Russia

ETF Market Summary: Week Ending June 15th 2007

    On the week, 21 of 26 categories ended up.  Of these 21 categories, 17 ended up at least 1%, with the largest gains seen in Russia, Latin America, and China.  Of those 5 categories that were in the red, only 2 were down more than 0.3% - short funds, on the wrong end of the market this week, and real estate funds, still plagued by the on-going subprime and rate worries.

    It's interesting as well to note that the categories with the highest correlation to the S&P after retail were Russia and MSCI.  Those with the lowest correlations after short funds were currency, convertible, and call-write funds, as is typically the case.

Dollar-Weighted Category Return

 

Category Day Week Month YTD Day $ Week Correlation to SPY
Short -1.46% -3.36% -4.69% -1.84% 1484 -87.48%
Real Estate 1.38% -1.03% -0.18% -0.08% 452 78.95%
Convertible 0.30% -0.32% -2.24% 0.02% 16 58.95%
Japan 0.91% -0.20% 2.38% 0.37% 243 78.41%
Retail 0.25% -0.05% 2.81% 2.07% 324 98.67%
Infrastructure 1.02% 0.15% -6.22% 5.65% 5 89.58%
Currency 0.44% 0.20% 0.83% 0.52% 22 34.88%
Call/Write 0.61% 0.46% 3.16% 2.25% 5 68.27%
Asia 0.81% 0.83% 1.08% 1.36% 26 88.08%
Consumer Goods & Services 0.40% 0.98% 1.09% 0.32% 172 75.78%
Healthcare 0.75% 1.04% -0.56% 0.92% 71 81.96%
Transports 0.43% 1.15% -0.61% 11.57% 68 92.41%
MSCI 0.81% 1.39% 1.33% 9.90% 377 96.58%
Commodities & Resources 0.67% 1.47% 0.79% 0.42% 332 71.76%
Mid Cap 0.67% 1.54% 2.39% 0.51% 901 86.57%
Dividend 0.92% 1.61% -0.84% 0.60% 62 92.87%
Large Cap 0.53% 1.74% 1.39% 0.38% 1884 90.72%
Small Cap 1.21% 1.81% 4.41% 0.24% 7668 77.82%
Biotech 1.32% 2.37% 1.75% 0.67% 169 88.89%
Europe 1.73% 3.09% 1.64% 0.46% 250 91.06%
Utilities 1.38% 3.58% -4.23% 0.75% 631 74.58%
Energy 1.51% 4.77% 6.58% 1.54% 1212 90.13%
Emerging Markets 2.26% 4.97% 4.93% 1.16% 2042 76.41%
China 2.40% 6.05% 6.17% 0.87% 538 83.60%
Latin America 2.33% 6.06% 7.51% 9.74% 78 89.87%
Russia 1.51% 6.06% 4.05% -6.44% 20 97.80%

ETF Market Summary: Week Ending June 1st 2007

Dollar-Weighted ETF/CEF Category Return

    A combination of surprisingly tame inflation data, strong payroll numbers, and falling energy prices resulted in a week of broad market gains.  Over the week, the largest gainers were real estate, Latin America, and emerging market funds by far.  Small caps, emerging markets, commodities, and retail funds ended the week with strong inflows as well.  A relatively quiet week and falling energy prices seems to have tempted large numbers of investors back into these higher-return assets, especially given their possibly oversold prices after last week's volatility.

    To the downside on the week were only short funds; no other category ended red or even unchanged.  The worst performing categories, though still positive, were healthcare, utilities, currency, convertible, dividend, and large caps.  With the VIX indicating overall market volatility fell 7% and the RVX indicating that small cap volatility fell 2%, it's not surprising that the more conservative asset classes saw a slow weak.  It is interesting to note, however, that healthcare was actually more negatively correlated on the week than short funds.  This is perhaps the result of the difference in performance between the S&P and the other indexes on which there are short ETFs, but such a strongly negative correlation is a trend that warrants further attention.

Sector Day Week Month YTD Day $ Week Correlation to SPY
Short 0.12% -4.61% -2.98% -1.76% 999 -38.56%
Healthcare 0.12% 0.41% 0.74% 1.10% 142 -46.55%
Currency -0.01% 0.79% 0.63% 0.49% 59 -33.38%
Convertible 0.12% 0.93% -0.26% 0.30% 14 10.21%
Utilities -0.56% 1.32% -1.16% 0.91% 603 15.50%
Dividend 0.50% 1.58% 1.26% 0.74% 43 56.37%
Large Cap 0.27% 1.74% 3.37% 0.39% 1621 64.84%
Biotech 0.37% 1.93% -1.82% 0.78% 324 -38.90%
Consumer Goods & Services 0.56% 2.06% 2.15% 0.39% 131 33.00%
MSCI 0.65% 2.36% 2.22% 10.95% 278 0.33%
Japan 0.55% 2.42% 2.01% 0.40% 180 -39.30%
Europe 0.49% 2.59% 2.50% 0.49% 201 -16.02%
Asia 0.91% 2.93% 1.52% 1.31% 49 -11.33%
Retail 1.33% 3.30% 3.67% 2.58% 612 28.69%
Small Cap 0.52% 3.36% 2.93% 0.25% 6495 24.69%
Commodities & Resources 1.53% 3.37% -0.74% 0.65% 606 -18.40%
Energy 0.91% 3.38% 6.46% 1.30% 880 28.79%
Mid Cap 0.42% 3.39% 3.71% 0.55% 719 15.60%
Call/Write 0.70% 3.81% 3.44% 2.26% 3 -0.77%
Transports 0.58% 3.86% 3.73% 14.68% 21 -95.20%
Infrastructure 0.60% 3.94% 2.96% 9.85% 3 14.84%
China 1.82% 4.11% 4.61% -0.29% 269 -27.83%
Russia 1.80% 4.73% -2.30% -7.33% 21 -4.39%
Emerging Markets 2.47% 5.06% 4.34% 1.00% 1097 7.80%
Real Estate 0.04% 6.09% -0.64% 0.10% 393 53.21%
Latin America 3.14% 8.31% 10.89% 9.09% 123 57.28%

ETF Market Summary: Tuesday, May 29th 2007

Dollar-Weighted ETF/CEF Category Return

Sector Day Week Month YTD Day $ Week Correlation to SPY
Russia -2.07% -4.42% -4.58% -8.36% 14 63.56%
China -1.17% -3.47% 5.18% -0.82% 425 85.79%
Short -1.16% 0.89% -3.38% -1.48% 1172 -72.67%
Energy -0.65% -1.67% 6.05% 1.13% 1421 72.37%
Emerging Markets -0.33% -1.36% 3.77% 0.68% 902 76.38%
Europe -0.16% 0.25% 1.27% 0.42% 191 77.34%
Currency -0.01% 0.00% -0.71% 0.43% 25 46.50%
Healthcare 0.05% -0.04% 1.35% 1.06% 67 69.27%
Consumer Goods & Services 0.10% -0.19% 1.42% 0.29% 120 NaN
MSCI 0.12% 0.40% 1.43% 9.22% 428 89.51%
Latin America 0.13% -1.88% 9.07% 6.87% 63 93.03%
Large Cap 0.25% -0.02% 3.62% 0.34% 1896 93.67%
Dividend 0.26% -0.90% 1.77% 0.65% 36 90.75%
Commodities & Resources 0.27% -0.88% -2.58% 0.40% 331 62.97%
Retail 0.28% 0.70% 1.47% 1.64% 429 4.09%
Infrastructure 0.28% -3.83% -0.27% 7.62% 4 61.90%
Utilities 0.33% -3.57% -0.87% 0.84% 510 73.28%
Asia 0.38% -1.11% 1.59% 1.10% 27 85.95%
Convertible 0.54% 0.44% 0.38% 0.28% 16 39.19%
Mid Cap 0.59% -0.30% 3.22% 0.46% 673 92.44%
Biotech 0.59% 0.38% -2.10% 0.48% 66 75.52%
Small Cap 0.91% 0.59% 3.10% 0.20% 5438 75.35%
Transports 0.92% 0.16% 3.34% 12.16% 45 98.75%
Japan 1.05% 1.28% 0.97% 0.18% 211 62.87%
Call/Write 1.12% 1.63% 1.59% 1.81% 4 87.00%
Real Estate 3.04% 2.34% -2.34% 0.01% 709 80.10%

ETF Market Summary: Thursday May 24th, 2007

Dollar-Weighted ETF/CEF Category Return

Sector Day Week Month YTD Day $ Week Correlation to SPY
Latin America -3.22% -2.24% 3.96% 5.83% 92 84.55%
Russia -2.98% -3.50% -8.40% -8.81% 21 78.36%
China -2.83% -4.77% 0.78% -0.94% 708 71.77%
Emerging Markets -2.40% -1.86% 0.05% 0.58% 2260 71.14%
Utilities -2.30% -3.42% -2.43% 0.81% 776 71.43%
Asia -2.19% -2.34% -0.74% 0.98% 60 55.23%
Energy -1.83% -0.14% 3.85% 1.07% 1937 75.77%
Mid Cap -1.67% -0.13% -0.04% 0.40% 1174 78.47%
Infrastructure -1.61% -5.18% -1.50% 7.65% 5 75.45%
Real Estate -1.59% -1.68% -7.62% -0.15% 995 11.61%
Europe -1.40% -0.02% -0.09% 0.38% 182 79.40%
Commodities & Resources -1.35% -0.40% -3.12% 0.33% 535 63.87%
Small Cap -1.33% 1.44% -1.09% 0.15% 8310 59.35%
Transports -1.33% -1.64% -0.86% 10.42% 42 78.18%
Dividend -1.32% -1.10% -0.08% 0.57% 45 66.53%
Biotech -1.20% 0.35% -4.25% 0.34% 106 58.96%
MSCI -0.96% -0.06% 0.08% 8.39% 483 86.22%
Call/Write -0.91% -0.38% -1.62% 1.23% 5 45.74%
Convertible -0.72% -0.67% -0.25% 0.21% 20 44.14%
Consumer Goods & Services -0.69% 0.05% -0.56% 0.25% 166 78.62%
Large Cap -0.65% -0.16% 2.47% 0.32% 4093 91.94%
Japan -0.53% 0.31% -0.98% 0.10% 304 15.57%
Currency -0.45% -0.23% -0.51% 0.40% 22 48.16%
Healthcare -0.41% 0.48% 0.57% 1.05% 89 70.94%
Retail 0.22% 1.03% -1.44% 1.45% 610 52.94%
Short 2.63% 0.62% 1.78% -1.24% 2062 -70.96%

Russian Oil Deal: Good News for New Russian ETFs

    News of a Russian deal with former USSR satellite states Turkmenistan and Kazakhstan hit the wire early Saturday morning, and the implications of this agreement are obvious for a number of funds.  Notable among these is the brand new Market Vectors Russia, which follows the DAX Global Russia Index, which has about 13% in OAO Gazprom, the Russian state-owned oil company that will likely see the most benefit from this move.  TRF likewise has a 3.4% Gazprom weight, and although CEE is closed, it is another Central Europe/Russia fund to watch.