ETF Outlook for Tuesday, April 15, 2014
iShares MSCI Hong Kong Index ETF (NYSE:EWH)
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A gap higher to begin the week was enough for EWH to rally to the best level since January 2008. Often times Hong Kong is attached to China when it comes to investment performance, however they are greatly different.
Over the last two years EWH is up 22 percent versus a loss of three percent for theiShares FTSE/Xinhua China 25 Index ETF (NYSE:FXI). The ETF has 90 percent of its assets in companies based in Hong Kong and seven percent in Macau. The financial stocks make up the largest portion of the portfolio.
First Trust ISE Natural Gas Index ETF (NYSE:FCG)
Even though the price of natural gas fell for the second consecutive session on Monday, the related stocks were higher as they traded at the best level in three years. The ETF closed out the day up 2.5 percent on above average volume.
See also: Consumer Discretionary ETF Woes Continue
Two of the top three holdings, which make up 8.3 percent of the portfolio, had big days Monday. Goodrich Petroleum (NYSE:GDP) surged 30 percent with Comstock Resources (NYSE:CRK) up nine percent. The combination of the two stocks was enough to push the ETF to the multi-year high.
PowerShares Private Equity Portfolio ETF (NYSE:PSP)
The high-income producing ETF took a hit yesterday as it fell to the lowest level in two months with a drop of 2.3 percent. The ETF has a 12-month distribution yield of 14.17 percent, but is down six percent in the last five weeks.
Investors appear to be cautious with the private equity situation due to the market weakness as well as the potential of rising interest rates. The ETF does have important long-term support at the $11.25 area that it does continue to hold above that is one positive factor.
iShares High Dividend ETF (NYSE:HDV)
Two bellwethers are reporting earnings this morning and should have HDV on the move. Both Johnson & Johnson (NYSE:JNJ)andCoca-Cola (NYSE:KO) announce their earnings before the bell Tuesday.
The two stocks account for 11.4 percent of the entire portfolio in the ETF. The ETF has outperformed the major indices recently and is only 0.7 percent from the closing high set last week. As money has been coming out of the high-flying tech stocks it has been moving into sectors such as consumer staples and therefore HDV has benefited.
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