This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

ETFs That 'Lose Less' Can Earn You More

Keep in mind, these results go back to November of 2009. And the prevailing wisdom is that -- in spite of bearish corrections in 2010 and 2011 -- risk assets have trended higher. Typically, this would mean that the riskier, the more the reward.

However, in the "uptrend" the best returns have come from assets that do not lose as much in the one-day collapses or the bearish corrections. Diversified high-yield bond ETFs like PHB have seen less downside pain than the S&P 500 on these occasions, but have outperformed on the upside.

The same can be said for higher-yielding ETFs (e.g., Pipeline Partnerships ETFs, Dividend ETFs, etc.) as well as non-cyclicals (e.g., Pharma ETFs, Staples ETFs, Utilities ETFs.). Each and every one has out-hustled the broader domestic and broader world benchmarks.

Some may erroneously conclude that it is merely a case of defensive equity positioning. In truth, it has a lot to do with cash flow and mathematics. Nearly all of the "lose less" performers generate greater cash flow than the S&P 500, and that cash flow accumulates over several years.

In addition, when the broader benchmarks have had a bear of time recovering from -17%, -18%, -19% declines in 2010 and in 2011, the "lose less" crowd typically needed to make up half the ground. The less territory an asset needs to retrace, the more new territory it can claim.
Disclosure Statement: ETF Expert is a website that makes the world of ETFs easier to understand. Gary Gordon, Pacific Park Financial and/or its clients may hold positions in ETFs, mutual funds and investment assets mentioned. The commentary does not constitute individualized investment advice. The opinions offered are not personalized recommendations to buy, sell or hold securities. At times, issuers of exchange-traded products compensate Pacific Park Financial or its subsidiaries for advertising at the ETF Expert website. ETF Expert content is created independently of any advertising relationships. You may review additional ETF Expert at the site.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ACWI $56.81 0.00%
AMJ $30.04 0.00%
FDL $25.70 0.00%
PHB $18.26 0.00%
PCY $28.61 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs