Are Energy And Technology ETFs Cheap?Thursday, March 7th, 2013
By Gary Gordon:
What exactly makes an exchange-traded fund in a given economic segment “cheap?” I am beginning to think that the concept is as arbitrary and as disobliging as the automatic spending cuts in Washington D.C.
For example, Russ Koesterich is the Chief Investment Strategist for Blackrock. I genuinely enjoy reading his perspectives on “everything iShares.” Indeed, every exchange-traded fund enthusiast should follow Russ on Twitter or sign up for Blackrock’s weekly update. That said, in a 3/6/13 blog post, Russ declared that the energy and technology sectors look like bargains. The implication? One should consider investing in the iShares DJ Energy Sector Fund (IYE) and/or the iShares DJ Technology Sector Fund (IYW).
Year-to-date, both IYE and IYW have underperformed non-cyclical segments like health care and consumer staples. Is this a contributing factor for declaring that IYE and IYW are inexpensive?
(click to enlarge)
Perhaps the notion that energy and tech may