My Best Advice on ETFs

Your Exclusive MoneyShow ETF Presentation Sneak Peek

I am in San Francisco today, making the final tweaks to my MoneyShow presentations. Now, if you’ll be in the Bay area during the next several days, I encourage you to come out and see me and to attend one of my free presentations. I also have the privilege of conducting a more in-depth paid presentation for MoneyShow attendees who want to delve a little deeper into the world of exchange-traded funds (ETFs) and how ETFs can be used to help your portfolio shine.

Of course, I know the majority of Weekly ETF Report readers won’t be able to attend the San Francisco MoneyShow, so if you’re in that big group, then I’ve got something special for you.

Today I have an exclusive sneak peek of three presentations I have on the slate for the next several days at the MoneyShow. The first is “Five Strategies and Secrets to Successful ETF Investing,” the second is “The Top 10 ETF Products You Must Know About” and the third is “ETF Strategies for Wealthy Investors.”

In the first presentation, I get into some of the ways I’m currently using ETFs to enhance returns for subscribers to my Successful ETF Investing advisory service. We cover vocabulary, strategies for growth and income investors and, most importantly, the sectors I think will outperform for investors in the months ahead. Hint: it’s all about emerging markets and China.

In my second presentation, I cover my top 10 ETFs that every intelligent investors needs to know about. This isn’t a “buy list” per se, and I am not currently recommending all of the funds in this presentation. I do, however, think it’s important for every well informed investor to know about the many ETFs that can give you the kind of diverse exposure you need to profit no matter what the current market conditions hand us. Whether your objective is growth or income, you’ll find funds in this presentation to meet your needs.

Finally, I go into the strategies and funds designed for wealthy investors looking to help preserve their capital. Here we go into ETFs designed for wealth protection, such as tax-free ETFs, municipal bond funds and other funds designed chiefly to serve the high-net-worth investor.

In the days following the San Francisco MoneyShow, I will be posting the PowerPoint slides for the aforementioned presentations on my website. But if you can’t wait until then, and you are able to make it up to one of the most beautiful areas of the country, then I encourage you to come see me at the San Francisco MoneyShow.

To find out how you can attend, call the Money Show at (800) 970-4355 and mention priority code 035777. Or, you can go directly to the MoneyShow website.

ETF Talk: Russian Small Caps are a Contrarian Pick

Due to Russian President Vladimir Putin’s shenanigans and the ongoing Ukraine situation, many Western investors are fleeing Russia. However, contrarian investors view this as an excellent opportunity to enter the Russian market on the cheap. After all, Russia’s political troubles cannot erase its large market, or its vast natural resources. If those give you enough reason to bet against the negative sentiment surrounding Russia, you may want to look into Market Vectors Russia Small-Cap ETF (RSXJ).

This non-diversified fund seeks to match the performance, before fees and expenses, of an index composed of Russian small-capitalization companies.

This exchange-traded fund (ETF) is down a whopping 22.26% this year, mainly due to a precipitous drop in February and March, along with a smaller fall in recent months. This demonstrates just how negative investor sentiment has turned against Russia. However, RSXJ has begun to rally and is quickly approaching its 50- and 200-day moving averages. This fund offers a yield of 3.86%.

Reflecting Russia’s diverse economy, RSXJ is invested in a broad variety of sectors, with its largest allocations to real estate, 16.97%; industrials, 16.61%; basic materials, 16.13%; and utilities, 15.53%. This fund also has smaller weightings in energy, consumer cyclical, financial services, healthcare and consumer defensive.

RSXJ invests 64.09% of its assets in its top 10 individually held stocks. The top five of these holdings are Ak Transneft Oao-Pref, 8.44%; Transneft OJSC, 8.32%; Aeroflot Russian (AERZY), 7.15%; Aeroflot Russian Airlines JSC (AFLT), 7.08%; and PIK Group OJSC GDR (PIK), 6.63%.

If you believe the Russian market has reached a bottom and wish to bet against the negative investor sentiment swirling around Putin and his country’s actions, you may want to consider an investment in Market Vectors Russia Small-Cap ETF (RSXJ).

If you want my advice about buying and selling specific ETFs, including appropriate stop losses, please consider subscribing to my Successful ETF Investing newsletter. As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an e-mail. You just may see your question answered in a future ETF Talk.

