Ultime notizie per iShares Global Materials ETF (ARCA:MXI)

iShares Global Materials ETF

Basic Materials

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The Fund seeks to track the investment results of the S&P Global 1200 Materials Index; the Underlying Index, which measures the performance of companies that S&P Dow Jones Indices LLC; the Index Provider or SPDJI, a subsidiary of S&P Global, Inc., deems to be part of the materials sector of the economy and that SPDJI believes are important to global markets.

Linde Plc

BHP Billiton Ltd

Air Liquide Sa

Shin-Etsu Chemical Co

Sherwin Williams Co/The

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Ecolab, Inc.

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iShares S&P Global Materials Sector Index Fund

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OKTA

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ROKU

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﻿Shares of several communication companies are trading higher, rebounding as fears of the coronavirus's impact on the economy settle. NOTE:  Although the market rebounded, there are still concerns over the spread of the virus.

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Shares of several semiconductor companies are trading higher after President Trump said he spoke with China's Xi and announced they will have an extended meeting at G20, renewing trade optimism. NOTE: Semis have major China exposure.

Iron Ore prices have dropped over 30 percent year to date. Stock prices of Iron Ore miners have hardly reacted with Fortescue Metals Group Limited down 27 percent year to date.

	Iron Ore 62% FE - August Contract From CME Group:

	<a href="https://www.benzinga.com/files/images/2014/August/27/iron_ore_cme_with_arrow.jpg"><img alt="" src="https://www.benzinga.com/files/images/2014/August/27/iron_ore_cme_with_arrow.jpg" style="width: 400px; height: 194px;" /></a>

	Miners YTD Performance (Chart: Capital IQ)

	<a href="https://www.benzinga.com/files/images/2014/August/27/iron_ore_stock_prices.png"><img alt="" src="https://www.benzinga.com/files/images/2014/August/27/iron_ore_stock_prices.png" style="width: 450px; height: 121px;" /></a>

	Morgan Stanley analyst Joel Crane believes Iron Ore index is headed for a sustained collapse before rebounding. He cites the recent downward pressure on steel billet and rebar prices in China thanks to elevated steel construction and a seasonally slower consumer period. Adding to these pressure is the tendency of steel makers to &quot;...adopt a &lsquo;wait and see&rsquo; approach during bouts of price weakness to see how low it can go&ldquo;.

	Axiom Capital Gordon Johnson asked Mysteel&#39;s Head of Iron Ore Analytics about inventory levels of Iron Ore and current Chinese demand levels. &nbsp;Mysteel&rsquo;s head said regarding days/levels of steel mills:&nbsp;

	&ldquo;...though they are higher than that of Q3 in 2012&hellip;.the stockpile at ports will exceed 110 million tonnes, way above reasonable level&rdquo;.

	<a href="https://www.benzinga.com/files/images/2014/August/27/axiom_est_average.png"><img alt="" src="https://www.benzinga.com/files/images/2014/August/27/axiom_est_average.png" style="width: 500px; height: 400px;" /></a>

	Morgan Stanley believes the decrease in Chinese domestic iron ore production is driven by mine closures leaving those remaining firms in a stronger position even as freight rates for seaborne activity have risen, leading some to believe less miners are producing more iron ore.

	<a href="https://www.benzinga.com/files/images/2014/August/27/iron_ore_ms_miners.jpg"><img alt="" src="https://www.benzinga.com/files/images/2014/August/27/iron_ore_ms_miners.jpg" style="width: 500px; height: 440px;" /></a>

	<a href="https://www.benzinga.com/files/images/2014/August/27/iron_ore_seaborne_rates_0.jpg"><img alt="" src="https://www.benzinga.com/files/images/2014/August/27/iron_ore_seaborne_rates_0.jpg" style="width: 500px; height: 441px;" /></a>
<div>
	Traders and investors seeking exposure to the Iron Ore volatility and potential &quot;replenishment buying&quot; that Morgan Stanley expects may decide to analyze the suitability of these ETFs:</div>
<ul>
<li>
		Market Vectors Steel ETF (NYSE: <a class="ticker" href="/stock/slx#NYSE">SLX</a>)</li>
<li>
		iShares S7P Global Materials ETF (NYSE: <a class="ticker" href="/stock/mxi#NYSE">MXI</a>)</li>
</ul>

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Iron Ore Prices Expected To Continue Slide; Morgan Stanley Sees Future Upside

The recent default by Shanghai Chaori Solar Energy &amp; Science Technology was an important event for China and the global economy for three bullish long-term reasons, no matter what the short-term reaction.

	It demonstrates the maturation of the market system in China.

	There is little long-term good to be done for an economy if a government will not let the market decide the winners and losers. Over 22 years of "The Lost Decade" in Japan is testament to that economic fact. More defaults are good news for the long-term economic health of China, as investors will now take action with the realization the government will no longer backstop dying entities.

	<a href="http://www.benzinga.com/trading-ideas/long-ideas/14/03/4386875/3-reasons-to-tap-into-home-equity-to-buy-stocks">Related: 3 Reasons To Tap Into Home Equity To Buy Stocks</a>

	China is letting foreign companies step into the debt market.

	Daimler AG, the maker of Mercedes Benz automobiles and trucks, was the first non-financial company to float a bond offering in China. Beijing is starting to add depth to its capital markets. That is critical for the economy to evolve. It also offers domestic investors a greater selection in securities purchases, which is always a welcome development.

	It contributed to the declining prices of many commodities.

	China is, by far, the largest consumer of many commodities -- including coal, copper and iron ore. When there are adverse developments in China, the price falls. The exchange traded fund for copper, iPath Copper (NYSE: <a class="ticker" href="/stock/jjc#NYSE">JJC</a>), fell more than five percent last week. The exchange traded fund for coal, Market Vectors Coal (NYSE: <a class="ticker" href="/stock/kol#NYSE">KOL</a>), dropped more than four percent for the same period. The exchange traded fund for iron ore, iShares Global Materials (NYSE: <a class="ticker" href="/stock/mxi#NYSE">MXI</a>), was off by over 3.3 percent.

	That reduces the prices of these vital commodities to what the actual economic demand is, rather than what speculators think the price will be, based on what China needs. From this, other countries and companies can grow more efficiently due to lower prices copper, iron ore, coal and other products.

	 

	There have been many factors contributing to the 5.6 percent decline over the last week for the main exchange traded fund for China, iShares China (NYSE: <a class="ticker" href="/stock/fxi#NYSE">FXI</a>).

	The default of Shanghai Chaori Solar Energy &amp; Science Technology was a major, and much-needed, event. It signals that Beijing is willing to let companies fail, so the Chinese economy will succeed. That is very bullish news for the global marketplace.

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iPath Dow Jones UBSpper Subindex Total Return ETN

3 Reasons To Be Bullish About The Recent Bearish News From China

After its recent four-day conference, China's ruling Communist Party released a list of reforms, meant to make the economy more responsive to consumer demand.

	Greater growth in China will lead to a greater demand for commodities -- as it is the world's largest consumer of many, ranging from copper to coal. Ideally placed to serve this growing appetite is BHP Billiton (NYSE: <a class="ticker" href="/stock/bhp#NYSE">BHP</a>), the world's largest natural resources company.

	Based in Australia, BHP's holdings span the globe. But its biggest customer, by far, is China. That is true for Australia. The state of the Australian economy depends on large part on the trade with the People's Republic.

	That fact is also true for many of the world's commodities.

	Due to slower growth in China, many commodities have fallen in price. For 2012, the exchange traded fund for copper, iPath DJ-UBS Copper (NYSE: <a class="ticker" href="/stock/jjc#NYSE">JJC</a>), is down more than 15 percent. Market Vectors Coal (NYSE: <a class="ticker" href="/stock/kol#NYSE">KOL</a>) the exchange traded fund for coal, is off by nearly 20 percent for the same period. 

