Thursday, February 4, 2010

Top ETF picks for seasonality

Dan Vialoux presented his top three ETF pics for seasonality plays. Mr. Vialoux, from Timing the Markets, researches and analyzes the periods in a  year when stocks and comodities to their best.

1. ZEO, one of the new BMO ETFs discussed here for oil companies, but equally weighted. He emphasizes the equally writhed aspect. You do not want a market cap weighted index because one single stock would dominate the index. That would be Suncor in the oilers.

The seasonality is from Feb 25 to May 9, when this ETF scored positive 14 out of 15 periods.

Chart:



2. ZMT: Base Metals, equal weighted, and currency hedged. The currency hedged aspect is because typically the USD does well from January to March, so investors elsewhere should hedge.

Seasonality is from Late Jan to early May, when15 out of the last 20 periods were positive.

Chart:


3. PPLT: Platinum


Launched 3 weeks ago, the ETF is fully-backed by the metal (it is not a futures-based ETN which suffers from rollovers).

Watch video.

No comments:

Post a Comment