THE BOOM IN EXCHANGE-TRADED FUNDS IS reshaping the investment landscape by challenging traditional mutual funds and giving investors, large and small, the opportunity to get exposure to virtually every major market and asset class in the world—and many minor ones as well.
ETFs are passive mutual funds and trusts that trade like stocks on major exchanges; they can be bought or sold anytime during the trading day. They held a record $940 billion of assets in the U.S. on Oct. 31, up from $794 billion at year-end 2009, and are on track to hit $1 trillion around the end of 2010.
Net inflows totaled $89 billion in the first 10 months of the year, as investors poured money into ETFs focused on developing-market stocks, bonds and precious metals. Exchange-traded funds are gaining market share at the expense of traditional mutual funds, which (excluding money-market funds) hold about $8 trillion of assets.
The benefits of exchange-traded funds include low fees, relative to mutual funds, transparency of investments and tax efficiency because of low portfolio turnover. These funds provide exposure to specific indexes, like the Standard & Poor's 500 or Russell 2000, as well as such investments as gold, natural gas, junk bonds, inflation-protected Treasuries and master limited partnerships. "A lot of investors are realizing the benefits of diversification, and ETFs allow broad diversification at low cost," says Gus Sauter, chief investment officer at Vanguard. It's understandable that investors favor broader portfolios because a U.S-focused equity strategy hasn't done well in the past 10 years, in which the S&P 500 has essentially been flat. As global economic power shifts away from developed markets, investors want exposure to rising countries like China, India and Brazil.
Active traders are heavily involved with exchange-traded funds. Many day traders now play ETFs, including volatile ones that move by double and triple the daily change in their underlying indexes. Popular day-trading vehicles include the Direxion Daily Financial Bull 3x Shares (FAS) and Direxion Daily Financial Bear 3x Shares (FAZ) that offer triple leverage and triple inverse leverage to the financial component of the Russell 1000 index.
The ETF business is highly concentrated, with the 10 largest funds—out of a universe of about 1,000—accounting for 40% of all assets and three just issuers, BlackRock's (BLK) iShares, State Street Global Advisors and Vanguard, controlling 82% of industry assets. Trading in ETFs averages $62 billion a day and accounts for about 25% of the volume on U.S. exchanges.
ETFS ARE A GREAT democratizing force. With a click of a mouse, individuals can get access to stocks in virtually every corner of the world and to assets like commodities that can be cumbersome to buy and largely have been limited to institutions.
Try purchasing 100,000 ounces of silver and then finding a safe place to store it. But it's relatively easy to purchase 100,000 shares of the iShares Silver Trust (SLV, each of whose shares equals one ounce of the metal), which has attracted $9 billion since its introduction in 2006. The largest commodity ETF, the SPDR Gold Trust (GLD), now holds $60 billion of the metal in London vaults. Its popularity has played a role in gold's 25% rise this year, to $1,365 an ounce.
A Booming Sector
More than 1,000 exchange-traded funds exist, covering everything from emerging-market stocks to energy to U.S. blue chips and Treasury bonds. Through October, ETFs pulled in a net $89 billion in assets this year.
[Roundup chart]
Each GLD share, now at $134, equals 1/10th of an ounce of gold, minus a management fee of 0.40% a year. That modest fee has been well worth paying, given the doubling in gold's price since 2008.
Critics say that an influx of ETF money may be contributing to a bubble in some commodities like silver, which has jumped 20%, to $26 an ounce, since Sept. 30.
Investors have been focusing on commodities and other hard assets to play growing demand in the developing world and amid fear that the Federal Reserve's controversial plan to print money via the purchase of $600 billion of U.S. Treasury securities over the coming months will debase the dollar and spur inflation. Cotton has doubled in price since midsummer and a new cotton exchange-traded note, the iPath Dow Jones-UBS Cotton (BAL) is up by a similar amount.
Many real users of commodities contend that investment demand has distorted markets. Gold jewelry demand, for instance, has fallen as the metal's price has shot up. There is a rush to roll out the first physical U.S. copper ETF (see ETF Focus), whose launch could further propel prices of that key industrial metal, already up 20% this year, to $4 a pound. That said, the presence of an ETF on natural gas, U.S. Natural Gas (UNG), hasn't helped gas prices, which are down 35% this year to $3.70 per million BTUs.
The Biggest ETFs
The long rally in gold has made GLD the second-largest ETF.
Assets Recent YTD
Fund/Ticker (bil) Price Total Return*
SPDR S&P 500/SPY $80.6 $121.64 11%
SPDR Gold Trust/GLD 55.8 137.66 28
iShares MSCI Emerg Mkts/EEM 48.0 47.56 16
Vanguard Emerging Markets/VWO 41.0 48.36 19
iShares MSCI EAFE/EFA 36.2 57.92 8
PowerShares QQQ Trust/QQQQ 23.2 53.39 18
iShares S&P 500/IVV 23.1 122.05 11
iShares Barclays TIPS Bond/TIP 20.7 110.92 9
Vanguard Total Stock Market/VTI 15.4 62.47 13
iShares iBoxx $ Invt Grade Corp/LQD 14.5 111.23 12
Assets as of Oct. 31. *Total return as of Nov. 11.
Sources: BlackRock; Bloomberg
Discount and full-service brokers want to capitalize on the ETF boom. Financial advisors who once picked stocks for clients and later selected mutual funds have morphed into asset allocators, and ETFs are an easy and low-cost way to get diversification. The annual expenses on the average one are around 0.50%—one-half to one-third the fees of many mutual funds—and many ETFs charge 0.10% or less.
"There is no better way for individuals to build diversified investment portfolios. Every asset class is available at rock-bottom costs," says Charles Schwab, founder and chairman of Charles Schwab (SCHW).
Schwab has made a major push into ETFs; its clients now hold $100 billion worth of them. The brokerage firm offers managed ETF portfolios, tailored to individual investment goals and risk tolerance, for investors willing to put up a minimum of $100,000. The fee is 0.75% annually for accounts up to $500,000, and lower for levels above that. Overall, the average total yearly fee—including the portion that pays for ETF expenses—is reasonable, at close to 1%.
The Most Traded ETFs
Emerging markets' strength has boosted EEM's popularity.
Assets Average Daily Volume
Fund/Ticker (bil) (bil) ('000 Shr)
SPDR S&P 500/SPY $80.6 $20.5 175,141
iShares Russell 2000/IWM 12.8 3.6 51,638
PowerShares QQQ Trust/QQQQ 23.2 3.5 70,081
iShares MSCI Emerg Markets/EEM 48.0 2.7 57,810
SPDR Gold Trust/GLD 55.8 2.3 17,394
iShares MSCI Brazil Index/EWZ 11.8 1.2 15,923
Financial Select Sector SPDR/XLF 6.0 1.1 77,958
iShares MSCI EAFE Index/EFA 36.2 0.9 15,976
iShares FTSE/Xinhua China 25/FXI 8.5 0.8 18,486
ProShares UltraShort S&P 500/SDS 3.0 0.8 29,627
All data through Oct. 31.
Sources: BlackRock; Bloomberg
Schwab also has rolled out its own ETFs, which have attracted $2 billion in assets and which its customers can trade commission-free. Fidelity also lets clients trade certain ETFs without paying a commission, and TD Ameritrade (AMTD) allows free trades on some 100 ETFs.
One obstacle to growth is unfamiliarity. "If you asked eight out of 10 people, they probably wouldn't know what ETF stands for," says Peter Crawford, a senior vice president at Schwab's client group. Just 17% of Schwab's retail clients now own exchange-traded funds.
AMONG THE KEY differences between mutual funds and ETFS are that mutual funds can only be traded once a day, while exchange-traded funds can be bought or sold whenever exchanges are open. Most mutual funds are actively managed, while virtually all ETFs are passive. Actively managed ETFs probably will remain scarce because government regulators appear loath to approve them. Active managers are reluctant to disclose their holdings daily, partly for competitive reasons. ETFs, in contrast, provide such disclosure.
How do exchange-traded funds add assets? When investors buy shares, the ultimate sellers are designated market makers. When these market makers see their inventories depleted, they create new shares by purchasing the underlying investments and then delivering them to the ETF manager for new shares. Likewise, heavy selling of exchange-traded funds prompts market makers to liquidate the underlying investments, extinguishing shares.
The most actively traded ETF is the original, the SPDR S&P 500 (SPY), which turns 18 years old in January. Others include the iShares Russell 2000 (IWM), which invests in the popular small-cap index; the PowerShares QQQ Trust (QQQQ), which buys stocks in the Apple-heavy Nasdaq 100 index, and the iShares MSCI Emerging Markets (EEM), which holds stocks throughout the developing world.
Who Oversees the Most Assets
Although the industry is expanding, BlackRock (through iShares), State Street and Vanguard manage 82% of the assets in ETFs.
2010
Assets No. Of Inflows
Provider Total (bil) % Total ETFs (bil)
iShares $426.7 45.4% 218 $24.5
State St. Global 213.5 22.7 93 7.3
Vanguard
135.0
14.4 62 32.1
PowerShares
41.7
4.4 117 4.8
ProShares 24.4 2.6 111 4.0
Van Eck Associates 17.3 1.8 29 2.4
Deutsche Bank 11.5 1.2 36 -2.7
Bank of New York 10.8 1.2 1 1.2
WisdomTree 8.9 0.9 44 2.1
Barclays (iPath) 8.3 0.9 38 3.3
All data through Oct. 31. Sources: BlackRock; Bloomberg; National Stock Exchange
Hedge funds use ETFs to bet for or against different sectors in the stock market and as a hedge against their long holdings. Hedge funds, for instance, are believed to account for a high percentage of the heavily shorted SPDR S&P Retail (XRT) and the SPDR KBW Regional Banking ETF (KRE). A hedge fund might short the KRE as a bet against regional bank stocks or to hedge against a long position in bank stocks. Some investors think the emergence of ETFs has made it too easy for big investors to short shares, adding to market volatility.
But some of the largest ETFs aren't heavily traded because they're favored by buy-and-holders. These include several bond ETFs, including the iShares Barclays TIPS Bond Fund (TIP), which invests in inflation-protected Treasuries, and the iShares iBoxx Investment-Grade Corporate Bond (LQD), which holds high-grade corporate bonds.
Vanguard has made the biggest inroads in ETFs, gathering an industry-leading $32 billion in net assets this year, due in part to fees that average just 0.18% annually—a third of the industry average.
THE ISHARES BUSINESS is a great one. It generates operating-profit margins around 40% for BlackRock, which bought it from Barclays for $14 billion last year, when the British bank was reeling from the financial crisis. BlackRock doesn't need highly paid active managers to run the ETFs, and any incremental assets they attract have extremely high margins. The purchase was a shrewd diversification move by BlackRock boss Laurence Fink. A once-obscure bond manager, BlackRock now manages $3.4 trillion in assets and has a $30 billion stock-market value, tops among publicly traded U.S. asset managers.
Vanguard Emerging Markets (VWO) and the iShares MSCI Emerging Markets (EEM) are locked in a battle for supremacy over the hottest current investment group: developing-country stock funds. The iShares ETF is larger at $48 billion, but the Vanguard fund, at $40 billion, is rapidly gaining, thanks to lower fees—0.27% versus 0.72%— and a larger pool of investments that lets Vanguard more closely track the underlying MSCI Emerging Markets index. The Vanguard fund was up 14% through Oct. 31, almost exactly matching the index, while the iShares fund had gained 11.4%.
The most controversial ETFs are those designed to move two and three times the daily change in their underlying indexes by using leverage or financial derivatives. There are 290 leveraged and inverse ETFs, with $40 billion in assets, BlackRock says.
Other Notable ETFs
These all offer an easy way to play specific investments, markets or sectors.
Recent YTD Assets
Fund/Ticker Price Total Return (bil) Comment
iShares Silver Trust/SLV $27.11 62% $9.6 Biggest silver ETF, up 12% in past month
SPDR S&P Dividend/ SDY 51.75 15 4.4 Buys S&P dividend "aristocrats"
SPDR Barclays Capital High Yield Bond/JNK 40.44 13 6.3 Invests in U.S. junk bonds
iShares S&P National AMT-Free Muni/MUB 102.58 4 2.2 Buys U.S. municipal bonds
iPath S&P 500 VIX Short-Term Futures/VXX 45.43 -67 1.7 Offers play on depressed VIX index
Alerian MLP/AMLP 16.02 NA 0.4 Buys master limited partnerships
US Natural Gas Fund/UNG 5.67 -42 2.5 Play on battered gas market
ProShares UltraShort 20+Year Treasury/TBT 36.44 -27 5.4 Anti-Bernanke play on higher rates
Vanguard European/VGK 51.27 7 2.9 Buys European stocks, yields 4%
PowerShares DB Commodity/DBC 26.36 8 4.7 Offers broad commodity exposure
All data as of Nov. 11. NA=Not applicable. Source: Bloomberg
These funds have been criticized because over long periods, they often don't track the underlying indexes. That isn't because of an inherent flaw, but because of the effects of compounding often large daily movements.