	Since the first of the year, the exchange traded fund for iron ore, iShares Global Metals (NYSE: <a class="ticker" href="/stock/mxi#NYSE" style="font-size:13px;">MXI</a>), is up less than one percent. Much of that has come from recent market action.

	It is much the same story for BHP Billiton, too.

	The stock is down almost six percent for 2013. But the share price has started to rally, as China has been registering higher economic growth in recent periods. As a result, BHP Billiton is up more than 8.5 percent for the last quarter of trading.

	There is much for long-term investors to like about BHP Billiton.

	The profit margin is nearly 40 percent. The return-on-equity is almost 40 percent, too. While the average dividend for a member of the Standard &amp; Poor's 500 Index is around 1.9 percent, BHP Billiton has one 3.31 percent.

	That income stream adds to the total return of the stock, which should increase with the new market changes in China that are long overdue.

Dividends

Will China's Economic Reforms Benefit BHP Billiton?

These are not the best of times for materials stocks and the corresponding ETFs.

	In the first quarter, the Materials Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlb#NYSE">XLB</a>) gained 4.8 percent. While that does not sound terrible, it is less than half the 10.5 percent returned by the SPDR S&amp;P 500 (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>). XLB's performance also makes it the worst of the nine sector SPDRs.

	In fact, seven of the nine sector SPDRs offered double-digit first-quarter returns with only the Technology Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlk#NYSE">XLK</a>) joining XLB in the single-digit club. Still, XLK's 5.4 percent first-quarter gain is far better than XLB's performance.

	Unfortunately for materials bulls, XLB looks like one of the better ETFs tracking this sector. Year-to-date, Monsanto (NYSE: <a class="ticker" href="/stock/mon#NYSE">MON</a>) an DuPont (NYSE: <a class="ticker" href="/stock/dd#NYSE">DD</a>) are up 9.86 percent and 7.17 percent, respectively. Those stocks combine for over 21 percent of XLB's weight. XLB has also been helped by the fact metals miners account for just 17 percent of the ETF's weight.

	Other materials ETFs have not been so fortunate and several now look imperiled. Take the case of the SPDR S&amp;P Metals &amp; Mining ETF (NYSE: <a class="ticker" href="/stock/xme#NYSE">XME</a>). The $609.3 million XME plunged 10.3 percent in the first quarter and that was before Monday's two percent loss (as of 1:30 PM Eastern time).

	XME has an ominous sub-sector mix. Alone, gold miners account for 10.4 percent of the fund's weight and as if that is not bad enough, other metals miners account for another 11.6 percent while coal and consumable fuels names represent 17.3 percent, <a href="https://www.spdrs.com/product/fund.seam?ticker=XME">according to State Street data</a>.

	Making matters worse is the fact that last week XME made a death cross, the technical scenario where a shorter term moving average crosses below a longer term average. In the case of XME, its 50-day moving average is now slightly below its 200-day line.

	Speaking of coal stocks, 2013 is proving to be another tough year for that group. Add in Monday's almost 1.6 percent slide and the Market Vectors Coal ETF (NYSE: <a class="ticker" href="/stock/kol#NYSE">KOL</a>) is now off 10.2 percent year-to-date. KOL has not made a death cross yet, but <a href="http://www.finviz.com/quote.ashx?t=kol&amp;ty=c&amp;ta=1&amp;p=d">the chart indicates it may just be a matter of time</a>.

	In another bad sign for KOL, at least four of its top-10 holdings – Joy Global (NYSE: <a class="ticker" href="/stock/joy#NYSE">JOY</a>), Peabody Energy (NYSE: <a class="ticker" href="/stock/btu#NYSE">BTU</a>), Yanzhou Coal (NYSE: <a class="ticker" href="/stock/yzc#NYSE">YZC</a>) and Walter Energy (NYSE: <a class="ticker" href="/stock/wlt#NYSE">WLT</a>) – reside below their 200-day moving averages. Those stocks combine for over 21 percent of KOL's weight. If KOL violates support at $22.50, a return to $20 seems likely.

	Things are not much better for global materials names. The iShares S&amp;P Global Materials Sector Index Fund (NYSE: <a class="ticker" href="/stock/mxi#NYSE">MXI</a>) is now down 5.7 percent this year when accounting for Monday's 0.9 percent loss. A 44 percent weight to metals miners has proven problematic and MXI is now struggling to hold support at its 200-day line.

	Additionally, MXI allocates 14.5 percent of its weight to various securities issued by BHP Billiton (NYSE: <a class="ticker" href="/stock/bhp#NYSE">BHP</a>) and Rio Tinto (NYSE: <a class="ticker" href="/stock/rio#NYSE">RIO</a>). Australian central bankers and policymakers have already acknowledged mining investment there is declining and that the mining boom will peak later this year, implying upside could be limited for these stocks and related fare.

	Another cause for concern: More than a third of MXI's top-18 holdings have exposure to gold mining. That is not a good thing when the Market Vectors Gold Miners ETF (NYSE: <a class="ticker" href="/stock/gdx#NYSE">GDX</a>) is down 18.4 percent this year.

	A possible solution for investors looking to profit the woes of the materials sector is the ProShares UltraShort Basic Materials (NYSE: <a class="ticker" href="/stock/smn#NYSE">SMN</a>). SMN seeks to deliver twice the daily inverse performance of the Dow Jones U.S. Basic Materials Sector Index.

	That is the index tracked by the iShares Dow Jones U.S. Basic Materials Sector Index Fund (NYSE: <a class="ticker" href="/stock/iym#NYSE">IYM</a>). If IYM breaks resistance at $52, <a href="http://www.finviz.com/quote.ashx?t=smn&amp;ty=c&amp;ta=1&amp;p=d">a run to $55 could be in the offing.</a>

	<a href="http://www.finviz.com/quote.ashx?t=smn&amp;ty=c&amp;ta=1&amp;p=d">For more on ETFs, click </a><a href="http://www.benzinga.com/etfs">here</a>.

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iShares Trust Dow Jones US Basic Materials Sector Index Fund

Materials Mess: These ETFs Are in Trouble

Here is the ETF Professor's ETF Watch List for Wednesday, February 20, 2013.

Give the iShares S&amp;P Global Materials Index Fund (NYSE: <a class="ticker" href="/stock/mxi#NYSE">MXI</a>) a look.

Is the Global X Silver Miners ETF (NYSE: <a class="ticker" href="/stock/sil#NYSE">SIL</a>) ready to bounce?

Grab some dividends with the Global X SuperDividend ETF (NYSE: <a class="ticker" href="/stock/sdiv#NYSE">SDIV</a>).

Emerging markets plays of the day: iShares MSCI Malaysia Index Fund (NYSE: <a class="ticker" href="/stock/ewm#NYSE">EWM</a>), iShares MSCI Mexico Investable Index Fund (NYSE: <a class="ticker" href="/stock/eww#NYSE">EWW</a>) and the iShares MSCI Taiwan Index Fund (NYSE: <a class="ticker" href="/stock/ewt#NYSE">EWT</a>).

Forex play of the day: CurrencyShares Australian Dollar Trust (NYSE: <a class="ticker" href="/stock/fxa#NYSE">FXA</a>).

Bond play of the day: Pimco Total Return ETF (NYSE: <a class="ticker" href="/stock/bond#NYSE">BOND</a>).

Broad U.S. Equity ETFs

New ETFs

Currency ETFs

Pre-Market Outlook

BOND

SDIV

ETFs to Watch February 20, 2013 (BOND, EWW, FXA)

It is now widely known that hedge fund legend David Einhorn is bearish on iron ore producers. 

If his comments to that effect in October 2012 did convince investors of that fact, then Greenlight Capital's letter to clients <a href="http://www.benzinga.com/trading-ideas/long-ideas/13/01/3267647/einhorns-iron-ore-short-may-not-be-going-well">issued earlier this week</a> should do the trick.

In that letter, Greenlight says it holds a bearish view of iron ore equities and that is has "shorted a number of stocks in the sector." Without knowing exactly which iron ore stocks Greenlight is short and when those positions were initiated, grading the success of Greenlight's trades is difficult.

What is known is that Einhorn spoke bearishly about <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/10/3044251/david-einhorn-is-shorting-iron-ore">iron ore and steel names as far back as October 2012</a> and if he opted to short stocks such as BHP Billiton (NYSE: <a class="ticker" href="/stock/bhp#NYSE">BHP</a>) an Vale (NYSE: <a class="ticker" href="/stock/vale#NYSE">VALE</a>), the world's largest iron producer, back then there is a good chance those trades are not going in his favor. 

The reason being is that the Chinese economy has started to turn for the better, causing iron ore prices to surge. While there is no exchange-traded product backed by iron ore futures, there are plenty that hold stocks such as BHP and Vale. Investors can use some of the following funds to bet on high iron ore prices while potentially profiting from what could be a rare misstep by Einhorn.

iShares S&amp;P Global Materials Sector Index Fund (NYSE: <a class="ticker" href="/stock/mxi#NYSE">MXI</a>)
Vale, BHP and Rio Tinto (NYSE: <a class="ticker" href="/stock/rio#NYSE">RIO</a>) are the world's three largest iron ore producers and that trio combines for almost 18 percent of MXI's weight. That gives this ETF plenty of exposure to increasing demand and prices for the commodity used in the production of steel. 

The resurgent Chinese economy has been a boon for MXI as the fund has gained over eight percent in the past 90 days. However, investors need to note exactly what they are getting involved with with MXI. Meaning this ETF is about much more than iron ore production. 

MXI is also home to chemicals producers such as DuPont (NYSE: <a class="ticker" href="/stock/dd#NYSE">DD</a>) and Dow Chemical (NYSE: <a class="ticker" href="/stock/dow#NYSE">DOW</a>) along with fertilizer names such as Potash (NYSE: <a class="ticker" href="/stock/pot#NYSE">POT</a>).

Those factors are not the big sticking points with MXI, though. MXI's issue that investors need to be cautious of is exposure to gold miners, one of the more uncooperative sub-segments of the materials universe. In the past three months, the Market Vectors Gold Miners ETF (NYSE: <a class="ticker" href="/stock/gdx#NYSE">GDX</a>) is off almost 12.5 percent. 

MXI's exposure to pure play gold miners is not significant enough to make this ETF a loser as iron ore prices rise, but the fund's exposure to gold mining equities is enough to mute MXI's upside. 

iShares MSCI Australia Index Fund (NYSE: <a class="ticker" href="/stock/ewa#NYSE">EWA</a>)
A predictable choice given that Australia is one of the world's largest iron ore-producing countries and that China is Australia's largest trading partner. 

BHP, EWA's largest holding, and Rio Tinto combine for over 15 percent of EWA's weight. Both companies are diversified mining firms, but both are also highly dependent on iron ore as a revenue and profit driver.

In 2011 <a href="http://articles.chicagotribune.com/2012-03-29/business/sns-rt-us-bhpbilliton-ironorebre82t04x-20120329_1_iron-ore-bhp-billiton-ferrous">iron ore accounted for 42 percent of BHP's profits</a>. In the same year, Rio Tinto <a href="http://seekingalpha.com/article/827881-a-look-at-rio-tinto-s-iron-ore-exposure">derived nearly half its revenue from iron ore production</a>.

Global X China Materials ETF (NYSE: <a class="ticker" href="/stock/chim#NYSE">CHIM</a>)
China is often perceived as the primary destination for imported iron ore, but it must be noted the world's second-largest economy is looking to reduce its dependence on imported iron ore. 

China is seeking to reduce dependence on imported iron ore by increasing the proportion of domestic iron ore to <a href="http://www.globalxfunds.com/chinasector/chinamaterialsetf/">forty-five percent by 2015</a>. 

China is already the world's largest steel producer, so its efforts to increase domestic iron ore production make sense, particularly at a time when prices are rising. Morgan Stanley expects iron prices to average $133 per ton this year and that China will increase shipments 12 percent, <a href="http://www.bloomberg.com/news/2013-01-24/morgan-stanley-boosts-2013-iron-ore-estimate-as-demand-climbs.html">according to Bloomberg</a>. 

CHIM is small (just $2.8 million in assets under management) and its average daily volume is less than 4,800 shares. On the other hand, the ETF has surged 15.5 percent in the past three months, outperforming the iShares FTSE China 25 Index Fund (NYSE: <a class="ticker" href="/stock/fxi#NYSE">FXI</a>) by nearly 400 basis points along the way.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

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Futures

Movers & Shakers

CHIM

VALE

Bet Against Einhorn on Iron Ore With These ETFs

The Market Vectors Agribusiness ETF (NYSE: <a class="ticker" href="/stock/moo#NYSE">MOO</a>) is up 10.5 percent this year. That would appear to be a decent gain, but when considering the SPDR S&amp;P 500 (NYSE: <a class="ticker" href="/stock/spy#NYSE">SPY</a>) has outperformed MOO by nearly 300 basis points with 430 basis points less in volatility, a case can be made that some agribusiness ETFs are laggards relative to the risks this sub-sector presents.

That laggard status could be reborn next year amid expectations for lower potash prices. China and India, the world's two largest consumers of the crop nutrient, have been delaying signing new contracts with North American suppliers, some of which are constituents in MOO and rival agribusiness ETFs. 

India has started negotiations with potash producers and it is expected to China will do the same in January or February. Problem is the two emerging markets economic superpowers are poised to get their largest potash price reduction in three years, <a href="http://www.bloomberg.com/news/2012-12-19/potash-seen-falling-as-asia-wields-purchasing-power-commodities.html">Bloomberg reported</a>.

Analysts at Credit Agricole Securities USA, Dahlman Rose &amp; Co. and Goldman Sachs expect China and India could pay as little as $430 per ton for potash next year, according to Bloomberg. That is down from the current level of $490 per ton paid by India and $470 per ton paid by China.

Should China and India be successful in negotiating their potash prices down to $430 per ton (or lower), that news could present a near-term cap on upside for MOO and the rival iShares MSCI Global Agriculture Producers Fund (NYSE: <a class="ticker" href="/stock/vegi#NYSE">VEGI</a>).

To be fair to MOO, the ETF is home to 51 stocks and non-potash holdings include Monsanto (NYSE: <a class="ticker" href="/stock/mon#NYSE">MON</a>), Deere (NYSE: <a class="ticker" href="/stock/de#NYSE">DE</a>) and Archer-Daniels Midland (NYSE: <a class="ticker" href="/stock/adm#NYSE">ADM</a>). That trio represents 19.5 percent of MOO's weight. VEGI, which debuted in January and is home to 135 stocks, allocates about a quarter of its weight to that trio.

That is to say both ETFs have some insulation from fluctuating potash prices. "Fluctuating" might be too kind of an assessment. Potash prices flirted with <a href="http://www.infomine.com/investment/metal-prices/potash/1-year/">$485 per ton earlier this year, but now reside closer to $425</a>.

