Active and possibly volatile ETFs this week- GULF, XOP and RTH
Merrill Lynch Retail HOLDR (RTH)- The investment seeks to diversify your investments in the retailing industry through a single, exchange-listed instrument representing your undivided beneficial ownership of the underlying securities.
The trust holds securities issued by specified companies that, when initially selected, were in the retailing industry. Except when a reconstitution event, distribution of securities by an underlying issuer or other event occurs, the group of companies will not change. There are currently 20 companies included in the Retail HOLDRS.
Heavily concentrated in the retail industry, Wal-Mart, Target, and Home Depot report this week, make up slightly over two-fifths of the popular HOLDR, and as a result the fund could be in for a very volatile week and interesting week.
WisdomTree Middle East Dividend ETF (GULF)- The investment seeks to track the price and yield performance, before fees and expenses, of the WisdomTree Middle East Dividend index.
The fund employs a passive management (or indexing) investment approach designed to track the performance of the index. It attempts to invest all, or substantially all, of assets in the stocks that make up the index. The fund generally uses a representative sampling strategy to achieve its investment objective. It is non-diversified.
Violence and turmoil has now spread beyond Egypt to Libya, the Gulf State of Bahrain and some of the other smaller countries in the region such as Yemen. If violence continue or spread to UAE and Qatar, investors should pay attention to any political developments that happen.
S&P Oil & Gas Exploration & Production SPDR (XOP)- The investment seeks to replicate as closely as possible, before expenses, the performance of an index derived from the oil and gas exploration and production segment of a U.S. total market composite index.
The fund uses a passive management strategy to track the total return performance of the S&P Oil & Gas Exploration & Production Select Industry Index. The index is derived from the oil and gas exploration and production portion of the S&P Total Market Index. It is an equal weighted market cap index. The fund is non-diversified.
While the situation remains uncertain in the Middle East and Iranian military moves, oil markets have been extremely volatile. Chesapeake is scheduled to report earnings after the bell on Tuesday and as a result, it should put the rest of the sector, and particularly XOP, in focus.