As a result, the Financial Industry Regulatory Authority (Finra) said last year that "inverse and leveraged ETFs that reset daily typically are unsuitable for retail investors who plan to hold them for longer than one trading session, particularly in volatile markets." Investors seem to be heeding this advice, because the Direxion 3x financial stock funds have a combined $3 billion in assets, despite enormous daily trading volume averaging 45 million shares for the bullish fund (FAS) and 54 million for the bearish one (FAZ).
To take a simple example, if financial stocks rise 10% one day and fall 10% the next day, the index will drop 1%, to 99, from the original 100 level. A three times leveraged bullish fund would rise to 130 on the first day and then fall to 91 on the second, a 9% drop. The bearish fund would slip to 70 on the first day before rallying to 91 on the second, also producing a 9% decline.
Both the FAS and FAZ have been tough on investors this year and show the pitfalls of an extended investment in leveraged ETFs. The FAS is down just 4%, while the FAZ has plunged 40% and is down 99% since early 2009. All the inverse double-leveraged sector ETFs on the S&P 500 are off sharply this year.
In a cover story at the start of 2009, Barron's argued long-term Treasury yields, then around 2.70%, probably would go higher. That's been the case, with the 30-year T-bond, now yielding 4.25%. The ProShares UltraShort 20-Year Treasury (TBT), however, is down about 10% since then, to 35. It offers the inverse of twice the daily change in the price of long-term Treasuries.
Despite its drawbacks, the TBT is one of the few ways for individuals to bet on higher long-term Treasury rates. The rates already have risen 0.25 percentage point this month and could approach 5% if the Fed's controversial second quantitative easing program boosts inflation and a rout ensues in the bond market. It isn't easy for individuals to short Treasuries. Another alternative is to short the iShares Barclays Capital 20+ Year Treasury Bond ETF (TLT).
Dividend-oriented equity ETFs have been popular this year, including the SPDR S&P Dividend ETF (SDY), which buys S&P's dividend "aristocrats" with a history of 25 years of payout increases, and the iShares DJ Select Dividend Index Fund (DVY), which tracks the Dow Jones dividend index. The SDY's top three holdings are CenturyLink (CTL), Pitney Bowes (PBI) and Cincinnati Financial (CINF), while the DVY's are Lorillard (LO), CenturyLink (CTL) and Chevron (CVX).
It's easy to get low-cost bond exposure via ETFs, including the SPDR Barclays Capital High-Yield Bond (JNK), which now yields 8.5%, and the iShares S&P National AMT-Free Muni (MUB), which yields 3.5%.
Master limited partnerships focused on transporting energy have done very well in the past two years because of investors' hunger for dividends. The Alerian MLP index is up 27% this year, after gaining 62% in 2009. One of the problems with MLPs is that investors get K-1 dividend tax forms—which are more complicated to deal with at tax time than 1099s. The Alerian MLP ETF (AMLP), however, offers 1099s to holders, along with the diversification of 25 MLPs.
The PowerShares DB Commodity (DBC) is a broad commodity ETF with a roughly 50% weighting in energy, while the U.S. Natural Gas fund offers a direct play on natural gas. The UNG is off 45% this year and was down 87% from its 2007 inception through Sept. 30, thanks to weakness in gas prices.
COMMODITY ETFS like the UNG that use futures can be hurt by contango, a term that simply means that future prices are higher than current or spot prices. Contango forces an ETF to roll its spot contracts into higher-priced futures. The UNG has badly trailed gas prices since its creation. That said, it offers a play on the depressed gas market. Prices are down 35% this year, to $3.70 per million BTUs, and are trading at a historically low valuation, relative to oil, now at $86 a barrel. Some investors prefer ETFs that hold physical assets, although that can be tough for some commodities, owing to storage constraints.
Investors can get ETF information from many Websites, including cefconnect.com, xtf.com, etfdb.com and etftrends.com, as well as Morningstar, Yahoo! and Marketwatch.com.
Regardless of how they do it, investors should learn more about ETFs, because they're here to stay—and are growing more important every day.
Saturday, November 20, 2010
All you wanted to know about ETFs plus the MAGIC they provide....
Parag Kar invests regularly in exchange-traded funds (ETFs). He is comfortable investing in them because of their simplicity and low costs. He has started SIPs (systematic investment plans) in Nifty ETF and gold ETF. “It gives me the option to invest over a long period without bothering about market conditions,” says the Delhi-based investor, who works in a multinational company. Chennai-based SG Chellappa, who recently retired and manages his family’s portfolio, started investing in gold ETFs a year ago. “It is difficult to store physical gold and there is no guarantee of purity, hence, I find ETFs a better way to invest,” says Chellappa.
And if fund managers are to be believed, the trend is indeed catching up. “ETFs have recorded a growth of 65% in their AUM during the past one year,” says Sanjiv Shah, executive director, Benchmark Mutual fund, a mutual fund house that specialises in index-based schemes. The first ETF was launched by Benchmark in 2002 and since then they have come a long way. Today, ETFs manage Rs 4,787 crore, compared with Rs 3,000 crore in April 2008. While gold is the most popular ETF traded, there are several ETFs such as Bank ETF, and Nifty ETF which are catching investor’s fancy. So, what is driving investors towards ETFs?
Popularity Ratings...: In India, investors have just started warming up to ETFs in the past couple of years. The rising price of gold has played a major role in increasing the popularity of gold ETFs. In fact, this is why gold has become the most popular ETF option for investors. As prices continue to rise without a breather, investors have realised that holding gold in its paper avatar is not only convenient but is also a more cost-effective way of owning the precious metal. Besides Benchmark Mutual Fund, there are several other asset management companies such as Quantum, Kotak, HDFC, ICICI Prudential that offer gold funds.
“With a small amount of Rs 2,000, you can buy a gram of gold. There is no storage problem nor is there a doubt about purity, so this is the best method to invest in the yellow metal,” says Alok Churiwala, director, Churiwala Securities, a Mumbai-based brokerage house.
In addition, there are ETFs based on Nifty, Bank Index, Infra Index that are also gaining popularity. “In the US, six out of the 10 top traded counters are ETFs. Demand for ETFs is increasing and there are several more ETFs which are likely to be launched during the next one year,” adds Shah.
Benchmark has already filed documents with the regulator and is waiting approval for ETFs on energy and pharma. On the fixed income side, the fund house has filed for Gilt ETF. Motilal Oswal AMC, which runs the M50ETF, has filed for a midcap ETF with the regulator. “M50 found favour with investors since it gives weightage to stocks based on their valuations and performance rather than market capitalisation,” says Nitin Rakesh, MD&CEO, Motilal Oswal AMC.
...And The Advantages: There are several advantages of investing through ETFs. First is the reach. Exchange terminals are located across the country. You can buy the units on a real-time basis when the stock markets are open. “With NSE terminal location across the nook and corner of the country, it is very easy to reach investors,” adds Alok Churiwala.
Disclosure I am long at least 8 to 12 etfs at any given time.
And if fund managers are to be believed, the trend is indeed catching up. “ETFs have recorded a growth of 65% in their AUM during the past one year,” says Sanjiv Shah, executive director, Benchmark Mutual fund, a mutual fund house that specialises in index-based schemes. The first ETF was launched by Benchmark in 2002 and since then they have come a long way. Today, ETFs manage Rs 4,787 crore, compared with Rs 3,000 crore in April 2008. While gold is the most popular ETF traded, there are several ETFs such as Bank ETF, and Nifty ETF which are catching investor’s fancy. So, what is driving investors towards ETFs?
Popularity Ratings...: In India, investors have just started warming up to ETFs in the past couple of years. The rising price of gold has played a major role in increasing the popularity of gold ETFs. In fact, this is why gold has become the most popular ETF option for investors. As prices continue to rise without a breather, investors have realised that holding gold in its paper avatar is not only convenient but is also a more cost-effective way of owning the precious metal. Besides Benchmark Mutual Fund, there are several other asset management companies such as Quantum, Kotak, HDFC, ICICI Prudential that offer gold funds.
“With a small amount of Rs 2,000, you can buy a gram of gold. There is no storage problem nor is there a doubt about purity, so this is the best method to invest in the yellow metal,” says Alok Churiwala, director, Churiwala Securities, a Mumbai-based brokerage house.
In addition, there are ETFs based on Nifty, Bank Index, Infra Index that are also gaining popularity. “In the US, six out of the 10 top traded counters are ETFs. Demand for ETFs is increasing and there are several more ETFs which are likely to be launched during the next one year,” adds Shah.
Benchmark has already filed documents with the regulator and is waiting approval for ETFs on energy and pharma. On the fixed income side, the fund house has filed for Gilt ETF. Motilal Oswal AMC, which runs the M50ETF, has filed for a midcap ETF with the regulator. “M50 found favour with investors since it gives weightage to stocks based on their valuations and performance rather than market capitalisation,” says Nitin Rakesh, MD&CEO, Motilal Oswal AMC.
...And The Advantages: There are several advantages of investing through ETFs. First is the reach. Exchange terminals are located across the country. You can buy the units on a real-time basis when the stock markets are open. “With NSE terminal location across the nook and corner of the country, it is very easy to reach investors,” adds Alok Churiwala.
Disclosure I am long at least 8 to 12 etfs at any given time.
Sunday, November 14, 2010
6 Reasons to Consider Financial ETFs
The broader market has been performing well in recent months, with the S&P 500 experiencing a nice 11% gain from the beginning of September, but financial stocks and related exchange traded funds (ETFs) have not caught on to the bullish trend.
Still, Jeff Reeves for TheStreet argues that financials could make a big turnaround in the next few months, offering seven reasons why big banks may soon be a favorable investment opportunity, including:
* More Dividends. The Federal Reserve says healthy banks may begin to raise dividend payouts for the first time since the financial downturn.
* Earnings. Third-quarter profits surged for many large banking firms as banks saw improved credit quality, reduced bad debts and increased checking accounts.
* Credit Markets. Improvements for the credit markets on both the consumer level and large business loans will translate to better earnings and fees from lending, fewer bad loan write downs and smaller loss reserves. Don’t forget the Fed’s stimulus plan, which will push yields down even further.
* Better Balances. As the Fed eventually increases rates, Banks will able to increase their capital base and bring in conservative savers who are willing to earn 3% a year on a CD or high-yield savings account, which will help stabilize the banking industry, along with their share prices.
* They’re Getting Conservative. Regulation has returned the get-rich-quick mindset of banks to a more conservative one again, writes Alex Brummer for Mail Online. It will be up to the more cautious banks that will be able to navigate the treacherous markets over the long-term.
* Trend Lines. Many financial ETFs are above their 200-day moving average, though generally they’re a single-digit percentage above. According to our trend following strategy, this is a buy signal if it’s a sector you want to be in.
For more information on the financial sector, visit our financial category. In the last six months, a number of financial ETFs are in the negative, so this sector still has a few kinks to work out. The top-performer is PowerShares Financial Preferred (NYSEArca: PGF), which is up 7.6% in the last six months. International financials have fared well, too; SPDR S&P International Financial (NYSEArca: IPF) is up 4.8% in the same time period.
If you’re bearish or bullish on the sector, take a took at Direxion Daily Financial Bull 3x Shares (NYSEArca: FAS) and Direxion Daily Financial Bear 3x Shares (NYSEArca: FAZ).
Still, Jeff Reeves for TheStreet argues that financials could make a big turnaround in the next few months, offering seven reasons why big banks may soon be a favorable investment opportunity, including:
* More Dividends. The Federal Reserve says healthy banks may begin to raise dividend payouts for the first time since the financial downturn.
* Earnings. Third-quarter profits surged for many large banking firms as banks saw improved credit quality, reduced bad debts and increased checking accounts.
* Credit Markets. Improvements for the credit markets on both the consumer level and large business loans will translate to better earnings and fees from lending, fewer bad loan write downs and smaller loss reserves. Don’t forget the Fed’s stimulus plan, which will push yields down even further.
* Better Balances. As the Fed eventually increases rates, Banks will able to increase their capital base and bring in conservative savers who are willing to earn 3% a year on a CD or high-yield savings account, which will help stabilize the banking industry, along with their share prices.