Potash Corp. of Saskatchewan (NYSE: <a class="ticker" href="/stock/pot#NYSE">POT</a>), the world's largest producer of its namesake fertilizer, Russia's Uralkali, Mosaic (NYSE: <a class="ticker" href="/stock/mos#NYSE">MOS</a>) and Agrium (NYSE: <a class="ticker" href="/stock/agu#NYSE">AGU</a>) combine for about 21 percent of MOO's weight and 19 percent of VEGI's weight.

Making matters potentially worse for poatsh producers is that the crop nutrient has come nowhere close to <a href="http://www.infomine.com/investment/metal-prices/potash/all/">returning to its pre-financial crisis highs</a>. Back then, potash traded traded over $800 per ton and even flirted with $900. 

Of course it can be said that potash probably overshot on the way up and $800 per ton should have never been seen in the first place. However, potash prices are down this year despite higher grain prices.

"To see negative growth in a period of strong, albeit volatile, grain prices suggest to us that… there is lack of understanding of the merits of using potash in some developing markets, where the growth is supposed to come from," <a href="http://www.agrimoney.com/news/credit-suisse-cuts-forecast-for-potash-prices--5226.html">according to Credit Suisse</a>. The bank is forecasting Vancouver spot potash prices of $445 per ton next year and in 2014.

Arguably, the market has already started pricing in rough times ahead for potash producers. On average, shares of Agrium, Mosaic and Potash have tumbled 4.83 percent in the past three months. MOO, by far the largest agribusiness ETF with $5.58 billion in assets under management, has risen 1.5 percent over that time. Still, that means investors would have been better off with a broader materials ETF such as the iShares S&amp;P Global Materials Sector Index Fund (NYSE: <a class="ticker" href="/stock/mxi#NYSE">MXI</a>).

MXI, which does have some agribusiness exposure via Monsanto, Potash and others, is up nearly four percent over the past 90 days. Bottom line: Agribusiness ETFs may not be subject to massive declines in 2013, but with buyers holding the best cards in potash price negotiations, investors would do well to find materials ETFs with reduced potash exposure.

For more on ETFs, click <a href="http://www.benzinga.com/etfs">here</a>.

Analyst Color

Price Target

Contracts

VEGI

Agribusiness ETFs Could be in For Tough 2013

Thursday's sea of red left a wide array of sector ETFs looking significantly worse than they did just a few days ago. 

Growing concerns about the intensity of a U.S. economic slowdown make matters worse, thanks to another round of troubling data points. Goldman Sachs (NYSE: <a class="ticker" href="/stock/gs#NYSE">GS</a>) is not helping matters with a target of 1,285 on the S&amp;P 500, 40 points below where the index closed Thursday.

This is the same Goldman Sachs that just 90 days ago was overtly bullish on U.S. equities - but one bank's prognostications aside, it is clear plenty of sector funds should either be shorted or avoided. The situation is all the more dreary for investors looking for long opportunities with some of the surprises found on this list.

Utilities Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlu#NYSE">XLU</a>)
In a recent note, <a href="http://www.benzinga.com/analyst-ratings/analyst-color/12/06/2673160/goldman-highlights-etf-correlations-xlf-xlk-xlu">Goldman highlighted</a> XLU's low correlations to other sector SPDRs. Theoretically, that should be a good thing in a down market, but XLU comes with a cautionary tale.

The past several months led investors to bid up on this "boring is beautiful" ETF, and XLU <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/06/2675202/sneaky-high-some-sector-etfs-now-surprisingly-pricey">gained a lofty valuation</a>. Ensuing carnage could be nasty at current levels, as the utilities trade is crowded. XLU looks like it topped out at its 52-week of $37.37 earlier this week. If the ETF cannot find support at $35.50, it could fall to $34, an area that the fund has not seen since April.

Consumer Staples Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlp#NYSE">XLP</a>)
The case of the Consumer Staples Select Sector SPDR proves one thing: Boring is beautiful up to the point where boring becomes hysteria, and beauty becomes ugly. Broadly speaking, the consumer staples is neither ugly nor hysteria-ridden, but investors cannot gloss over the fact that this week alone Procter &amp; Gamble (NYSE: <a class="ticker" href="/stock/pg#NYSE">PG</a>) and Philip Morris (NYSE: <a class="ticker" href="/stock/pm#NYSE">PM</a>) issued profit warnings.

Procter &amp; Gamble and Philip Morris combine for 23 percent of XLP's weight and the warnings beg the question, "Who is next among XLP's holdings?" Procter &amp; Gamble's loss in market cap has dropped the stock down to XLP's second-largest holding behind Coca-Cola (NYSE: <a class="ticker" href="/stock/ko#NYSE">KO</a>). 

Market Vectors Oil Services ETF (NYSE: <a class="ticker" href="/stock/oih#NYSE">OIH</a>)
Already vulnerable <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/06/2678800/warnings-season-is-here-these-etfs-could-suffer">to earnings warnings</a>, this oil services group is getting tarred-and-feathered by other significant problems. Last week, the U.S. natural gas rig count fell to a 13-year low. 

Rising inventories and slack demand imply more oil rigs could be idled all over the world as well. Few rigs in operation means less demand for the products and services provided by OIH's constituents.

iShares S&amp;P Global Materials Index Fund (NYSE: <a class="ticker" href="/stock/mxi#NYSE">MXI</a>)
The iShares S&amp;P Global Materials Index Fund will celebrate its sixth birthday in September. Despite its age and an assets under management of almost $462 million, the fund flies under the radar. 

For those not familiar with MXI, this is why the fund is not a buy at the moment: BHP Billiton (NYSE: <a class="ticker" href="/stock/bhp#NYSE">BHP</a>), Rio Tinto (NYSE: <a class="ticker" href="/stock/rio#NYSE">RIO</a>) and Vale (NYSE: <a class="ticker" href="/stock/vale#NYSE">VALE</a>) combine for about 17.5 percent of MXI's weight. Unless Chinese commodities demand improves sharply in the near-term, MXI is vulnerable.

Technicals

Four Sector ETFs to Avoid Like The Plague (MXI, OIH, XLP)

This week, five central banks are set to report their interest rate decisions and Chairman Ben Bernanke is set to testify on his economic outlook. This a full calendar, and with traders, investors, and analysts alike clamoring for some form of added liquidity, it is interesting to see what moves where.
The fun starts tonight, at 12:30 am, when the Royal Bank of Australia is set to announce its interest rate decision. After cutting rates 50 bps last month, the RBA is likely in a wait-and-see mode, however the market is still predicting a rate cut of at least 25 bps, as Chinese growth has continued to slow. Miners (NYSE: <a class="ticker" href="/stock/mxi#NYSE">MXI</a>) and gold (NYSE: <a class="ticker" href="/stock/gld#NYSE">GLD</a>) will definitely be impacted by this move. 
Tomorrow's central bank voices continue with the Fed's Bullard, Fischer, and Evans speaking throughout the day. Also, the Bank of Canada is set to announce its interest rate decision at 9 am. The market is expecting the BoC to keep rates at 1%, where they have been since last August, but the market may be more interested to see if Governor Mark Carney turns less hawkish than earlier this year. Watch energy (NYSE: <a class="ticker" href="/stock/xle#NYSE">XLE</a>) and mining stocks on any change in policy.
<img src="/files/images/2012/June/04/ecb_hq.jpg" width="425" height="310" alt="ecb_hq.jpg" />
Wednesday is the big day, with the ECB rate decision at 7:45 am, and more importantly the press conference at 8:30 am, set to take place. Investors would be wise to get up early on Wednesday to be able to position themselves appropriately for this decision, as hopes are rising that European Central Bank President Mario Draghi is set to act to further ease the European debt crisis. The consensus is for no rate cut, but the short-term future markets are indicating a small chance that the ECB does cut rates. All markets will be very reactive to every word out of Mr. Draghi's mouth.
Just before the ECB, the National Bank of Poland is set to announce their interest rate decision, and this is a good number for investors to watch, because Poland (NYSE: <a class="ticker" href="/stock/plnd#NYSE">PLND</a>) is considered a levered play on German growth. Thus, comments from the Bank could move sentiment around German growth and the overall state of the European Debt Crisis.
On Thursday, the Bank of England is set to announce its interest rate decision at 7 am, and investors will closely watch for the BoE to increase its QE. The street expects interest rates to remain flat at .5%. Bernanke testifies at 10 am, and everyone and their mother will want to hear any indication of some new liquidity measures at the meeting later this month.
All in all, this is an eventful weak full of lots of speeches, hopes, and hype. Be ready to trade any and every headline, because the market is sure to be moving.

Bonds

Previews

Forex

Econ #s

AAPL

GOOG

MSFT

PLND

PowerShares DB US Dollar Index Bullish Fund

Calling All Crisis Resolutions: Central Bank Watch

With the rapid expansion of the exchange-traded products universe, finding sectors or sub-sectors not represented among ETFs and ETNs is a hard thing to do these days, but if one is to separate chemicals makers from the materials group, then there is no ETF devoted exclusively to companies such as Dow component DuPont (NYSE: <a class="ticker" href="/stock/dd#NYSE">DD</a>).

Van Eck, parent company of Market Vectors, is looking to change and has filed plans with the Securities and Exchange Commission to possibly introduce the Market Vectors Global Chemicals ETF, which would track U.S.-based and international companies that depend on chemicals sales and production for at least half of their revenue.

The ETF would track the Market Vectors Global Chemical Index, a rules-based index that rebalances twice a year. As of February, the index comprised 158 securities with an average market capitalization of $7.8 billion, according to Index Universe.

Companies must have a market cap of at least $150 million and a three-month average daily trading volume of at least $1 million to be included in the index.

While there is currently no chemicals-specific ETF on the market, the Materials Select Sector SPDR (NYSE: <a class="ticker" href="/stock/xlb#NYSE">XLB</a>) features DuPont, Dow Chemical (NYSE: <a class="ticker" href="/stock/dow#NYSE">DOW</a>) and Air Products &amp; Chemicals (NYSE: <a class="ticker" href="/stock/apd#NYSE">APD</a>) among its top-10 holdings. Those stocks combine for about 20% of XLB's weight.

The iShares S&amp;P Global Materials Index Fund (NYSE: <a class="ticker" href="/stock/mxi#NYSE">MXI</a>) also offers exposure to chemical producers such as Dow, DuPont, Air Products and others.

Finally A Chemicals ETF? (DD, XLB, MXI)

It's no secret that iShares, the world's largest ETF issuer, has been issuing new funds at warp speed this year. And it's no secret that some of those funds look a lot like other ETFs <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/02/2310295/more-me-too-etfs-from-ishares-debut-today">that have been around a while</a>.

What is interesting about some of the recently introduced iShares ETFs isn't so much that they compete with currently existing products from rival issuers. It is that some of the new iShares funds look a lot like older iShares ETFs.

Take the example of the iShares MSCI Global Select Metals &amp; Mining Producers Fund (NYSE: <a class="ticker" href="/stock/pick#NYSE">PICK</a>). Great ticker, but on the surface, this ETF looks like a kissing cousin to the iShares S&amp;P Global Materials ETF (NYSE: <a class="ticker" href="/stock/mxi#NYSE">MXI</a>). Despite a lack of frequent press, MXI will turn six this year and is currently home to $554.6 million in assets under management.

Here are MXI's top-10 holdings: Two versions of BHP Billiton (NYSE: <a class="ticker" href="/stock/bhp#NYSE">BHP</a>) shares, Rio Tinto (NYSE: <a class="ticker" href="/stock/rio#NYSE">RIO</a>), BASF, Anglo American, Vale (NYSE: <a class="ticker" href="/stock/vale#NYSE">VALE</a>), Barrick Gold (NYSE: <a class="ticker" href="/stock/abx#NYSE">ABX</a>), DuPont (NYSE: <a class="ticker" href="/stock/dd#NYSE">DD</a>), Freeport McMoRan (NYSE: <a class="ticker" href="/stock/fcx#NYSE">FCX</a>) and Monsanto (NYSE: <a class="ticker" href="/stock/mon#NYSE">MON</a>).

Accounting for two versions each of BHP, Rio Tinto and Vale, Anglo American and Freeport, PICK has eight of the same top-10 holdings MXI thought the allocations differ. With that, it's easy to see why some might assume these funds are eerily similar to each other.

But hold on. There are big differences. For example, MXI has an expense ratio of 0.48% and his home to 126 stocks. Those numbers change dramatically with PICK, which charges 0.39% and is home to almost 310 stocks. 

MXI offers exposure to non-mining materials plays such as fertilizer and chemicals producers and is heavier on precious metals miners. In fact, chemicals producers, fertilizer firms included, account for a third of MXI's weight. On the other hand, PICK is 100% miners, aluminum companies, steel producers and related fare.

Both funds are decidedly international in their country allocations, but there's a big difference here as well. Almost 24% of MXI's weight lies with U.S. companies, but that number drops to just over 11% with PICK's lineup. Overall, MXI offers exposure to approximately 25 countries. That number jumps to over 35 with PICK.

Given PICK's small data set (the ETF's inception date is January 31), it's not yet relevant to compare the performance of these two ETFs. However, we do want to PICK a winner, pun intended. We'll admit there have been times <a href="http://www.benzinga.com/trading-ideas/long-ideas/11/12/2168889/have-these-mining-etfs-found-a-bottom">when we liked MXI</a> but on the basis of more stocks, more countries and lower fees, we're going to side with the newly minted PICK in this week's ETF Showdown.

After-Hours Center

PICK

ETF Showdown: Sibling Rivalry

Keeping up a blistering pace of <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/01/2294544/etf-showdown-nod-to-norway">new product introductions in 2012</a> BlackRock's (NYSE: <a class="ticker" href="/stock/blk#NYSE">BLK</a>) iShares, the world's largest ETF sponsor, will introduce five new ETFs today. All five are equities-based commodities funds and at least three of the five look to be direct rivals to currently existing ETFs from other issuers.

The The iShares MSCI Global Agriculture Producers Fund (NYSE: VEGI) will have an expense ratio of 0.39% and track an index of nearly 170 companies. According to VEGI's fact sheet, Monsanto (NYSE: <a class="ticker" href="/stock/mon#NYSE">MON</a>), Potash (NYSE: <a class="ticker" href="/stock/pot#NYSE">POT</a>) and Deere (NYSE: <a class="ticker" href="/stock/de#NYSE">DE</a>) account for over 28% of the fund's weight. Other top-10 holdings include Agrium (NYSE: <a class="ticker" href="/stock/agu#NYSE">AGU</a>) and Mosaic (NYSE: <a class="ticker" href="/stock/mos#NYSE">MOS</a>).

Translation: VEGI will butt heads with the Market Vectors Agribusiness ETF (NYSE: <a class="ticker" href="/stock/moo#NYSE">MOO</a>), which has been the dominant large-cap agribusiness ETF on the market since it debuted in 2007. Taking on MOO has proven to be <a href="http://www.benzinga.com/news/11/12/2203791/two-jefferies-etfs-to-close">no easy task for other ETF issuers</a>.

