Advisers are finding it increasingly difficult to cut through the clutter of an ever-growing universe of ETFs. In particular, these choices are clouded by an emerging genre of non-traditional ETFs, many of which were created for the purpose of attempting to deliver “better beta” or alpha and are branded as being “fundamentally based.” With more of these non-beta ETFs expected to hit the market, advisers likely will need help identifying and differentiating the host of options.
Having so many choices is a good problem to have, but it is important to understand the differences among them to construct an investment portfolio that suits its intended purpose. It may be helpful to put all ETFs into two broad categories: beta and alpha.
ETFs designed to seek market risk and return fall under the beta umbrella. They typically track “market” indexes in which all the stocks in a relevant market are included and they are weighted based on market capitalization. The ETF market has long served advisers looking to simply replicate the returns of the market and delivering beta was preferred. Because of the additional benefits provided by ETFs such as tax efficiency, exchange-traded liquidity and transparency, the ETF industry has evolved to include alpha-pursuing funds for investors and their advisers who are looking to achieve better investment results. These funds don't own all of the stocks in a respective market and often use alternative methods to weight them rather than market capitalization.
10 Best Food Stocks To Buy Right Now: Wynn Macau Ltd (WYNMF)
Wynn Macau, Limited is a holding company. The Company, along with its subsidiaries, is a developer, owner and operator of destination casino gaming and entertainment resort facilities in Macau. Its operating subsidiary, Wynn Resorts (Macau) S.A. (WRM), owns and operates destination casino resort Wynn Macau in Macau. As of December 31, 2011, it had 265,000 square feet of casino space, offering 24-hour gaming with a range of games, and two luxury hotel towers with 1,008 spacious rooms and suites. It also offers eight casual and fine dining restaurants, 54200 square feet of stores and boutiques, such as Bvlgari, Chanel, Dior, Gucci, Hermes, Hugo Boss, Louis Vuitton, Miu Miu, Piaget, Prada, Rolex, Tiffany, Vacheron Constantin, Van Cleef & Arpels, Versace, Vertu and others, two health clubs and spas, a salon, a pool, and lounges and meeting facilities. As of December 31, 2011, its subsidiaries included Wynn Resorts International, Ltd., Wynn Resorts (Macau) Holdings, Ltd. and others. Advisors' Opinion:- [By MARKETWATCH]
HONG KONG (MarketWatch) -- Hong Kong stocks sold off early Thursday after the Federal Reserve decided to further taper stimulus, and after a final reading of China's manufacturing PMI contracted. The Hang Seng Index (HK:HSI) sank 1.5% to 21,815.04 in holiday-shortened trading. Tech stocks retreated, as Chinese PC maker Lenovo Group Ltd. (HK:992) (LNVGF) dropped 5.3%, failing to get a lift from news that it plans to acquire the Motorola handset business from Google Inc. (GOOG) for $2.91 billion as Lenovo aims for a bigger presence in the U.S. market. Software developer Kingsoft Corp. (HK:3888) (KSFTF) fell 1.9% and Internet giant Tencent Holdings Ltd. (HK:700) (TCTZF) dropped 1.5%. Casino stocks also declined. Sands China Ltds. (HK:1928) (SCHYF) , the Hong Kong-listed unit of Las Vegas Sands Corp. (LVS) , slipped 0.2%, despite financial results that showed Sands China's net income increased 40% year-on-year to $467 million in the fourth quarter. Melco Crown Entertainment Ltd. (HK:6883) (MPEL) slumped 3.2%, and both Wynn Macau Ltd. (HK:1128) (WYNMF) and MGM China Holdings Ltd. (HK:2282)
Top 5 Sliver Stocks To Own For 2014: Sealed Air Corporation(SEE)
Sealed Air Corporation, through its subsidiaries, provides food safety and security, facility hygiene, and product protection solutions worldwide. Its Food Packaging segment provides shrink bags and vacuum packaging products; packaging materials for cook-in applications; laminated and coextruded rollstock packaging materials used in thermoforming and form, fill, and seal applications; and associated packaging equipment and systems, including bag loaders, dispensers, and vacuum chamber systems. The company?s Food Solutions segment offers case-ready packaging offerings; ready meals packaging technologies; vertical pouch packaging solutions for packaging flowable food products; foam and plastic trays; absorbent products for food packaging; and related packaging equipment, including vacuum chamber systems. Its Protective Packaging segment provides air cellular packaging materials; polyolefin performance shrink films for product display; shrink packaging equipment systems; pol yurethane foam packaging systems that provide protective packaging; lightweight and tear-resistant mailers and bags; inflatable packaging systems; paper cushioning systems that include recycled paper and automated dispensing equipment; paper packaging products; and suspension and retention packaging products. The company?s Diversey Segment offers a range of products and services, such as kitchen cleaning products; food and beverage and manufacturing and processing products; floor care products and systems; restroom care and other housekeeping products; and laundry products, as well as consulting services. Sealed Air Corporation also provides specialty materials products to fabricators and manufacturers; and medical applications products and solutions to medical device manufacturers and pharmaceutical companies. The company markets its products primarily under the Bubble Wrap, Cryovac, and Diversey brands. Sealed Air Corporation was founded in 1960 and is headquartered in El mwood Park, New Jersey.