* They’re Getting Conservative. Regulation has returned the get-rich-quick mindset of banks to a more conservative one again, writes Alex Brummer for Mail Online. It will be up to the more cautious banks that will be able to navigate the treacherous markets over the long-term.
* Trend Lines. Many financial ETFs are above their 200-day moving average, though generally they’re a single-digit percentage above. According to our trend following strategy, this is a buy signal if it’s a sector you want to be in.
For more information on the financial sector, visit our financial category. In the last six months, a number of financial ETFs are in the negative, so this sector still has a few kinks to work out. The top-performer is PowerShares Financial Preferred (NYSEArca: PGF), which is up 7.6% in the last six months. International financials have fared well, too; SPDR S&P International Financial (NYSEArca: IPF) is up 4.8% in the same time period.
If you’re bearish or bullish on the sector, take a took at Direxion Daily Financial Bull 3x Shares (NYSEArca: FAS) and Direxion Daily Financial Bear 3x Shares (NYSEArca: FAZ).
Saturday, November 13, 2010
This weeks hot buys TPZ, IID and 2 more to sweet to say....
Well I spent the better part of the week hunting looking and examining my current holdings to determine what is to be done this week for my sharebuilder tuesday investing day. I am still using the $12.00 per month 12 trade plan so my trading fees run approx. $144.00 a year, which includes 144 buy chances at $1.00 per trade try to beat that with a stick.
So first I am taking a initial plunge into TPZ Tortoise Power n Energy Infrastructure. Currently has approx 7 million shares outstanding. Was created on 07/29/2009, with average daily volume of 1.25 million a day. Inception price was $20.00 per share with a NAV of $19.50 per share, today the price is $23.62 with a nav of $24.97. The thing the really knocked my socks off not the monthly dividend of 6.35% or 12.5 cents per month per share of stock owned, no not any of that it was the amazing fee of a mere .60 basis points oh my that is sweet. Go try and get a MLP (master limited partnership) for anywhere near that cost.
Securities of foreign companies includes securities issued by companies that are organized under the laws of, or with principal offices in, a country other than the United States, or whose principal securities trading markets are outside the United States. The Fund's investment advisor is ING Investments, LLC.
4th and final purchase for the 16th is the etf PFF, also adding $15.00 to this one too. Currently up 2.49% to date, iShares S&P U.S. Preferred Stock Index.
The investment seeks to track the price and yield performance, before fees and expenses, of the S&P U.S. Preferred Stock index. The fund invest at least 90% of assets in securities that comprise the index. The index measures the performance of a select group of preferred stocks listed on the NYSE, AMEX, or NASDAQ. It includes companies with a market capitalization over $100 million. The fund is nondiversified. Expense ratio is a mere .48 basis points.
So first I am taking a initial plunge into TPZ Tortoise Power n Energy Infrastructure. Currently has approx 7 million shares outstanding. Was created on 07/29/2009, with average daily volume of 1.25 million a day. Inception price was $20.00 per share with a NAV of $19.50 per share, today the price is $23.62 with a nav of $24.97. The thing the really knocked my socks off not the monthly dividend of 6.35% or 12.5 cents per month per share of stock owned, no not any of that it was the amazing fee of a mere .60 basis points oh my that is sweet. Go try and get a MLP (master limited partnership) for anywhere near that cost.
Top 10 Holdings (as of 10/31/10)
Percentage of
Holding(1) Investment Securities(2)
Kinder Morgan Management, LLC (equity) 8.6%
Enbridge Energy Management, L.L.C. (equity) 8.4%
Inergy, L.P. (equity) 3.8%
Midcontinent Express Pipeline LLC (fixed income) 3.3%
NRG Energy, Inc. (fixed income) 3.2%
PPL Capital Funding, Inc. (fixed income) 2.9%
TransCanada Pipelines Limited (fixed income) 2.9%
Source Gas LLC (fixed income) 2.8%
Energy Transfer Partners, L.P. (equity) 2.7%
Dominion Resources Inc (equity) 2.7%
ING International High Dividend Equity Income Fund (the Fund) is a non-diversified, closed-end management investment company. The Fund's primary investment objective is to seek current income and current gains, with a secondary objective of long-term capital appreciation. The Fund seeks to achieve its investment objectives by investing at least 80% of its managed assets in dividend-producing equity securities of foreign companies and/or derivatives linked to such securities or indices that include such securities, and by selling call options on selected international, regional or country equity indices or futures, and/or on foreign securities.Percentage of
Holding(1) Investment Securities(2)
Kinder Morgan Management, LLC (equity) 8.6%
Enbridge Energy Management, L.L.C. (equity) 8.4%
Inergy, L.P. (equity) 3.8%
Midcontinent Express Pipeline LLC (fixed income) 3.3%
NRG Energy, Inc. (fixed income) 3.2%
PPL Capital Funding, Inc. (fixed income) 2.9%
TransCanada Pipelines Limited (fixed income) 2.9%
Source Gas LLC (fixed income) 2.8%
Energy Transfer Partners, L.P. (equity) 2.7%
Dominion Resources Inc (equity) 2.7%
So I will buy a single share to get warmed up in this name and will buy more along da way as I seem fit. I truly enjoy recieving many dividends each month sure makes compounding real easy to see working.
Buy #2 CTL CenturyLink, Inc. adding $15 to my Current Holding. Up 24.12% on this holding.
CenturyLink, Inc., together with its subsidiaries, operates as an integrated communications company. The company provides a range of communications services, including local and long distance voice, wholesale network access, high-speed Internet access, other data services, and video services in the continental United States. Its services include local exchange and long distance voice telephone services, as well as enhanced voice services, such as call forwarding, conference calling, caller identification, selective call ringing, and call waiting; network access services; data services, including high-speed Internet access services, and data transmission services over special circuits and private lines; and fiber transport, competitive local exchange carrier, security monitoring services, other communications, and professional and business information services.
The company also offers other related services, such as leasing, selling, installing, and maintaining customer premise telecommunications equipment and wiring; provides billing and collection services to third parties; participates in the publication of local telephone directories; and provides printing, database management, direct mail services, and cable television services. In addition, the company provides network database services, as well as switched digital video services and wireless broadband Internet services. As of December 31, 2009, it operated approximately 7.0 million telephone access lines. The company was formerly known as CenturyTel, Inc. and changed its name to CenturyLink, Inc. in May 2010. CenturyLink, Inc. was founded in 1968 and is based in Monroe, Louisiana.
Buy #3 IID Ing Intl High Div Equity Inc. adding $15 to my Current Holding. Up 10.46% on this holding.
The Fund seeks current income with long term capital appreciation by investment in dividend producing securities or derivatives and through utilizing an options strategy.
Buy #2 CTL CenturyLink, Inc. adding $15 to my Current Holding. Up 24.12% on this holding.
CenturyLink, Inc., together with its subsidiaries, operates as an integrated communications company. The company provides a range of communications services, including local and long distance voice, wholesale network access, high-speed Internet access, other data services, and video services in the continental United States. Its services include local exchange and long distance voice telephone services, as well as enhanced voice services, such as call forwarding, conference calling, caller identification, selective call ringing, and call waiting; network access services; data services, including high-speed Internet access services, and data transmission services over special circuits and private lines; and fiber transport, competitive local exchange carrier, security monitoring services, other communications, and professional and business information services.
The company also offers other related services, such as leasing, selling, installing, and maintaining customer premise telecommunications equipment and wiring; provides billing and collection services to third parties; participates in the publication of local telephone directories; and provides printing, database management, direct mail services, and cable television services. In addition, the company provides network database services, as well as switched digital video services and wireless broadband Internet services. As of December 31, 2009, it operated approximately 7.0 million telephone access lines. The company was formerly known as CenturyTel, Inc. and changed its name to CenturyLink, Inc. in May 2010. CenturyLink, Inc. was founded in 1968 and is based in Monroe, Louisiana.
Buy #3 IID Ing Intl High Div Equity Inc. adding $15 to my Current Holding. Up 10.46% on this holding.
The Fund seeks current income with long term capital appreciation by investment in dividend producing securities or derivatives and through utilizing an options strategy.
|
Securities of foreign companies includes securities issued by companies that are organized under the laws of, or with principal offices in, a country other than the United States, or whose principal securities trading markets are outside the United States. The Fund's investment advisor is ING Investments, LLC.
4th and final purchase for the 16th is the etf PFF, also adding $15.00 to this one too. Currently up 2.49% to date, iShares S&P U.S. Preferred Stock Index.
The investment seeks to track the price and yield performance, before fees and expenses, of the S&P U.S. Preferred Stock index. The fund invest at least 90% of assets in securities that comprise the index. The index measures the performance of a select group of preferred stocks listed on the NYSE, AMEX, or NASDAQ. It includes companies with a market capitalization over $100 million. The fund is nondiversified. Expense ratio is a mere .48 basis points.
Junk Bunks The Yield is Dynamite is it time to Dip ya toes??
Junk bond exchange traded funds (ETFs) have been on a tear this year. If you’ve been thinking about getting some exposure to high-yield debt, read on.
We’re in the midst of a full-blown junk bond bull market. From the market’s low on March 9, 2009 until Oct. 8, 2010, junk bonds have returned a cumulative average of 68%, reports Jeffry Kosnett for Kiplinger. That beats all other fixed-income categories.
High-yield returns have also beaten out investment-grade bond returns in the last three months. The last time that happened was during a five-month winning streak ending in July 2009, says Sapna Maheshwari for Bloomberg.
Junk bond ETFs have served to be an appealing way to get exposure to this market. They give investors a safe place to put their capital while providing yields that are tough to come by these days.
That’s why I own SPDR Barclays Capital High-Yield Bond (NYSEArca: JNK) for my accounts.
While junk bonds are riskier than other bond types, a strategy such as trend following can help you manage the risk by providing you with a sell point. If you think the junk bond rally is overheated, think again: you can’t fight the trend and right now, it’s up.
* iShares iBoxx $ High Yield Corporate Bond (NYSEArca: HYG): yields 7.97%
* SPDR Barclays Capital High-Yield Bond (NYSEArca: JNK): yields 8.44%
* PowerShares Fundamental High Yield Corporate Bond (NYSEArca: PHB): yields 6.77%
Disclosure I am Long HYG,JNK shares.
We’re in the midst of a full-blown junk bond bull market. From the market’s low on March 9, 2009 until Oct. 8, 2010, junk bonds have returned a cumulative average of 68%, reports Jeffry Kosnett for Kiplinger. That beats all other fixed-income categories.
High-yield returns have also beaten out investment-grade bond returns in the last three months. The last time that happened was during a five-month winning streak ending in July 2009, says Sapna Maheshwari for Bloomberg.
Junk bond ETFs have served to be an appealing way to get exposure to this market. They give investors a safe place to put their capital while providing yields that are tough to come by these days.
That’s why I own SPDR Barclays Capital High-Yield Bond (NYSEArca: JNK) for my accounts.
While junk bonds are riskier than other bond types, a strategy such as trend following can help you manage the risk by providing you with a sell point. If you think the junk bond rally is overheated, think again: you can’t fight the trend and right now, it’s up.
* iShares iBoxx $ High Yield Corporate Bond (NYSEArca: HYG): yields 7.97%
* SPDR Barclays Capital High-Yield Bond (NYSEArca: JNK): yields 8.44%
* PowerShares Fundamental High Yield Corporate Bond (NYSEArca: PHB): yields 6.77%
Disclosure I am Long HYG,JNK shares.
Intel Announces 15 Percent Increase to Quarterly Cash Dividend
Intel Corporation today announced that its board of directors has approved a 15 percent increase in the quarterly cash dividend to 18 cents per share (72 cents per share on an annual basis), beginning with the dividend that will be declared in the first quarter of 2011.
"Intel remains on track to have our best year ever and we continue to generate strong cash flows," said Paul Otellini, Intel president and CEO. "Our ongoing operational performance and confidence in our business going forward provide the ability to return more cash to shareholders."
Intel began paying a cash dividend in 1992 and has paid out approximately $20 billion to its shareholders in dividends. Intel cash dividends for the first through third quarters of 2010 total approximately $2.6 billion.
Intel (INTC 21.53) , the world leader in silicon innovation, develops technologies, products and initiatives to continually advance how people work and live. Additional information about Intel is available at www.intel.com/pressroom and blogs.intel.com.
Disclosure I am Long INTC shares.
