Important Updates for Investors
Carla Pasternak's Premiere Issue of High-Yield International Just
Released
Income expert Carla Pasternak's debut issue of High-Yield
International covers a Taiwanese manufacturer yielding 9.5%... a
rare Mexican monopoly yielding 13.4%... and other top-performing
investments yielding up to 19.0%.
Government's Biofuel Timetable Could Spell +15,900% Growth
+15,900% growth might seem far-fetched... but it's not. In fact, it
is mandated by law. And I've identified the ONLY stock positioned to
capture this growth.
The
Silver Lining to a Falling Dollar
Despite the U.S. national debt, there is a silver lining for income
investors. This massive spending, combined with movement out of U.S.
Treasuries, is going to take its toll on the dollar, and
international income investors could reap the rewards in the form of
higher dividends. |
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| ETF
Spotlight -- iShares Barra S&P 500 Value Fund (IVE) |
Published: July 19, 2004
The iShares Barra S&P 500 Value Fund (IVE) is an exchange-traded
fund that invests in a basket of value-oriented components of the
S&P 500. Although investors use a variety of different (and often
complicated) methods to distinguish between value and growth stocks, the S&P/Barra formula is
extremely simple. They rank all stocks in the S&P 500 based on their
price-to-book value per share ratio. The firms with the lowest
price-to-book (P/B) ratios form the value part of their value index and the
firms with the highest P/B enter their growth index. S&P places
approximately 50% of the total market cap of the S&P 500 into each
segment--value and growth. Because value stocks tend to have lower market
capitalizations, the value fund consists of a larger number of stocks than
the growth fund.
The funds are rebalanced twice each year, usually around the start of
January and the start of July. The weights are based on P/B values from
one month earlier so that the exact composition of the indices is known
ahead of time.
Value stocks tend to have betas of less than one. Beta measures how
volatile a stock's price movements are as compared with a benchmark
index. If a stock has a beta of 2.00, then it is twice as volatile as the
S&P 500; a beta of 0.50 means its volatility is half that of the
benchmark index. Value stocks also usually have lower price-to-earnings
(P/E) ratios than do growth stocks. They tend to offer higher dividend
yields and are often slightly more defensive.
The top sectors in IVE are financials (37%), consumer discretionary
(13%) and energy (12%). Information technology does garner almost 7%,
but that is really the extent of the technology ownership. Although 6%
of the fund is in telecommunications services, more than half of that is
in two Baby Bells (firms formed from the break-up of AT&T), which
are local telephone companies.
| iShares
Barra S&P 500 Value Fund (IVE) |
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| Type: |
Sub-Index |
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| Similar
funds: |
iShares
Russell 1000 Value (IWD) |
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Dow
DIAMONDS (DIA) |
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| Options?: |
No |
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| Performance
Data |
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| 52-week
High: |
$58.88 |
3/4/2004 |
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Annualized
return since: |
| 52-week
Low: |
$47.32 |
8/5/2003 |
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One-year |
16.09% |
| YTD
Return: |
1.45% |
(as
of 5/21/2004) |
Three-year |
-1.33% |
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Five-year |
N/A |
| Dividends: |
$0.95 |
past 12-mos |
Life of fund* |
-0.15% |
| Expense
Ratio: |
0.18% |
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*
- Started trading 5/26/2000 |
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| Correlation
Data* |
(1/02/02-6/30/04) |
Holdings* |
(as of
7/13/2004) |
| Dow
Jones Industrials |
94.6% |
|
Exxon-Mobil (XOM) |
5.65% |
| S&P
500 |
|
96.6% |
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Citigroup (C) |
4.47% |
| Nasdaq
Composite |
86.0% |
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Amer. Intl. Grp.
(AIG) |
3.50% |
| Nasdaq-100 |
|
83.2% |
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Bank of America
(BAC) |
3.31% |
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JP Morgan Chase
(JPM) |
2.52% |
| IWD |
|
96.7% |
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Chevron-Texaco
(CVX) |
1.92% |
| DIA |
|
94.0% |
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Verizon (VZ) |
1.87% |
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Wells Fargo (WFC) |
1.86% |
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Time Warner (TWX) |
1.51% |
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SBC Comm. (SBC) |
1.48% |
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* Percent top ten are
of total |
28.09% |
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| Average
Daily Volume |
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Average
Daily Price Range |
| Jun-04 |
244,271 |
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Jun-04 |
1.0% |
| 2004
YTD |
265,015 |
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2004 YTD |
1.2% |
| 2003 |
183,199 |
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2003 |
1.6% |
| *
- Correlation measures how closely the two items track each
other |
*
Includes prior day's close (true range) |
HOW
TO MAKE MONEY IN IVE THIS YEAR
If I look at this fund, I can find little reason to expect a major
collapse in the stock market. In fact, I could argue that prices are
just completing a 4th wave consolidation within a larger third wave bull
move. As long as IVE broadly holds the $54 area, I would expect another
leg higher to start in the next couple of weeks. Prices should make a
new high before the summer is out. My target is near $60. I expect
mostly range-bound trading after that, followed by a fall towards $50-52
seen after the summer rally. In essence, a wide trading band should
develop for the year ahead.
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Investing Doesn't Get Any Easier Than This |
Stock picker Amy
Calistri's strategy is as simple as investing gets -- just one idea
a month designed to make money in today's market. Invest this way
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what the Fed is up to -- because every "bad" economic development
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Go here to learn about Amy's simple investing strategy.
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