The best ETF investments at the moment are biotechs and
international bonds, according to the Ned Davis Research Group of
In an "ETF Highlights" report sent Tuesday, Ned Davis ETF
strategist Neil Leeson writes that these groups sport the most
bullish trends according to the firm's "tape indicators."
"Biotech funds have been the real leaders in the sector this
year," Leeson wrote. "Nearly all of them are oversold, and the
recent pullback did nothing to remedy the situation. The trend
model forMarket Vectors Biotech ETF (
) is at a new high on the year."
BBH carries an IBD Relative Strength Rating of 89 and a C+
Accumulation-Distribution Rating on an A to E scale. A is best.
That means BBH's price action has outpaced 89% of the market in
the past 12 months and that institutions are buying slightly more
shares than selling.
BBH is trading above its 50-day and 200-day moving averages,
which confirms a strong uptrend. It's rallied an eye-popping
48.72% year to date vs. 14.07% for SPDR S&P 500 (
David Fry has evaluated the top five biotech
, ranking BBH third andSPDR Biotechnology Select ETF (
) best. XBI carries a 78 RS Rating and D+ Acc/Dis Rating.
For international bond plays, Ned Davis' Leeson
recommendsPimco Australia Bond Index ETF (
),iShares JPMorgan USD Emerging Markets Bond (
) andWisdomTree Dreyfus Emerging Currency (CEW).
AUD holds Australian-dollar denominated, investment-grade
government and corporate bonds. AUD returned 9.47% year to date
vs. 4.2% for the benchmark Barclays U.S. Aggregate Bond index. It
currently yields 3.05%.
EMB and CEW have benefited from U.S. dollar weakness. EMB
yields 3.34%. It's returned a handsome 15.12% year to date.
CEW gained 5.28% year to date. It shows no yield.
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