Market Overview

Wide Range of ETFs Hitting New Highs (EWN, NLR, EIS, ING, TEVA)

Wide Range of ETFs Hitting New Highs EWN, NLR, EIS, ING, TEVA

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: EWN)

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: UL)and ING Group (NYSE: ING).

Market Vector Uranium and Nuclear Energy ETF (NYSE: NLR)

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 sector.

iShares MSCI Capped Israel ETF (NYSE: EIS)

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: TEVA). 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 EIS. 


Related Articles (EIS + EWN)

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