Advisors' Opinion:- [By Ben Levisohn]
Sealed Air�(SEE) has fallen 0.7% to $28.35 after the food-safety company was downgraded to Equal Weight from Overweight at�Barclays.
Towers Watson�(TW) has dropped 0.5% to $102.49 after it was cut to Neutral from Overweight at JPMorgan. It was also upgraded to Buy from Hold at Deutsche Bank.
Top 5 Sliver Stocks To Own For 2014: EnteroMedics Inc.(ETRM)
EnteroMedics Inc., a clinical development stage medical device company, focuses on the design and development of devices that use neuroblocking technology to treat obesity and associated co-morbidities, and other gastrointestinal disorders. The company?s proprietary neuroblocking technology is designed to intermittently block the vagus nerve using electrical impulses. Its product under development is the Maestro System, which is used to limit the expansion of the stomach, control hunger sensations between meals, reduce the frequency and intensity of stomach contractions, and produce a feeling of early and prolonged fullness. The company intends to market its products to potential referral source clinicians, including general practitioners, internists, endocrinologists, and nurses. It has collaboration agreement with Mayo Clinic and Australian Institute of Weight Control. The company was formerly known as Beta Medical, Inc. and changed its name to EnteroMedics Inc. in 2003 . EnteroMedics Inc. was founded in 2002 and is headquartered in St. Paul, Minnesota.
Advisors' Opinion:- [By John Udovich]
On Tuesday, small cap EnteroMedics Inc (NASDAQ: ETRM) soared 63.5% after reporting new clinical trial data for its Maestro system that is designed to control obesity, meaning it might be time to take a closer look at the stock along with the performance of other small cap obesity drug or treatment players like Arena Pharmaceuticals, Inc (NASDAQ: ARNA), Orexigen Therapeutics, Inc (NASDAQ: OREX) and VIVUS, Inc (NASDAQ: VVUS).
Top 5 Sliver Stocks To Own For 2014: Golden Star Resources Ltd(GSS)
Golden Star Resources Ltd., a gold mining and exploration company, through its subsidiaries, engages in the acquisition, exploration, development, and production of gold properties. It owns and operates the Bogoso/Prestea gold mining and processing operation that covers approximately 40 kilometers of strike along the southwest-trending Ashanti gold district in western Ghana; and the Wassa open-pit gold mine located to the east of Bogoso/Prestea in southwest Ghana. The company also has an 81% interest in the Prestea underground gold mine located in Ghana. In addition, it holds interests in various gold exploration projects in Ghana, Sierra Leone, Burkina Faso, Niger, and Cote d?Ivoire, as well as holds and manages exploration properties in Brazil in South America. The company was founded in 1984 and is based in Littleton, Colorado.
Advisors' Opinion:- [By Sean Williams]
Golden Star Resources (NYSEMKT: GSS )
It's simple physics: The bigger they are, the harder they fall. When gold prices nosedived earlier this week, gold miners with historically higher operating costs took the brunt of the hit. For the most part, that meant that development-stage miners, and those operating in Africa, where labor and political costs make cost-effective mining a challenge, took it on the chin. Possibly no stock was hammered more than Golden Star Resources, a gold miner in Ghana, which lost about one-quarter of its value on Monday alone. - [By Patricio Kehoe] some future and gave several reasons for my bearish stance towards the stock. A small market, high geopolitical risk in some of the countries the firm operates, along with overexpansion in times of fluctuating gold prices gave tune to the massive shedding of shares by investment gurus. Five months have past since I last considered Golden Star�� potential, and everything indicates the situation has not changed.
Guru Activity Shows a Clear Tendency
Steven Cohen (Trades, Portfolio), Chuck Royce (Trades, Portfolio) and Arnold Schneider (Trades, Portfolio), had already sold their entire holdings in the company by October 2013, indicating they had little faith in the gold miner�� recovery. By the end of the year, Jim Simons' (Trades, Portfolio) Renaissance Technologies took a similar decision, reducing its stake in the firm by 32%. This tendency towards the sale of Golden Star stock was duly noted by investors and analysts alike, and concurs with the company�� poor performance.
A Look at the Numbers
In an industry plagued by fluctuating metal prices, operating with lofty margins can be quite helpful. Yet Golden Star cannot afford such luxuries. With an operating margin of 0.1% and a net margin of -56.8% the firm is in a tight spot, especially when compared to the industry average. Unlike its industry peers��median, which are of 2.26% and -0.09%, respectively, the Toronto-based gold miner is struggling to generate decent cash flow levels. Further metrics depict a even worse situation for shareholders: return on equity is currently at -370% and revenue growth is estimated to reach a poor 2.5%. Purchasing overpriced assets, relative to current gold prices, is surely one of the reasons for such grim figures, as financial losses have taken their toll on Golden Star.
The announcement of its 2013 full year, and fourth quarter earnings only helped to add to shareholders��concerns. A 15% decline in revenue was expected by those
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