"Intel remains on track to have our best year ever and we continue to generate strong cash flows," said Paul Otellini, Intel president and CEO. "Our ongoing operational performance and confidence in our business going forward provide the ability to return more cash to shareholders."Intel began paying a cash dividend in 1992 and has paid out approximately $20 billion to its shareholders in dividends. Intel cash dividends for the first through third quarters of 2010 total approximately $2.6 billion.
Intel (INTC 21.53) , the world leader in silicon innovation, develops technologies, products and initiatives to continually advance how people work and live. Additional information about Intel is available at www.intel.com/pressroom and blogs.intel.com.
Disclosure I am Long INTC shares.
Friday, November 12, 2010
5 Commodity ETFs That Are Beating Gold
We have all heard about how gold is hitting record highs, but other commodities, along with their exchange traded funds (ETFs), are posting higher gains so far this year.
Year-to-date, gold is up 21.91% while coffee is up 48.29%, silver is up 42.14% and corn is up 28.93%, according to Bespoke Invest. Oil slightly increased 4.08%, but natural gas plummeted 39.75%. Most commodities are trading at their upper ranges, with precious metals, coffee and copper nearing overbought territory, says Bespoke Invest.
* SPDR Gold Shares Fund (NYSEArca: GLD)
* iPath Dow Jones AIG Coffee TR Sub-Index ETN (NYSEArca: JO)
* iShares Silver Trust (NYSEArca: SLV)
* Teucrium Corn (NYSEArca: CORN)
* United States Oil Fund (NYSEArca: USO)
Corn and soybean harvest yields are even lower than most projections, according to PorkMag. The stock-to-use ratio for corn is at 6.7%, the lowest since 1995. Darrell Mark, University of Nebraska Extension livestock economist, says the market is very sensitive to “scares,” and corn prices can top up to $8 if enough pessimistic news comes in.
“In the October WASDE report, USDA actually increased feed demand, maintained ethanol demand, and slightly lowered export demand compared to last month,” Mark notes. However, the higher price for corn has reduced corn demand for livestock feed.
* PowerShares DB Agriculture (DBA)
The rally in coffee prices has kept the commodity at a 13-year high, writes Larry Baer for Benzinga. Brazil, the largest producer of coffee, and Costa Rica both reported that output may be lower-than-expected. Additionally, Vietnam’s crop may be smaller and harvested late. If the dollar continues to drop, it may add a bullish pump to coffee, that sends shivers down my spine. Gotta Have That Coffee!!
Disclosure I am long GLD and SLV shares.
Year-to-date, gold is up 21.91% while coffee is up 48.29%, silver is up 42.14% and corn is up 28.93%, according to Bespoke Invest. Oil slightly increased 4.08%, but natural gas plummeted 39.75%. Most commodities are trading at their upper ranges, with precious metals, coffee and copper nearing overbought territory, says Bespoke Invest.
* SPDR Gold Shares Fund (NYSEArca: GLD)
* iPath Dow Jones AIG Coffee TR Sub-Index ETN (NYSEArca: JO)
* iShares Silver Trust (NYSEArca: SLV)
* Teucrium Corn (NYSEArca: CORN)
* United States Oil Fund (NYSEArca: USO)
Corn and soybean harvest yields are even lower than most projections, according to PorkMag. The stock-to-use ratio for corn is at 6.7%, the lowest since 1995. Darrell Mark, University of Nebraska Extension livestock economist, says the market is very sensitive to “scares,” and corn prices can top up to $8 if enough pessimistic news comes in.
“In the October WASDE report, USDA actually increased feed demand, maintained ethanol demand, and slightly lowered export demand compared to last month,” Mark notes. However, the higher price for corn has reduced corn demand for livestock feed.
* PowerShares DB Agriculture (DBA)
The rally in coffee prices has kept the commodity at a 13-year high, writes Larry Baer for Benzinga. Brazil, the largest producer of coffee, and Costa Rica both reported that output may be lower-than-expected. Additionally, Vietnam’s crop may be smaller and harvested late. If the dollar continues to drop, it may add a bullish pump to coffee, that sends shivers down my spine. Gotta Have That Coffee!!
Disclosure I am long GLD and SLV shares.
The Benefits of Owning Commodity ETFs
At one time, long before exchange traded funds (ETFs) came into the picture, commodities were for institutions and others with the time and monetary resources to play the futures markets. Today, you (yes, you) can have commodities in your portfolio, too.
These days, commodities have a home in any well-diversified portfolio, Mitch Tuchman for U.S. News & World Report says. They offer several benefits:
* Commodities can be an important hedge against inflation. Because commodities prices usually rise when inflation is accelerating, they offer protection from the effects. Few assets benefit from rising inflation – particularly unexpected inflation.
* Commodities have offered superior returns in the past, but they carry a higher risk than most other equity investments. However, by adding commodities to a portfolio of assets that are less volatile, you can actually decrease the overall portfolio risk, because commodities have a low correlation to other asset classes.
* Commodities that are permanently limited in supply can reduce volatility in aggressive portfolios. Gold and energy are two examples.
* The long-term outlook for commodities is generally viewed as strong. The world’s population is growing and emerging markets are seeing the rise of their middle classes, who want more food, consume more energy and nicer clothes. The combination of finite supply and rising demand has the potential to keep commodities on a growth path for some time.
If you want to play commodities with ETFs, there are two primary ways:
* Buy an ETF that holds the stock of producers and tracks an index. Examples of these types of ETFs could be Market Vectors Global Agribusiness (NYSEArca: MOO) or SPDR S&P Oil & Gas Equipment & Services (NYSEArca: XES). The benefit of these funds is that you get exposure to the producers of commodities without the day-to-day price swings that might affect other funds. However, they don’t track the spot price, which can be a drawback if that’s something you’re seeking.
* You can look at funds that give closer exposure to the commodity itself, either physically or via futures. Physically-backed funds for now are restricted to precious metals, such as ETFS Physical Platinum (NYSEArca: PPLT) or iShares Silver Trust (NYSEArca: SLV). Futures-based ETFs include things like PowerShares DB Gold (NYSEArca: DGL) and United States Oil (NYSEArca: USO).
And, of course, there is always leverage, in the form of ETFs like ProShares UltraShort Gold (NYSEArca: GLL) and Direxion Daily Energy Bull 3x Shares (NYSEArca: ERX).
If you feel like you’ve missed the commodities run-up, it’s not too late. Most commodity ETFs are well above their long-term trend lines, and you can’t fight the trend. If you do decide to add commodities to your portfolio, just don’t get caught without an exit strategy.
Disclosure I am long SLV shares.
These days, commodities have a home in any well-diversified portfolio, Mitch Tuchman for U.S. News & World Report says. They offer several benefits:
* Commodities can be an important hedge against inflation. Because commodities prices usually rise when inflation is accelerating, they offer protection from the effects. Few assets benefit from rising inflation – particularly unexpected inflation.
* Commodities have offered superior returns in the past, but they carry a higher risk than most other equity investments. However, by adding commodities to a portfolio of assets that are less volatile, you can actually decrease the overall portfolio risk, because commodities have a low correlation to other asset classes.
* Commodities that are permanently limited in supply can reduce volatility in aggressive portfolios. Gold and energy are two examples.
* The long-term outlook for commodities is generally viewed as strong. The world’s population is growing and emerging markets are seeing the rise of their middle classes, who want more food, consume more energy and nicer clothes. The combination of finite supply and rising demand has the potential to keep commodities on a growth path for some time.
If you want to play commodities with ETFs, there are two primary ways:
* Buy an ETF that holds the stock of producers and tracks an index. Examples of these types of ETFs could be Market Vectors Global Agribusiness (NYSEArca: MOO) or SPDR S&P Oil & Gas Equipment & Services (NYSEArca: XES). The benefit of these funds is that you get exposure to the producers of commodities without the day-to-day price swings that might affect other funds. However, they don’t track the spot price, which can be a drawback if that’s something you’re seeking.
* You can look at funds that give closer exposure to the commodity itself, either physically or via futures. Physically-backed funds for now are restricted to precious metals, such as ETFS Physical Platinum (NYSEArca: PPLT) or iShares Silver Trust (NYSEArca: SLV). Futures-based ETFs include things like PowerShares DB Gold (NYSEArca: DGL) and United States Oil (NYSEArca: USO).
And, of course, there is always leverage, in the form of ETFs like ProShares UltraShort Gold (NYSEArca: GLL) and Direxion Daily Energy Bull 3x Shares (NYSEArca: ERX).
If you feel like you’ve missed the commodities run-up, it’s not too late. Most commodity ETFs are well above their long-term trend lines, and you can’t fight the trend. If you do decide to add commodities to your portfolio, just don’t get caught without an exit strategy.
Disclosure I am long SLV shares.
Knight Transportation Announces Quarterly and Special Cash Dividends
Knight Transportation, Inc.(KNX Quote) announced today that its Board of Directors has declared the company's quarterly cash dividend of $0.06 per share of common stock. This quarterly dividend is pursuant to a cash dividend policy approved by the Board of Directors. The actual declaration of future cash dividends, and the establishment of record and payment dates, is subject to final determination by the Board of Directors each quarter after its review of the company's financial performance.
The company's dividend is payable to shareholders of record on December 3, 2010 and is expected to be paid on December 23, 2010.
Knight also announced that its Board of Directors declared a special cash dividend of $0.75 per share of common stock. The company's special dividend is also payable to shareholders of record on December 3, 2010 and is expected to be paid on December 23, 2010.
The combination of the quarterly and special dividends will pay approximately $68.9 million on Knight's 85.0 million outstanding shares, including restricted stock units. After these dividends, Knight will have returned approximately $170.4 million to its stockholders through a combination of dividends and stock repurchases since January 2008.
Disclosure None
The company's dividend is payable to shareholders of record on December 3, 2010 and is expected to be paid on December 23, 2010.
Knight also announced that its Board of Directors declared a special cash dividend of $0.75 per share of common stock. The company's special dividend is also payable to shareholders of record on December 3, 2010 and is expected to be paid on December 23, 2010.
The combination of the quarterly and special dividends will pay approximately $68.9 million on Knight's 85.0 million outstanding shares, including restricted stock units. After these dividends, Knight will have returned approximately $170.4 million to its stockholders through a combination of dividends and stock repurchases since January 2008.
Disclosure None
Siemens narrows loss and boosts dividends
The German industrial giant announced its net loss for final quarter of 2010, which was 65 per cent lower than the same period last year. As an industrial giant established since 1847, its performance is considered as economic barometer.
The net loss of the fourth quarter is 396 million euros, 65 per cent lower than the 1.06 billion euros net loss last year. The basic loss per share is down from 1.31 euros to 0.54euro this year.
This year is also the first rise in dividends of the company since 2007, which will increase from 1.60 euros to 2.7 euros per share.
For the full year, net income of the company has climbed 63 per cent to 4 billion euros.
Energy sector was the sector with the fastest growth in new orders, which produces products and carries out research and development for power generators.
The company are generating more and more income from the emerging market, there is revenue growth from China and India, 25 per cent and 15 per cent respectively.
”We are a normal company and a growth company. You should expect continuity from us.” Siemens AG Chief Executive Officer Peter Loescher said. The sales of fourth quarter increased 7.7 per cent to 21.23 billion euros. The high-speed trains, power turbines and factory automation equipment maker predicted a moderate revenue growth for the coming year.”
The payout is a strong signal that Siemens will outgrow rivals and build up its presence in emerging markets, which generate a third of its business,” Loescher told Bloomberg.
Disclosure None
The net loss of the fourth quarter is 396 million euros, 65 per cent lower than the 1.06 billion euros net loss last year. The basic loss per share is down from 1.31 euros to 0.54euro this year.
This year is also the first rise in dividends of the company since 2007, which will increase from 1.60 euros to 2.7 euros per share.
For the full year, net income of the company has climbed 63 per cent to 4 billion euros.
Energy sector was the sector with the fastest growth in new orders, which produces products and carries out research and development for power generators.
The company are generating more and more income from the emerging market, there is revenue growth from China and India, 25 per cent and 15 per cent respectively.
”Siemens is no longer a restructuring story,”
”We are a normal company and a growth company. You should expect continuity from us.” Siemens AG Chief Executive Officer Peter Loescher said. The sales of fourth quarter increased 7.7 per cent to 21.23 billion euros. The high-speed trains, power turbines and factory automation equipment maker predicted a moderate revenue growth for the coming year.”
The payout is a strong signal that Siemens will outgrow rivals and build up its presence in emerging markets, which generate a third of its business,” Loescher told Bloomberg.
Disclosure None
Sysco Corp. (SYY) Increases Quarterly Dividend 4% to $0.26
Sysco Corporation (NYSE: SYY) declares a quarterly cash dividend to $0.26 per share, $1.04 annualized. The dividend is a 4% increase from the current rate of $0.25.
