ETF Wrap: Unusual Opportunities With ETFs (and an ETN)
A Nobel-caliber economist's ETN, a tiny ETF, and a gold-platinum trade
One ETN Worth Your While
I’ve basically sworn off exchange traded notes, but when a Nobel-caliber economist creates one, you pay attention.
I’ve made no secret of how much I admire Yale professor Robert Shiller. His research on stock-market volatility and intrinsic value persuaded me that markets weren’t as efficient as I had thought them to be. I’m also a fan of cyclically adjusted price-to-earnings, or CAPE, a market valuation measure he and professor John Campbell popularized.
Barclays ETN+ Shiller CAPE ETN (NYSEARCA:CAPE), unsurprisingly, uses CAPE the market-valuation measure. Read more...
Use This Tiny ETF to Play Global Energy Stocks
For various sectors, it is often said that foreign stocks offer higher dividend yields than their US counterparts. That is especially true in the energy patch. For example, the dividend yield on Exxon Mobil (NYSE:XOM), the largest US oil company is just 2.6%. Investors can get another 210 basis points of yield with Royal Dutch Shell (NYSE:RDS.A), Europe's largest oil company.
Investors looking to exploit this theme at the ETF level should consider the tiny SPDR S&P Energy Sector ETF (NYSEARCA:IPW), which S&P Capital IQ rated Marketweight in a recent research note. IPW yields 3.3%, nearly double the dividend yield on the far larger Select Sector Energy SPDR (NYSEARCA:XLE). Read more...
There's Still Time Left for This Simple Gold Trade
If you’re a gold investor, you probably have a bad taste in your mouth, and I don’t blame you. Gold stocks have gone nowhere for what seems like years. Gold itself hasn’t moved much in the past year.
I’m not advocating trading. I think it’s a great way to lose money quickly if you don’t know what you’re doing. But there’s one trade that I actually like in the precious metals world. It’s not a super quick-moving trade that you need to watch every day, or even every week. But it can give you 10%-30% gains pretty easily when it gets set up. Right now, we’re in the middle of that set-up.
I’m talking about the gold-platinum trade. Read more...
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