|Bid||0.00 x 800|
|Ask||0.00 x 2200|
|Day's Range||56.83 - 57.09|
|52 Week Range||55.27 - 74.29|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.10|
|Expense Ratio (net)||0.57%|
The S&P 500 is up nearly 19% year-to-date and in the world of exchange traded funds (ETFs), about 90% of those trading in the U.S. are in the green this year. In other words, stocks and ETFs that are slumping this year really standout and for all the wrong reasons.To be fair to this year's list of bad ETFs, many of these funds are leveraged products. Those funds are not intended to be held over many months and the longer leveraged funds, the better chances they deviate from the underlying investment objective and turn into bad ETFs.In an additional effort to be fair, it should be noted that some of 2019's currently bad ETFs do have the potential to get their respective acts together and join the pantheon of funds that are prospering.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Stocks to Sell This Summer Earnings Season Let's have a look at some of this year's supposedly bad ETFs to see which ones could see extended struggles and which ones could offer investors compelling opportunities. Global X Lithium & Battery Tech ETF (LIT) Source: Shutterstock Expense ratio: 0.75%The Global X Lithium & Battery Tech ETF (NYSEARCA:LIT) is down just 2.08% year-to-date, making it a "bad ETF" relative to the broader market, but there is some hope for a rebound here, particularly if Tesla (NASDAQ:TSLA) can continue bolstering the case for investors to consider the electric vehicle theme, the primary end market for lithium.Home to nearly $530 million in assets under management, LIT tracks the Solactive Global Lithium Index and is one of the longest-running, most successful thematic ETFs. LIT has been a bad ETF this year in part because it has not been responsive to improve electric vehicle sales, a scenario that could reverse in LIT's favor. Additionally, data suggest investors should buy into the notion that the lithium market is oversupplied."The possibility of an oversupply of lithium chemical is a myth, the president of California-based Global Lithium, Joe Lowry, said this week," reports Valentina Ruiz for Mining.com. "Addressing the audience at the conference Paydirt 2019 Latin America Downunder, Lowry blamed the spread of such a 'myth' on 'big bank' analysts and the Chilean regulator CORFO. In Lowry's view, there have been misunderstandings regarding CORFO's reports related to its revised agreements allowing Albemarle and SQM to produce more material from the Atacama brine resource." Invesco Dynamic Energy Exploration & Production ETF (PXE)Expense ratio: 0.65%History continually shows that when it comes to bad ETFs, exploration and production funds, such as the Invesco Dynamic Energy Exploration & Production ETF (NYSEARCA:PXE) certainly fit that bill when oil prices decline. These funds are usually more volatile than their integrated oil peers and are more sensitive to crude's price action in either direction.Said another way, PXE and rival funds are bad ETFs when oil is falling and often good ETFs when the commodity rises. PXE is down almost 6% this year and while there are other funds with far worse performances, there are some warning signs to consider with this bad ETF. * 7 Stocks to Buy This Summer Earnings Season For starters, losses are accelerating as about 80% of PXE's year-to-date loss was accrued just last week. Additionally, the fund resides more than 42% below its 52-week high and almost 17% below its 200-day moving average. With oil scuffling and its technicals weak, PXE has many of the hallmarks of a bad ETF over the near-term. First Trust Natural Gas ETF (FCG)Source: Shutterstock Expense ratio: 0.60%Keeping with the theme of struggling energy ETFs, there is the First Trust Natural Gas ETF (NYSEARCA:FCG), which is historically a bad ETF. Making matters worse for FCG, this can be a bad ETF even when natural gas prices are rising.How bad is this bad ETF? It's lower by 44.28% over the past year while the largest equity-based energy ETF is lower by 16.46% over the same span. As is the case with the aforementioned PXE, FCG's losses are accelerating. This bad ETF is lower by 11.56% this year after a 7.54% loss last week.And like PXE, FCG's technicals are horrendous. This bad ETF labors 23.49% below its 200-day moving average and has not closed above that technical indicate since last November. As we noted earlier, some of the bad ETFs highlighted here have the chance to be good funds down the road. It appears doubtful that will be true of FCG. iShares MSCI Chile ETF (ECH)Source: Shutterstock Expense ratio: 0.59%With Chile being the