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ETF in Focus

Submitted by Dave Fry on 11-05-2014


There isn’t a much hotter trend in equity investing than social media. Many relatively young but successful companies dominate the sector. One ETF provider, Global X, jumped the gun beating its peers to this competitive industry, where first to the space generally wins, launching a new ETF, the Global X Social Media Index ETF, SOCL. It’s linked to the Solactive Social Media Index.

The case for investing in SOCL is as follows:

In 2013, approximately two-thirds of adult internet users used a social networking suite, more than double the percentage that reported social network usage in 2008 per the Pew Research Center.

Social Media is among the top accessed activities across different devices like computers, mobiles and PCs.

Ad revenues accruing to Social Media companies is expected to grow from $4.6 billion in 2012 to $9.2 billion in 2016, at a compounded annual rate of 18.9% (BIA/Kelsey, 2012).

Mobile use is increasing with nearly 46% of social media users accessing content directly from their mobile phones, while 15% connecting through tablets (Nielsen 2012). And nearly 46% of online users rely on social media for making a purchase. (Social Media Today, 2013).

Approximately 87% of Fortune 100 companies utilize branded social media channels. Nearly 81% of the top Asian companies had expanded into branded social medial channels in 2011 (Buson-Marsteller, 2012 and 2011)

The potential for international growth is excellent as is demonstrated by the following:

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Submitted by Dave Fry on 10-30-2014

There isn’t any way around it, the lion’s share of investors these days are more interested in yield than growth. Demographics play a large role as boomers retire and a respectable return from most conventional and safe choices doesn’t exist due to the Fed’s ZIRP policies.

We’ve covered a variety of choices previously whether from dividend issues and/or bonds. Given the conventional High Yield or Junk Bond sectors there are a handful of choices with most tied to similar high yield indexes meaning there’s little to choose from.

There are other choices in the High Yield bond category from PIMCO and today’s featured active managed ETF, Advisor Shares Peritus High Yield Bond ETF (HYLD). The active high yield market is growing and is nearing $3 trillion. The current asset size of HYLD is relatively small allowing them to move quickly to spot opportunities bigger funds can’t take advantage of.

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Submitted by David Fry on 08-27-2014

ETN in Focus: iPath Coffee ETN (JO) has been rising on and off (mostly "on") due to drought in Brazil and weakened crops due to infestation.

ETF in Focus: iPath Coffee ETN (JO) has been rising on and off (mostly "on") due to drought in Brazil and crops weakened an infestation followed.

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Submitted by Dave Fry on 08-20-2014

ETF in Focus: iShares MSCI Hong Kong ETF (EWH) is on the move higher with talk of a connection between Shanghai and HK exchanges and higher property prices.

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Submitted by Dave Fry on 07-15-2014

XLY  ETF in Focus: Consumer Discretionary Select Sector SPDR Fund (XLY) may look a little toppy given today's Retail Sales data was quite weak regardless of other spin.

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