Capital Markets: Exchange Traded Funds, March 2016

Powershares Water Resources

Powershares Water Resources (PHO) stock still stands at 36.1% below its expected price.  Powershares price has decreased by 13.0% over the past 52 weeks. The stock price peaked in March 2014 and has been on a steady decline ever since.

 

PowerShares Water (03-2016)_WEB

 

PHO stock had been over performing relative to the returns forecasted by the Capital Asset Pricing Model by an annual rate of 2.9% from January 2006 through December 2012. Powershares price has generally followed the expected price forecasted by the Capital Asset Pricing Model adjusted by the historical over performance through the first quarter of 2013. Thereafter, its performance has lagged behind its expected price.

 

First Trust ISE Water

First Trust ISE Water (FIW) stock now stands at 23.4% below its expected price. First Trust’s price is up 2.7% over the past 52 weeks when the stock price peaked.

 

First Trust ISE (03-2016)_WEB

 

FIW stock has been over-performing relative to the returns forecasted by the Capital Asset Pricing Model by an annual rate of 6.4% from January 2006 through December 2012 and is the strongest performer of the four water ETF’s tracked by JOW. Despite this historical performance, First Trust’s actual price started falling behind the expected price forecasted by the Capital Asset Pricing Model (adjusted by the historical over performance) by the end of the first quarter 2013.

 

Guggenheim S&P Global Water

Guggenheim S&P Global Water (CGW) stock is 24.0% below its expected price. Guggenheim’s price is down 5.0% over the past 52 weeks when the stock price peaked.

 

Guggenheim (03-2016)_WEB

 

CGW stock has been over-performing relative to the returns forecasted by the Capital Asset Pricing Model by an annual rate of 1.6% from January 2006 through December 2012. Guggenheim’s actual price started falling behind the expected price forecasted by the Capital Asset Pricing Model (adjusted by the historical over performance) by the end of the first quarter 2013.

 

Powershares Global Water

Powershares Global Water (PIO) stock price now stands at 29.2% below its expected price. Powershares Global’s price is down 13.5% over the past 52 weeks when the stock price peaked.

 

PowerShares Global (03-2016)_WEB

 

PIO stock had been under-performing relative to the returns forecasted by the Capital Asset Pricing Model by an annual rate of 2.1% from January 2006 through December 2012. The actual price has generally followed the expected price forecasted by the Capital Asset Pricing Model (adjusted by this historical under-performance) over 2013. The actual stock price started running ahead of the expected price since last December.