Next up is the iShares MSCI Global Energy Producers Fund (NYSE: FILL). FILL will also have an expense ratio of 0.39% and track an index of 313 stocks, according to the ETF's fact sheet. With a top-10 lineup that includes Exxon Mobil (NYSE: <a class="ticker" href="/stock/xom#NYSE">XOM</a>), Chevron (NYSE: <a class="ticker" href="/stock/cvx#NYSE">CVX</a>), Royal Dutch Shell (NYSE: RDS-A) and BP (NYSE: <a class="ticker" href="/stock/bp#NYSE">BP</a>), among others, FILL looks a lot like the iShares S&amp;P Global Energy Sector Index Fund (NYSE: <a class="ticker" href="/stock/ixc#NYSE">IXC</a>) and a bit like the SPDR S&amp;P International Energy Sector ETF (NYSE: <a class="ticker" href="/stock/ipw#NYSE">IPW</a>). FILL does offer a combined allocation of over 7% to refiners and coal producers.

The iShares MSCI Global Select Metals &amp; Mining Producers (NYSE: PICK) is next up on the docket. That fund will also have fees of 0.39% and track an index of 363 holdings. Home to BHP Billiton (NYSE: <a class="ticker" href="/stock/bhp#NYSE">BHP</a>), Rio Tinto (NYSE: <a class="ticker" href="/stock/rio#NYSE">RIO</a>) and Vale (NYSE: <a class="ticker" href="/stock/vale#NYSE">VALE</a>), among others, the ETF looks somewhat like the iShares S&amp;P Global Materials ETF (NYSE: <a class="ticker" href="/stock/mxi#NYSE">MXI</a>).

The iShares MSCI Global Gold Miners Fund (NYSE: RING), which also has an expense ratio of 0.39% and tracks an index of 42 stocks, has a lineup that makes the fund look like a rival to the Market Vectors Gold Miners ETF (NYSE: <a class="ticker" href="/stock/gdx#NYSE">GDX</a>). With over $9.4 billion in assets, GDX is the dominant gold miners ETF, but with an expense ratio of 0.53%, GDX could be vulnerable to some competition from RING.

Finally, the iShares MSCI Global Silver Miners Fund (NYSE: SLVP) will also debut on Thursday. That ETF will also feature an expense ratio of 0.39% and track an index of 30 stocks. While the weightings are different, over half of SLVP's top-10 holdings are the same as what's found among the top-10 constituents of the Global X Silver Miners ETF (NYSE: <a class="ticker" href="/stock/sil#NYSE">SIL</a>). SIL has a much higher expense ratio of 0.65%, but with $361.3 million in assets under management, the Global X offering has a deep first-to-market advantage.

Last week, iShares launched <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/01/2301349/escaping-europes-escapades-in-the-garden-of-eden">seven new ETFs</a> including four that will be direct rivals to currently existing funds. Prior to that, the firm unveiled three new funds on January 12.

iShares Trust S&P Global Energy Sector Index Fund

More Me Too ETFs From iShares Debut Today

The annual meeting of the world's supposedly elite economic minds and leaders known as the World Economic Forum is underway in Davos, Switzerland and there's plenty for investors to watch on this year's agenda. At the top of the list is what European leaders and policymakers have to say about the region's sovereign debt woes.

There are also plenty of CEO's in the house at Davos, including Bank of America's (NYSE: <a class="ticker" href="/stock/bac#NYSE">BAC</a>) Brian Moynihan and J.P. Morgan Chase's (NYSE: <a class="ticker" href="/stock/jpm#NYSE">JPM</a>) Jamie Dimon. That's just naming a couple of the CEOs from U.S. companies. The Davos confab attracts leaders from mega companies from all over the world not to mention some of the most successful investors.

Add it all up and the World Economic Forum is indeed a tradeable event. Get in on the action with these ETFs.

Vanguard MSCI Europe ETF (NYSE: <a class="ticker" href="/stock/vgk#NYSE">VGK</a>)
Last year <a href="http://www.benzinga.com/trading-ideas/long-ideas/11/12/2201374/europe-stinks-but-these-stocks-may-not-in-2012">was quite unkind to the Vanguard MSCI Europe ETF</a>, but the ETF has been solid in 2012 up 5% year-to-date. Home to almost 460 stocks, many of the blue chip variety, positive comments from marquee speakers at the World Economic Forum could help more near-term gains for VGK. Also consider the SPDR EURO STOXX 50 ETF (NYSE: <a class="ticker" href="/stock/fez#NYSE">FEZ</a>) as long as it can hold support at $30.

Global X FTSE Greece 20 ETF (NYSE: <a class="ticker" href="/stock/grek#NYSE">GREK</a>)
Plenty of attention, good and bad, <a href="http://www.benzinga.com/trading-ideas/long-ideas/12/01/2270503/checking-in-getting-to-the-greek">has been heaped on the newly minted GREK</a>. That should not obfuscate the fact the ETF is up over 8% year-to-date. GREK is a highly tradeable Davos play on the notion that the more European leaders reiterate their commitment to keeping the Euro Zone in tact, the better it is for Greek equities.

iShares MSCI Germany ETF (NYSE: <a class="ticker" href="/stock/ewg#NYSE">EWG</a>)
German Chancellor Angela Merkel reportedly impressed business leaders with comments earlier today and she appeared firmly committed to restoring the world's confidence in Europe. Germany, which still has an AAA credit rating, is worth retaining confidence in, but the question remains how willing is the average German about footing the bill for the PIIGS? That probably won't be answered at Davos, but if EWG moves above $22, it's a buy.

iShares S&amp;P Global Materials ETF (NYSE: <a class="ticker" href="/stock/mxi#NYSE">MXI</a>)
Rio Tinto (NYSE: <a class="ticker" href="/stock/rio#NYSE">RIO</a>) CEO Tom Albanese made some positive comments about mining stocks in Davos today and should that bullish sentiment be echoed by his brethren from high-beta rivals such as BHP Billiton (NYSE: <a class="ticker" href="/stock/bhp#NYSE">BHP</a>) and Vale (NYSE: <a class="ticker" href="/stock/vale#NYSE">VALE</a>), it could spark some buying in global mining giants, lending conviction to the risk-on trade in the process.

SPDR S&amp;P Emerging Latin America ETF (NYSE: <a class="ticker" href="/stock/gml#NYSE">GML</a>)
It may seem like the World Economic Forum is all about Europe this year, but don't be fooled. Latin American leaders have already spoken positively about their region, noting it can whether a global recession. While the SPDR S&amp;P Emerging Latin America ETF isn't <a href="http://www.benzinga.com/trading-ideas/long-ideas/11/10/1973703/etf-showdown-no-va">the most diverse out there</a>, Brazil and Mexico accounting for 85% of the ETF's weight is just fine this week as those will be the markets to lead LatAm equities higher.

Global X FTSE Nordic Region ETF (NYSE: <a class="ticker" href="/stock/gxf#NYSE">GXF</a>)
The Global X FTSE Nordic Region ETF is a fine candidate for an ETF baby being thrown out with the Euro Zone's bathwater. Sweden accounts for almost 48% of this ETF's with Denmark, Norway and Finland making up the rest. GXF could be in play as a Davos alternative to Euro Zone ETFs. GXF should be in play because of a decent yield and a 2011 repudiation that was too harsh, meaning there is good value with this fund at current levels.

Management

GREK

World Economic Forum: There's An ETF For That

The story is widely known at this point. A toxic cocktail of one part European debt crisis, one part sluggish U.S. economy and one part slowing emerging markets growth has plagued mining and materials stocks and ETFs in 2011. Simply put, traders love this corner of the market when things are all fine and dandy. Throw in a few negative headlines and sentiment shifts quite rapidly.

How dark have the clouds been for ETFs that track miners of things other than precious metals this year? Very dark indeed. In the quartet of funds we're about to look, the BEST performer is still down about 20% year-to-date.

