Don Dion's Weekly ETF Blog Wrap
Here is some of what Don Dion blogged about on RealMoney this past week.
Lessons From an ETF 'Crossover' Stock
Posted 12/17/2009 2:35 p.m. EST
The presence of Cree (CREE) in a variety of semiconductor and green ETFs means the stock is drawing investors from diverse market segments.
One of the driving factors behind a stock's performance is investor demand, and stocks that achieve high growth often have support from multiple sectors or multiple "stories." A company that can market itself to different groups of investors will be able to tap more investor dollars. ETFs facilitate sector investing and "story" investing to a degree that wasn't as readily available a few years ago, and this year we have seen the effects with semiconductors and clean energy.American Semiconductor (AMSC) is found in many alternative-energy ETFs but not the semiconductor ETFs, while Cree is found in both. AMSC is involved with wind power, while CREE makes energy-saving LEDs. Year to date, AMSC is up 145.7% and CREE is up 229.6%. Both returns are stellar, but it helps that CREE is pulling in dollars from semiconductor ETFs in addition to a slew of alternative-energy funds. According to NSX data, iShares S&P North American Tech Semiconductors (IGW) has seen inflows of $43 million in the 11 months through Nov. 30, and SPDR S&P Semiconductor (XSD) has taken in $44 million. Compare that $87 million total with the $120 million that has flowed into the eight clean-energy funds listed on the table below. It would take a lot more money flowing into these ETFs to really move these stocks, though. The total holdings in AMSC in the above ETFs amounts to only about 2% of its market capitalization of $1.8 billion, while the holdings in CREE come to about 1% of its $5.4 billion market cap. >>Bull or Bear? Vote in Our Poll
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV