Retail ETFs Flat, Though Consumers Are Feeling Fine | ETF Trends

Retail exchange traded funds (ETFs) are flat despite an unexpected improvement in how consumers are feeling these days.

  • Consumers are feeling the best they have in nearly three years, says Reuters. The survey of how households are feeling about the economy and where it’s headed jumped more than expected – and the survey was done before President Obama got behind an extension of the Bush tax cuts. Despite the news, retail ETFs like First Trust Consumer Discretionary AlphaDEX (NYSEArca: FXD) are pretty much flat this morning.
  • A physically-backed copper ETF began trading in London this morning, but so far, copper ETFs aren’t reacting much. The launch of the fund sparked concerns that it would lead to global metal hoarding and drive up prices. Global X Copper Miners (NYSEArca: COPX) is down a slight 0.3%, but we’ll keep an eye on those prices as the new ETF grows.
  • Market Vectors Vietnam (NYSEArca: VNM) is sitting pretty at the top of the leaderboard this morning after the country finally stopped the decline of the dong. The currency had fallen to an all-time low, and few are sure of how long it can be kept steady from here, says The Financial Times.
  • Despite the Fed’s $600 billion purchases of Treasuries, a move that was supposed to push long-term interest rates lower, the opposite is happening. That’s because the tax cuts have improved sentiment enough that yields are moving higher, says The Wall Street Journal. iShares Barclays 10-20 Year Treasury Bond (NYSEArca: TLH) is the hardest-hit Treasury ETF, down 2% over the last five trading days.
  • The U.S. trade deficit narrowed sharply in October, surprising economists and suggesting that the trade sector may make a positive contribution to growth in the fourth quarter for the first time since the final three months of 2009. The nation’s trade deficit shrank 13.2% in October to $38.7 billion from a revised $44.6 billion in September, the Commerce Department said. This is the smallest trade gap since January.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.