iShares North American Natural Resources ETF (BATS: IGE)

iShares North American Natural Resources ETF (BATS:IGE), Quote.Headers.trade-ideas

iShares North American Natural Resources ETF

Energy

Basic Materials

Consumer Cyclical

Industrials

Other

Utilities

The Fund seeks to track the investment results of the S&P North American Natural Resources Sector Index; the Underlying Index, which measures the performance of U.S.-traded stocks of natural resource-related companies in the U.S. and Canada, as determined by S&P Dow Jones Indices LLC the Index Provider or SPDJI.

Exxon Mobil Corp.

Chevron Corp.

Conocophillips Common Stock USD 0.01

Enbridge Inc - Common

Eog Resources, Inc.

Schlumberger Nv

Freeport-Mcmoran Inc Common Stock Usd 0.1

Marathon Petroleum Corp

Phillips 66

Sector ETFs

Specialty ETFs

Emerging Market ETFs

Previews

Pre-Market Outlook

Trading Ideas

ETFs

ISHARES MSCI PHILIPPINES INVESTABLE MARKET INDEX FUND

EPHE

Market Vectors Global Alternative Energy ETF Trust

iShares S&P GSSI Natural Resources Sector Index Fund

First Trust NASDAQ Clean Edge Green Energy Index Fund

QCLN

TSLA

ETF Outlook for Thursday, May 8, 2014 (QCLN, TSLA, IGE, EWW, EPHE, XOM)

Broad U.S. Equity ETFs

EGPT

ETF Outlook for Tuesday, April 1, 2014 (IGE, SPY, EGPT, IEV)

Financial Advisors

Intraday Update

Markets

PowerShares Dynamic Basic Materials Sector Portfolio

Best &amp; Worst ETFs &amp; Mutual Funds: Materials Sector

ISHRS EMR ASIA LCAL GVT USD DIST ETF

iShares Investment Grade Systematic Bond ETF

IGEN NETWORKS CORP by iGen Networks Corp.

iGen Networks Corp

IGAS ENERGY PLC NEW ORD by Igas Energy PLC

Star Energy Group PLC

INDO GLOBAL EXCH PTE LTD by Indo Global Exchanges Pte Ltd

Indo Global Exchange(s) Pte Ltd

ETF Outlook for Thursday, May 8, 2014

	First Trust NASDAQ Clean Edge Green Energy ETF (NYSE: <a class="ticker" href="/stock/qcln#NYSE">QCLN</a>)

	Red-hot momentum stock Tesla Motors (NASDAQ: <a class="ticker" href="/stock/tsla#NASDAQ">TSLA</a>) reported earnings after the bell Wednesday that came in better than expected along with revenue above estimates. However, the stock is down about seven percent in the pre-market as the stock tests important support at the $184 area.

	Several ETFs could be on the move Thursday due to the high exposure to the stock. QCLN has a 7.4 percent stake in Tesla and the stock is the third largest position in the portfolio. The Market Vectors Global Alternative Energy ETF (NYSE: <a class="ticker" href="/stock/gex#NYSE">GEX</a>) also calls Tesla its third largest holding with a 9.1 percent allocation. Both ETFs have been moving lower in the last two months and should continue that trend on Thursday.

	iShares Natural Resources ETF (NYSE: <a class="ticker" href="/stock/ige#NYSE">IGE</a>)

	The energy-heavy ETF closed at a new multi-year high Wednesday after gaining 0.7 percent and extending its winning streak to four sessions. The ETF is closing in on an important level at $47.81, which is the 2011 high.

	See also: <a href="http://www.benzinga.com/etfs/broad-u-s-equity-etfs/14/05/4535307/3-small-cap-etfs-with-better-performance-than-iwm">3 Small-Cap ETFs With Better Performance Than IWM</a>

	A breakout above the resistance level will be a major move for the ETF and could send it much higher in the months ahead. On the flipside, failure to breakout could signal a pullback of at least 10 percent before it can begin a new uptrend. The major holdings of IGE include Exxon Mobil (NYSE: <a class="ticker" href="/stock/xom#NYSE">XOM</a>) and Chevron (NYSE: <a class="ticker" href="/stock/cvx#NYSE">CVX</a>).

	iShares MSCI Mexico ETF (NYSE: <a class="ticker" href="/stock/eww#NYSE">EWW</a>)

	The neighbor to the south has been quietly breaking out and is now trading at the best level since January. The ETF was up 1.2 percent yesterday and has been up four out of the last five trading sessions.

