ETF Tuesday
By now, you are probably tired of all the analysis of last week's report pegging third-quarter GDP growth at 1.6%, which is a slowdown from second-quarter growth of 2.6%. The net result is that the economic Armageddon guys still see the end of days and the no-recession-ever-again crew continues to say that a recession is nowhere near. Regardless of where you stand on the issue, it is worthwhile to think about which segments of the market might weather a slowdown or recession better than others. The usual suspects include consumer staples, health care and dividend paying stocks. WisdomTree offers a fund that includes all of the above, though only in international (non-U.S.) stocks, and it is worth considering: the WisdomTree International Consumer Non-Cyclical Fund DPN. This ETF is brand new, so all there is to go on are the back-test data. But during the last U.S. recession -- from late 2001 to early 2002 -- the index underlying this fund dramatically outperformed its benchmark index, the MSCI EAFE Index, as shown in the chart below. One thing to point out right off the bat is that this is not your typical staples ETF. Most of the other funds that are dubbed "non-cyclical" or "staples" focus on things like Nilla Wafers and relish. In a twist, DPN throws health care stocks into the mix, a lot of health care. In that regard, DPN partially overlaps with the WisdomTree International Health Care Sector Fund DBR, but boasts a higher yield. The two funds have five of their respective top 10 stocks in common, and those five health care holdings account for almost 27% of DPN and nearly 40% of DBR: GlaxoSmithKlineGSK, NovartisNVS, Sanofi-AventisSNY, AstraZenecaAZN and Roche.
| Besting the Index |
![]() |
| Click here for larger image. |
| Source: Morningstar |
BofA's offer of free online trades may force others to follow -- and end ETF commissions.
The PowerShares FTSE RAFI Financials Sector Portfolio looks good on a back-tested basis.
With new launches at a blistering rate, some fret about the product's purpose.
These forgotten Internet stocks are being accumulated by hedge funds.
Raspberries for Apple; You'll be sorry, UBS; Fortress or Fort Knox? Wholly unappetizing Foods; give Liberty AOL or give them...
The GOP presidential candidate raised $27 million in July.
Some credit and debit cards give you some cash back on purchases. But you need to manage it well to benefit from it.
Sponsored by:






