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The Zacks Analyst Blog Highlights: Global X Brazil Consumer, VanEck Vectors Rare Earth/Strategic Metals, Global X China Materials, ProShares VIX Short-Term Futures and Teucrium Wheat Fund
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For Immediate Release
Chicago, IL – September 28, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Global X Brazil Consumer ETF (NYSEARCA:– Free Report), VanEck Vectors Rare Earth/Strategic Metals ETF (NYSEARCA:(REMX - Free Report) – Free Report), Global X China Materials ETF (NYSEARCA:– Free Report), ProShares VIX Short-Term Futures ETF (NYSEARCA:(VIXY - Free Report) – Free Report) and Teucrium Wheat Fund (NYSEARCA:(WEAT - Free Report) – Free Report).
Here are highlights from Wednesday’s Analyst Blog:
Top and Flop Zones for Q3 and Their ETFs
The global stock market continued its bull run in Q3, dodging all concerns regarding Brexit, North Korea, instability in the world’s largest economy and overvaluation. The prospect of a tighter monetary policy by major central banks also tried to block the bulls.
However, strong corporate earnings, rise in metal prices, a pickup in economic activity in many parts of the world, an impressive rally in emerging markets and a weak dollar are propelling the stocks higher.
Given this, most corners of ETF investing have performed exceptionally well while a few areas are lagging. Below, we have highlighted the best and worst zones of Q3 and their ETFs in detail per xtf.com:
Top Zones
Brazil
Brazilian stocks have been on a tear with Global X Brazil Consumer ETF (NYSEARCA: – Free Report) topping the best-performing ETF list with 43.5% gains. The economy has emerged strongly from its two-year worst recessions and is currently on an impressive growth path with stronger consumption, increasing investments and rising consumer confidence. This has led investors to bet on the economy.
The fund offers exposure to a basket of 35 stocks that operate within the consumer discretionary and consumer staples’ sectors in Brazil. It tracks the Solactive Brazil Consumer Index, charging investors 77 bps in annual fees. The product has been able to manage just $7.3 million in its asset base and has a Zacks ETF Rank #4 (Sell) with a High risk outlook (read: Brazil Economy on a Roll: ETFs to Cash In On).
Commodity Producers
VanEck Vectors Rare Earth/Strategic Metals ETF (NYSEARCA:(REMX - Free Report) – Free Report), which offers exposure to companies engaged in producing, refining, and recycling of rare earth and strategic metals and minerals, is on fire this quarter, gaining 43.4%. The impressive rally came on the back of an expected boom in the demand for rare earth minerals. Additionally, China, which produces over 90% of the world's rare earths, has set production caps and export quotas on the metals, which has contributed to price rise.
The ETF follows the MVIS Global Rare Earth/Strategic Metals Index, charging investors 61 bps in annual fees. With AUM of $95.9 million, the fund holds 21 stocks in its basket with heavy concentration on the top three firms that collectively make up for 29.2% of the assets.
China
The Chinese economy is showing strong signs of recovery with outperformance in the manufacturing and industrial sectors. This is especially true, as China's manufacturing sector expanded for the 13th straight month in August on improving domestic demand and booming manufacturing in consumer goods and high-tech sectors. A recovering yuan also added to the strength. As a result, Global X China Materials ETF (NYSEARCA: – Free Report) targeting the country’s material sector has been stealing the show in Q3, rising 27.6% (read: China PMI Surges: ETFs in Focus).
Holding 32 stocks in its basket, the fund is moderately concentrated on the top firms with none holding more than 7.5% share. It charges 65 bps in annual fees and trades in light volume of about 3,000 shares a day on average. The fund is unpopular with AUM of $4.3 million and has Zacks ETF Rank #3 (Hold) with a High risk outlook.
Worst Zones
Volatility
Though the war of words between President Trump and North Korea government official Kim Jong Un led to increased market uncertainty and heightened geopolitical worries, these did not snap the bullishness. As a result, volatility products were the biggest losers in the third quarter. In particular, ProShares VIX Short-Term Futures ETF (NYSEARCA:(VIXY - Free Report) – Free Report) has tumbled 19.5%. It seeks to profit from increases in the expected volatility of the S&P 500, as measured by the prices of VIX futures contracts. The ETF focuses on the S&P 500 VIX Short-Term Futures Index, which measures the returns of a portfolio of monthly VIX futures contracts with a weighted average of one month to expiration. It has amassed $186.3 million in AUM and charges 85 bps in fees per year.
Wheat
After surging in early July, wheat price dropped sharply in the quarter despite some respite in the last few weeks. This is primarily thanks to the U.S. Department of Agriculture that raised the wheat production forecast for the 2017/2018 crop year on record Russia supplies. Notably, Russian wheat output rocketed to a record 77.5 million metric tons, beating last year's record by 5 million tons. As such, Teucrium Wheat Fund (NYSEARCA:(WEAT - Free Report) – Free Report) shed 15.5%. This fund provides exposure to the wheat market in a unique way and reduces the effects of both contango and backwardation. It uses three futures contracts for wheat, all of which are traded on the CBOT Futures Exchange (read: Top and Flop ETFs of August: Metals Gain, Crops Crash).
The three contracts include the second-to-expire contract, weighted 35%; the third-to-expire contract, weighted 30%; and the contract expiring in the December following the expiration month of the third-to-expire contract, weighted 35%. The fund has amassed $68.8 million in its asset base and trades in good volume of about 243,000 shares a day. The product is a high cost choice in the agricultural space as it charges a fee of 2.54% per year. It has a Zacks ETF Rank 4 with a High risk outlook.