	On a longer-term chart it appears that EWW has broken a downtrend pattern that has been in place for a year. The good volume on the up days over the last two months is another positive for the ETF. The only concern is that EWW is overbought in the short-term, however strong ETFs have been known to continue rallying in the face of overbought readings.

	iShares MSCI Philippines Investable Market ETF (NYSE: <a class="ticker" href="/stock/ephe#NYSE">EPHE</a>)

	The Southeast Asian country had its ETF close at the best level in nine months yesterday, however there is another reason to keep an eye on the action this week. The country is at a standstill with China after it has detained 11 Chinese fishermen to determine if they have committed any crimes.

	While China is demanding the immediate release of the fisherman, the Philippines have not complied. This may end up being a non-story, but it is something to watch; even more so with the ETF at a multi-month high.

ETF Outlook for Tuesday April 1, 2014

	iShares North American Natural Resources ETF (NYSE: <a class="ticker" href="/stock/ige#NYSE">IGE</a>)

	The name of the ETF can be deceiving as it sounds, as if it should be made up of mining and energy stocks. The truth is it is made up of 85 percent energy with only 8 percent in the metals and mining. The portfolio allocation has been a good thing recently as the energy stocks have been outperforming the overall market. IGE was up a mere 0.1 percent on Monday, but closed at the best level since mid-2011 and the chart indicates there could be higher prices ahead for the ETF.

	Related: <a href="http://www.benzinga.com/markets/bonds/14/03/4431442/investors-fleeing-treasury-etfs-shy-tlt">Investors Fleeing Treasury ETFs (SHY, TLT)</a>

	SPDR S&amp;P 500 ETF (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>)

	The broad based U.S. ETF closed out the first quarter with a gain of 1.3 percent. And considering it finished with a gain of 0.8 percent on Monday, the ETF was basically flat for the quarter up until the last day. Even though the end result is not flashy, there was plenty of action throughout the last three months. The ETF hit a new all-time high that was followed by a four-month low, which was then followed with yet another all-time high. As of Tuesday, the ETF stands 0.7 percent below a new high and if the pattern continues, the market should be hitting levels never seen in the very near future.

	Market Vectors Egypt Index ETF (NYSE: <a class="ticker" href="/stock/egpt#NYSE">EGPT</a>)

	The top performing single-country ETF during the first quarter was EGPT with a gain of 24 percent. But in the last week the ETF is down 6 percent and trading above the 50-day moving average. If the ETF can hold above the $65 area, it could be an opportunity for investors to begin building a position in a high-flying frontier market that could see more new highs in 2014.

	iShares S&amp;P Europe 350 Index ETF (NYSE: <a class="ticker" href="/stock/iev#NYSE">IEV</a>)

	Eurozone manufacturing slipped to 53.0 in March from 53.2 in February. The French PMI hit a 33-month high as the country moved back to expansion. Two of the PIIGS, Spain and Ireland continue to improve at a rapid pace, Germany slowed and Greece moved back into contraction territory. IEV is currently trading 1 percent off the six-year high heading into the trading action today. The European markets were higher last night heading into this mornings opening bell. The consensus is that the manufacturing numbers were solid and helping stocks rally. Look for IEV to hit a new all-time high in the following weeks.

<div class="entry-content">

		The Materials sector ranks fifth out of the ten sectors as detailed in my <a href="http://blog.newconstructs.com/2012/07/10/roadmap-to-the-best-worst-etf-mutual-fund-sectors/">sector roadmap</a>. It gets my Neutral rating, which is based on aggregation of ratings of 11 ETFs and 11 mutual funds in the Materials sector as of July 12, 2012. Reports on the best &amp; worst ETFs and mutual funds in every sector and style are <a href="http://www.newconstructs.com/nc/research/report/etf-and-fund-reports.htm">here</a>.

		Figure 1 shows the five best and worst-rated Materials ETFs and Figure 2 ranks from best to worst the nine Materials mutual funds that meet our liquidity standards. Not all Materials sector ETFs and mutual funds are created the same. The number of holdings varies widely (from 30 to 156), which creates drastically different investment implications and ratings. The best ETFs and mutual funds allocate more value to Attractive-or-better-rated stocks than the worst ETFs and mutual funds, which allocate too much value to Neutral-or-worse-rated stocks.

