Chartwell Global ETF Report

For the week, the S&P 500 surged 3.5%, logging its best performance in four years, while the Nasdaq turned in a similar performance and European and Asian markets rebounded with even greater strength than domestic markets ranging from 3-6%. There was a 5.5% surge in General Motors (GM 31.99 +1.67) today which accounted for 13 of the Dow's 19 point gain. Asian markets for the most part were flat while Europe was up. The iShares Dow Jones Transportation Average (IYT) was up 1.85% on Friday and the iShares MSCI Malaysia Index (EWM) continued its rally up 1.79% followed by PowerShares Lux Nanotech (PXN) up 1.56%.

While the First Portfolio Biotech ETF (FBT) was up 1.15% for the day the Biotech HOLDRs (BBH) was the worst performing ETF of the day, down 2.11%. Choosing the right ETF does matter even ones in the same sector. FBT has 20 biotech companies equally weighted in its ETF basket. The iShares Silver Trust (SLV) was down 1.99%.

The combined Emerging Market Equity Funds and ETFs tracked by Emerging Portfolio Fund Research (EPFR) have now seen net outflows of $3.7 billion year to date while last year over the same period they had taken in $22 billion of what would eventually total $33 billion of net inflows prior to last year’s May-June correction.

Nonetheless, the sharp rebound this past week among emerging market ETFs, which began to spread to developed markets, meant that many EPFR-tracked fund groups posted eye-catching performance numbers during the week, as the MSCI Emerging Markets Index gained about 4.5% during the Wednesday to Wednesday period. Weekly performance numbers for Global Emerging Markets (GEM), Latin America, EMEA, Europe, US and Global Equity Funds hit year-to-date highs as Shanghai’s benchmark equities index posted a new record high less that four weeks after its sharp fall triggered a worldwide correction.

Investors did commit a net $1.2 billion to Large Cap Growth Funds, which runs counter to a trend that has seen money migrate out of growth funds across all capitalizations during the past 14 months. Japan and Pacific Equity Funds and ETFs both posted their third straight week of net outflows and investors pulled $403.8 million out of Europe Equity Funds and ETFs.

Collectively, Global Sector Funds have posted net inflows of $5.87 billion this year. Global Utilities Funds extended their winning streak to eight straight weeks while Global Real Estate Funds were in the money for the eighth time in nine weeks.

On Thursday, U.S. markets and exchange-traded funds were basically flat with technology and financials pulling back. Just about any ETF with a connection to energy had a solid day led by the United States Oil (OIL) ETF which was up 2.82% and iShares GSCI Commodity-Indexed Trust (GSG) and the Energy Select Sector SPDR (XLE) were both up about 2% for the day. Technology and in particular the SPDR S&P Semiconductor (XSD) was the worst ETF performer today down 1.11% with several European iShares such as the United Kingdom (EWU) and Sweden (EWD) down just under 1%.

Mexican markets surged on Wednesday as investors interpreted the U.S. Federal Reserves policy statement as signaling its next move might be to cut interest rates. The benchmark IPC stock index rose 2.96 percent, its biggest gain since Oct. 31, to close at 28,219.55 points.
Latin America and Mexico in particular have been hot markets EWW - iShares: MSCI Mexico was our choice as ETF of the day today after it advanced 3.96% yesterday. The following snapshot is complements of my partner Don Smith of go2mypv.com. You will find the point and figure chart below.

The Mexican economy is gaining momentum, having grown 4.5% in 2006. Internationally minded investors looking to spice up their holdings with a shot of hot sauce might consider the iShares MSCI Mexico Index (AMEX: EWW). has its heaviest sector exposure in Wireless Telecom, at 27%, with 15% in construction materials and 12% in diversified telecomm.
Moving Averages:50 day - 51.82200 day - 44.90

Top Five Holdings -America Movil SAB de CV 22.63% Cemex SA B de CV 15.51% Telefonos de Mexico SA de CV 9.06% Wal-Mart de Mexico SA de CV 4.99% Grupo Televisa SA 4.80%.

