USFunds.com • View the Investor Alert Online • September 03, 2010 Podcast Podcast RSS Subscribe on iTunes PDF Version Table of Contents Index Summary • Domestic Equity Market • Economy and Bond Market • Gold Market Energy and Natural Resources Market • Emerging Markets • Leaders and Laggards • Fund Performance Link Latest Press Release: U.S. Global Investors Announces FY 2010 Earnings Webcast China's Big Plans By Frank Holmes CEO and Chief Investment Officer “Global” is part of our company name, and we take it seriously. This week two members of our investment team are in Hong Kong for a CLSA conference, another is just back from China, a fourth will be there later this month and I’ve spent a fair bit of time in Colombia in recent months. This is not leisure travel, but rather a key part of our investment approach – combining the tacit knowledge acquired from breathing the air, eating the food, seeing projects and meeting with companies with the explicit knowledge gained from the research done at our desks in San Antonio. Much has been said and written about China as a property bubble on the verge of a messy bursting, but there’s another story out there that makes more sense to us based on our own observations and those of others. For example, a research note from the highly respected ISI Group today: "Soft landing. Inflation
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USFunds.com • View the Investor Alert Online • September 03, 2010
Podcast Podcast RSS
Subscribe on iTunes
PDF Version
Table of ContentsIndex Summary • Domestic Equity Market • Economy and Bond Market • Gold Market
Energy and Natural Resources Market • Emerging Markets • Leaders and Laggards • Fund Performance Link
Latest Press Release:U.S. Global Investors Announces FY 2010 Earnings Webcast
China's Big PlansBy Frank Holmes CEO and Chief Investment Officer
“Global” is part of our company name, and we take it seriously. This week two members of our investment team are in Hong Kong for a CLSA conference, another is just back from China, a fourth will be there later this month and I’ve spent a fair bit of time in Colombia in recent months.
This is not leisure travel, but rather a key part of our investment approach – combining the tacit knowledge acquired from breathing the air, eating the food, seeing projects and meeting with companies with the explicit knowledge gained from the research done at our desks in San Antonio.
Much has been said and written about China as a property bubble on the verge of a messy bursting, but there’s another story out there that makes more sense to us based on our own observations and those of others.
For example, a research note from the highly respected ISI Group today: "Soft landing. Inflation
is OK. … 3Q2010 might be an upside surprise… The few high-end (housing) speculators are insignificant. Basic demand is strong from the masses who want more and better housing… Lots of talk in the China media that gets passed off as news."
This map from Credit Suisse shows how China’s East Coast-focused economy is aggressively moving westward into the heartland, where production costs are far less expensive.
Vast new regions of the country are being opened up to the dynamic Chinese economic engine –
figures shows the fixed-asset investment (FAI) growth rate in some inland provinces at five times the rate of Beijing and Shanghai. FAI is important because it includes the infrastructure that supports the future growth that stands to raise the living standards for many millions of people, and rising FAI is also highly correlated to commodity demand.
China will bring out its 12th Five-Year Plan next month, and Credit Suisse offers an early peek at some of what it expects to see:
● Wage increases to help the consumer sector become a bigger part of the economy;
● New rules to make it easier for rural residents to move to cities in search of opportunity;
● More emphasis on public housing for low-income Chinese;
● Increased investment in alternative energy and incentives to reduce carbon emissions;
● Efforts to diversify the country’s financial sector away from a small number of institutions
The emerging markets growth story being led by China and India remains intact, and this bodes well for gold and commodities. Both countries continue to be focused on spending for infrastructure and to enhance quality of life now while also laying the groundwork for a future of social stability and job opportunities.
India’s GDP accelerated in the second quarter, and China has been performing better than the doomsayers predicted. These two countries – affectionately called “Chindia” – are nearly 40 percent of the world’s population, and they are growing at a much stronger pace than the U.S. or Europe.
● The major market indices were higher this week. The Dow Jones Industrial Index gained 2.93 percent. The S&P 500 Stock Index rose 3.75 percent, while the Nasdaq Composite finished 3.72 percent higher.
● Barra Growth underperformed Barra Value as Barra Value finished 3.87 percent higher while Barra Growth advanced 3.63 percent. The Russell 2000 closed the week with a gain of 4.31 percent.
● The Hang Seng Composite finished higher by 2.70 percent; Taiwan gained 1.39 percent and the Kospi rose 2.92 percent.
● The 10-year Treasury bond yield closed at 2.71 percent, up 7 basis points for the week.
All American Equity Fund - GBTFX • Holmes Growth Fund - ACBGX • Global MegaTrends Fund - MEGAX
Domestic Equity MarketThe figure below shows the performance of each sector in the S&P 500 Index for the week. All ten sectors gained. The best-performing sector was financials, up 5.7 percent. Other better-performing sectors included consumer discretion and industrials. The three worst-performing sectors were utilities, telecom services and healthcare.
Within the financials sector, the best-performing stock was Hartford Financial Services Group Inc., up 10 percent. Other top-five performers in the sector were Principal Financial Group Inc., Unum Group, Apartment Investment & Management Co. and E-Trade Financial Corp.
● The diversified metals & mining group was the best-performing group for the week, up 10 percent. The group was led by its largest member, Freeport-McMoRan Copper & Gold, as the prices of copper and gold increased during the week.
● The real estate services group outperformed, rising 9 percent on the strength of its single member, CB Richard Ellis Group. The large commercial real estate broker and leasing agent is benefiting from a rebound in commercial real estate activity.
● The Internet retail group advanced 8 percent. The group’s largest member, Priceline.com, gained 5 percent, and its second-largest member, Amazon.com, rose 10 percent.
Weaknesses
● The distiller & vintners group was the worst-performing group, down 3 percent. The group was led down by Brown-Forman Corp. which reported quarterly earnings below the consensus estimate.
● The fertilizers & agricultural chemicals group underperformed, declined 2 percent, led down by Monsanto Co. On Friday, a press report stated that the Arkansas Attorney General’s office is launching an inquiry into the marketing practices of Monsanto and its Roundup Ready 2 Yield soybean trait.
● The special consumer services group underperformed, losing 2 percent. Led down by its single member, H&R Block Inc. The company reported a loss from continuing operations in its first fiscal quarter that was slightly less than it reported for the same period last year, and slightly less than the analyst consensus loss estimate.
Opportunities
● There may be an opportunity for gain in M&A (merger & acquisition) transactions in 2010. Corporate liquidity is high, thereby providing the means to pursue acquisitions.
Threats
● Should investors’ expectations for an improving economy not come to fruition on a reasonable time frame, it could threaten stock prices.
● As governments around the world begin to wind down monetary and fiscal stimulus programs put in place during the economic crisis, it will likely present a headwind for stocks.
U.S. Government Securities Savings Fund - UGSXX • U.S. Treasury Securities Cash Fund - USTXX Near-Term Tax Free Fund - NEARX • Tax Free Fund - USUTX
The Economy and Bond MarketTreasury bonds were mixed this week with long-term yields moving higher while shorter-term yields generally fell modestly. The long end of the market sold off on better than expected economic data as the ISM Manufacturing Index and nonfarm payrolls were better than expected.
The chart below shows the change in nonfarm payrolls. While they are still in negative territory, they beat expectations.
● As noted above, nonfarm payrolls declined 54,000 in August, but expectations were for a decline of 100,000. June and July payrolls were revised higher by 123,000, so the combination of the two dampened the negative sentiment around the economy.
● The ISM Manufacturing Index rose to 56.3 in August from 55.5 in July. This was a very positive surprise since expectations were for a decline to 52.8. China’s Purchasing Manufacturing Index ticked higher as well, beating expectations and building the case for a soft landing for China’s economy.
● Consumer confidence also rose in August indicating at least some stabilization in sentiment.
Weaknesses
● July construction spending fell one percent and construction activity fell to the lowest level since 2000.
● While retail sales in August were generally better than expected, auto sales were very weak, indicating that big ticket items are a tough sale without incentives.
● Initial jobless claims are still mired in a slump. While Friday’s employment report was
better than expected, the economy still lost 54,000 jobs well over a year into the recovery.
Opportunities
● Inflation is unlikely to be a problem for some time and this gives central bankers and other policy makers around the world room for expansive policies.
Threats
● Minutes from the Fed’s August meeting were released and confirmed that there is considerable dissention within the Fed on additional quantitative easing.
World Precious Minerals Fund - UNWPX • Gold and Precious Metals Fund - USERX
Gold Market For the week, spot gold closed at $1,246.75 per ounce, up $8.65, or 0.70 percent for the week. Gold equities, as measured by the Philadelphia Gold & Silver Index, rose 1.45 percent. The U.S. Trade-Weighted Dollar Index fell 1.09 percent for the week.
Strengths
● According to a Citi report, the downtick in equity flows isn’t just a cyclical trend but a secular shift into fixed income. The average investor only has an ultra low 6 percent weighting in fixed income. Gold would certainly be even less. Incremental shifts toward safer investments should continue to be supportive of gold.