		To <a href="http://blog.newconstructs.com/2012/04/03/how-to-find-the-best-etfs/">identify the best</a> and <a href="http://blog.newconstructs.com/2012/04/05/how-to-avoid-the-worst-etfs/">avoid the worst</a> ETFs and mutual funds within the Materials sector, investors need a <a href="http://blog.newconstructs.com/2011/11/23/predictive-fund-rating-methodology/">predictive rating</a> based on (1) <a href="http://blog.newconstructs.com/2011/11/22/portfolio-management-rating-methodology/">stocks ratings</a> of the holdings and (2) the <a href="http://blog.newconstructs.com/2011/10/28/total-annual-costs-methodology/">all-in expenses</a> of each ETF and mutual fund. Investors need not rely on backward-looking ratings. My fund rating methodology is detailed <a href="http://blog.newconstructs.com/2011/11/23/predictive-fund-rating-methodology/">here</a>.

		Investors should not buy any Materials ETFs or mutual funds because none get an Attractive-or-better rating. If you must have exposure to this sector, you should buy a basket of Attractive-or-better rated stocks and avoid paying undeserved fund fees. Active management has a long <a href="http://blog.newconstructs.com/wp-content/uploads/2012/02/Failure-of-Active-Management1.pdf">history</a> of not paying off.

		See ratings and reports on all ETFs and mutual funds in this sector on my free <a href="http://www.newconstructs.com/nc/fundscreener/fund-screener.htm">mutual fund and ETF screener</a>.
<div>

			Figure 1: ETFs with the Best &amp; Worst Ratings &ndash; Top 5
</div>

		<a href="http://blog.newconstructs.com/wp-content/uploads/2012/07/Materials1.jpg"><img alt="" class="aligncenter size-full wp-image-4190" height="235" src="http://blog.newconstructs.com/wp-content/uploads/2012/07/Materials1.jpg" title="Materials1" width="329" /></a>

		* Best ETFs exclude ETFs with TNA&rsquo;s less than 100 million for inadequate liquidity.
<div>

			Sources: New Constructs, LLC and company filings
</div>

		PowerShares Dynamic Basic Materials (NYSE: <a class="ticker" href="/stock/pyz#NYSE">PYZ</a>) is excluded from Figure 1 because its total net assets (TNA) are below $100 million and do not meet our liquidity standards.
<div>

			Figure 2: Mutual Funds with the Best &amp; Worst Ratings &ndash; Top 5 (where available) 

			<a href="http://blog.newconstructs.com/wp-content/uploads/2012/07/Materials2.jpg"><img alt="" class="aligncenter size-full wp-image-4189" height="209" src="http://blog.newconstructs.com/wp-content/uploads/2012/07/Materials2.jpg" title="Materials2" width="329" /></a>

			* Best mutual funds exclude funds with TNA&rsquo;s less than 100 million for inadequate liquidity.
</div>
<div>

			Sources: New Constructs, LLC and company filings
</div>

		ICON Funds: ICON Materials Fund (NYSE: ICBMX) and ICON Funds: ICON Materials Fund (NYSE: ICBCX) are excluded from Figure 2 because their total net assets (TNA) are below $100 million and do not meet our liquidity standards.

		iShares S&amp;P North American Natural Resources Sector Index Fund (NYSE: <a class="ticker" href="/stock/ige#NYSE">IGE</a>) is my top-rated Materials ETF and Fidelity Select Portfolios: Fidelity Advisor Materials Fund (NYSE: FMFEX) is my top-rated Materials mutual fund. Both earn my Neutral rating.

		SPDR S&amp;P Metals &amp; Mining ETF (NYSE: <a class="ticker" href="/stock/xme#NYSE">XME</a>) is my worst-rated Materials ETF and ICON Funds: ICON Materials Fund (NYSE: ICBAX) is my worst-rated Materials mutual fund. Both earn my Dangerous rating.

		Figure 3 shows that 49 out of the 232 stocks (over 28% of the total net assets) held by Materials ETFs and mutual funds get an Attractive-or-better rating. However, there are not any Materials ETFs or Materials mutual funds that get an Attractive-or-better rating.