Now the question is have these ETFs found a bottom or are they still more value trap than value? Let's have a look.

iShares S&amp;P Global Materials Index Fund (NYSE: <a class="ticker" href="/stock/mxi#NYSE">MXI</a>):
We'll start with the ETF that has been the best performer of our group and that's the iShares S&amp;P Global Materials Index Fund. We often note this ETF surprisingly flies under the radar, which is odd given its constituents. For example, BHP Billiton (NYSE: <a class="ticker" href="/stock/bhp#NYSE">BHP</a>), the world's largest mining company, accounts for over 10% of MXI's weight.

MXI's chances for a better 2012 are decent and maybe the best on our list because the ETF is highly concentrated in large-cap names. This kind of the blue bloods of the mining and materials world ETF. BHP, Rio Tinto (NYSE: <a class="ticker" href="/stock/rio#NYSE">RIO</a>) and DuPont (NYSE: <a class="ticker" href="/stock/dd#NYSE">DD</a>), just to name a few. If support is honored at $55, MXI has a good chance to be more productive next year than it has been in 2011.

Global X Copper Miners ETF (NYSE: <a class="ticker" href="/stock/copx#NYSE">COPX</a>):
Maybe you don't know, but the Global X Copper Miners ETF has been on fire over the past week, surging more than 14% in that time. The deal here is simple. COPX tracks copper miners like Freeport McMoRan (NYSE: <a class="ticker" href="/stock/fcx#NYSE">FCX</a>). Not the type of stocks you want to be involved with in a rough market, but maybe this central bank liquidity gambit will spur the high-beta trade. COPX's fortunes are tied to China. The ETF is a short below $12 and would be in serious rally mode above $17.

Global X Uranium ETF (NYSE: <a class="ticker" href="/stock/ura#NYSE">URA</a>):
Captain Controversial. Unless one has been living in a cave, it's safe to say one knows the Global X Uranium ETF has been one of the worst-performing non-leveraged ETFs in 2011. The negative news flow surrounding the uranium sector has cleared up recently, but URA really needs to string together consecutive closes above $10. Below $9, URA could reward extremely patient investors with a double...over the next 18-24 months.

Overall, URA has probably found its bottom. Now investors need to acknowledge strong uranium sector fundamentals to drive the ETF higher.

Market Vectors Rare Earth/Strategic Metals ETF (NYSE: <a class="ticker" href="/stock/remx#NYSE">REMX</a>):
The lone rare earths ETF on the market today, REMX is basically as beholden to China as COPX is, just in a different way. REMX's problem lies in the fact that the market has refused to acknowledge robust demand for rare earths and tight supply, at least in terms of impact on the stock prices of REMX constituents. Unfortunately, any news of lower prices or demand and increased production hammers REMX.

The bottom is probably in at $14, but waiting for a move above $18 would be advisable. From there, a move to $22 is possible, but don't too much more greedy than that.

Bull case:
An extreme turn of sentiment brings all of these ETFs back into favor. In the case of URA and maybe REMX, investors find valuations appealing and industry consolidation sparks these funds higher.

Bear case:
A move to bonds, cash or even conservative stocks would make the pain for these ETFs even worse and perhaps make them threaten key technical levels.

Movers

COPX

Market Vectors Rare Earth/Strategic Metals Etf

REMX

Have These Mining ETFs Found A Bottom?

With about 90 minutes to go in Wednesday's trading, it would appear the market will be able to notch to consecutive up days. No small feat in this environment, but the reality is the problems that have been forcing the market lower are still around and they will not be solved overnight. Translation: Enjoy what is most likely an oversold bounce.

For those fortunate enough to catch some of the bounce from the long side, taking some profits is probably a swell idea right now. And if this little rally has helped some of your losers shrink, that should be good enough and take a look at getting out before those losses grow again.

To help you get started, here are five ETFs you should consider selling into strength.

Vanguard MSCI Europe Index ETF (NYSE: <a class="ticker" href="/stock/vgk#NYSE">VGK</a>):
It may not sound like much, but the Vanguard MSCI Europe Index ETF has bounced from around $38 to almost $41 in just two days. It's probably not going to get much better than because Europe's sovereign debt woes didn't just disappear into thin air. As long as that problem exists, VGK is nothing more than a short-term trade.

SPDR S&amp;P Oil &amp; Gas Exploration &amp; Production ETF (NYSE: <a class="ticker" href="/stock/xop#NYSE">XOP</a>):
Look, this is an ETF we want to like and if you're in it for the long haul (six months, 12 months or longer), there's no need to jump ship quite yet. On the other hand, if you got in around $40, take the almost 10% XOP has given you and get out if you're not committed to XOP as anything more than a swing trade.

iShares MSCI France Index Fund (NYSE: <a class="ticker" href="/stock/ewq#NYSE">EWQ</a>):
Yes, we're going to call a gain of roughly $1.20 in two days strength for anything associated with the Euro zone. This is one ETF not to be piggish with due to substantial headline risk on a daily basis.

iShares S&amp;P Global Materials ETF (NYSE: <a class="ticker" href="/stock/mxi#NYSE">MXI</a>):
Look at the iShares S&amp;P Global Materials ETF through the same lens as you would XOP: There are a lot of good stocks in this ETF. Well, good stocks in the right market environment. So long term investors can stick with MXI waiting for the risk on trade to come back on. Short-term players should take the almost 10% MXI has given you in two days and run.

Direxion Daily Emerging Markets Bull 3X Shares (NYSE: <a class="ticker" href="/stock/edc#NYSE">EDC</a>):
Not that anyone should be turning EDC into a long-term investment, but the ETF is up about $3 in the past two days. Asking for much from a long emerging markets trade in this environment is just being too greedy.

Direxion Daily Emerging Markets Bull 3x Shares

Five ETFs to Sell Into Strength

For all the beta and sexiness involved with materials stocks, it's surprisingly easy for some of the ETFs that track this economically sensitive sector fly under the radar.

That sentiment is especially true when factoring in ETFs that track non-U.S. materials companies and that's even more surprising when considering non-U.S. materials companies include BHP Billiton (NYSE: <a class="ticker" href="/stock/bhp#NYSE">BHP</a>), Vale (NYSE: <a class="ticker" href="/stock/vale#NYSE">VALE</a>) and Rio Tinto (NYSE: <a class="ticker" href="/stock/rio#NYSE">RIO</a>), the world's three largest mining companies

This is a plight we have lamented before regarding the iShares S&amp;P Global Materials ETF (NYSE: MXI), one of our favorite materials ETFs, and it is an issue that certainly afflicts MXI's kissing cousin, the iShares MSCI ACWI ex US Materials Sector Index Fund (NYSE: AXMT).

Frankly, MXI isn't all that American in its tenor, but Freeport McMoRan (NYSE: <a class="ticker" href="/stock/fcx#NYSE">FCX</a>), DuPont (NYSE: <a class="ticker" href="/stock/dd#NYSE">DD</a>), Dow Chemical (NYSE: <a class="ticker" href="/stock/dow#NYSE">DOW</a>) and Monsanto (NYSE: <a class="ticker" href="/stock/mon#NYSE">MON</a>) account for about 9% of the ETF's weight.

That's a story for another day as we look at AXMT, which made its debut just over a year ago as part of a suite of nine iShares ex-U.S. sector funds. Like many of those ETFs, AXMT has struggled to gain traction with investors as volume remains slack and assets under management total about $6.9 million. Not a terrible haul for a one-year old ETF, but not stellar by any means and certainly far less than one would expect from a new iShares fund.

Home to 184 stocks and a fair 0.48% expense ratio, AXMT does exactly what one would expect and that is offer solid exposure to BHP, Vale and Rio Tinto. Those mining giants, which are also the three largest iron ore producers in the world, account for 21% of AXMT's weight.