● The gold trade appears to be still early. If the seeds of inflation are being properly planted, gold can continue to do very well. From 1970 to 1980, adjusting for inflation, the S&P 500 only compounded at 0.80 percent rate per year for the decade while the Toronto Gold & Precious Minerals Index (adjusted to U.S. dollars) compounded at 25.1 percent return per year.
● On Friday, the acquisition activity jumped in gold stocks as a friendly and a competing hostile bid were launched for the owner of a high-grade gold discovery—one of the top discoveries of the decade.
Weaknesses
● The risk of owning the wrong gold stock—one with low-grade reserves—is heightened. Some popular companies have been cited as the next take-out targets over the past month and their share prices have been bid up to levels which would be commiserate with an $8,500+ gold price. In a competitive environment, you cannot buy low-grade ounces for top dollar and expect to earn a return on capital that is above peers.
● Although South Africa’s gold production rose in the second quarter, it was still down 7 percent in the first half of 2010 compared to last.
● According to the Royal Bank of Scotland, we are now in the second phase of the mining cycle with sideways movement and volatility becoming the trend.
Opportunities
● Bloomberg surveyed 29 analysts about expected gold price highs in 2011; the median price for the survey was $1,500.
● Gold held by ETFs in India, the world’s largest buyer of bullion, may surge as much as 17 times in the next three years as investors seek refuge from financial turmoil and inflation.
● Ernst and Young forecasts that the value of deals in the global mining and metals sector is set to soar as competition to secure raw materials heats up.
Threats
● Nouriel Roubini recently said, “If there was a double-dip recession, increasing risk aversion, some assets are going to be preferred, and gold will be one of them. But in that situation, things like the dollar, the yen, the Swiss franc have more upside in a situation of rising risk aversion because they are much more liquid than the gold market.” A counterpoint to Mr. Roubini’s thought: what is the currency of failed policies worth after such a massively failed stimulus effort?
● The National Union of Mineworkers is meeting to decide whether to expand its strikes to all operations of multiple diversified miners in South Africa.
Global Resources Fund - PSPFX • Global MegaTrends Fund - MEGAX
Energy and Natural Resources Market
Strengths
● Goldcorp outbid rival Eldorado for Australian miner Andean Resources Ltd. with a $3.2 billion stock bid.
● Brazil’s iron ore exports jumped to 29.8 million tonnes in August, up from 25.6 million tonnes in July and 23.3 million tonnes a year ago, the country’s trade ministry said.
Weaknesses
● BHP Billiton Ltd. agreed with Japanese steelmakers to cut coking coal prices by 7 percent in the three months ending December 31, the Nikkei English News said without citing a source. The price was set at $209 a ton, compared with $225 a ton for the July-to-September quarter, the report said. Vale SA has indicated it may cut prices for Japan steelmakers by about 10 percent for the October-to-December quarter, the report said.
● After hitting an all-time high in July, oil output in Russia fell to a seven-month low in August falling by 0.8 percent, the country’s Energy Ministry said this week.
Opportunities
● China plans to spend 250 billion to 300 billion yuan under its new five-year plan to boost offshore oil production capacity by 50 million metric tonnes by 2015, the China Securities Journal reported.
● Vale SA said it will invest $12 billion by 2014 to become the world’s second-largest phosphate and potash producer amid rising demand for the nutrient. It plans to boost its annual potash output to 10.6 million tons from 750,000 tons now, a Vale press official said.
● Posco agreed to buy South Korean trader Daewoo International Corp. to expand the company’s raw material resources. Posco will pay $2.8 billion for a stake of about 68 percent in the steel and crude oil trader, Korea Asset Management Corp. said.
● Anglo American Plc is looking for assets with potential annual output of as much as 20 million metric tons in Russia, Mongolia, Indonesia and Mozambique, the head of the company’s coking coal business said.
● Vale SA will explore for copper and gold in Kazakhstan as the country seeks outside investors, a ministry official said. Vale plans to search in the Balkhash and central areas of Kazakhstan with Tau-Ken Samruk, the mining unit of the sovereign wealth fund, the Deputy Head of the Geology said.
● Petrobras released a prospectus for its proposed share offering, and plans to issue as much as 3.76 billion new shares for up to $75 billion in proceeds.