		The takeaway is: Materials ETFs and mutual funds are not picking the right stocks and are undeserving of their fees no matter how small.
<div>

			Figure 3: Materials Sector Landscape For ETFs, Mutual Funds &amp; Stocks
</div>
<div>

			<a href="http://blog.newconstructs.com/wp-content/uploads/2012/07/Materials3.jpg"><img alt="" class="aligncenter size-full wp-image-4188" height="156" src="http://blog.newconstructs.com/wp-content/uploads/2012/07/Materials3.jpg" title="Materials3" width="410" /></a>

			Sources: New Constructs, LLC and company filings
</div>

		As detailed in &ldquo;<a href="http://blog.newconstructs.com/2012/05/09/low-cost-funds-dupe-investors/">Cheap Funds Dupe Investors</a>&rdquo;, the fund industry offers many cheap funds but very few funds with high-quality stocks, or with what I call good <a href="http://blog.newconstructs.com/2011/11/22/portfolio-management-rating-methodology/">portfolio management</a>.

		I do not recommend that investors buy any Materials ETFs or mutual funds. Instead, I would recommend buying a basket of individual Attractive-or-better rated Materials stocks.

		Freeport-McMoRan Copper &amp; Gold, Inc. (NYSE: <a class="ticker" href="/stock/fcx#NYSE">FCX</a>) is one of my favorite stocks held by Materials ETFs and mutual funds and earns my Very Attractive rating. Freeport-McMoRan is one of the largest copper, gold, and molybdenum mining companies in the world. Although investors often assume that mining companies trade according to the price movements of the commodities they produce, not all Materials companies generate the same profits per ounce of gold or pound of copper. In that regard, FCX is one of the best. FCX&rsquo;s <a href="http://www.newconstructs.com/nc/help/glossary.htm#roicDef">ROIC</a> is 16.2%, meaning that it generates higher returns on invested capital than 86% of other Materials companies. Despite fluctuations in commodity prices, FCX earned a <a href="http://www.newconstructs.com/nc/help/glossary.htm#roicDef">ROIC</a> that beat its <a href="http://www.newconstructs.com/nc/help/glossary.htm#helpWacc">WACC</a> in each of the last 7 years, generating the <a href="http://www.newconstructs.com/nc/help/glossary.htm#epDef">economic profits</a> that drive shareholder value. Furthermore, the market is pricing Freeport-McMoRan as if its operating profitability will permanently decline by 48%. This pessimistic valuation makes a highly profitable company like FCX a Very Attractive stock right now.

		Weyerhaeuser (NYSE: <a class="ticker" href="/stock/wy#NYSE">WY</a>) is one of my least favorite stocks held by Materials ETFs and mutual funds and earns my Dangerous rating. Weyerhaeuser has not earned a <a href="http://www.newconstructs.com/nc/help/glossary.htm#roicDef">ROIC</a> that beat its <a href="http://www.newconstructs.com/nc/help/glossary.htm#helpWacc">WACC</a> a single time in the 14 years I have covered the company. In fact, WY&rsquo;s ROIC at 2.1% places it in the bottom 15% of Materials companies. Despite Weyerhaeuser&rsquo;s consistent record of paltry returns and ineffective capital allocation, the market&rsquo;s valuation implies high expectations for future growth and profitability. In order to justify its current stock price, Weyerhaeuser needs compounded annual revenue growth of over 15% for the next 20 years, a daunting task for a Materials company. When you combine a sky-high valuation, consistently unimpressive returns, and Weyerhaeuser&rsquo;s nearly $4.5 billion in debt and $1.5 billion in underfunded pensions, you get a high-risk/low-reward stock.

		168 stocks of the 3000+ I cover are classified as Materials stocks, but due to style drift, Materials ETFs and mutual funds hold 232 stocks.

		Figures 4 and 5 show the rating landscape of all Materials ETFs and mutual funds.