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Global X Brazil Consumer, VanEck Vectors Rare Earth/Strategic Metals, Global X China Materials, ProShares VIX Short-Term Futures and Teucrium Wheat Fund
For Immediate Release
Chicago, IL – September 28, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Global X Brazil Consumer ETF (NYSEARCA: – Free Report), VanEck Vectors Rare Earth/Strategic Metals ETF (NYSEARCA:(REMX - Free Report) – Free Report), Global X China Materials ETF (NYSEARCA: – Free Report), ProShares VIX Short-Term Futures ETF (NYSEARCA:(VIXY - Free Report) – Free Report) and Teucrium Wheat Fund (NYSEARCA:(WEAT - Free Report) – Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Wednesday’s Analyst Blog:
Top and Flop Zones for Q3 and Their ETFs
The global stock market continued its bull run in Q3, dodging all concerns regarding Brexit, North Korea, instability in the world’s largest economy and overvaluation. The prospect of a tighter monetary policy by major central banks also tried to block the bulls.
However, strong corporate earnings, rise in metal prices, a pickup in economic activity in many parts of the world, an impressive rally in emerging markets and a weak dollar are propelling the stocks higher.
Given this, most corners of ETF investing have performed exceptionally well while a few areas are lagging. Below, we have highlighted the best and worst zones of Q3 and their ETFs in detail per xtf.com:
Top Zones
Brazil
Brazilian stocks have been on a tear with Global X Brazil Consumer ETF (NYSEARCA: – Free Report) topping the best-performing ETF list with 43.5% gains. The economy has emerged strongly from its two-year worst recessions and is currently on an impressive growth path with stronger consumption, increasing investments and rising consumer confidence. This has led investors to bet on the economy.
The fund offers exposure to a basket of 35 stocks that operate within the consumer discretionary and consumer staples’ sectors in Brazil. It tracks the Solactive Brazil Consumer Index, charging investors 77 bps in annual fees. The product has been able to manage just $7.3 million in its asset base and has a Zacks ETF Rank #4 (Sell) with a High risk outlook (read: Brazil Economy on a Roll: ETFs to Cash In On).
Commodity Producers
VanEck Vectors Rare Earth/Strategic Metals ETF (NYSEARCA:(REMX - Free Report) – Free Report), which offers exposure to companies engaged in producing, refining, and recycling of rare earth and strategic metals and minerals, is on fire this quarter, gaining 43.4%. The impressive rally came on the back of an expected boom in the demand for rare earth minerals. Additionally, China, which produces over 90% of the world's rare earths, has set production caps and export quotas on the metals, which has contributed to price rise.
The ETF follows the MVIS Global Rare Earth/Strategic Metals Index, charging investors 61 bps in annual fees. With AUM of $95.9 million, the fund holds 21 stocks in its basket with heavy concentration on the top three firms that collectively make up for 29.2% of the assets.
China
The Chinese economy is showing strong signs of recovery with outperformance in the manufacturing and industrial sectors. This is especially true, as China's manufacturing sector expanded for the 13th straight month in August on improving domestic demand and booming manufacturing in consumer goods and high-tech sectors. A recovering yuan also added to the strength. As a result, Global X China Materials ETF (NYSEARCA: – Free Report) targeting the country’s material sector has been stealing the show in Q3, rising 27.6% (read: China PMI Surges: ETFs in Focus).
Holding 32 stocks in its basket, the fund is moderately concentrated on the top firms with none holding more than 7.5% share. It charges 65 bps in annual fees and trades in light volume of about 3,000 shares a day on average. The fund is unpopular with AUM of $4.3 million and has Zacks ETF Rank #3 (Hold) with a High risk outlook.
Worst Zones
Volatility
Though the war of words between President Trump and North Korea government official Kim Jong Un led to increased market uncertainty and heightened geopolitical worries, these did not snap the bullishness. As a result, volatility products were the biggest losers in the third quarter. In particular, ProShares VIX Short-Term Futures ETF (NYSEARCA:(VIXY - Free Report) – Free Report) has tumbled 19.5%. It seeks to profit from increases in the expected volatility of the S&P 500, as measured by the prices of VIX futures contracts. The ETF focuses on the S&P 500 VIX Short-Term Futures Index, which measures the returns of a portfolio of monthly VIX futures contracts with a weighted average of one month to expiration. It has amassed $186.3 million in AUM and charges 85 bps in fees per year.
Wheat
After surging in early July, wheat price dropped sharply in the quarter despite some respite in the last few weeks. This is primarily thanks to the U.S. Department of Agriculture that raised the wheat production forecast for the 2017/2018 crop year on record Russia supplies. Notably, Russian wheat output rocketed to a record 77.5 million metric tons, beating last year's record by 5 million tons. As such, Teucrium Wheat Fund (NYSEARCA:(WEAT - Free Report) – Free Report) shed 15.5%. This fund provides exposure to the wheat market in a unique way and reduces the effects of both contango and backwardation. It uses three futures contracts for wheat, all of which are traded on the CBOT Futures Exchange (read: Top and Flop ETFs of August: Metals Gain, Crops Crash).
The three contracts include the second-to-expire contract, weighted 35%; the third-to-expire contract, weighted 30%; and the contract expiring in the December following the expiration month of the third-to-expire contract, weighted 35%. The fund has amassed $68.8 million in its asset base and trades in good volume of about 243,000 shares a day. The product is a high cost choice in the agricultural space as it charges a fee of 2.54% per year. It has a Zacks ETF Rank 4 with a High risk outlook.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.