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ETF List: Institutional Buying (Feb 2010)

Below is a list of ETFs showing sustained accumulation over the last 20 and 40 trading days.  That is, institutions are putting money to work in these particular ETFs which is revealed by the amount of buy volume.  ETF Central displays the amount of accumulation through a proprietary indicator, called the Demand Indicator (or DI20/DI40). 

As you can see, the big fellas are clearly betting the market will continue to deteriorate.  Do not as they say, do what they do! 

The list updated daily (along with other useful ETF lists) can be found on the ETF Tracker page.

List of ETFs showing the greatest demand over the last 20 trading days

1. Direxion Technology Bear 3x ETF (TYP)
2. ProShares Ultra Short MCSI (EFU)
3. ProShares Ultra Short Technology (REW)
4. VIX Short Term Futures (VXX)
5. ProShares UltraShort China (FXP)
6. ProShares UltraShort Silver (ZSL)
7. WisdomTree Ultra Short Emerging Markets (EEV)
8.  ProShares Ultra Short Basic Materials (SMN)
9.  ProShares Ultra Short Semis (SSG)
10. Direxion Financial 3x Bear ETF (FAZ)

Metal Backed Platinum ETF On The Horizon

platinum etf With some recent SEC rule changes, a physically backed platinum and palladium ETF may soon be trading on the NYSE.  Traders believe the move clears the way for the ETFS Platinum and ETFS Palladium Trusts to begin trading sooner rather than later and that has sent prices of those metals higher with an anticipation of higher demand.

The funds would buy up platinum and palladium and put it in storage to back the ETF shares which seek to track the price of the metal.  It’s a nice way for investors to trade the price of the underlying metal without actually having to physically own the metal.

If you don’t want to wait for the metal backed platinum ETF, there are currently two ways to play platinum prices through ETN’s (that don’t physically hold the underlying metal). 

One way is through the iPath Platinum Trust (PGM)
The other is the E-Tracs Long Platinum ETN (PTM)

Both aren’t all that liquid and trade under 100K shares a day, but liquidity is improving and the spread and between the bid and ask isn’t all that significant.