		Our <a href="http://blog.newconstructs.com/2012/07/10/roadmap-to-the-best-worst-etf-mutual-fund-sectors/">sector roadmap</a> report ranks all sectors and highlights those that offer the best investments.
<div>

			Figure 4: Separating the Best ETFs From the Worst ETFs
</div>
<div>

			<a href="http://blog.newconstructs.com/wp-content/uploads/2012/07/Materials4.jpg"><img alt="" class="aligncenter size-full wp-image-4187" height="245" src="http://blog.newconstructs.com/wp-content/uploads/2012/07/Materials4.jpg" title="Materials4" width="409" /></a>

			Sources: New Constructs, LLC and company filings
</div>
<div>

			Figure 5: Separating the Best Mutual Funds From the Worst Mutual Funds
</div>
<div>

			<a href="http://blog.newconstructs.com/wp-content/uploads/2012/07/Materials5.jpg"><img alt="" class="aligncenter size-full wp-image-4185" height="245" src="http://blog.newconstructs.com/wp-content/uploads/2012/07/Materials5.jpg" title="Materials5" width="409" /></a>

			Sources: New Constructs, LLC and company filings
</div>

		Review my <a href="http://www.newconstructs.com/nc/fundscreener/fund-screener.htm">full list</a> of ratings and rankings along with free reports on all 11 ETFs and 11 mutual funds in the Materials sector.

		Disclosure: I receive no compensation to write about any specific stock, sector or&nbsp;theme.
</div>

Best & Worst ETFs & Mutual Funds: Materials Sector

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Short Ideas

Commodities

First Trust ISE-Revere Natural Gas Index Fund

Market Vectors ETF Trust Market Vectors Gold Miners

Market Vectors RVE Hard Assets Producers ETF

iShares Dow Jones US Oil & Gas Exploration & Production Index Fund

iShares Dow Jones US Oil Equipment & Services Index Fund

iShares Trust S&P Global Energy Sector Index Fund

iShares Dow Jones US Energy Sector Index Fund

PowerShares ETF Trust Dynamic Energy Exploration & Production Port

PowerShares Dynamic Energy Sector Portfolio

Rydex ETF Trust Rydex S&P Equal Weight Energy ETF

iShares S&P Global Timber & Forestry Index Fund

WOOD

SPDR S&P Oil & Gas Equipment & Services ETF

Top 10 Commodity Producers ETFs

Last May, I suggested that for safety a Permanent Portfolio be considered as investors continue to be held hostage to fickle politicians and unpredictable events here and abroad. I designed a Permanent Portfolio using low cost ETFs to closely replicate the portfolio of Michael Cuggino's 5-star Permanent Portfolio Fund. The goal of this ETF mix? To retain absolute value and rise approximately 2% more than the Citigroup 3-month U.S. Treasury Bill index, re-balanced semi-annually or annually.
As Michael Cuggino has massaged the Permanent Portfolio Fund from his predecessors, Harry Browne and Terry Coxon, to reflect different investment avenues and long term trends,I have done likewise for my current ETF Permanent Portfolio. This begs the question, why adjust the allocation and moving parts of a permanent portfolio when it is designed to be permanent? The answer is that the world is changing at warp speed compared to fifty or even five years ago. Investment products better reflecting the world are available to capture long trends while defending against your best intentioned stock selections going haywire (generally, when you least expect it). Whereas the original Browne portfolio relied on stock warrants, physical possession of precious metal to be held in Switzerland and Swiss Francs in banknotes, and Mr. Cuggino's supposition of pure U.S. Dollar assets to be worth 30% of the portfolio, I have attempted to fine tune the portfolio further using low-cost ETFs and acknowledging that, quite possibly (but not certainly), the U.S. dominant position in the world and concurrently the U.S. Dollar are heading south with dispatch. This would favor such Asian banking and corporate areas such as Singapore.
The investor certainly wants exposure to areas presently out of favor. The intent of the ETF Permanent Portfolio is to protect against placing too many eggs in what the best investment basket du jour is for a given cycle. 
ETF PERMANENT PORTFOLIO:
Precious Metals: 20%
iShares Comex Gold Trust ETF (<a class="ticker" href="/stock/iau#">IAU</a>) 15% iShares Silver Trust ETF (<a class="ticker" href="/stock/slv#">SLV</a>) 5%
Swiss Franc Assets: 10%
Currency Shares Swiss Franc Trust ETF (<a class="ticker" href="/stock/fxf#">FXF</a>) 5% iShares MSCI Switzerland Index ETF (<a class="ticker" href="/stock/ewl#">EWL</a>) 5%
Singapore Assets: 5%
iShares MSCI Singapore Index Fund ETF (<a class="ticker" href="/stock/ews#">EWS</a>) 5%
Worldwide Real Estate and Natural Resources: 25%
iShares North America Natural Resource Index ETF (<a class="ticker" href="/stock/ige#">IGE</a>) 5% Vanguard Energy ETF (<a class="ticker" href="/stock/vde#">VDE</a>) 5% iShares FTSE EPRA/NAREIT Developed World Real Estate ex-U.S. ETF (<a class="ticker" href="/stock/ifgl#">IFGL</a>) 5% Vanguard REIT ETF (<a class="ticker" href="/stock/vnq#">VNQ</a>) 5% Market Vectors Agribusiness ETF (<a class="ticker" href="/stock/moo#">MOO</a>) 5%
Growth Stocks: 20%
Vanguard Dividend Appreciation Fund ETF (DIV) 10% iShares Morningstar Small Company Growth Index Fund ETF (<a class="ticker" href="/stock/jkk#">JKK</a>) 5% Guggenheim Frontier Markets ETF (<a class="ticker" href="/stock/frn#">FRN</a>) 5% or Schwab Emerging Markets Equity ETF (SCHE) 5%
U.S. Treasury Bills and Bonds: 20%
Vanguard Total Bond Market ETF (<a class="ticker" href="/stock/bnd#">BND</a>) 10% Vanguard Intermediate Term Government Bond ETF (VGIT) 10%
It is likely that investor's will have a speculative portion divorced from a permanent portfolio, the size to vary depending upon investment style and temperament. Having a permanent portfolio anchor allows the investor to place more focused bets on areas of conviction. While you may agree or disagree with my selections, the concept itself may spur you to elect this strategy. 
Having a grip on the geo-political landscape becomes more important day by day. A service such as STRATOR should become a tool in equal measure to your daily perusal through the stocks charts and gurus.
The author has no position in any of the above stock ETFs or has no profit relationship with STRATFOR. 
<div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/33358029-6332267985786845295?l=investingfromtheright.blogspot.com' alt='' /></div>

