The S&P 500 is trading at an all-time along with the Dow
as the NASDAQ trades at the best level in over a decade.
The breakout for the U.S. stock exchanges does not necessarily
indicate that all ETFs are hitting new highs. That being said,
there is a wide range of ETFs breaking out this week.
iShares MSCI Netherlands Index ETF (NYSE:
The Netherlands became the latest victim of a downgrade by
Standard & Poor's this week after the rating agency cut the
country's credit rating from AAA to AA+.
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The main reason behind the downgrade was weakening economic
growth. Because S&P has lost a lot of its credibility over
the last few years, the move did not have a big affect on the
Netherlands bonds and stock market. EWN is up 0.6 percent today
after the downgrade and is trading at the best level in years.
The ETF is heavily invested in the consumer staples and
financials with the top holdings Unilever (NYSE:
)and ING Group (NYSE:
Market Vector Uranium and Nuclear Energy ETF (NYSE:
After the disaster at the nuclear plant in Japan a few years
ago the industry got a black eye and counties around the world
were negative on nuclear energy.
This sent uranium-mining shares much lower along with any
company that was involved in building new nuclear power plants.
The ETF has been able to rebound off the lows and is trading at
new 18-month high. However the ETF remains 40 percent off the
high set in early 2011. While NLR will not get back to its old
highs any time soon, the black cloud over nuclear energy has
begun to subside and it appears there are still bargains in the
iShares MSCI Capped Israel ETF (NYSE:
The geographic location of Israel has always been a concern
with investors. The civil war that is raging in Syria and the
ongoing battle with Iran still hang over the country, but
investors are still willing to put money into the shares. EIS is
trading at a fresh two-year high heading into the last month of
the year. The short-term deal that Iran signed last week should
be a positive for EIS, but there is no definitive long-term deal
on the horizon.
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The one caveat with EIS is that 24 percent of the portfolio is
in one stock, Teva Pharmaceuticals (NYSE:
). The drug maker has had a big rally recently, but has been
lagging its peers the last couple of years. When an ETF is so
reliant on one stock the risk level increases. Investors must
have a positive view on TEVA or it is not even an option to own
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
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