The new dividend is payable on January 28, 2011, to common shareholders of record at the close of business on January 7, 2011. The ex-dividend date is January 5, 2011.
Yield on the dividend is 3.6%.
Disclosure I am long SYY shares.
The new dividend is payable on January 28, 2011, to common shareholders of record at the close of business on January 7, 2011. The ex-dividend date is January 5, 2011.
Yield on the dividend is 3.6%.
Disclosure I am long SYY shares.
Thursday, November 11, 2010
Baxter Int'l (BAX) Increases Quarterly Dividend 7% to $0.31; Yields 2.4%
Baxter International Inc. (NYSE: BAX) today declared a quarterly dividend of $0.31 per Baxter common share, $1.24 annnualized. The dividend is a 7% increase over the current rate of $0.29.
The dividend is payable on January 5, 2011, to shareholders of record as of the close of business on December 10, 2010. The ex-dividend date is December 8, 2010.
Yield on the dividend is 2.4%.
Disclosure I am long BAX shares
The dividend is payable on January 5, 2011, to shareholders of record as of the close of business on December 10, 2010. The ex-dividend date is December 8, 2010.
Yield on the dividend is 2.4%.
Disclosure I am long BAX shares
3M (MMM) Declares $0.525 Quarterly Dividend; 2.5% Yield
3M (NYSE: MMM) today declared a dividend on the company's common stock of $0.525 per share, $2.10 annualized.
The dividend is payable December 12, 2010, to shareholders of record at the close of business on November 19, 2010. The ex-dividend date is November 17, 2010.
Yield on the dividend is 2.5%.
Disclosure I am long MMM shares
The dividend is payable December 12, 2010, to shareholders of record at the close of business on November 19, 2010. The ex-dividend date is November 17, 2010.
Yield on the dividend is 2.5%.
Disclosure I am long MMM shares
BlackRock (BLK) Declares $1.00 Quarterly Dividend; 2.3% Yield
BlackRock, Inc. (NYSE: BLK) today announced that its Board of Directors has declared a quarterly cash dividend of $1.00 per share of common stock, $4.00 annualized.
The dividend is payable December 23, 2010 to shareholders of record at the close of business on December 3, 2010. The ex-dividend date is December 1, 2010.
Yield on the dividend is 2.3%.
Disclosure None
The dividend is payable December 23, 2010 to shareholders of record at the close of business on December 3, 2010. The ex-dividend date is December 1, 2010.
Yield on the dividend is 2.3%.
Disclosure None
Kauffman Scare Tactics On ETFs is flat INSANE
Kauffman’s newest report throws ETFs under the bus. Too bad it’s INSANE.
Yesterday’s report from Harold Bradley and Robert E. Litan of the Kauffman Foundation aimed to rock the indexing world, shatter the foundations of the industry and give ETF investors the heebie-jeebies. Even though it’s wrong, it could succeed.
The core argument of the report’s 84 pages, available from Kauffman’s site, is that exchange-traded funds have fundamentally altered the markets for the worse. It cites ETFs as a threat to market stability, negatively affecting stock prices through their structure and mechanics. It says ETFs are shrouded in a fog of mystery and in desperate need of further transparency. And it says that the rise of index trading has destroyed the prospect of IPOs.
All of this is wrong. It’s the ghost story investors might tell themselves around a campfire: an entertaining work of fiction. It might be helpful to take the key assertions from Bradley and Litan’s report and shine a light on them.
- ETFs pose serious threats to market stability in the future.
That’s a serious statement. Bradley and Litan’s report suggest that, in a high-volatility situation, ETFs will have liabilities they can’t fulfill. The worry is that investors will place huge buy orders for an ETF, flooding it with cash, and the ETF will have to chase stocks trying to put that cash to work.
Strangely enough, the place where this liability exists is in the world of traditional open-ended mutual funds, where investors can drop huge amounts of cash into the funds at the end of the trading day. The fund has a responsibility to grant them the NAV struck just moments later, but must go into the market and buy shares the following day.
ETFs work exactly the opposite way. When an authorized participants create new shares of an ETF, they must typically deliver to the ETF company the exact securities the ETF wants to hold. The ETF gives them an equal value in ETF shares in exchange. You can’t create new shares of an ETF if you can’t buy the underlying. That’s just the way it works, and to argue otherwise is to claim that up is down.
- ETFs are radically changing the markets, to the point where they—and not the trading of the underlying securities—are effectively setting the prices of stocks of smaller capitalization companies, or the potential new growth companies of the future.
There’s some truth to this, but only if you replace “ETFs” with “institutional money.”
Let’s look at the numbers: Traditional mutual funds have $11.2 trillion in assets, while ETFs have just $980 billion. The market cap of the S&P 500 is $10 trillion. One trillion dollars of that market cap is owned in indexes, and just $100 billion of that is in ETFs. That means that ETFs represent 1 percent of the market.
The Kauffman point argues that this doesn’t matter, because the constant trading in the baskets makes ETFs different, and in effect, “price setters.” I would counter that at least ETFs represent actual ownership of the underlying, unlike futures, which have been acting as the big-money price setters for decades. On any given day, the futures market trades 10 times the notional value of SPY: $100 billion a day vs. $10 billion. Who’s driving what?
From the beginning of the report, Bradley and Litan refer to ETFs as derivatives, throwing the label around like a scarlet letter the funds must wear. To call ETFs derivatives—any more than any other pooled vehicle—is simply wrong. To then paint them with a brush that should be reserved for true derivatives is simply a scare tactic.
- Short positions in ETFs are somehow magically different than short positions in any other security, and issuers should be forced to “create” shares for notional long exposure.
Yes, that means that if there’s a panic to cover shorts, people will have to buy up shares of the ETF on the open market, or make new shares through creation. Yes, that means you could get a lot of buying activity in the underlying. Yes, that means—just like in any stock that’s heavily shorted—prices will go up when everyone runs to cover their shorts. But this has nothing to do with the ETF structure.
The proposal that the issuer magically “create” extra shares for the notional short exposure is frankly impossible. How would that happen? With whose capital? With what stocks? I’m chalking this one up to a misunderstanding of the basics.
- Intra-asset correlation is killing the capital markets, and killing IPOs.
After a recent report from Hennessee cried foul in the name of hedge funds. But the points are worth repeating. Correlations between groups of stocks—say, small-caps and large-caps—are constantly shifting. Yes, we’re at a relative high in some cases. Yes, as more and more indexed money comes in—a trend we’ve seen since the ’70s—one would expect correlations to be high.
If, however, markets were becoming hugely inefficient, you would expect a huge upswing in private equity, where large companies would gobble up the “undervalued” small ones. We haven’t seen that. Private equity and M&A activity is down. We similarly haven’t seen small-cap active funds beating the indexes, which you would expect if there were gross misvaluations in the market.
Further, in times of crisis, all correlations go up, because investors become “risk on/risk off” investors, not stock pickers. This has happened in every bear market, and during every market crisis. Kauffman suggests that this can be cured by allowing small companies to “opt in” to indexes. Leaving out the legal implications of this, consider: You’re the CEO of a small-cap company and have to choose between Russell adding you or having a bazillion dollars of institutional money buy your stock.
Which answer lets you keep your job?
- ETFs have high fail rates.
The report actually hits this one square on the head. This is bad and shouldn’t be tolerated. Reporting requirements for fails on all equities, including ETFs, should be improved, and there should be more substantial consequences.
I understand that firms like Kauffman are nervous about the rise of exchange-traded funds in recent years. I get it—change is scary. But throwing all of indexing under the bus isn’t the solution to the problem.
The truth is there are any number of ways indexing has improved the market, adding a level of transparency and control that investors simply haven’t had before. The focus on index trading has put more importance on macroeconomic trends than individual securities, and while that changes the nature of investing, it’s a positive move forward.
It’s a brave new world and the less fear-mongering we have in it, the better.
Disclosure I am long many etfs.
Vanguard Launches Non-US Version Of VNQ
Vanguard Group, the Valley Forge, Pa.-based pioneer of the indexing movement, today launched a real estate fund that canvasses property markets outside the U.S. in both the developed and developing worlds. The Vanguard Global ex-U.S. Real Estate ETF (NYSEArca: VNQI) will invest in real estate investment trusts (REITs) and real estate operation companies (REOCs). The new ETF amounts to a non-U.S. counterpart to its existing fund, the Vanguard REIT ETF (NYSEArca: VNQ), which had about $6.9 billion in assets as of last Friday, according to data compiled by IndexUniverse.com.
Domestic assets represent only 30 percent of the global real estate market, while overseas assets represent 70 percent. Investors wishing to hold a market-weighted global real estate portfolio could invest in the two funds proportionally, Vanguard said in a prepared statement.
“With international real estate securities representing a growing portion of the overall real estate market, a counterpart to our domestic REIT Index Fund is a natural addition to our index fund lineup,” Gus Sauter, Vanguard’s chief investment officer, said in the statement.
VNQI will attempt to replicate the S&P Global ex-U.S. Property Index, a free-float-adjusted, market-capitalization-weighted index that measures the equity market performance of 425 international real estate securities from 35 developed and emerging markets.
The ETF has an expense ratio of 0.35 percent.
Disclosure None
Domestic assets represent only 30 percent of the global real estate market, while overseas assets represent 70 percent. Investors wishing to hold a market-weighted global real estate portfolio could invest in the two funds proportionally, Vanguard said in a prepared statement.
“With international real estate securities representing a growing portion of the overall real estate market, a counterpart to our domestic REIT Index Fund is a natural addition to our index fund lineup,” Gus Sauter, Vanguard’s chief investment officer, said in the statement.
VNQI will attempt to replicate the S&P Global ex-U.S. Property Index, a free-float-adjusted, market-capitalization-weighted index that measures the equity market performance of 425 international real estate securities from 35 developed and emerging markets.
The ETF has an expense ratio of 0.35 percent.
Disclosure None
Global X Launches Norway ETF NORW
Global X, the boutique fund sponsor known for its emerging markets and metals strategies, launched a new fund today focused exclusively on the economy of Norway, an ETF industry first. The Global X FTSE Norway ETF (NYSEArca: NORW) seeks to replicate the performance of the FTSE Norway 30 Index, which comprises the largest publicly traded companies of Norway and is designed to reflect the broad-based equity market performance of that country. FTSE is an index provider jointly owned by the Financial Times and the London Stock Exchange.
Norway, along with Canada, is one of a handful of net energy exporters among the world’s industrialized nations, and Global X’s new Norway fund reflects this.
As of last month, the FTSE Norway 30 Index’s top holding was the state-run Norwegian energy company Statoil ASA, which would have accounted for 18.93 percent of assets invested in the index. Oil & gas was the top sector, at 41.42 percent.
Global X, which launched gold miners and uranium funds earlier this month, has been busy this year building its ETF lineup. When asked if there was an overarching strategic plan behind Global X’s recent launches, Bruno del Ama, the company’s chief executive officer, said that the long-term prospects of a new fund, along with customer need, largely dictate the launch schedule.
“We identify opportunities that we think will do well over the long term, at least 25 years. Then we look for really stable opportunities or thematic opportunities we think will do well and offer an ETF that makes sense. Finally, we obviously want products that will attract sufficient interest from investors.”
Del Ama added that his firm’s clients view Norway to some extent as other hard-asset-producing countries with stable currencies, like Canada, Australia and New Zealand.
The Timing Is Right
Given the problems in eurozone countries like Greece, Spain and Ireland, now may be an ideal time for a Norway fund. Unlike many of its European neighbors, Norway has not adopted the euro and instead uses the krone.
“It’s definitely part of the appeal of the fund,” said del Ama. “One of the problems for an economy like Germany is that it’s part of the euro and is part of the bailout effort for Greece. Norway doesn’t have that problem.
The new Norway fund is the first of a suite of ETFs for which Global X filed last year to hit the market. That group of filings includes Denmark, Finland and United Arab Emirates funds based on FTSE indexes as well as an “Emerging Africa” and a Pakistan ETF.
The new fund carries an expense ratio of 0.50 percent.
Disclosure None
Norway, along with Canada, is one of a handful of net energy exporters among the world’s industrialized nations, and Global X’s new Norway fund reflects this.
As of last month, the FTSE Norway 30 Index’s top holding was the state-run Norwegian energy company Statoil ASA, which would have accounted for 18.93 percent of assets invested in the index. Oil & gas was the top sector, at 41.42 percent.