iShares FTSE EPRA/NAREIT Globa Real Estate ex-US Index Fund

IFGL

iShares Morningstar Small Growth Index Fund

March 28, 2011: Everyone's World and Your Permanent Portfolio

Shares of the ISHARES S&amp;P NORTH AMERICAN NATURAL RESOURCES SECTOR INDEX FUND (NYSE: <a class="ticker" href="/stock/ige#NYSE">IGE</a>) are flat on the session, currently trading $31.49. The ETF has been moving largely sideways for the past few months, but it is now trading below the 50-day and 200-day moving averages. 
Options traders are buying puts on the name once again today. The July $34 put was purchased 1,100 times on the offer earlier in the session. Open interest on the strike is 25,769 contracts. 
Put volume is running at 2.55x the daily average. 
The ISHARES S&amp;P NORTH AMERICAN NATURAL RESOURCES SECTOR INDEX FUND seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&amp;P North American Natural Resources Sector index. The fund generally invests at least 90% assets in securities of the underlying index and in depositary receipts representing securities of the underlying index.

Technicals

Options

Puts Bought on The Natural Resources Sector (IGE)

Shares of the ISHARES S&amp;P NORTH AMERICAN NATURAL RESOURCES SECTOR INDEX FUND (NYSE: <a class="ticker" href="/stock/ige#NYSE">IGE</a>) are higher on the session by 1.48%, currently trading $32.23. The stock has been drifting lower over the past five weeks and is struggling to hold the $32 handle. 
Put volume is growing on the ETF as well. Though action has been in largely small lots, volume is now running at 3x the daily average with the majority of puts purchased on the offer. 
Traders are focused on the $35 and $33 strikes. 
The ISHARES S&amp;P NORTH AMERICAN NATURAL RESOURCES SECTOR INDEX FUND seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the S&amp;P North American Natural Resources Sector index. The fund generally invests at least 90% assets in securities of the underlying index and in depositary receipts representing securities of the underlying index.

