy prices (http://www.etftrends.com/2008/06/corn-at-new-rec.html), unimpressive employment data, looming inflation (http://www.etftrends.com/2008/06/wholesale-price.html), and the $2.8 billion in writedowns (http://www.etftrends.com/2008/06/financial-sec-1.html) at Lehman Brothers (LEH (http://finance.yahoo.com/q?s=leh)), the nation's fourth-largest investment bank.
The largest sector represented in the Dow is industrial materials (hence the name, don't you know), which represents 25% of the index by market capitalization.
The Industrial Select Sector SPDR (XLI (http://finance.yahoo.com/q?s=xli)) has taken the Dow lower by around 10%, although the sector remains higher than it was three months ago. Year-to-date, it's down 5.6%.
Financial and energy are the next largest in the Dow, represented by the Financial Select Sector SPDR (XLF (http://finance.yahoo.com/q?s=xlf)) and the Energy Select Sector SPDR (XLE (http://finance.yahoo.com/q?s=xle)).
XLF has taken a nosedive, indicating that investors are wary that the credit crunch is not behind us. It's down 17.8% year-to-date. XLE has been saved by higher oil prices, up 9.8% year-to-date.
Overall, with the exception of financials and homebuilders, these sectors have yet to dip below the lows they saw in mid-March.
http://www.etftrends.com/images/2008/06/17/z_5.png (http://etftrends.typepad.com/photos/uncategorized/2008/06/17/z_5.png)
complete story here... (http://feeds.feedburner.com/~r/etftrends-feed/~3/314121812/etf-sectors---t.html)