Global X, which launched gold miners and uranium funds earlier this month, has been busy this year building its ETF lineup. When asked if there was an overarching strategic plan behind Global X’s recent launches, Bruno del Ama, the company’s chief executive officer, said that the long-term prospects of a new fund, along with customer need, largely dictate the launch schedule.
“We identify opportunities that we think will do well over the long term, at least 25 years. Then we look for really stable opportunities or thematic opportunities we think will do well and offer an ETF that makes sense. Finally, we obviously want products that will attract sufficient interest from investors.”
Del Ama added that his firm’s clients view Norway to some extent as other hard-asset-producing countries with stable currencies, like Canada, Australia and New Zealand.
The Timing Is Right
Given the problems in eurozone countries like Greece, Spain and Ireland, now may be an ideal time for a Norway fund. Unlike many of its European neighbors, Norway has not adopted the euro and instead uses the krone.
“It’s definitely part of the appeal of the fund,” said del Ama. “One of the problems for an economy like Germany is that it’s part of the euro and is part of the bailout effort for Greece. Norway doesn’t have that problem.
The new Norway fund is the first of a suite of ETFs for which Global X filed last year to hit the market. That group of filings includes Denmark, Finland and United Arab Emirates funds based on FTSE indexes as well as an “Emerging Africa” and a Pakistan ETF.
The new fund carries an expense ratio of 0.50 percent.
Disclosure None
Wednesday, November 10, 2010
Time for 100% Stock Allocation??
Every so often, a well-meaning individual or publication will come along and espouse the idea that long-term investors should invest 100% of their portfolios in equities. Not surprisingly, this idea is most widely promulgated near the end of a long bull trend in the U.S. stock market. Consider this article as a pre-emptive strike against this appealing, but potentially dangerous, idea.
"In the long run, equities outperform bonds and cash; therefore, allocating your entire portfolio to stocks will maximize your returns."
To back up their views, supporters for this view point to the widely used Ibbotson Associates historical data, which "proves" that stocks have generated greater returns than bonds, which in turn have generated higher returns than cash. Many investors - from experienced professionals to naive amateurs - accept these assertions without giving the idea any further thought. (For an in-depth view of this topic, see The Stock Market: A Look Back.)
While such statements and historical data points may be true to an extent, investors should delve a little deeper into the rationale behind - and potential ramifications of - a 100% equity strategy.
It is probably unwise to base your investment strategy on a doomsday scenario, however, so let's assume that the future will look somewhat like the relatively benign past. The 100% equity prescription is still problematic because although stocks may outperform bonds and cash in the long run, you could go nearly broke in the short run!
Of course, proponents of all-equities-all-the-time argue that if investors simply stay the course, they will eventually recover those losses and earn much more. However, this assumes that investors can stay the course and not abandon their strategy - meaning they must ignore the prevailing "wisdom", the resulting dire predictions and take absolutely no action in response to depressing market conditions. We could all share a hearty laugh at this assumption, because it can be extremely difficult for most investors to maintain an out-of-favor strategy for six months, let alone for many years.
Inflation is a rise in general price levels that erodes the purchasing power of your portfolio. Deflation is the opposite, defined as a broad decline in prices and asset values, usually caused by a depression, severe recession, or other major economic disruption (think Japan in the 1990s). (To learn more about inflation and deflation, see All About Inflation and What does deflation mean to investors?)
Equities generally perform poorly if the economy is under siege by either of these two monsters. Even a rumored sighting can inflict significant damage to stocks. Therefore, the smart investor incorporates protection - or hedges - into his or her portfolio to guard against these two significant threats. Real assets - real estate (in certain cases), energy, infrastructure, commodities, inflation-linked bonds, and/or gold - could provide a good hedge against inflation. Likewise, an allocation to long-term, non-callable U.S. Treasury bonds provides the best hedge against deflation, recession, or depression. (Read more about hedges in A Beginner's Guide To Hedging, Introduction To Hedge Funds - Part One and Part Two.)
This more diverse portfolio can be expected to reduce volatility, provide some protection against inflation and deflation, and enable you to stay the course during difficult market environments - all while sacrificing little in the way of returns.
Disclosure I am long the stock market
The Case for 100% Equities
The main argument advanced by proponents of a 100% equities strategy is simple and straightforward:"In the long run, equities outperform bonds and cash; therefore, allocating your entire portfolio to stocks will maximize your returns."
To back up their views, supporters for this view point to the widely used Ibbotson Associates historical data, which "proves" that stocks have generated greater returns than bonds, which in turn have generated higher returns than cash. Many investors - from experienced professionals to naive amateurs - accept these assertions without giving the idea any further thought. (For an in-depth view of this topic, see The Stock Market: A Look Back.)
While such statements and historical data points may be true to an extent, investors should delve a little deeper into the rationale behind - and potential ramifications of - a 100% equity strategy.
The Problem With 100% Equities
The oft-cited Ibbotson data is not very robust. It covers only one particular time period (1926-present day) in a single country - the United States. Throughout history, other less-fortunate countries have had their entire public stock markets virtually disappear, generating 100% losses for investors with 100% equity allocations. Even if the future eventually brought great returns, compounded growth on $0 doesn't amount to much. (To read more about Ibbotson's theories, see Investors Need A Good WACC.)It is probably unwise to base your investment strategy on a doomsday scenario, however, so let's assume that the future will look somewhat like the relatively benign past. The 100% equity prescription is still problematic because although stocks may outperform bonds and cash in the long run, you could go nearly broke in the short run!
Market Crashes
For example, let's assume you had implemented such a strategy in late 1972 and placed your entire savings into the stock market. Over the next two years, the U.S. stock market crashed and lost about 40% of its value. During that time, it may have been difficult to withdraw even a modest 5% per year from your savings to take care of relatively common expenses, such as purchasing a car, meeting unexpected expenses, or paying a portion of your child's college tuition, because your life savings would have almost been cut in half in just two years! That is an unacceptable outcome for most investors and one from which it would be very tough to rebound. Keep in mind that the crash in 1973-1974 wasn't the most severe crash, considering the scenario that investors experienced during 1929-31. (To learn more about crashes, see The Greatest Market Crashes and How do investors lose money when the stock market crashes?)Of course, proponents of all-equities-all-the-time argue that if investors simply stay the course, they will eventually recover those losses and earn much more. However, this assumes that investors can stay the course and not abandon their strategy - meaning they must ignore the prevailing "wisdom", the resulting dire predictions and take absolutely no action in response to depressing market conditions. We could all share a hearty laugh at this assumption, because it can be extremely difficult for most investors to maintain an out-of-favor strategy for six months, let alone for many years.
Inflation and Deflation
Another problem with the 100% equities strategy is that it provides little or no protection against the two greatest threats to any long-term pool of money: inflation and deflation.Inflation is a rise in general price levels that erodes the purchasing power of your portfolio. Deflation is the opposite, defined as a broad decline in prices and asset values, usually caused by a depression, severe recession, or other major economic disruption (think Japan in the 1990s). (To learn more about inflation and deflation, see All About Inflation and What does deflation mean to investors?)
Equities generally perform poorly if the economy is under siege by either of these two monsters. Even a rumored sighting can inflict significant damage to stocks. Therefore, the smart investor incorporates protection - or hedges - into his or her portfolio to guard against these two significant threats. Real assets - real estate (in certain cases), energy, infrastructure, commodities, inflation-linked bonds, and/or gold - could provide a good hedge against inflation. Likewise, an allocation to long-term, non-callable U.S. Treasury bonds provides the best hedge against deflation, recession, or depression. (Read more about hedges in A Beginner's Guide To Hedging, Introduction To Hedge Funds - Part One and Part Two.)
Fiduciary Standards
One final cautionary word on a 100% stocks strategy: If you manage money for someone other than yourself, you are subject to fiduciary standards. One of the main pillars of fiduciary care and prudence is the practice of diversification to minimize the risk of large losses. In the absence of extraordinary circumstances, a fiduciary is required to diversify across asset classes. Would you like to argue before a judge or jury that your one-asset-class portfolio was sufficiently diversified shortly after it loses 40-50% of its value? "But, your honor, if you just wait eight to 10 years …" Odds are you would soon be wearing an orange jumpsuit and making new friends in an exercise yard.Solution
So if 100% equities is not the optimal solution for a long-term portfolio, what is? An equity-dominated portfolio, despite my cautionary counter arguments above, is reasonable if you assume that equities will outperform bonds and cash over most long-term periods. However, your portfolio should be widely diversified across multiple asset classes: U.S. equities, long-term U.S. Treasuries, international equities, emerging markets debt and equities, real assets and even junk bonds. If you are fortunate enough to be a qualified and accredited investor, your asset allocation should also include a healthy dose of alternative investments - venture capital, buyouts, hedge funds and timber. (To learn more, read The Pros And Cons Of Alternative Investments.)This more diverse portfolio can be expected to reduce volatility, provide some protection against inflation and deflation, and enable you to stay the course during difficult market environments - all while sacrificing little in the way of returns.
Disclosure I am long the stock market
Ask.com admits it isn't the answer
Its corporate parent will severely downsize the search engine, saying it can't compete against other search engines, especially Google.
Ask.com, the Internet search engine that media mogul Barry Diller acquired for $1.85 billion to compete with Google (GOOG), is cutting 130 engineering jobs and conceding much of its search business to competitors.
Ask.com, a unit of Diller’s IAC/InterActiveCorp (IACI), is firing engineers based in Edison, N.J., and Hangzhou, China. It's ceasing work on its algorithmic search technology, according to Ask.com President Doug Leeds.
Ask.com, a unit of Diller’s IAC/InterActiveCorp (IACI), is firing engineers based in Edison, N.J., and Hangzhou, China. It's ceasing work on its algorithmic search technology, according to Ask.com President Doug Leeds.
IAC shares fell 1.3% to $28.30 in regular trading today but rallied 1.6% to $28.75 after hours.
Leeds said Google has become too powerful a competitor to justify Ask.com’s continued pursuit of those search users.
Leeds said Google has become too powerful a competitor to justify Ask.com’s continued pursuit of those search users.
Disclosure None
Realty Income Declares 485th Consecutive Common Stock Monthly Dividend
Realty Income Corporation (Realty Income), The Monthly Dividend Company Stock Quote , today announced that its Board of Directors declared a common stock dividend of $0.1439375 per share, payable on December 15, 2010 to shareholders of record as of December 1, 2010. The dividend represents an annualized amount of $1.72725 per share.
Disclosure I am long O shares.
Disclosure I am long O shares.
Tuesday, November 9, 2010
Baxter Raises Quarterly Dividend
DEERFIELD, Ill., Nov 09, 2010 (BUSINESS WIRE) -- The Board of Directors of Baxter International Inc. /quotes/comstock/13*!bax/quotes/nls/bax (BAX 51.63, -0.04, -0.08%) today declared a quarterly dividend of $0.31 per Baxter common share. This represents an increase of approximately 7 percent over the previous quarterly rate of $0.29 per share. The dividend is payable on January 5, 2011, to shareholders of record as of the close of business on December 10, 2010.
Baxter continues to generate strong cash flow and has returned significant value to shareholders in the form of dividends and share repurchases. Since the beginning of 2010, Baxter has returned approximately $2.0 billion to shareholders through dividends totaling $688 million and share repurchases of approximately $1.3 billion (or 26 million shares).
"Our disciplined capital allocation strategy and ongoing ability to generate strong cash flow allow us to continue to invest for the long-term while returning significant value to our shareholders," said Robert J. Hombach, chief financial officer.
Baxter International Inc., through its subsidiaries, develops, manufactures and markets products that save and sustain the lives of people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. As a global, diversified healthcare company, Baxter applies a unique combination of expertise in medical devices, pharmaceuticals and biotechnology to create products that advance patient care worldwide.
This release includes forward-looking statements concerning the company's dividend. The statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those in the forward-looking statements: continued strength in the company's financial position, including cash flows; future decisions of the board of directors of the company to continue payments to shareholders in the form of a dividend on a quarterly or other basis relative to alternative uses of funds; and other risks identified in the company's most recent filing on Form 10-K and other SEC filings, all of which are available on the company's website. The company does not undertake to update its forward-looking statements.
SOURCE: Baxter International Inc.
Disclosure I am long BAX shares
Baxter continues to generate strong cash flow and has returned significant value to shareholders in the form of dividends and share repurchases. Since the beginning of 2010, Baxter has returned approximately $2.0 billion to shareholders through dividends totaling $688 million and share repurchases of approximately $1.3 billion (or 26 million shares).
"Our disciplined capital allocation strategy and ongoing ability to generate strong cash flow allow us to continue to invest for the long-term while returning significant value to our shareholders," said Robert J. Hombach, chief financial officer.
