This could of course be a ploy on the part of young red-blooded finance majors across college campuses to justify studying the Swimsuit edition, but the originators of the indicator, Bespoke, argue otherwise.

Bespoke has noted that since 1978, an American has now appeared on the cover of the annual Sports Illustrated Swimsuit Issue in 18 different years.  The average total return of the S&P 500 has been a gain of 14.3% with positive returns 88.2% of the time.  Of the 17 years where no American appeared on the cover, the S&P 500 has averaged a total return of 10.8% and generated a lower percentage of positive returns.  One must note that the S&P 500′s 38.5% decline in 2008 when an American appeared on the cover was a doozy of an outlier!

This year, an American by the name of Kate Upton appears on the cover. If you care to follow along with the indicator, there are several ETFs that track the S&P 500. SPY is a market weighted ETF which holds a higher percentage of the stocks that have a higher market cap. RSP is an ETF that has an equal weighting style that gives each of holdings an equal percentage.

Keep in mind that there are other Exchange Traded Products on the market that offer exposure to the S&P 500 and each has their unique perspectives and characteristics.  It is important to determine if they are appropriate for your personal portfolio.

Disclosure: Worth Financial Group Representatives may or may not hold a position in Equities and/or Exchange Traded Products mentioned.

Contact us if you would like to discuss your financial goals with a Worth Financial Group Representative.

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This is a post from Worth Financial Group: Sports Illustrated Swimsuit Issue and ETFs

Today although the three standard technology names still hold a spot in the top ten holdings of the popular technology ETF, XLK – the technology select sector SPDR profile, other names such as Apple and Google are also in the spotlight.  Also included are smart phone providers such as AT&T and Verizon. VGT and IYW are also technology ETFs and have similar lists for their top ten holdings.

So what will you use in ten years that you don’t currently need or want?

Keep in mind that there are other Exchange Traded Products on the market that offer exposure to Technology and each has their unique perspectives and characteristics.  It is important to determine if they are appropriate for your personal portfolio.

Disclosure: Worth Financial Group Representatives may or may not hold a position in Equities and/or Exchange Traded Products mentioned.

Contact us if you would like to discuss your financial goals with a Worth Financial Group Representative.

Worth Financial Group – “Financial Advice Worth Talking About!”

This is a post from Worth Financial Group: The Only Constant Is Change In Technology ETFs

Turkey’s economy is growing although they are not immune to turmoil within their own country as well as beyond their boundaries. Tourism is also on the rise and Standard & Poor’s raised their rating on Turkey.

One item that is interesting to note is that the Exchange Traded Fund that tracks the overall Emerging Markets sector, EEM increased on the price chart right up to the 200 moving day average and failed to break through it toward the end of January, 2012. TUR is approaching its 200 day moving average and it remains to be seen whether it turns around and runs like a chicken or soars like an eagle!

Keep in mind that there are other Exchange Traded Products on the market that offer exposure to Turkey and the emerging markets and each has their unique perspectives and characteristics.  It is important to determine if they are appropriate for your personal portfolio.

Disclosure: Worth Financial Group Representatives may or may not hold a position in Equities and/or Exchange Traded Products mentioned.

Contact us if you would like to discuss your financial goals with a Worth Financial Group Representative.

Worth Financial Group – “Financial Advice Worth Talking About!”

This is a post from Worth Financial Group: Will Investors Be Chicken To Look At Turkey?

Jim Clark, President of Worth Financial Group, discussed the portfolio management techniques used by Worth when adding and managing foreign Exchange Traded Funds.

EWG, the MSCI Germany Index Fund Profile was shown as an example of the challenges and advantages that can occur when adding ETFs that represent markets that are open when the United States markets are closed.

Jim pointed out that financial advisors need to look at the holdings within the ETF and potential headline risks when evaluating the suitability for each Exchange Traded Fund.

Keep in mind that there are other Exchange Traded Products on the market that offer exposure to foreign markets and each has their unique perspectives and characteristics.  It is important to determine if they are appropriate for your personal portfolio.

Disclosure: Worth Financial Group Representatives may or may not hold a position in Equities and/or Exchange Traded Products mentioned.

Contact us if you would like to discuss your financial goals with a Worth Financial Group Representative.

Worth Financial Group – “Financial Advice Worth Talking About!”

This is a post from Worth Financial Group: The World’s Largest ETF Conference

Like macaroni and cheese, Target-Date Exchange Traded Funds should be an irresistible combination. These funds aim to marry the low costs of investing in ETFs with the set-it-and-forget-it ease of funds that shift to a more conservative mix of stocks and bonds as they approach their target dates. They utilize a set formula, known as a guide path, to change their stock-and-bond allocations over time. They charge annual expenses of 0.30% to 0.65% while the average target-date mutual fund charges around 1.27% according to a recent article in Kiplinger Magazine.

Putting cost aside, however, the ETFs are far Lifemore transparent than target-date mutual funds as the holdings are disclosed daily.   Don’t be surprised if target-date ETFs eventually wind up on more and more investment menus of retirement plans but before this macaroni and cheese moves from the cardboard box into Martha Stewart’s kitchen, they will have to overcome a very big problem.  So far the average daily volume for offerings of Target Date ETFs is less than 50,000 shares.

This is an issue that will have to be overcome before we see these funds move into the main stream as a lack of liquidity can potentially increase the spread between the Bid and the Ask and can potentially make entering and exiting the product more difficult. It is interesting to note that the target ETF that currently has the highest average daily volume is TZI which is a target fund for the year 2025.

