logo
  Join        Login             Stock Quote

Tactical ETF Review: 2.11.2013

 February 11, 2013 09:40 AM


The punditocracy is calling it the great rotation—selling bonds and buying stocks in 2013. Just as this buzz-phrase went viral, so did the warnings that the trend isn't long for this world. Perhaps, but the momentum in favor of equities is certainly transparent so far in 2013. Reviewing our set of ETF proxies for the major asset classes reflects handsome gains for stocks and varying degrees of the opposite for bonds. Actually, let's clarify: stocks in developed markets have popped recently. Equities in so-called emerging realms are slightly in the red for the year so far through February 8, in US dollar terms.

[Related -Initial Jobless Claims Rose Unexpectedly]

In any case, beware the great rotation, we're told. The notion of a new secular bull market in stocks is a scam, the pessimists say. They may be right, or not. But the rotation, ever evolving, great or small, rolls on. Exactly how it rolls is debatable in real time, but there's a fair degree of confidence that it will persist overall. A trivial observation? Hardly. As it turns out, that bit of insight is quite valuable, as rebalancing's record suggests. What's the catch? Broad diversification across asset classes, and owning an evolving set of winners and losers. It sounds like a losing proposition, of course. But only on an ex ante basis. Ex post, however, is usually another story.

[Related -All Quiet on the Record High Front]


US STOCKS • Vanguard Total Market (VTI) • Benchmark: MSCI US Broad Market Index





FOREIGN DEVELOPED MARKET STOCKS • Vanguard Europe Pacific (VEA) • Benchmark: MSCI EAFE


EMERGING MARKET STOCKS • Vanguard Emerging Markets (VWO) • Benchmark: FTSE Emerging Market


US BONDS • Vanguard Total Bond Market (BND) • Benchmark: Barclays US Aggregate


INFLATION-INDEXED US TREASURIES • iShares Barclays TIPS Bond (TIP) • Benchmark: Barclays US TIPS


US HIGH YIELD BONDS • SPDR Barclays High Yield Bond (JNK) • Benchmark: Barclays High Yield Very Liquid


COMMODITIES • iPath Dow Jones-UBS Commodity (DJP) • Benchmark: DJ-UBS Commodity


US REAL ESTATE INVESTMENT TRUSTS • Vanguard REIT (VNQ) • Benchmark: MSCI US REIT


FOREIGN DEVELOPED MARKET GOVERNMENT BONDS • SPDR Barclays Int'l Treasury (BWX)
Benchmark: Barclays Global Treasury ex-US Capped


EMERGING MARKET GOVERNMENT BONDS • Van Eck Market Vectors Emg Mkt Local Currency Bond (EMLC)
Benchmark: J.P. Morgan GBI-EMG Core


FOREIGN GOVERNMENT INFLATION-LINKED BONDS • SPDR DB Int'l Inflation-Protected Bond (WIP) •
Benchmark: DB Global Gov't ex-US Inflation-Linked Bond Capped


FOREIGN CORPORATE BONDS • PowerShares Int'l Corp. Bond (PICB) • Benchmark: S&P Int'l Corp. Bond


FOREIGN REITS • Vanguard Global ex-U.S. Real Estate (VNQI) • Benchmark: S&P Global ex-US Property


FOREIGN HIGH YIELD BONDS • iShares Global ex-US$ High Yield Corp Bond (HYXU) • Benchmark: Markit iBoxx Global Devlp'd Mkts ex-US High Yield

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageInitial Jobless Claims Rose Unexpectedly

Claims unexpectedly rose in the latest report through last weekend to breach 300,000 for the first time read on...

article imageAll Quiet on the Record High Front

What can we glean from the media’s lack of attention to the market’s recent record read on...

article imageThe Chip Maker Short Sellers Should Be Watching

Investing in semiconductor stocks is always tricky. Industry cycles can lead to bumps in the road for the read on...

article imageChicago Fed: US Economic Growth Slowed In October

The pace of US growth slowed more than expected in October, according to this morning’s update of the read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.