Sprinkle in some Potash (NYSE: <a class="ticker" href="/stock/pot#NYSE">POT</a>), Barrick Gold (NYSE: <a class="ticker" href="/stock/abx#NYSE">ABX</a>) and a slew of other companies that aren't carbon copies of the aforementioned mining trio and you've at least got an interesting, yet undiscovered ETF.

While AXMT does offer exposure to myriad solid mining and materials plays, a good thing if the risk trade comes back in vogue, the undiscovered theme here has to be acknowledged. That's often a good thing with ETFs, but that's not the case with AXMT.

In evaluating the ETF, the Professor went to three different sources of stock quotes and found the last time AXMT traded was July 20. The last bid/ask spread was a dozy at 76 cents. These are not good signs, but they do say that investors wanting global materials exposure have options. One has the ticker MXI.

Checking In: A Forgotten Global Materials Play

When it comes to mining ETFs, know this: There is more to this corner of the ETF globe than just the usual suspects. You already know the usual suspects such as the SPDR S&amp;P Metals &amp; Mining ETF (NYSE: <a class="ticker" href="/stock/xme#NYSE">XME</a>), the Market Vectors Gold Miners ETF (NYSE: <a class="ticker" href="/stock/gdx#NYSE">GDX</a>) and the Global X Silver Miners ETF (NYSE: <a class="ticker" href="/stock/sil#NYSE">SIL</a>).

As is always the case, popularity is not a guarantee of returns and the mining sector is definitely an area where it pays to look off the beaten. Even better is that this approach can be extended to miners of both base and precious metals.

With the latter finally showing some signs of life, let's have a look at five mining ETFs your broker probably forget to mention.

First Trust Materials AlphaDEX Fund (NYSE: <a class="ticker" href="/stock/fxz#NYSE">FXZ</a>):
Don't let the names deceive you. FXZ really isn't a kissing cousin to an ETF like XME. In fact, FXZ may just be the closest thing to a chemicals industry ETF out there because that sector accounts for over 43% of the ETF's weight. And by chemicals, we don't mean Dow Chemical (NYSE: <a class="ticker" href="/stock/dow#NYSE">DOW</a>) or DuPont (NYSE: <a class="ticker" href="/stock/dd#NYSE">DD</a>). This ETF offers exposure to a different, more obscure group of names. FXZ has been trapped in a narrow range between $23.50 and $26 this year, so buy above $26 on a breakout.

Rydex S&amp;P 500 Equal Weight Materials ETF (NYSE: <a class="ticker" href="/stock/rtm#NYSE">RTM</a>):
Sick of excessive weights to Freeport McMoRan (NYSE: <a class="ticker" href="/stock/fcx#NYSE">FCX</a>), DuPont and the like in your materials ETF? Try RTM on for size. Home to 30 familiar materials with no single constituent getting weight larger than 3.72% or less than 3.41%. Equal-weight ETFs do work, but in a taste test between XME and RTM, XME's wins by a wide margin regarding performance.

iShares S&amp;P Global Materials ETF (NYSE: <a class="ticker" href="/stock/mxi#NYSE">MXI</a>):
There have been times when we've felt like we were the only ones singing the praises of this ETF, so it may surprise some to learn MXI has soared over 30% in the past year. View MXI this way: Iron demand is forecast to continue rising, especially in the emerging markets. The three largest iron ore makers in the world are Vale (NYSE: <a class="ticker" href="/stock/vale#NYSE">VALE</a>), Rio Tinto (NYSE: <a class="ticker" href="/stock/rio#NYSE">RIO</a>) and BHP Billiton (NYSE: <a class="ticker" href="/stock/bhp#NYSE">BHP</a>). Those stocks account for 20% of MXI's weight.

First Trust ISE Global Platinum Index Fund (Nasdaq: <a class="ticker" href="/stock/pltm#Nasdaq">PLTM</a>):
As good as it when it comes to a platinum mining ETF, PLTM has suffered a similar fate to other precious metal mining ETFs this year. That is a shellacking. Gold and silver mining ETFs have started to show some signs of life recently, but the same cannot be said of PLTM. Not yet anyway. If platinum and palladium prices bounce, maybe the miners will finally join the party.

Global X Pure Gold Miners ETF (NYSE: <a class="ticker" href="/stock/gggg#NYSE">GGGG</a>):
The newest member of the lists, GGGG is just five months old. Home to 30 stocks, the ETF is a legitimate competitor and alternative to GDX and the Market Vectors Junior Gold Miners ETF (NYSE: <a class="ticker" href="/stock/gdxj#NYSE">GDXJ</a>) as it mixes well-known gold miners with more obscure names. GGGG's anonymous days may be drawing to a close as gold miners have started to rally and the ETF has surged 10% in the past month.

GDXJ

GGGG

First Trust ISE Global Platinum Index Fund

PLTM

Rydex ETF Trust Rydex S&P Equal Weight Materials ETF

Five Mining ETFs Your Broker Forgot To Mention

Let's be honest: Few investors think that what materials and mining companies do is a "sexy" business. They don't make smartphones, tablets or operate in the high-growth e-commerce or social networking spheres.

Yep, all that is true, but materials stocks, on the other hand, are sexy. High beta produces great intraday moves and the potential for rapid gains (or losses) as the big names in the materials and mining sectors are often found making headlines. And all that does not include the fact these are emerging plays without having to directly buy a particular emerging market.

There's no shortage of materials ETFs to take a look at, but the result of today's ETF Showdown, might be a surprise to some. Let's get on with this materials matchup.

The Materials Select Sector SPDR Fund (NYSE: <a class="ticker" href="/stock/xlb#NYSE">XLB</a>) is squaring off against the iShares S&amp;P Global Materials Index Fund (NYSE: <a class="ticker" href="/stock/mxi#NYSE">MXI</a>), an ETF we've highlighted several times in the past. Here's the key difference between these ETFs: XLB is a North American play while MXI is globally diverse.

Want some exposure to Freeport McMoRan (NYSE: <a class="ticker" href="/stock/fcx#NYSE">FCX</a>) and DuPont (NYSE: <a class="ticker" href="/stock/dd#NYSE">DD</a>)? XLB will cover you with a combined weight of over 23% to those names. Put another way, two stocks dominate XLB, which only holds 29 stocks to begin with.

On the other hand, MXI is far more diverse. The ETF holds 121 stocks with BHP Billiton (NYSE: <a class="ticker" href="/stock/bhp#NYSE">BHP</a>), the world's largest mining company, the top holding at about 12%. Freeport and DuPont also factor into MXI's top-10, but their weights are far behind the likes of Rio Tinto (NYSE: <a class="ticker" href="/stock/rio#NYSE">RIO</a>) and Vale (NYSE: <a class="ticker" href="/stock/vale#NYSE">VALE</a>).

At the country level, the U.S. and Canada combine for a third of MXI's weight, but the fund is still more geographically diverse than XLB. XLB has its high points though, including an expense ratio of 0.2% compared to 0.48% for MXI. 

So what is an investor to do? Consider approaching XLB and MXI this way: The biggest mining companies in the world are typically based outside of the U.S. and you probably want one of BHP, Rio and Vale in your materials portfolio. Of course, there's nothing wrong with a less sexy name like DuPont and Freeport's copper dominance is noteworthy, too.

Let's do the math: If you wanted to load up on Vale, BHP, Freeport and DuPont, 100 shares of each would cost about $23,000 give or take a few bucks. By comparison, you can get 200 shares of XLB and 200 shares of MXI for less than $23,000, plus you now have a truly global materials portfolio. Rare as it is, we have a draw in this week's ETF Showdown.

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