Baxter International Inc., through its subsidiaries, develops, manufactures and markets products that save and sustain the lives of people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions. As a global, diversified healthcare company, Baxter applies a unique combination of expertise in medical devices, pharmaceuticals and biotechnology to create products that advance patient care worldwide.
This release includes forward-looking statements concerning the company's dividend. The statements are based on assumptions about many important factors, including the following, which could cause actual results to differ materially from those in the forward-looking statements: continued strength in the company's financial position, including cash flows; future decisions of the board of directors of the company to continue payments to shareholders in the form of a dividend on a quarterly or other basis relative to alternative uses of funds; and other risks identified in the company's most recent filing on Form 10-K and other SEC filings, all of which are available on the company's website. The company does not undertake to update its forward-looking statements.
SOURCE: Baxter International Inc.
Disclosure I am long BAX shares
Sunday, July 18, 2010
Recent Buys and current news
July News is in so far. On 7/6/10 I purchased EOS, FSC and PFE $8.00 each company. On 7/13/10 I purchased ED, IBM, BPT at $8.00 each. My june statement has arrived. Equities and stock for June $351.11 value at may end was $261.44. Dividends for the month Jumped to $2.25 from .79 cents the period before.
My top three holdings for June were GE 1.594 Shares $22.99, 2nd IGD 1.9271 shares $20.06, and #3 is AOD 3.7947 shares $18.78. Top 3 dividends in June were AOD .44 cents , FRO .25 cents, DO Special Dividend .13 cents Regular Dividend .01 cent. Total of 12 buys for June. Total 33 dividends collected in June.
Well thatis it for now cheers all.
My top three holdings for June were GE 1.594 Shares $22.99, 2nd IGD 1.9271 shares $20.06, and #3 is AOD 3.7947 shares $18.78. Top 3 dividends in June were AOD .44 cents , FRO .25 cents, DO Special Dividend .13 cents Regular Dividend .01 cent. Total of 12 buys for June. Total 33 dividends collected in June.
Well thatis it for now cheers all.
Tuesday, July 6, 2010
Top-Yielding Monthly Dividend Stocks
Many market-players seek shelter from volatility in dividend-paying stocks, which offer investors a stream of steady income that can ease the pain of wild gyrations in the markets. And stocks that pay monthly dividends provide regular, consistent income to investors with usually less volatility than quarterly-paying dividend stocks.
The key to owning stocks that pay monthly dividends rather than quarterly or annual dividend stocks is that your invested capital comes back to you and your money compounds much more quickly.
Lots of investors are looking for monthly dividend payments to supplement their income during retirement. Other preretirement investors love to buy stocks that pay them cash on a monthly basis to help offset their high-risk investments. No matter what type of investor you are, dividend-paying stocks can go a long way toward creating wealth.
Dividend-paying stocks can also help an investor sleep better at night, because they're usually deemed to be safer investments than stocks that don't pay dividends, The number of stocks that now pay a monthly dividend tops over 250, including real estate investment trusts, oil income trusts, closed-end funds and other investment vehicles that own a portfolio of income-producing assets and distribute cash generated by these assets every month to investors.
Let's take a look at four monthly dividend-paying securities that look promising.
If you're bullish on the future for oil and natural gas, you might want to take a look at the Enerplus Resources Fund(ERF). This stock is an energy trust that controls operating subsidiaries to acquire, exploit and operate crude oil and natural gas assets. The company currently controls properties in red hot Marcellus Shale region in the northeastern U.S. Many industry insiders think the Marcellus Shale could be one of the most promising natural gas resources in the Appalachian Basin.
Enerplus Resources has the fifth-highest dividend yield of oil and gas production stocks, at 9.4%. The stock has near-term support around $20 a share and resistance at around $24.
If you think the real estate market is near a bottom, you should take a look at closed-end management investment company LMP Real Estate Income Fund(RIT), which invests in securities related to the real estate industry, tied to sectors such as office, health care, apartments, shopping centers and regional malls. Its current dividend yield is 8.7% This stock is trading near the 200-day moving average of $8.20 a share, which could offer a great entry point if you like the prospects of real estate here. If the 200-day doesn't hold, look for the next area of support to come in at around $7.75. The stock also has some overhead resistance at around $9 to $9.50.
Another name investors should take a look at is the MFS Multimarket Income Trust(MMT), a closed-end fund that maintains a portfolio of investments in high-yield and investment-grade corporate bonds, emerging market debt securities, U.S. government securities and international investment-grade debt securities. Considering how foreign debt markets have been rattled of late, this trust could offer a great opportunity to get in at depressed prices. The MFS Multimarket Income Trust has direct exposure to some of the PIIG nations, such as Ireland, Italy and Spain. The current dividend yield of the MFS Multimarket Income Trust is 8.2%. The stock is trading near the 50-day moving average of $6.46, and overhead resistance can be found at $6.60 to $6.70.
One last monthly-paying security to consider is the Calamos Convertible Opportunity & Income Fund(CHI), which is a diversified, closed-end management investment company. The fund seeks total returns through a combination of capital appreciation and current income by investing in a diversified portfolio of convertible securities and below-investment-grade high-yield fixed-income securities.
Calamos Convertible Opportunity & Income has offered a steady distribution since inception; it has a strong historical performance and is run by an experienced management team. Some of the securities it currently holds are common stock in Freeport McMoRan(FCX), corporate bonds in Vail Resorts(MTN) and convertible preferred stock in Bank of America(BAC). Corporate bonds make up 56% of the funds asset allocation, and energy is the heaviest-weighted sector. Its current dividend yield is 9.4%.
Disclosure NONE
The key to owning stocks that pay monthly dividends rather than quarterly or annual dividend stocks is that your invested capital comes back to you and your money compounds much more quickly.
Lots of investors are looking for monthly dividend payments to supplement their income during retirement. Other preretirement investors love to buy stocks that pay them cash on a monthly basis to help offset their high-risk investments. No matter what type of investor you are, dividend-paying stocks can go a long way toward creating wealth.
Dividend-paying stocks can also help an investor sleep better at night, because they're usually deemed to be safer investments than stocks that don't pay dividends, The number of stocks that now pay a monthly dividend tops over 250, including real estate investment trusts, oil income trusts, closed-end funds and other investment vehicles that own a portfolio of income-producing assets and distribute cash generated by these assets every month to investors.
Let's take a look at four monthly dividend-paying securities that look promising.
If you're bullish on the future for oil and natural gas, you might want to take a look at the Enerplus Resources Fund(ERF). This stock is an energy trust that controls operating subsidiaries to acquire, exploit and operate crude oil and natural gas assets. The company currently controls properties in red hot Marcellus Shale region in the northeastern U.S. Many industry insiders think the Marcellus Shale could be one of the most promising natural gas resources in the Appalachian Basin.
Enerplus Resources has the fifth-highest dividend yield of oil and gas production stocks, at 9.4%. The stock has near-term support around $20 a share and resistance at around $24.
If you think the real estate market is near a bottom, you should take a look at closed-end management investment company LMP Real Estate Income Fund(RIT), which invests in securities related to the real estate industry, tied to sectors such as office, health care, apartments, shopping centers and regional malls. Its current dividend yield is 8.7% This stock is trading near the 200-day moving average of $8.20 a share, which could offer a great entry point if you like the prospects of real estate here. If the 200-day doesn't hold, look for the next area of support to come in at around $7.75. The stock also has some overhead resistance at around $9 to $9.50.
Another name investors should take a look at is the MFS Multimarket Income Trust(MMT), a closed-end fund that maintains a portfolio of investments in high-yield and investment-grade corporate bonds, emerging market debt securities, U.S. government securities and international investment-grade debt securities. Considering how foreign debt markets have been rattled of late, this trust could offer a great opportunity to get in at depressed prices. The MFS Multimarket Income Trust has direct exposure to some of the PIIG nations, such as Ireland, Italy and Spain. The current dividend yield of the MFS Multimarket Income Trust is 8.2%. The stock is trading near the 50-day moving average of $6.46, and overhead resistance can be found at $6.60 to $6.70.
One last monthly-paying security to consider is the Calamos Convertible Opportunity & Income Fund(CHI), which is a diversified, closed-end management investment company. The fund seeks total returns through a combination of capital appreciation and current income by investing in a diversified portfolio of convertible securities and below-investment-grade high-yield fixed-income securities.
Calamos Convertible Opportunity & Income has offered a steady distribution since inception; it has a strong historical performance and is run by an experienced management team. Some of the securities it currently holds are common stock in Freeport McMoRan(FCX), corporate bonds in Vail Resorts(MTN) and convertible preferred stock in Bank of America(BAC). Corporate bonds make up 56% of the funds asset allocation, and energy is the heaviest-weighted sector. Its current dividend yield is 9.4%.
Disclosure NONE
When 'Cheap' ETFs Aren't Really Cheap
It seems like a no-brainer: All things being equal, you pick the exchange-traded fund with the cheapest fees. But, it turns out choosing an ETF based on the lowest annual expense could end up costing you more.
ETFs, of course, hold a basket of stocks or other investments and track an index. Many investors buy them assuming that all they’ll pay is the annual fee. But a growing number of pros are warning that some ETFs have hidden costs for trading them, which vary based on the ETF’s volume. In general, the more active the ETF, the cheaper it is to trade. “The bigger, the better,” says Jim Holtzman, a Pittsburgh-based adviser who has sought better ETF deals.
The iShares MSCI Emerging Markets Index fund (EEM: 37.75, +0.16, +0.42%) has $35 billion in assets and is nearly three times more expensive than its rival ETF, the $20.5 billion Vanguard Emerging Markets ETF (VWO: 38.30, +0.08, +0.20%). But traders flock to the older iShares product because it has almost six times the average daily trading volume. “EEM is essentially where the fast money is,” says Bradley Kay, associate director of European ETF research at Morningstar. A Vanguard spokesperson says its ETFs’ trading costs are the same as or very close to those of its rivals. A big difference in trading volume can also be seen in two ETFs tracking the same index of inflation-protected bonds, iShares Barclays TIPS Bond (TIP: 105.82, -0.20, -0.18%) and SPDR Barclays Capital TIPS (IPE: 52.27, -0.12, -0.22%). The expense ratio of the iShares product is slightly higher than that of its competitor. But experts say iShares trades 18 times more often in part because each trade is cheaper.
While trading costs are important, Kay says investors who plan to buy and hold an ETF should go with the one that has the lowest expense ratio.
Disclosure I am long VWO, and EEM.
Dow's Losing Streak Hits Seven
The Dow Jones Industrial Average ticked off a string of ignominious markers on Friday. Among them: the longest losing streak since the dark days of the financial crisis.
Worries about the economy fed into the currency markets, where the dollar slipped against the euro. The euro ended Friday afternoon at $1.2550, up from $1.2386 a week earlier.
The Dow slipped 46.05 points, or 0.5%, to 9686.48, its seventh straight decline and longest losing streak since the eight-day fall ended Oct. 10, 2008.
The benchmark tumbled 4.5% for the week, its worst weekly percentage drop since the week of the May 6 "flash crash."
The weekly percentage drop also represented the worst performance for any week leading up to the July 4th weekend since 1896. The S&P 500 and the Nasdaq put in similarly bleak performances.
The declines came on relatively muted volume ahead of the July 4 holiday weekend. Just over 4 billion shares had traded hands in New York Stock Exchange Composite volume, well shy of the 2010 daily average of 5.4 billion shares.
All in all, it was not a great week for stocks. Worries have been mainly driven be renewed anxiety about the U.S. economy. Those fears were kept alive Friday by a report showing the first drop in U.S. nonfarm payrolls so far this year.
"The only thing that would have been surprising is if it had been a good number," said strategist Stephen Wood of Russell Investments in New York.
Consumer-discretionary companies led the market's decline as investors worried about how the drop in payrolls might hurt already weak consumer and business spending.
Worries about the economy fed into the currency markets, where the dollar slipped against the euro. The euro ended Friday afternoon at $1.2550, up from $1.2386 a week earlier.
Treasurys fell, but gained on the week as concerns percolated about a second half slowdown in the U.S. Crude-oil futures fell for a fifth consecutive day, capping their steepest weekly decline since early May.
Van Eck Plans First Ever Minor Metals ETF
One section of the ETF world that has seen rapid expansion over the past year has been commodity producing equity ETFs. As investors have embraced ETFs as a means of establishing exposure to natural resource prices, many are beginning to realize that a host of commodities are thinly-traded, and therefore not suitable for “pure play” futures-based or physically-backed ETFs. Due to this, investors have seen the introduction of several funds offering exposure to commodities through stocks of companies engaged in their production and extraction, including ETFs that target copper miners, platinum mining companies, and even timber producers.
