Self Directed Investor Inc
SDI: "Empowering investors with ideas and education"
Symbol Lookup »  
Topics:ChinaETFsEarningsEconomyEnergyForexGoldIncomeLessonsIdeasTrading

  • Other news: News from PR Newswire
| More

ETF Laggards Struggling In 2012

Mon, Mar 26, 8:16 AM ET, by Michael Johnston

With the first quarter of 2012 coming to a close, investors have witnessed equity and commodity markets skyrocket as Wall Street continues to indulge their risky appetites. Stocks steamed ahead into the new year, with the Nasdaq and Dow Jones pushing into post-crisis, record breaking territory, an encouraging sign that perhaps the equity markets are well on their way to a full recovery. As markets rallied, many equity and commodity ETFs have posted impressive year-to-date gains. Although momentum continues to build, some corners of the market have struggled to keep up with the rapid pace [see also When Bigger Isn't Better: Profiling ETF Alternatives To DJP, FXI, GLD].

Of course, with these 2012 laggards comes an opportunity for investors to buy in cheap, positioning themselves for a potential turnaround in these sectors. Whether you’re looking to buy in or completely avoid these poor performing sectors, we outline the three ETF laggards struggling in 2012:

Gold Miners/Explorers

Gold has gotten off to a shaky and volatile start this year, as investors continue to digest the latest inflows of economic data. In an announcement in early March, Ben Bernanke had made no mention of an upcoming round of quantitative easing, which forced the shiny “safe haven” metal to plummet over 4% in one day as investors’ inflation fears were somewhat abated. Some believe that the commodity has been overvalued and that the drop in prices this year has simply been an example of a market correction [see also Three Reasons Why Gold Is Overvalued].

Although gold miners’ and explorers’ equities aren’t perfectly correlated to spot prices, their performances are heavily impacted by the commodity’s volatile movements. Despite some recent gains, both GLDX and GDX are down for the year, losing 9.21% and 5.21%, respectively.

Global Warming

Most investors have probably never even heard of GWO, let alone any kind of global warming fund. In short, GWO tracks an equally weighted index of fifty companies that have a focus on minimizing the impact of global warming on the world. Although investments in clean and alternative energy have surged over the last few years, hyper-targeted and illiquid funds like GWO haven’t been able to fully capture investors’ attentions.

Last year, GWO came in as one of the best performers in Q1; since then, the fund has lost nearly 23% and is down 8% this year alone. Lack of enthusiasm for the fund coupled with waning support for the “go green” movement has pushed this particular niche of the market into red territory [see also Shutter Island: ETFs In Danger Of Closing].

Utilities

Despite mixed economic data and ongoing uncertainty, investors have expressed their cautious shift from “safer” asset classes to more risky and lucrative equities. Utilities are generally accepted as one of the most stable and reliable sectors of the market, delivering moderate but consistent returns to investors. Although steady income flows are coveted assets during times of uncertainty, utilities have somewhat lost their appeal this year as new bullish trends continue to emerge in the equities markets.

As investors continue to opt out of relatively “safe” utilities exposure to jump to “riskier” sectors like technology and financials, funds like XLU, FUI, and VPU have all posted losses so far this year. From a year-to-date perspective, XLU is down 3.86%, FUI lost 3.42%, and VPU dropped 2.98% [see also Seven Surprisingly Large ETFs].

Disclosure: No positions at time of writing.


SDI Glossary: "price" Definition
SDI Glossary: "ETFs" Definition
SDI Glossary: "Stock" Definition
This Article's Word Cloud:   Although   Danger   Despite   ETFs   Gold   Utilities   alone   also   been   commodity   continue   continues   data   date   down   economic   equities   equity   fund   funds   gains   global   have   haven   into   investors   laggards   like   lost   market   markets   over   posted   prices   risky   safe   sectors   some   somewhat   territory   that   their   these   this   uncertainty   utilities   volatile   warming   with   year

| More

Danaher Corp. Achieves #20 Analyst Rank, Surpassing Covidien plc
Wed, Apr 23, 11:54 AM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

SQQQ: Large Inflows Detected at ETF
Wed, Apr 23, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: SQQQ Exchange traded funds (ETFs) trade just like stocks, but ...

PCEF, PCI, EXG, ACG: ETF Inflow Alert
Wed, Apr 23, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: PCEF, PCI, EXG, ACG Exchange traded funds (ETFs) trade just ...

UVXY: Large Inflows Detected at ETF
Wed, Apr 23, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: UVXY Exchange traded funds (ETFs) trade just like stocks, but ...

First Trust Value Line Dividend Index Fund Experiences Big Inflow
Wed, Apr 23, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: FVD, BAX, TE, ATO Exchange traded funds (ETFs) trade just ...

FCG, GDP, CRK, SGY: ETF Inflow Alert
Wed, Apr 23, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: FCG, GDP, CRK, SGY Exchange traded funds (ETFs) trade just ...

Daily Energy Bear 3x Shares Getting Very Oversold
Wed, Apr 23, 10:54 AM ET, by ETF Channel

In trading on Wednesday, shares of the Daily Energy Bear 3x Shares ETF (ERY) entered ...