world's largest lithium-producing nation, the iShares MSCI Chile ETF's (NYSEARCA:ECH) status as a bad ETF is similar to that of LIT's. That is to say, ECH isn't a particularly bad as evidenced by a year-to-date loss of 1.69%. In addition to speculation that the lithium market is oversupplied, Chile's economy is levered to another commodity.The country is also the world's top copper producer, meaning there are often tight connections between the strength of Chilean stocks and that of the Chinese economy. If the world's second-largest economy slows, ECH is likely to labor in the bad ETF category. While ECH has the potential to shed that label, it may take a while because fund managers aren't rushing to embrace Chilean equities. * 5 Biotech Stocks to Buy for a Strong Growth Prognosis "For Chilean stocks, Itau BBA sees little to be excited about given weak earnings momentum," according to Bloomberg. "Even after a poor first half, the price-to-estimated-earnings ratio for stocks in the MSCI Chile Index is 15.7, the richest multiple in the region." iShares MSCI South Korea ETF (EWY)Source: Shutterstock Expense ratio: 0.59%Down less than 1% year-to-date, the iShares MSCI South Korea ETF (NYSEARCA:EWY) is one of the best of the bad ETFs and could easily right its course to finish this year in the green. A good portion of EWY's misfortunes this year are attributable to its position as a tech-heavy ETF and one that was stung by the US/China trade rift. Still, there is a lot to like with South Korean stocks."Korea's sovereign ratings balance robust external finances and a strong macroeconomic performance with ongoing geopolitical risk from the relationship with North Korea, and longer-run challenges of rapid population ageing [sic] and low productivity," said Fitch Ratings in a recent note.EWY is one emerging markets ETF that could shed its bad ETF status if the Federal Reserve proceeds with cutting interest rates."A deeper rate cut by the Fed would weaken the dollar, providing a short-term momentum to South Korean stocks, said Ryoo Yong-seok, an analyst at KB Securities," according to Reuters. Global X Uranium ETF (URA)Source: Shutterstock Expense ratio: 0.69%The Global X Uranium ETF (NYSEARCA:URA) has been around nearly nine years and has spent a considerable chunk of that time declining or stuck in a rut. Earlier this year, this bad ETF rallied, but has since given back nearly all of those gains. The uranium fund is down just 0.60% year-to-date, so there are definitely worse dogs out there, but the issues with this fund are how long it will be bad for and how trustworthy its rallies are.In some states, there is political momentum against increased uranium mining. That said, the White House stands in favor of uranium production.Domestic "uranium producers recoup a little of last Friday's losses that followed reports Pres. Trump would decline to issue quotas for domestic uranium production, which the White House later confirmed," according to Seeking Alpha. * 10 Stocks to Buy From This Superstar Fund Plus, there are strong long-term fundamentals underpinning URA because big developing markets like China and India are embracing uranium as a way of cutting down pollution. All of this is to say URA can easily shed its bad ETF status. Invesco Dynamic Pharmaceuticals ETF (PJP)Source: Shutterstock Expense ratio: 0.57%In an effort to end this piece on a positive note, we bring you a bad ETF that has the potential to be a legitimate rebound story: the Invesco Dynamic Pharmaceuticals ETF (NYSEARCA:PJP). As has been widely noted, pharmaceuticals stocks have been under intense politically-induced pressure this year, explaining why PJP is lower by 7.47%.Large-cap pharmaceuticals names have endured a lot of that punishment, which has been bad news for PJP, an ETF where the 30 holdings have an average market value of $79 billion.PJP's underlying index "is designed to provide capital appreciation by thoroughly evaluating companies based on a variety of investment merit criteria, including: price momentum, earnings momentum, quality, management action, and value," according to Invesco.The healthcare sector has been a laggard this year, but the sector does not lack for supporters or those betting it will be a second-half rebound story. If pharmaceuticals stocks can stay out of the political limelight for awhile, PJP has all the makings of a redemption story.Todd Shriber does not own any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 5G Stocks to Connect Your Portfolio To * 7 Stocks to Sell This Summer Earnings Season * 6 Upcoming IPOs for July The post 7 Bad ETFs That Just Aren't Worth the Trouble This Year appeared first on InvestorPlace.