One interesting new idea is being developed from Van Eck is to target companies that are engaged in the mining and production of so called ‘minor metals’ such as titanium and cobalt. While these metals are very thinly traded, they remain absolutely vital to a host of current and emerging technologies. In a filing with the SEC, Van Eck identifies several key technologies that utilize these commodities, including cellular phones, high performance batteries, flat screen televisions, and green energy technology such as wind, solar and geothermal. These metals are critical to the future of hybrid and electric cars, high-tech military applications including radar, missile guidance systems, navigation and night vision, and superconductors and fiber-optic communication systems.
As these technologies have grown in importance to every day life, demand for these metals has surged, sending some prices sharply higher. Additionally, political and environmental issues are likely to be front-and-center for many of the equities in this fund, especially due to recent mining tax proposals out of Australia as well as increasing government scrutiny over hazardous industries such as mining. Even more crucially for the equities in the proposed fund is a recent plan from China that seeks to ban exports of certain minerals–a development that could be devastating since China produces just over 90% of the world’s rare Earth metals. However, it could help to spur more investment in the industry and send prices higher.
The fund will track the Minor Metals Index and will hold 30 securities in total, and would be the thirtieth ETF from Van Eck. This new addition would also bring the total number of ETFs in the Commodity Producers Equities ETFdb Category up to 20 in total and offer investors exposure to a slice of the commodity market to which most do not currently have access. The expense ratio and symbol remain a mystery.
Disclosure: None
One interesting new idea is being developed from Van Eck is to target companies that are engaged in the mining and production of so called ‘minor metals’ such as titanium and cobalt. While these metals are very thinly traded, they remain absolutely vital to a host of current and emerging technologies. In a filing with the SEC, Van Eck identifies several key technologies that utilize these commodities, including cellular phones, high performance batteries, flat screen televisions, and green energy technology such as wind, solar and geothermal. These metals are critical to the future of hybrid and electric cars, high-tech military applications including radar, missile guidance systems, navigation and night vision, and superconductors and fiber-optic communication systems.
As these technologies have grown in importance to every day life, demand for these metals has surged, sending some prices sharply higher. Additionally, political and environmental issues are likely to be front-and-center for many of the equities in this fund, especially due to recent mining tax proposals out of Australia as well as increasing government scrutiny over hazardous industries such as mining. Even more crucially for the equities in the proposed fund is a recent plan from China that seeks to ban exports of certain minerals–a development that could be devastating since China produces just over 90% of the world’s rare Earth metals. However, it could help to spur more investment in the industry and send prices higher.
The fund will track the Minor Metals Index and will hold 30 securities in total, and would be the thirtieth ETF from Van Eck. This new addition would also bring the total number of ETFs in the Commodity Producers Equities ETFdb Category up to 20 in total and offer investors exposure to a slice of the commodity market to which most do not currently have access. The expense ratio and symbol remain a mystery.
Disclosure: None
The Second Quarter's Best and Worst Commodities
Quick! Name the best-performing single-commodity exchange-traded product (ETP) of the second quarter.
No, it's not a gold trust; the SPDR Gold Trust (NYSE Arca: GLD) came in third. It's actually the exchange-traded note tracking coffee's price, the iPath DJ-UBS Coffee Subindex Total Return ETN (NYSE Arca: JO).
Surprised?
Well, the second quarter was full of surprises for commodity investors. Unfortunately, most of them were unpleasant.
Of 17 single-commodity or narrowly focused products, only four turned a profit. The winners netted an average 12.1 percent gain, while the average loser gave up 9.9 percent.
We sought out the most liquid single-commodity ETPs to see how well they tracked the spot market over the last three months. When we couldn't find single-commodity ETPs to represent a sector of the futures market, we used the narrowest instruments; that is, two or three commodities wide.
Overall, ETPs—based upon their last sale prices—did a fair job of tracking spot market commodities. The average apparent return for the 17 ETPs was -4.7 percent, while the contemporaneous mean return for the underlying spot commodities was -2.7 percent.
But let's run the numbers asset by asset.
Precious Metals
In a normal futures market, carrying charges—financing costs, storage charges and insurance fees—build up along the futures term structure to make contracts for deferred delivery more expensive than futures for near-term delivery. This condition, often referred to as contango, is expected when there's ample supply of a storable commodity.
An inverted market, on the other hand, exists when deferred deliveries are priced below nearby ones. A dearth of storable supply is usually the culprit.
Normal markets are costly for holders of ETPs based upon long-only futures indexes. In order to maintain exposure to the commodity, futures positions must be rolled forward as contracts approach expiry. In a normal market, that means higher-priced contracts will be purchased with the proceeds from lower-priced futures sales. This incremental loss—or negative roll yield—eats into returns.
That said, the slight disparity in the palladium trust's return vs. spot is a liquidity artifact. The last sale prices reported on the tape don't necessarily reflect the current markets for ETPs. The less actively an ETP trades, the greater the discrepancy between the last sale price and the current bid/offer spread.
This should be kept in mind when considering the apparent returns of light-volume exchange-traded notes.
Base Metals
Energy
Softs
Grains
The Final Tally
In the first quarter, 75 percent of single-commodity and narrowly focused ETPs were winners. The platinum and palladium products were the top performers, along with the livestock ETN. But in the second quarter, the situation reversed: Losers outnumbered winners by better than 3-to-1. Coffee led the way in the second quarter, followed by natural gas.
The worst performers in the year's second stanza were the industrial metals—lead, copper and nickel. In the first quarter, sugar, natural gas and grains brought up the rear.
While there's been jockeying for best and worst honors, gold and silver take the prize for consistency in the first half.
Disclosure I am Long GLD n SLV shares
No, it's not a gold trust; the SPDR Gold Trust (NYSE Arca: GLD) came in third. It's actually the exchange-traded note tracking coffee's price, the iPath DJ-UBS Coffee Subindex Total Return ETN (NYSE Arca: JO).
Surprised?
Well, the second quarter was full of surprises for commodity investors. Unfortunately, most of them were unpleasant.
Of 17 single-commodity or narrowly focused products, only four turned a profit. The winners netted an average 12.1 percent gain, while the average loser gave up 9.9 percent.
We sought out the most liquid single-commodity ETPs to see how well they tracked the spot market over the last three months. When we couldn't find single-commodity ETPs to represent a sector of the futures market, we used the narrowest instruments; that is, two or three commodities wide.
Overall, ETPs—based upon their last sale prices—did a fair job of tracking spot market commodities. The average apparent return for the 17 ETPs was -4.7 percent, while the contemporaneous mean return for the underlying spot commodities was -2.7 percent.
But let's run the numbers asset by asset.
Precious Metals
Commodity | Spot Gain/ (Loss) | Futures Term Structure | ETP Ticker | ETP Type | ETP Gain/ Loss | +/- 200-Day Average |
| CMX Gold | 11.7% | Normal | TST | 11.7% | 8.1% | |
| CMX Silver | 6.2% | Normal | TST | 6.2% | 5.5% | |
| NYMX Platinum | -8.0% | Normal | ETN | -7.2% | -4.6% | |
| NYMX Palladium | -8.0% | Normal | TST | -7.5% | -6.8% |
Key: TST = Grantor Trust; ETN = Exchange-Traded Note
Gold and silver grantor trusts topped the precious metals group in the second quarter, partly because the trusts hold metal and aren't based upon a futures index. Of course, the underlying commodities increased over the period, but the product didn't get in the way of the gain's realization.In a normal futures market, carrying charges—financing costs, storage charges and insurance fees—build up along the futures term structure to make contracts for deferred delivery more expensive than futures for near-term delivery. This condition, often referred to as contango, is expected when there's ample supply of a storable commodity.
An inverted market, on the other hand, exists when deferred deliveries are priced below nearby ones. A dearth of storable supply is usually the culprit.
Normal markets are costly for holders of ETPs based upon long-only futures indexes. In order to maintain exposure to the commodity, futures positions must be rolled forward as contracts approach expiry. In a normal market, that means higher-priced contracts will be purchased with the proceeds from lower-priced futures sales. This incremental loss—or negative roll yield—eats into returns.
That said, the slight disparity in the palladium trust's return vs. spot is a liquidity artifact. The last sale prices reported on the tape don't necessarily reflect the current markets for ETPs. The less actively an ETP trades, the greater the discrepancy between the last sale price and the current bid/offer spread.
This should be kept in mind when considering the apparent returns of light-volume exchange-traded notes.
Base Metals
Commodity | Spot Gain/ (Loss) | Futures Term Structure | ETP Ticker | ETP Type | ETP Gain/ Loss | +/- 200-Day Average |
| CMX Copper | -18.0% | Normal | ETN | -19.1% | -11.4% | |
| LME Lead | -18.6% | Normal | ETN | -18.9% | -18.5% | |
| LME Nickel | -19.1% | Normal | ETN | -23.5% | -8.2% |
Key: ETN = Exchange-Traded Note
The market for industrial metals was weak in the second quarter, reflecting the slackened demand for durable goods and housing. The apparent spread between the ETP returns and the spot market is, again, due to timing and contango.Energy
Commodity | Spot Gain/ (Loss) | Futures Term Structure | ETP Ticker | ETP Type | ETP Gain/ Loss | +/- 200-Day Average |
| NYMX Crude Oil | -9.6% | Normal | ETF | -9.8% | -9.8% | |
| NYMX Gasoline | -10.3% | Inverted/Normal | ETF | -5.8% | -5.8% | |
| NYMX Heating Oil | -2.9% | Normal | ETF | -6.0% | -6.0% | |
| NYMX Natural Gas | 19.8% | Normal | ETF | 12.2% | -8.7% |
Key: ETF = Exchange-Traded Fund
Natural gas turned in the standout performance in the energy category, though deep contango in the futures term structure ate up a lot of the spot market gain. Carrying charges seemed to have also reduced the returns for the heating oil and crude oil exchange-trade funds. The large disparity between the gasoline ETF's return and its spot market is due to gasoline's unstable term structure over the second quarter.Softs
Commodity | Spot Gain/ (Loss) | Futures Term Structure | ETP Ticker | ETP Type | ETP Gain/ Loss | +/- 200-Day Average |
| ICE Coffee | 21.5% | Normal/Inverted | ETN | -18.5% | 17.1% | |
| ICE Cocoa | -0.4% | Normal | ETN | -1.2% | -4.9% | |
| ICE Cotton | -5.1% | Inverted/Normal | ETN | -3.0% | -0.2% | |
| ICE Sugar | -3.3% | Inverted/Normal | ETN | -7.0% | -23.4% |
Key: ETN = Exchange-Traded Note
Among the softs, coffee was the clear winner. Still, soft ETNs are lightly traded, so the differences between the products' apparent returns and their underlying markets can seem large.Grains
Commodity | Spot Gain/ (Loss) | Futures Term Structure | ETP Ticker | ETP Type | ETP Gain/ Loss | +/- 200-Day Average |
| CBOT Corn, Wheat, Soybeans | 0.7%* | Normal/Inverted | ETN | -0.7% | -6.1% |
Key: ETN = Exchange-Traded Note
*Spot returns are composites weighted by the constituent commodities' ETP allocations
Grains—in particular, corn and wheat—jumped on the last day of the quarter following U.S. Department of Agriculture reports of lighter-than-expected plantings.
LivestockCommodity | Spot Gain/ (Loss) | Futures Term Structure | ETP Ticker | ETP Type | ETP Gain/ Loss | +/- 200-Day Average |
| CME Live Cattle, Lean Hogs | -0.3%* | Normal/Inverted | ETN | -3.4% | -0.8% |
Key: ETN = Exchange-Traded Note
*Spot returns are composites weighted by the constituent commodities' ETP allocations
While grain prices broke to the upside, livestock prices spent most of the quarter backing off from the parabolic run-ups of the previous year.The Final Tally
In the first quarter, 75 percent of single-commodity and narrowly focused ETPs were winners. The platinum and palladium products were the top performers, along with the livestock ETN. But in the second quarter, the situation reversed: Losers outnumbered winners by better than 3-to-1. Coffee led the way in the second quarter, followed by natural gas.
The worst performers in the year's second stanza were the industrial metals—lead, copper and nickel. In the first quarter, sugar, natural gas and grains brought up the rear.
While there's been jockeying for best and worst honors, gold and silver take the prize for consistency in the first half.
Disclosure I am Long GLD n SLV shares
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