Best Performing Exchange Traded Funds for 2006 Thru August
January 25, 2008
Now that we are approaching Labor Day we are at a transformation point for the trading year. The slow low volume trading of summer is about to come to an end and we are likely to see higher trading volumes going into the fall.
Looking at the top ten ETFs for this year so far, we see two groups that stand out. We see the country funds of China ( no surprise), Spain , Belgium and France all in the top ten performing funds so far this year. Perhaps one of the biggest surprises is the Spain (EWP) fund. This is a rather obscure fund that is under the radar. This fund has $159 million in assets while the Japan fund (EWJ) has $13.5 billion in assets.
Spain has strong economic gains and low interest rates. To keep everything in perspective, Europe as a whole is out performing the US markets. Spain is outperforming the rest of Europe. In Spain the first quarter gross domestic product grew 3.5%. Since inflation rates are still relatively low, this market has room to grow.
Another fund flying under the radar is the Belgium Fund (EWK). Belgium has a very low interest rate and the stock market is undervalued. This is another low volume ETF with the daily average volume around 67,000 shares.
One of the hottest Exchange Traded Funds continues to be a China Fund (FXI). This fund has grown almost 20% in the last two months. In the same time period the NASDAQ Trust is down 4% and the SPYDERS have been hovering around their 5% gain for the year. The US markets are just not moving.
The FXI is an excellent way to invest in the China markets. The top two holdings in this fund are China Mobile and PetroChina. This economy is poised to move more then the US economy in the next year.
The other group that stands out when we look at the top ten ETFs for 2006, is real estate related Exchange Traded Funds. The news is filled with doom and gloom about the residential real estate market, however, the real estate related ETFs tend to focus on commercial real estate. The fund leading the pack so far this year is iShares Cohen & Steers Realty Majors (ICF).
These funds tend to invest is things like shopping centers, office parks and shopping centers. Also the investments tend to be in commercial real estate over a large and diverse geographical area. In this way the fund is protected against a downturn in one geographical region. These exchange traded funds are tied more to the US economy as a whole then residential real estate. They are not immune to downturns, however they are a good choice because they are less vulnerable then the over inflated housing markets.
The commercial real estate market continues to outperform most of the other sectors. One factor is a stagnant supply along with a growing demand. This is a much different situation then the residential real estate market. This is leading to rising rents and rising revenue growth for commercial real estate owners.
The outlook for real estate REITs continues to be good. The fundamentals of the commercial market remain strong, and as long as the interest rates remain low, the conditions for REITs look positive.
In the world of Exchange Traded Funds there are also foreign REITs. The markets that look good are in Europe and Asia. The market in Hong Kong looks particularly strong.
In the domestic markets the hotel sector is looking particularly attractive. This is due to a healthy increase in revenue per room.
The lesson is to learn the markets. With all the negative press on the real estate market, many uninformed investors will be directed away from looking at REITs as a good investment. It is important that investors become more informed. As investors have choices they never had before because of the growing diversity of Exchange Traded Funds, the investors have a responsibility to be informed on specifics of markets that they may have not had to pay attention to in the past. There are opportunities there, however the investor will have to work hard to make the correct decisions.
As summer ends the trading volumes will pick up. Always keep an eye on the commodity related exchange traded funds. Even though they all seem quiet now, they can change quickly.
Andrew Goldman is president of Metal Rabbit media services, the operator of Get ETF Info He has written a number of articles on finance and environment over the last ten years.
Cash Back Credit Card Is It Right For You
January 24, 2008
Cash back credit card offers are all the rage, but how much do you really know about them? How do they give you money back and how often? Is a cash back credit card right for you?
Most cash back credit cards carry no annual fee and are accepted by merchants all over the world. Not to mention that you are able to earn a cash back rebate on virtually every purchase or cash advance you make with your cash back credit card. However, you may need to review cash back credit cards so that you are able to find which one is the best when it comes to actually how the customer is paid back. There are some ways in which you can find out which credit card is the best cash back credit card for you and your lifestyle. The first step that you will need to take is to look over the credit cards terms and conditions. You can usually find these on the cash back credit cards website. These are the fine print details that will allow you to determine whether or not the credit card is the right one for you and whether or not it really is indeed one of the best cash back credit cards at all. Please make sure that you know what you are signing up for, I have made the mistake of not looking at the fine print and I have ended up in some really uncomfortable places due to the fees that the credit card company listed in the fine print. Everything you need to know about a credit card company and its cash back credit card is in the fine print. The method in which your cash back is received differs between credit card companies. Ways that cash back credit cards usually give you money back are listed below:
1) Gift cards
2) Statement credits
3) Checks
4) Deposits into a special account just for you
No particular way is better than the other, however it is all up to which one appeals the most to you and is the most useful to you. A statement credit would lower your debt; however it is not like having the cash in your hand. You figure that you spend the money you should get some in return, right? If you chose to get cash back in a check, the check is normally issued at the end of the month.
What it all basically boils down to is what appeals the most to you. When you are deciding which cash back credit card you are going to use then you will have to pick one according to the services that you expect. If you want the cash back to go to the balance on your credit card that is fine, that will help you to lower the debt that you owe. If you want the cash back to come to you in a check then you can get it direct deposited into your bank account or either you can get a check in the mail. It all depends on how long you want to wait. Check out everything about what makes the best cash back credit cards before you sign on the dotted line.
It doesn’t really matter which one you go with when it comes to your cash back credit cards because the best cash back credit cards offer you a wide selection of options and they are all fantastic just make sure that you know what you are getting yourself into.
For more on cash back credit card offers, Robert Alan recommends that you visit CreditCardAssist.com
