investingfromtheright

I am retired and take educated guesses on all things financial.

July 27, 2008

July 28, 2008: ETFs That Are Trading At A Discount With Hope.

Just for grins, I set up an ETF screen that used the following criteria for the current one and three month time frames. Of all the ETFs, seven made this list.

Above average market return.
Top 20% of net asset value within its category.
Highest discount to net asset value
Performance vs. benchmark (whatever it is) >10%

Here they are - with surprises:

(DNL) Wisdom Tree Japan High Yield trading at $48.68 with a market cap of $29.1m.
The ETF invests in Japanese securities that have a high yield compared to the paltry yields of most Japanese securities.

(JSC) SPDR Index SHS RUSS NOM SEC JP trading at $40.89 with a market cap of $90m.
The ETF attempts to replicate the Russell/Nomura Japan Small Cap Index, which consists of the smallest 15% of stocks in terms of float-adjusted market capitalization in Japan.

(EWU) iShares MSCI United Kingdom trading at $19.88 with a market cap of $970.6m.
The ETF attempts to replicate the MSCI United Kingdom Index, 95% of assets being in securities of that index and in ADRs based upon securities in the index.

(HHB) HealthShares Patient Care Services trading at $21.63 with a market cap of $5m.
This ETF attempts to track the price and yield of the HealthCare Patient Care Services Index. The index consists of companies engaged in providing direct treatment of patients in hospitals, outpatient clinics, nursing homes, assisted living centers, treatment facilities or home health providers and the companies involved in providing supplies and services to these facilities. Quite a big chunk of ETF applications for a not quite $5m ETF.

(HRW) HealthShares Dermatology and Wound Care trading at $19.24 with a market cap of $1.9m.
This ETF tracks the HealthShares Dermatology and Wound Care Index. At least 90% of the ETF assets will be invested in companies that are involved in the research, clinical development and/or commercialization of therapeutic agents for the treatment of a variety of skin disorders by topical and systemic means. Not much of an itch to buy with a market cap of $1.9m.

(WSI) FocusShares Wal-Mart Supplier Index trading at $46.50 with a market cap of $5m.
This ETF attempts to replicate the USE-Revere Wal-Mart Supplier Index. The ETF invests in companies that do a substantial part of their business with you know who.

(EFG) iShares MSCI Growth Index trading at $68.13 with a market cap of $1.3b.
This ETF attempts to replicate the MSCI EAFE Growth Index which consists of large cap foreign securities.

This rather eclectic ETF stew is not an endorsement and a pan from me to you. It states my screening results. If I was pressed, I would be reluctant to purchase any of them. One might use the roster to invigorate the thought process for ETF purchases and investigate ETFs using more sophisticated measures and diversification techniques as tools prior to purchase. The exercise was interesting and the ETFs that popped up were unexpected.

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