This week was a fairly eventful one in the global market. The S&P 500 saw the largest gain after better-than-expected earnings from blue chip veterans like General Electric sent stocks sky high, even with tech firms like Intel slumping. GE also reported high order numbers for expensive industrial equipment from emerging markets (China in particular), creating an even larger influx to the global market. On the other side, speculators in the oil industry looking at China’s demand for energy by the end of last year are starting to worry that there may not be enough to go around, especially after Saudi Arabia made huge cuts in output at the end of last year [see 101 ETF Lessons Every Investor Should Learn].
The second ETF of 2013 launched early last week, with Global X bringing the new Junior MLP ETF to market. MLPJ will be linked to an index of about 25 companies that are engaged in the production, transportation and storage of energy commodities.
Below we outline the three best stories from around the ETF space this past week:
Coffee over newspaper
1. Has The Gold ETF Bull Market Run Its Course? at ETF Trends:
After 14 years of growth in the gold market it looks like this bull market is finally starting to lose some steam. Many analysts are packing up their investments and heading out of the yellow metal, saying that there is no way the price could climb any higher in this market environment. Tom Lydon discusses the reasons the pros have for abandoning ship after so many good years, and why other investors might consider doing the same.
2. Assessing Risk In A New Smallcap MLP ETF a t Barrons :
With the growing trend of MLPs and tapping into smaller market caps for great growth potential, it was only a mater of time before an issuer found a way to combine these concepts. MLPJ is the first fund to dedicate its holdings to smaller MLPs, giving it not only huge earning opportunities, but also a level of risk not all investors will want to take on. Dimitra DeFotis explains why this fund may not be for everyone and why the investors it suits would be remiss to ignore it.
3. ETFs To Tap Into 2013′s “Hidden Cities” at ETF Database:
As popular emerging markets like Brazil, India and China become overrun with international investors looking for some growth potential, investors looking for the next big project might have to venture further off the beaten trail. Daniela Pylypczak explores the ETF options behind seven cities that have long been glanced over by mainstream investors, but could prove worthwhile funds in the new year.
Disclosure: No positions at time of writing.