Put Volume Grows on Natural Resources Sector (IGE)

With investors held hostage to government whimsy both here and abroad, coupled with the vagaries of trying to game the market only to be disappointed time and again with one's best laid investment plans going haywire, it may be time to structure a Permanent Portfolio with wealth that is both precious and essential to your long term expectations.
The Permanent Portfolio concept was explained to the average investor in the 1970's by the late Harry Browne. Having a Speculative Portfolio for making educated guesses on the market and a Permanent Portfolio, designed to hold long term investments theoretically assembled to account for the unexpected while producing tangible gains is a seasoned idea which at present merits your consideration.
Inspired by Browne and the steady success of his portfolio successor Michael Cuggino, here is a proposal to construct a Permanent Portfolio on your own, using Exchange Traded Funds.
The premise is to have five categories of investment which will rise or fall independently.This portfolio should be rebalanced every six months to retain the ratio of one category to the others. The goal is to have the portfolio retain absolute value and rise approximately 2% better than the Citigroup 3-month U.S. Treasury Bill Index annually.
Precious metals: 25%
iShares Comex Gold Trust ETF (IAU)15% iShares Silver Trust ETF (SLV)5% First Trust Global Platinum Index ETF (PLTM)5%
Swiss Franc Assets: 10%
Currency Shares Swiss Franc Trust ETF (FXF) 5% iShares MSCI Switzerland Index ETF (EWL) 5%
Worldwide Real Estate and Natural Resources: 20%
iShares North America Natural Resource Index ETF (IGE) 5% Vanguard Energy ETF (VDE) 5% iShares FTSE EPRA/NAREIT Developed World Real Estate ex-U.S. ETF (IFGL)5% Vanguard REIT ETF(VNQ) 5%
Agressive Growth Stocks: 15%
iShares Morningstar Small Company Growth Index Fund ETF (JKK)10% ProShares Credit Suisse 130/30 ETF (CSM)5%
U.S. Treasury Bills, Bonds and Other Dollar Assets: 30%
Vanguard Total Bond Market ETF (BND)10% Vanguard Short Term Government Bond ETF (VGSH) 10% Vanguard Intermediate Term Government Bond ETF (VGIT) 10%
I have attempted to propose ETFs from established companies that are actively traded (the Swiss Franc ETF excepted) and have low transaction costs and management fees. The percentage allocations to ETF's within a category is not a mandate.
Permanent Portfolio purists have generally invested in gold and silver coins and bars rather than through funds, have used Swiss Confederation Bonds as SF currency and have laddered U.S. government obligations individually.
THE AUTHOR HAS NO POSITIONS IN THE ABOVE SECURITIES AT THIS TIME. 
<div class="blogger-post-footer"><img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/33358029-2948716667962271398?l=investingfromtheright.blogspot.com' alt='' /></div>

First Trust ISE Global Platinum Index Fund

PLTM

May 14, 2010: Time For A Permanent Portfolio Using ETFs?

Here is the ETF Professor's ETF Watch List for Tuesday February 23rd, 2010.
The SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE: <a class="ticker" href="/stock/xop#NYSE">XOP</a>) was a surprise decliner on Monday.
Financials got a boost on Monday, so keep an eye on the SPDR KBW Regional Banking ETF (NYSE: <a class="ticker" href="/stock/kre#NYSE">KRE</a>).
The iShares MSCI Turkey Investable Market Index (NYSE: <a class="ticker" href="/stock/tur#NYSE">TUR</a>) was one of the worst performing emerging markets ETFs on Monday, losing more than 2%.
The Direxion Daily Energy Bear 3X Shares (NYSE: <a class="ticker" href="/stock/ery#NYSE">ERY</a>) may be a weigh to play a pause in oil prices. 
The iShares S&amp;P North American Natural Resources ETF (NYSE: <a class="ticker" href="/stock/ige#NYSE">IGE</a>) took a bit of a tumble on Monday, so watch it on Tuesday.
There was some encouraging news about coal demand on Monday, so put the Market Vectors Coal ETF (NYSE: <a class="ticker" href="/stock/kol#NYSE">KOL</a>) on your list for Tuesday.
Watch the CurrencyShares British Pound Sterling Trust (NYSE: <a class="ticker" href="/stock/fxb#NYSE">FXB</a>) for more weakness in sterling.

Currency ETFs

CurrencyShares British Pound Sterling Trust

iShares MSCI Turkey Investable Market Index Fund

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iShares North American Natural Resources ETF

Overview

iShares North American Natural Resources ETF (BATS:IGE), Quote.Headers.trade-ideas