Tag Archives: fxd

Is It Time To Bet on Consumers? Why #XLY?

Optimists are opining that consumers are on the verge of waking up from a spending slumber that, for the better part of the past 3+ years, has impeded the shift from recession to rejuvenation and kept a cap on discretionary debits to their credit card.

What with gas pump prices percolating and interest on fixed rate investments still waning however, its hard to imagine the wives of the world are getting ready to Occupy Malls of America.

All of that said, ETF Universe Analyst Paul Britt sees a silver lining in the almost $1Billion in net new money that’s recently flowed into the top 4 consumer cyclical ETFs. (XLY, FXD, IYC, VCR).  His fav? XLY. Why? Click on the logo below to find out.

Expert ETF Trader: Liquidity Is There; Just Look Beyond the Screens

Other than the ETF market “go-go names”, one of the more commonly-voiced, and according to many, often-misguided observations regarding most ETFs is  “won’t trade it, there’s no liquidity in that name,”  or “the screens are only showing 1000 shares offered and I have to pay up 50 cents to buy a lousy 25,000 shares?!”

As a consequence, any half-smart portfolio manager often quickly (if not wrongly) concludes that the “lack of liquidity cost” is a deterrent to their positioning what is otherwise a very compelling “basket” of underlying securities.

The editors here don’t buy into the lack of liquidity notion, and after getting our hands on desk notes published today by Chris Hempstead, Head ETF Trader for WallachBeth Capital (one of the more prominent players in the ETF space), we couldn’t resist the opportunity to re-publish.

But wait, there’s more!