China ETFs: Now You Have ‘Class A’ Choice

The world of exchange-traded funds (ETFs) just keeps getting bigger and better, with fantastic new choices spanning the entire globe. The latest sector demonstrating what I think is an extremely investable innovation is with ETFs pegged to the Chinese stock market.

As subscribers to my Successful ETF Investing advisory newsletter know, I have been bullish on China and the growth story for some time. Recent metrics from that country, such as the outstanding manufacturing sector readings showing the best growth in that critical segment in 18 months, argue nearly conclusively that the Chinese economy now has virtually no chance of the so-called “hard landing” that China skeptics have been predicting.

The positive China data, as well as economic growth around the globe, hasn’t been lost on the smart money. Take a look at the table here of Chinese ETFs. As you can see, the gains over the past one month, three months and year to date have been outstanding. (Data as of 7/30/14)

These ETFs represent strong candidates for a China-focused portfolio, and my subscribers currently have several of these funds on their recommended buy lists. Yet these funds aren’t the only China ETFs out there I have my eye on.

The latest development is the advent of China A-shares funds, or shares traded primarily on the Shanghai Composite ($SSEC). Prior to ETFs that feature Chinese A-shares, it was very difficult for U.S. investors to buy stocks that trade on Chinese stock exchanges.

Yet thanks to funds such as the db X-trackers Harvest CSI 300 China A-Shares Fund (ASHR) and the Market Vectors ChinaAMC A-Share (PEK), investors now can get direct exposure to stocks that trade in China.

There are a couple of other China A-share funds that currently trade, but not for long. Now there are 15 additional China A-share funds in the pipeline, awaiting regulatory approval. That means you’ll soon have about 20 China A-share funds to choose from, and that’s great for anyone who is a fan of Chinese stocks.

The advent of these funds also shows just how innovative the ETF world has become — so why would you buy anything else?

Let Us Be Your Coach

So, did your portfolio outperform the market through the first half of the year? Are you disappointed by the results you’ve received this year? Do you have a lot of cash on the sidelines that you don’t know what to do with?

If your answer to any of these questions is “yes,” then you need our Wealth Coaching services. You see, when it comes to your money, it’s always personal. That’s why we offer One-on-One, personal Wealth Coaching sessions directly with me, Doug Fabian.

These 90-minute, One-on-One Wealth Coaching sessions begin with a review of your goals and your existing investments. Then, we develop a plan specifically tailored to you, including how Fabian Wealth Strategies can help you get where you want to be.

Contact us today at 1-800-391-1118 to schedule your FREE, no obligation one-on-one Wealth Coaching session, and find out how Fabian Wealth Strategies can work for you.

NOTE: Fabian Wealth Strategies is a Securities & Exchange Commission-registered investment adviser, and is not affiliated with Eagle Financial Publications.

Star Wars Wisdom

“Try not. Do… or do not. There is no try.”

–Yoda

Pop culture is often replete with some sound advice, if you can get sift it out through what is mostly just clutter. In the quote here from one of the best characters in film history, Yoda of “Star Wars,” the Jedi Master succinctly points out the difference between those who succeed and those who merely “try.” Don’t be a one of those who just tries. Be one who actually does.

Wisdom about money, investing and life can be found anywhere. If you have a good quote you’d like me to share with your fellow Weekly ETF Report readers, send it to me, along with any comments, questions and suggestions you have about my audio podcast, newsletters, seminars or anything else. Ask Doug.

In case you missed it, I encourage you to read my e-letter column from last week on Eagle Daily Investor about why you should pay attention to non-correlated assets. I also invite you to comment in the space provided below my Eagle Daily Investor commentary.

All the best,

Doug Fabian

San Francisco MoneyShow, Hilton Union Square Hotel, Aug. 21-23: I’ll be speaking at the San Francisco MoneyShow this week, and I hope to see you there. Other speakers at this year’s event include Dr. Mark Skousen, Rich Karlgaard (publisher, Forbes), Roger Conrad, Elliot Gue and John Ransom. Admission is complimentary to my subscribers, but you must register: For details, call the Money Show at 800-970-4355 and mention priority code 035777.