Here is Benzinga's ETF Outlook for Wednesday, October 30,
Global X FTSE Argentina 20 ETF (NYSE:
The midterm election results have been counted in Argentina
and it was a blow to the current ruling party. It is now looking
as if President Cristina Kirchner may not win a third term,
changing the economic landscape in the country.
The ETF is up 21 percent this year, but has fallen 4.5 percent
in the last week. The country has a gamut of issues it is dealing
with economically and some thought a new ruling party could be
what was needed to change the situation. So far, investors have
not greeted the new politicians with open arms. The next few
weeks should be interesting for the country and the ETF.
First Trust Global Wind Energy ETF (NYSE:
The focus on global warming and green energy has not been in
the headlines for a long time. The reasons range from the fact
more important stories have found their way to the top of the
page as well as the underperformance of the stocks in the sector
for several years.
FAN lost over 80 percent of its value from June 2008 through
July 2012. From the low in July of last year through yesterday's
close the ETF has doubled in price.
The chart of FAN over that time has been one of the best in
the market as it has been flying under the radar. The ETF that is
heavily invested in Europe (64 percent) has been catching buyers
based on valuation and a rebound in the European stock market.
The long-term outlook for FAN may look great, but in the
short-term it has the wind at its back - pun intended.
iShares Dow Jones U.S. Health Care Providers ETF (NYSE:
The disaster that has been the rollout of Obamacare could be
the reason that IHF is not joining the other health care related
ETFs at new highs. The ETF finished up 0.4 percent yesterday, but
it has struggle the past two weeks, down six of the last nine
days. The S&P 500 has been up eight of the last nine
The next couple of weeks will be crucial for not only
Obamacare, but also how the health care providers that play such
an integral roll in the new program react. There is major support
for IHF at the $85 area that is must hold. If the ETF breaches
support it could signal danger ahead for the entire sector.
iShares MSCI U.S. Minimum Volatility Index ETF (NYSE:
The ETF looks to identify stocks that have below average
volatility compared to the overall U.S. equity market. The stocks
must be ranked in the top 85 percent of all securities based on
market cap that are traded on stock exchanges in the U.S. The ETF
is lagging the S&P 500 this year, but a recent breakout from
a quadruple high created an extremely bullish pattern.
Add in the fact that the stocks that make up the ETF are doing
well in a strong market and all signs point to USMV outperforming
the next few months. The top sectors are health care, financials,
and consumer staples. All three have been rising, but for
different reasons. There are a total of 133 stocks in the ETF and
it pays a modest dividend of 2.57 percent.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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