Pharmaceutical ETFs invest in stocks of companies that are involved in the research, development, manufacture, sale or distribution of pharmaceuticals and drugs of all types. With Johnson and Johnson continuing ...
Late Monday, a U.S. District Court overturned President Trump's requirement that pharmaceutical companies and biotech stocks list the prices of their medicines in TV ads.
Pharmaceutical sector-specific exchange traded funds showed mixed results Tuesday after AbbVie (NYSE: ABBV) agreed to acquire Allergan (NYSE: AGN) for $63 billion. Among the largest pharma-specific ETFs, ...
Pharmaceutical ETFs may be in trouble with legal troubles looming over the industry. The drugmaker segment recently sold-off after an amended civil antitrust complaint brought by more than 40 state attorneys ...
Big pharmaceutical companies were on the hot seat at Capitol Hill today with CVS Health, Cigna, Prime Therapeutics, Humana, and UnitedHealthcare's OptumRx testifying before the Senate Finance Committee on the rising cost of prescription drugs. Among the topics discussed included rebates paid by drug makers contributing to the high costs and the drug industry's pursuit of profits--all to shift the blame from the pharmaceutical companies to the drug makers. U.S. President Donald Trump has already lambasted the pharmaceutical industry for the rising costs associated with prescription drugs.
Pharmaceutical sector-related ETFs stood out Thursday after Horizon Pharma (HZNP) revealed positive test results for its treatment of thyroid eye disease, or TED. Among the better performing non-leveraged ETFs of Thursday, the First Trust Nasdaq Pharmaceuticals ETF (FTXH) rose 1.8%, Invesco Dynamic Pharmaceuticals ETF (PJP) gained 1.5% and SPDR Pharmaceuticals ETF (XPH) increased 2.3%. Horizon Pharma shares surged 32.5% Thursday following the release of positive test results in its Phase 3 trial of its thyroid eye disease drug, teprotumumab, TheStreet reports.
The news has put the spotlight on a number of healthcare ETFs, especially biotech and pharma, which could be the best ways for investors to tap the opportunity arising from the BMY-CELG deal.
Bausch Health (BHC) generated revenues of $2.1 billion in the third quarter of this year compared to $2 billion in the third quarter of 2017, a ~4% YoY decline. Bausch Health generated revenues of $6.26 billion over the first nine months of this year compared to $6.56 billion in the same period the prior year, reflecting a ~5% YoY decline.
With a contentious midterms election season coming up, many anticipate a split government that could potentially impact the way ETF investors ride the markets ahead. Some expectations point to Democrats winning back the House of Representatives and the Republicans maintaining a narrow hold on the Senate - Republicans currently dominate both chambers. "If the consensus expectation of a divided government turns out to be correct, the most likely political consequences would be an increase in investigations and uncertainty surrounding fiscal deadlines," David Kostin, Goldman's chief U.S. equity strategist, said in a note.
Bausch Health’s (BHC) net revenues declined from $4.3 billion in the first half of 2017 to $4.1 billion in the first half of this year, reflecting an ~5.0% YoY (year-over-year) decline. In the second quarter, Bausch Health generated net revenues of $2.1 billion compared to $2.2 billion in the second quarter of 2017.
The healthcare sector will continue to see political attention in the remainder of 2018, with the 2017 U.S. tax reform bill influencing it in a number of ways. Its repeal of mandated healthcare is likely to change demand and effect provider participation.
In this article, we’ll discuss several major ETFs in the pharmaceuticals sector and their third-quarter returns. The chart below compares the market capitalization of these pharmaceutical ETFs on October 3.