NEW YORK (TheStreet) -- Don Dion posts his current insights on the stock, bond, commodity and currency markets in his RealMoney blog, anticipating which ETFs will be in play next.
Here are three of his blog posts from the past week:
What Probe Means for China ETFs
Published 12/21/2010 3:21 p.m. ESTAn SEC probe into U.S.-listed Chinese firms could put some ETF investors at risk. U.S. listed Chinese ETFs fall into one of two categories: ETFs that track Chinese ordinaries or ETFs that track U.S.-listed Chinese companies (American depositary receipts and other receipts). While the investigation is just starting, it is likely that the ETFs that would be the most impacted would be funds that fall into the latter category. For example, the PowerShares Golden Dragon Halter USX China Portfolio Fund (PGJ) is based on the Halter USX China Index, which is composed of the U.S.-listed securities of companies that derive a majority of their revenue from the People's Republic of China. If the extent of the fraud suggested by this investigation turns out to be accurate, the SEC probe could conceivably impact the U.S.-listed Chinese firms at the core of PGJ. This kind of investigation could cause problems for PGJ's pricing and construction. Trading value could be negatively impacted, and investor fear could drive PGJ's trading value to a discount over the course of the investigation. Until investors learn more about the extent of the SEC probe, it may be wise for ETF investors to avoid ETFs that track U.S.-listed Chinese firms. It is less likely that ETFs that track Chinese ordinaries (stocks traded at exchanges in China and Hong Kong) would be impacted by this type of investigation. It is important that investors check their portfolios and learn the difference between these two types of Chinese ETFs. While both types of these Chinese ETFs trade on U.S. exchanges, the big difference is that some of these ETFs track Chinese "ordinaries" (stocks traded on exchanges in China and Hong Kong) while some track U.S. -listed Chinese ADRs (Chinese companies with a dual listing on American stock exchanges). PGJ falls into the latter category, and the popular iShares FTSE China 25 Index Fund (FXI) the former.
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