Threats
● First Quantum Minerals Ltd. said it suspended operations at its Frontier copper mine in the Democratic Republic of Congo (DRC) after CAMI, the Congo’s mining registry, withdrew its permit. First Quantum said it received a letter from state-owned mining company SODIMICO demanding First Quantum to stop mining and vacate Frontier. The contents of the letter render it impossible to continue safe and orderly operations at Frontier, First Quantum’s CEO Philip Pascall said.
● Chinese exporters of aluminum products will face higher U.S. tariffs after the Commerce Department ruled that they receive unfair government subsidies. In a preliminary
decision, the department said the additional tariff would be as much as 138 percent in a case brought by the United Steelworkers Union and closely held aluminum manufacturers in nine U.S. states.
● The global wheat harvest will drop 5 percent to 646 million tonnes this year from a year earlier, the United Nations Food & Agriculture Organization said.
China Region Opportunity Fund - USCOX • Eastern European Fund - EUROX Global Emerging Markets Fund - GEMFX
Emerging Markets Strengths
● India’s GDP expanded by 8.8 percent year-over-year in the second quarter, accelerating from the first quarter’s 8.6 percent, driven by robust growth in services and a gradual recovery in agriculture.
● China’s Manufacturing Purchasing Managers’ Index (PMI), from both official and private sources, registered an upside surprise in August. The official PMI rose to 51.7 from 51.2 in July, and the HSBC/Markit PMI recovered to 51.9 from 49.4.
● A preliminary report from the China Automotive Technology & Research Center suggests that China’s passenger car sales increased 59 percent in August from a year earlier, much faster than July’s 15.4 percent, due to government subsidies for energy-efficient cars and higher dealer incentives.
● Thanks to moderating food inflation and appreciating currency, Indonesia’s Consumer Price Index rose by a less-than-expected 6.44 percent (year-over-year) in August. The central bank kept its benchmark interest rate unchanged at 6.5 percent.
● PAZ Chile, via its Brazilian affiliate Paz Realty, signed a joint venture with Engelux, a Brazilian group, to develop and market middle income residential real estate projects. The first project will be in Rangel Pastaña in central São Paulo and will involve the property PAZ Corp. acquired in April. PAZ’s goal is to generate $75 million in revenue annually from Brazil.
● Chile’s unemployment rate in July declined to 8.3 percent from 8.5 percent the prior month and 11.6 percent in August of last year. The buoyant retail sector, which accounts for 20 percent of employment, has had a positive impact on employment growth in Chile this year.
● Colombia continues to attract investors – foreign direct investment (FDI) for the seven months ending July of this year reached $4.4 billion, 88 percent of that went to energy and mining sectors. Such an inflow of foreign capital has led to local currency appreciation prompting President Santos to call on the central bank to “be creative” in preventing further currency strengthening. The strengthening negatively impacts the country’s exporters.
● Eurostat’s second quarter GDP release confirms that the eurozone economies grew 1 percent quarter-over-quarter in the second quarter of 2010, outpacing the 0.7 percent consensus, according to RGE Monitor. Domestic demand was the main growth driver.
Weaknesses
● Singapore announced, for the third time this year, new measures to restrain speculation in residential property. This includes making the existing 3 percent stamp duty applicable for housing resale within three years from the previous one year, and raising the down payment ratio to 30 percent from 20 percent.
● Led by rising food and beverage prices, Thailand’s CPI climbed by a higher-than-expected 3.3 percent year-over-year in August.
● According to central bank statistics in Mexico, commercial banks in the country are rejecting 70 percent of credit card applications, down from 75 last year, due to insufficient income and excessive leverage of applicants. At the same time, the number of credit cards in the system declined by 11 percent over the last 12 months as banks have curtailed the spending habits of the most risky retail customers.
● Haberturk and NTV see a possible salary increase of 8.2 percent for Turkish civil servants in 2011, higher than an earlier proposal of 2.5 percent for this year (5.1 percent annualized). This is interpreted as a populist measure ahead of the referendum and approaching general elections.
Opportunities
● Several first-tier cities in China have announced measures to regulate pre-sales proceeds of property developers. Developers are currently allowed to collect 100 percent upfront, one to several years before completion of construction. This may be more effective in bringing down housing prices in China, as pre-sales proceeds have been a more significant source of funds for developers than bank loans. Lower housing prices should help reduce government policy risk going forward and facilitate consumer spending in other
discretionary items including automobiles.
● Global Finance Magazine published the list of the “World’s Safest Banks” and Latin America is dominated by Chilean representatives. They include Banco del Estado de Chile, Banco de Chile, and Corpbanca that have been classified as the first, second, and fourth safest banks in Latin America.