PIE Makes Notable Cross Below Critical Moving Average
Wed, Apr 23, 10:54 AM ET, by ETF Channel

In trading on Wednesday, shares of the PowerShares DWA Emerging Markets Momentum Portfolio ETF (PIE) ...

VNQ, PSA, PLD, EQR: ETF Inflow Alert
Tue, Apr 22, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: VNQ, PSA, PLD, EQR Exchange traded funds (ETFs) trade just ...

First Trust US IPO Index Fund Experiences Big Outflow
Tue, Apr 22, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: FPX, GM, KMI, KRFT Exchange traded funds (ETFs) trade just ...

GSY, BSCE, BSJH, BSJG: Large Inflows Detected at ETF
Tue, Apr 22, 11:14 AM ET, by ETF Channel

Symbols mentioned in this story: GSY, BSCE, BSJH, BSJG Exchange traded funds (ETFs) trade just ...

Kraft Foods Group Inc a Top Socially Responsible Dividend Stock With 3.7% Yield (KRFT)
Tue, Apr 22, 8:14 AM ET, by ETF Channel

Kraft Foods Group Inc (KRFT) has been named a Top 25 Socially Responsible Dividend Stock ...

GLDX Crowded With Sellers
Mon, Apr 21, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the Gold Explorers ETF (GLDX) entered into oversold territory, ...

Twenty-First Century Fox Inc Takes Over #12 Spot From Delta Air Lines, Inc.
Mon, Apr 21, 12:24 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

XLB, DD, MON, DOW: Large Inflows Detected at ETF
Mon, Apr 21, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: XLB, DD, MON, DOW Exchange traded funds (ETFs) trade just ...

SPXL: ETF Inflow Alert
Mon, Apr 21, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: SPXL Exchange traded funds (ETFs) trade just like stocks, but ...

VTV, JPM, BRK.B, CVX: ETF Inflow Alert
Mon, Apr 21, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: VTV, JPM, BRK.B, CVX Exchange traded funds (ETFs) trade just ...

VGK, NSRGY, NVS, BP: ETF Outflow Alert
Mon, Apr 21, 11:34 AM ET, by ETF Channel

Symbols mentioned in this story: VGK, NSRGY, NVS, BP Exchange traded funds (ETFs) trade just ...

TXN a Top 25 Dividend Giant With $2.7B Held By ETFs
Mon, Apr 21, 8:14 AM ET, by ETF Channel

Texas Instruments Inc. (TXN) has been named as a Top 25 ''Dividend Giant'' by ETF ...

ED Named Top 25 Socially Responsible Dividend Stock
Mon, Apr 21, 8:14 AM ET, by ETF Channel

Consolidated Edison, Inc. (ED) has been named a Top 25 Socially Responsible Dividend Stock by ...

See How Caterpillar Inc. Ranks Among Analysts' Top Dow 30 Picks
Sun, Apr 20, 12:54 PM ET, by ETF Channel

A study of analyst recommendations at the major brokerages shows that Caterpillar Inc. (CAT) is ...

RUSS Crosses Below Key Moving Average Level
Thu, Apr 17, 4:14 PM ET, by ETF Channel

In trading on Thursday, shares of the Daily Russia Bear 3x Shares ETF (RUSS) crossed ...

Red Hat Inc Moves Up In Analyst Rankings, Passing Eastman Chemical Co.
Thu, Apr 17, 11:54 AM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

Biotech ETF Experiences Big Outflow
Thu, Apr 17, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: BBH, REGN, ALKS, ILMN Exchange traded funds (ETFs) trade just ...

XBI, MNKD, UTHR, ARNA: Large Inflows Detected at ETF
Thu, Apr 17, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: XBI, MNKD, UTHR, ARNA Exchange traded funds (ETFs) trade just ...

XME, ATI, ACI, SLCA: Large Outflows Detected at ETF
Thu, Apr 17, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: XME, ATI, ACI, SLCA Exchange traded funds (ETFs) trade just ...

RWO, BXP, VNO, AVB: Large Inflows Detected at ETF
Thu, Apr 17, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: RWO, BXP, VNO, AVB Exchange traded funds (ETFs) trade just ...

CSD, WWAV, PSX, STRZA: Large Outflows Detected at ETF
Thu, Apr 17, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: CSD, WWAV, PSX, STRZA Exchange traded funds (ETFs) trade just ...

PGX: ETF Inflow Alert
Thu, Apr 17, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: PGX Exchange traded funds (ETFs) trade just like stocks, but ...

PowerShares KBW Capital Markets Portfolio Breaks Above 200-Day Moving Average - Bullish for KBWC
Wed, Apr 16, 4:15 PM ET, by ETF Channel

In trading on Wednesday, shares of the PowerShares KBW Capital Markets Portfolio ETF (KBWC) crossed ...

Qualcomm, Inc. Moves Up In Analyst Rankings, Passing Monsanto Co.
Wed, Apr 16, 1:14 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

EEMV: Large Outflows Detected at ETF
Wed, Apr 16, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: EEMV Exchange traded funds (ETFs) trade just like stocks, but ...

