The UltraShort MSCI Europe ETF Gets A Staggering Uptick In Volume
“If you have the appetite for risk, it’s time to double-short Europe with the ProShares UltraShort MSCI Europe Index Fund (EPV). It appears others have already jumped on board, since the fund has had a staggering uptick in volume these past few days. Everybody else should cut their losses on all things Europe. This means I am reversing recommendations I made in late December, when I promoted the iShares MSCI Germany Index Fund (EWG) and the iShares MSCI Netherlands Investable Index Fund (EWN) as glimmers of strength in the otherwise troubled European bloc, despite the economic storms gathering Greece. Given the cloudy outlook for some of these funds’ top holdings, as well as their recent decline in short-term momentum rankings, I am forced to pan these ETFs as well. As a whole, Europe will remain too risky for my taste for the foreseeable future,” Don Dion Reports From The Street.
Dion goes on to say, “This week, Paul Polman, the CEO of Unilever (UN), EWN’s top holding at 17% of the portfolio, said the consumer-goods sector is in for a long, slow recovery.Unilever’s normally defensive shares failed to offer any protection during the broader selloff.”
“The outlook for EWG appears equally rocky. The fund has been able to rely on its strong utilities exposure in the past to fend off troubles elsewhere in its portfolio. But not this time around. British Gas cut its prices by 7% this week, in what may be the first salvo in an all-out price war with other European energy firms. Other industry leaders, such as E.ON and RWE, are expected to follow suit as early as next week. E.ON and RWE together account for 15% of EWG’s portfolio. With its defenses faltering, EWG now runs a stronger risk of sinking with the rest of the continent,” Dion Reports.
The Euro’s Demise Has Been Set in Motion: Are you protected?
"Nationalism will emerge. Healthier countries will not see fit to spend their hard earned money to bail out their less responsible neighbors."
CLICK HERE to get your Free E-Book, “Why It’s Curtains for the Euro”
See The Full Story: HERE
Here are some details on the ETFs mentioned:
The investment (EPV) seeks daily investment results, before fees and expenses, that correspond to twice (200%) the inverse (opposite) of the daily performance of the MSCI Europe index. The fund invests at least 80% of its net assets, including any borrowings for investment purposes, to investments that, in combination, have economic characteristics that are inverse to those of the Index.The fund is nondiversified.
The investment (EWN) seeks to provide investment results that correspond generally to the price and yield performance of publicly traded securities in the Dutch market, as measured by the MSCI Netherlands Investable Market index. The fund generally invests at least 90% of assets in the securities of the underlying index and in depositary receipts representing securities in the underlying index. It invests at least 80% of assets in the securities of the underlying index or in DRs representing securities in the underlying index. The index consists of stocks traded primarily on the Amsterdam Stock Exchange. It is nondiversified.
| TOP 10 HOLDINGS ( 73.53% OF TOTAL ASSETS) |
|
The investment (EWG) seeks to provide investment results that correspond generally to the price and yield performance of publicly traded securities in the German market, as measured by the MSCI Germany index. The fund normally invests at least 95% of assets in the securities of the underlying index and in ADRs based on the securities in the underlying index. It uses a representative sampling strategy to try to track the index. The index consists of stocks traded primarily on the Frankfurt Stock Exchange. It is nondiversified.
| TOP 10 HOLDINGS ( 63.73% OF TOTAL ASSETS) |
|
Get 10 Trading Lessons FREE Click Here
GET A FREE TREND ANALYSIS FOR ANY ETF HERE!
Most Comments