Keep in mind that there are other Exchange Traded Products on the market that offer exposure to target retirement dates and each has their unique perspectives and characteristics.  It is important to determine if they are appropriate for your personal portfolio.

Disclosure: Worth Financial Group Representatives may or may not hold a position in Equities and/or Exchange Traded Products mentioned.

Contact us if you would like to discuss your financial goals with a Worth Financial Group Representative.

Worth Financial Group – “Financial Advice Worth Talking About!”

This is a post from Worth Financial Group: A Target ETF with a Moving Bulls Eye

EWZ, the iShares MSCI Brazil Index Fund seeks to provide investment results that correspond generally to the publicly traded securities in the Brazilian market. EWZ is frequently one of the highest volume ETFs and although it has increased in value since inception in July of 2000, according to the iShares Fact Sheet for EWZ, the return for 2011 as of December 31, 2011 is a negative 24.22%!

So how can an ETF that tracks one of the fastest growing markets have a negative return? The answer may lie in the holdings. Again, according to the iShares Fact Sheet, 24% of the fund is in the financial sector which, as we know, has had a rough path in the last few years. Another 20% is in the energy sector and 23% is in materials. Only 11% is in the consumer staples sector. Many of the coveted items that the locals are buying are actually made by companies that are located in other countries so they cannot be in the ETF’s holdings.

Keep in mind that there are other Exchange Traded Products on the market that offer exposure and inverse exposure to Brazil and each have their unique perspectives and characteristics.  It is important to determine if they are appropriate for your personal portfolio.

Disclosure: Worth Financial Group Representatives may or may not hold a position in Equities and/or Exchange Traded Products mentioned.

Contact us if you would like to discuss your financial goals with a Worth Financial Group Representative.

Worth Financial Group – “Financial Advice Worth Talking About!”

This is a post from Worth Financial Group: Will there be a Carnival in the Brazil ETF?

The CBOE Volatility Index® (VIX®) is a key measure of market expectations of near-term volatility conveyed by S&P 500 stock index option prices. (source: CBOE) It is known by many as the “fear gauge” or “fear indicator”. ETNs that track the VIX are designed to track the indicator as it rises and falls. As the VIX rises, Barclay’s iPath VXX tracks this index: S&P 500 VIX Short-Term Futures Index Total Return. In other words, VXX is theoretically intended to increase in value as the VIX rises or as investor sentiment tends to be more fearful or usually as the market declines. As the VIX falls, XXV tracks this Index: S&P 500 VIX Short-Term Futures Index Excess Return (-100%). This is designed to be the inverse of the VXX or will potentially rise as the VIX falls. This is frequently when the overall market is rising and fear subsides.

Understanding the VIX, the ETNs that track them and how they relate to the overall market can be confusing. Here is another analogy that might help: Imagine going into a movie theatre. You are “hoping” that the movie will be good and the line to buy the tickets is usually calm and orderly. That is often the case when the market is rising as there can be lots of hope and low “volatility”. Now imagine you are in the movie and someone yells “fire” at the top of their lungs. There can be “fear”, panic, chaos and “volatility” as everyone rushes for the exit. In the market, fast paced selling can also increase “volatility” as well as markets that are up one day and down the next.

Keep in mind that there are other Exchange Traded Products on the market that offer exposure and inverse exposure to the Volatility Index and each have their unique perspectives and characteristics.  It is important to determine if they are appropriate for your personal portfolio.

Disclosure: Worth Financial Group Representatives may or may not hold a position in Equities and/or Exchange Traded Products mentioned.

Contact us if you would like to discuss your financial goals with a Worth Financial Group Representative.

Worth Financial Group – “Financial Advice Worth Talking About!”

This is a post from Worth Financial Group: Riding a Roller Coaster with Exchange Traded Products

Mini Vans full of hungry mouths chanting for a Happy Meal may argue that McDonald’s belongs in the Consumer Staples sector rather than discretionary, but XLY, the Consumer Discretionary Select Sector SPDR Profile, has held the highest percentage of McDonald’s. Other holdings that have been in XLY include Amazon, Disney, and Home Depot although the holdings in the ETF are subject to change.

For those of you wondering who gets the award for the worst performing Dow stock of 2011, the honor goes to Bank of America whose recent stock price is around the same price as a Big Mac!

Sounds like someone could use a Happy Meal!

Keep in mind that there are other Exchange Traded Products on the market that offer exposure and inverse exposure to the consumer sector and each have their unique perspectives and characteristics.  It is important to determine if they are appropriate for your personal portfolio.

Contact us if you would like to discuss your financial goals with a Worth Financial Group Representative.

Worth Financial Group – “Financial Advice Worth Talking About!”

This is a post from Worth Financial Group: An Exchange Traded Fund Happy Meal

This is a post from Worth Financial Group: Happy Holidays!

·     The creation and redemption process is limited to institutional investors that qualify as Authorized Participants (APs)
·     APs deal with the ETFs in large specified quantities called “ creation units” and “redemption” units.
·     New ETF shares are created when the AP provides the fund with a specific basket of securities (the holdings in the index that is tracked), and the fund in turn transfers a corresponding number of shares (a creation unit) to the AP. Those shares are then sold on the secondary market and trade on an exchange like a stock.
·     Shares are redeemed when the AP provides the ETF with a specific number of ETF shares (a redemption unit), and receive from the ETF the corresponding basket of securities.
Source: American Association of Individual Investors

Contact us if you would like to discuss your financial goals with a Worth Financial Group Representative.

Worth Financial Group – “Financial Advice Worth Talking About!”

This is a post from Worth Financial Group: Exchange Traded Funds 101