Timing is everything for the success or failure of new exchange-traded funds or ETFs. In only nine months -the ProShares family of exchange traded funds (ETFs) passed the $4 billion mark in assets. ProShares offers the first and only ETFs designed to provide short or magnified exposure to well-known market indexes. With volatility and mediocre returns so far this year, ETF investors are warming up to the idea of using a modest amount of these inverse ETFs to buffer their overall portfolio's volatility. I use some of them in a few of our model ETF portfolios but caution investors to be careful and not get carried away.

While some mutual fund families retain strong investor loyalty, many are slipping giving exchange-traded funds an opening. Roughly one out of every three fresh investment dollars is going to ETFs. According to a new report which surveyed 4,000 wealth investors which was released Wednesday by Cogent Research LLC, only 11 of 38 top fund families managed to create meaningful customer loyalty.

Global equity markets had another solid day with Japan, Europe and Latin America ending Tuesday in positive territory. iShares MSCI Brazil Index (EWZ) was up 1.96%, B2B Internet HOLDRs (BHH) was up 1.94%, iShares MSCI South Africa Index (EZA) was up 1.74%. The iShares MSCI United Kingdom Index (EWU) and the PowerShares Lux Nanotech (PXN) were both up 1.72% for the day. All of these ETFs with the exception of the B2B Internet HOLDRS are in the Chartwell ETF model portfolios.

Commodity, natural resources and homebuilding ETFs were down for the day and the only country-specific ETF with a down day was a small loss for the iShares MSCI Austria Index (EWO).

The CurrencyShares Canadian Dollar Trust (FXC) was also up 1.56% for the day and utilities ETFs also had another solid day indicating that ETF investors are both aggressively jumping back into international ETF and technology ETFs but at the same time building up some of their more defensive positions. I call this the barbell strategy where investors split his portfolio into a capital preservation portfolio and a capital growth portfolio.

The sponsor of the iShares family of ETFs, Barclays Bank (BCS) confirmed that it is in talks with ABN Amro over a possible merger that would create Europe's second-largest bank, with a market capitalization of around $156 billion.

Gold closed near a three week high and the iShares Silver Trust (SLV) was up 1.18% for the day. While we have small allocations to both gold and silver ETFs in some of our more conservative portfolios, rising global industrial demand and rising investment demand is starting to have a real impact on silver prices. As illustrated below 13% reversals are common with SLV. However, a modest position in this commodity can yield above average gains.

By DE Smith of MyPortfolioView.com

The week started off with a robust equity market around the world with international ETFs particularly strong with many country specific ETFs up 2% or more for the day. Markets are showing that investors seem to be coming back to international and large cap ETFs but are looking for a better balance and increasing allocations to fixed income and defensive sectors.

iShares FTSE/Xinhua China 25 Index (FXI) was the top performer up 3.2%, The iPath India ETN (INP) was up 2.9%, the SPDR S&P Oil & Gas Equipment & Services (XES) was up 2.8% and both the iShares MSCI Malaysia Index (EWM) and the iShares MSCI Austria Index (EWO) were up 2.7% for the day.

Emerging Portfolio Research (EPFR) reported that fund flows during the second week of March were shaped by big inflows into US Equity Funds that were driven by a single US exchange traded fund (ETF) investing in large cap stocks, more ambivalence about the prospects for emerging equity markets especially those in Asia and the rapid recovery of fixed income investors appetite for risk. The diversified Global Equity Funds and ETFs continued their winning ways.

U.S. numbers were driven by the $11.8 billion that flowed into the SPDR S&P 500 ETF (SPY) during the week the most significant number may be the $130 million that investors pulled out of Balanced Funds which invest in both equity and fixed income, as they ended their nine week winning streak. These funds and ETFs usually fare best when risk appetite is low. Global Utilities ETFs and funds saw their winning streak extended to seven straight weeks as investors continue to gravitate to this traditionally defensive sector.

On Friday, the iShares Lehman MBS Fixed-Rate Bond ETF (MBB) was launched despite all the attention on weakness in mortgage markets. The ETF tracks an index of investment grade fixed-rate mortgage-backed securities of government-sponsored mortgage issuers such as Ginnie Mae and Freddie Mac. Importantly, this new ETF does not hold riskier subprime loans, which are designed for lower-income homebuyers with weaker credit scores who don't meet banks' strictest lending standards.