ITOT, QCOM, MCD, ABBV: Large Outflows Detected at ETF
Wed, Apr 16, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: ITOT, QCOM, MCD, ABBV Exchange traded funds (ETFs) trade just ...

HEDJ: ETF Inflow Alert
Wed, Apr 16, 10:54 AM ET, by ETF Channel

Symbols mentioned in this story: HEDJ Exchange traded funds (ETFs) trade just like stocks, but ...

Chevron Corporation a Top Ranked SAFE Dividend Stock With 3.3% Yield (CVX)
Wed, Apr 16, 8:14 AM ET, by ETF Channel

Chevron Corporation (CVX) has been named to the Dividend Channel ''S.A.F.E. 25'' list, signifying a ...

XTL Crosses Below Key Moving Average Level
Tue, Apr 15, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the SPDR S&P Telecom ETF (XTL) crossed below their ...

PowerShares S&P SmallCap Consumer Discretionary Portfolio (PSCD) Shares Cross Below 200 DMA
Tue, Apr 15, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the PowerShares S&P SmallCap Consumer Discretionary Portfolio ETF (PSCD) ...

PowerShares WilderHill Clean Energy Portfolio Breaks Below 200-Day Moving Average - Notable for PBW
Tue, Apr 15, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the PowerShares WilderHill Clean Energy Portfolio ETF (PBW) crossed ...

IYZ Makes Notable Cross Below Critical Moving Average
Tue, Apr 15, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the iShares U.S. Telecommunications ETF (IYZ) crossed below their ...

ITE Makes Notable Cross Below Critical Moving Average
Tue, Apr 15, 4:14 PM ET, by ETF Channel

In trading on Tuesday, shares of the SPDR Barclays Intermediate Term Treasury ETF (ITE) crossed ...

Time Warner Inc Achieves #87 Analyst Rank, Surpassing Tyson Foods, Inc.
Tue, Apr 15, 12:24 PM ET, by ETF Channel

In a study of analyst recommendations at the major brokerages, for the underlying components of ...

PJP, LLY, DEPO, BAX: ETF Outflow Alert
Tue, Apr 15, 11:24 AM ET, by ETF Channel

Symbols mentioned in this story: PJP, LLY, DEPO, BAX Exchange traded funds (ETFs) trade just ...

DBP Crosses Below Key Moving Average Level
Tue, Apr 15, 11:24 AM ET, by ETF Channel

In trading on Tuesday, shares of the PowerShares DB Precious Metals Fund ETF (DBP) crossed ...

PowerShares Senior Loan Portfolio (BKLN) Enters Oversold Territory
Tue, Apr 15, 11:14 AM ET, by ETF Channel

In trading on Tuesday, shares of the PowerShares Senior Loan Portfolio ETF (BKLN) entered into ...

Shares of XHB Now Oversold
Tue, Apr 15, 11:14 AM ET, by ETF Channel

In trading on Tuesday, shares of the SPDR S&P Homebuilders ETF (XHB) entered into oversold ...

Old Republic International Corp. a Top Ranked SAFE Dividend Stock With 4.6% Yield (ORI)
Tue, Apr 15, 9:24 AM ET, by ETF Channel

Old Republic International Corp. (ORI) has been named to the Dividend Channel ''S.A.F.E. ...

MUAE Crosses Below Key Moving Average Level
Mon, Apr 14, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the iShares 2016 AMT-Free Muni Term ETF (MUAE) crossed ...

First Trust NYSE Arca Biotechnology Index Fund (FBT) Shares Cross Below 200 DMA
Mon, Apr 14, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the First Trust NYSE Arca Biotechnology Index Fund ETF ...

VRD Crosses Above Key Moving Average Level
Mon, Apr 14, 4:14 PM ET, by ETF Channel

In trading on Monday, shares of the SPDR Nuveen S&P VRDO Municipal Bond ETF (VRD) ...

iShares U.S. Home Construction Getting Very Oversold
Mon, Apr 14, 3:54 PM ET, by ETF Channel

In trading on Monday, shares of the iShares U.S. Home Construction ETF (ITB) entered into ...

Related videos | all videos »
  More articles:  1 2 3 4 5 6 7 next »

ABOUT US »   ADVERTISE »   CONTACT US »   TERMS OF USE & PRIVACY POLICY »

ETF Laggards Struggling In 2012 | Self Directed Investor | Copyright © 2008 - 2014, All Rights Reserved

Any ideas and opinions presented in Self Directed Investor content are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All site visitors agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.

SDI is associated with: ValueForum.com -- a subscription-based online social networking forum of over 1000 individual investors. | MarketNewsVideo.com -- videos appearing on SDI are produced by Market News Video. | TickerTech.com -- stock quote content appearing on SDI is at least 20 minutes delayed and is powered by Ticker Technologies. | GoldStockStrategist.com -- Edited by Scott V. Nystrom, PhD, Gold Stock Strategist provides analysis on gold mining companies.