Sometimes price action seems inconsistent with the fundamental story.  One of the ways we use our ETF rankings is to highlight developments that deserve further investigation. While financial sectors in general earn continued strong ratings, the most noteworthy feature of the new ratings is the rapid rise of two Real Estate Investment Trust (REIT) ETF's.  (The complete current rankings are at the end of the article, along with an explanation of our methodology). Surprising REIT Strength Investors who choose REIT's general seek high yield and tax advantages.  The REIT must return 90% of income to unit holders to avoid taxation at the trust level.  Since certain non-cash expenses like depreciation reduce income, investors determine value as a multiple of adjusted funds from operations (AFFO) rather than a PE multiple.  The REIT provides smaller investors the opportunity to add real estate of various types ...

Portfolio manager studies historic long-term volatility patterns of indexes. Then, he applies two distinct options strategies using ETFs. 

 

Jim Herrell considers himself a nontraditional index investor.

The chief investment officer at Partnervest Financial Group says his contrarian investing strategies take a more proactive approach to exchange-traded funds.

“We view volatility as an asset class unto itself that’s negatively correlated with equity indexes,” said Herrell.

The Santa Barbara, Calif.-based Partnervest manages portfolios for advisors across the country. It’s part of a growing number of asset managers acting as outsourcers to independent planning firms.

Demand for such specialists is growing rapidly, according to industry statistics, as other aspects of financial planning—such as estate, health care and tax issues—are becoming more complex.

Partnervest was founded nearly seven years ago by ex-executives of a large asset manager based in Scottsdale, Ariz., that focused on serving high net worth clients and institutions

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HIDDEN VALUE

Dear Value Seeker,

Welcome to the Frankenstein Fed.

Today, the WSJ reports that the wonks at the central bank are now “weighing up” having the Fed issue its own debt.

It seems the poor central planners have gotten themselves into a bit of a twist while trying to mend America’s Humpty Dumpty economy.

It seems the Fed is pumping so much money into the system that it is running dangerously low on its stockpile of Treasury bonds, which it draws on to finance its funding programs.

And the Treasury isn’t too keen anymore to raise any more debt on behalf of the Fed.

Hank Paulson and his buddies have been issuing debt and leaving the proceeds on deposit with the Fed. But in November, the Treasury said in November it was “scaling back” on this.

You see, the Treasury is undertaking its own massive borrowing

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Crude looks like it is entering its own type of recession this year, with the International Energy Agency predicting a fall in oil consumption for the first time in 25 years. But David Newman still thinks there are huge profits to be had in the oil industry. He recommends an Oil & Gas ETF (NYSE:IEO) and Oil Services ETF (NYSE:OIH), using a ‘protective put strategy’ to cover against downside risk.

This from The Sovereign Society:

The oil industry is a tricky business.

I know. I was a well-site geologist for many years. Just like the stock market, sometimes the best-looking prospects are your worst duds and those you were not too sure about gush profits.

It’s a gamble, but one that can pay off big if you’re right. But

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Health Benefit Providers Need a Check-Up The accompanying table provides statistics and the top seven companies by market cap for the ETFI Health Benefit Providers Index & short ETF proposal of 33 companies with market caps over $100M, which includes all types of pharmacy services (retail, mail order, institutional), pharmacy benefit managers, managed care companies, health insurers, and supplemental health insurance. The 25 lowest rated companies in the index have lost nearly half of their market value in the past year, underperforming the Healthcare Sector SPDR (XLV), iShares Dow Jones U.S. Healthcare Providers (IHF), and the S&P 500 SPDR (SPY). Former investor favorites in the industry such as Aetna (AET), UnitedHealth (UNH), WellPoint (WLP), and Humana (HUM) have lost ...