● Marco Antonio Bologna, CEO of TAM holding, indicated that the synergies of the TAM/LAN merger will take two to three years to materialize. Bologna believes that the merger is not dependent on the approval of the new law, which will increase the foreign ownership limit of an airline from 20 percent to 49 percent. Investors are still awaiting the details of the source of synergies ($400 million per year cost per revenue) of the TAM/LAN merger.
● Pemex’s CEO, Juan Suarez Coppel, has been quoted as saying that the annual capital expenditure of Pemex will average $26.8 billion between 2011 and 2019. This year, the capex is likely to reach $20 billion. Mexico has experienced a steady decline in output of crude oil production in recent years and modernization of Pemex is seen as a vital component of reviving crude oil production, the state’s main source of revenue.
● Various telecommunications companies in Mexico are lobbying for a 100 percent foreign ownership of fixed-line operators. Currently there is a 49 percent foreign ownership limit for fixed-line companies but there is no such restriction for mobile operators. Axtel would
likely be an obvious take-out candidate should the regulation be changed.
● Peru concluded negotiations for a foreign trade agreement with South Korea and it is estimated that the agreement will begin in 2011. Both countries have agreed to eliminate all tariffs within 10 years.
● Russia has seen a number of sectors increase penetration in the last decade. The key characteristic of these sectors is that they started off with low levels of penetration compared with Europe, and then grew rapidly toward European levels. There are still a large number of sectors with listed stocks where very high growth is possible in the next five years (see chart).
Threats
● Inflation expectations in Argentina this year have reached 33 percent.
● Bankruptcy of the Mexican airline, Mexicana, will likely have an impact on the businesses of the airport groups – GAP derives around 17 percent of revenue from Mexicana while ASUR’s exposure is 10 percent. However, many of Mexicana’s destinations will be covered by other airlines, so the bankruptcy’s financial impact will be less severe than originally feared.
● The Russian government is close to finalizing the scale for progressive export duties in nickel, according to VTB. The duty will reportedly be linked to nickel LME prices, with the base price set at $12,000 per ton. With nickel prices in the range of $12,000-$15,000 per ton, a 5 percent export duty will be applied. In the $15,000-$18,000 per ton range, a 10 percent duty will be applied. A similar scheme is being discussed for copper.
● Vladimir Putin has announced that Russia will not lift a ban on grain exports before next
year’s harvest, extending the embargo for another year, sparking fears over a global food shortage, according to Telegraph. Rising prices around the world have raised concerns about a return to the political instability in 2008, when Haiti, Kenya and Somalia were among those that saw rioting over the cost of living.
Leaders and LaggardsThe tables show the performance of major equity and commodity market benchmarks of our family of funds.
Weekly Performance
Index CloseWeekly
Change($)Weekly
Change(%)DJIA 10,447.93 +297.28 +2.93%S&P 500 1,104.51 +39.92 +3.75%S&P BARRA Value 526.16 +19.62 +3.87%S&P BARRA Growth 570.21 +19.95 +3.63%S&P Energy 405.43 +14.38 +3.68%S&P Basic Materials 197.99 +7.92 +4.17%Nasdaq 2,233.75 +80.12 +3.72%Russell 2000 643.36 +26.60 +4.31%Hang Seng Composite Index 2,969.60 +78.08 +2.70%Korean KOSPI Index 1,780.02 +50.46 +2.92%S&P/TSX Canadian Gold Index 390.33 -4.21 -1.07%
Please consider carefully a fund’s investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.usfunds.com or by calling 1-800-US-FUNDS (1-800-873-8637). Read it carefully before investing. Distributed by U.S. Global Brokerage, Inc.
An investment in a money market fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
All opinions expressed and data provided are subject to change without notice. Some of these opinions may not be appropriate to every investor.
Foreign and emerging market investing involves special risks such as currency fluctuation and less public disclosure, as well as economic and political risk. By investing in a specific geographic region, a regional fund’s returns and share price may be more volatile
than those of a less concentrated portfolio.
The Eastern European Fund invests more than 25 percent of its investments in companies principally engaged in the oil & gas or banking industries. The risk of concentrating investments in this group of industries will make the fund more susceptible to risk in these industries than funds which do not concentrate their investments in an industry and may make the fund’s performance more volatile.
Because the Global Resources Fund concentrates its investments in a specific industry, the fund may be subject to greater risks and fluctuations than a portfolio representing a broader range of industries.
Gold, precious metals, and precious minerals funds may be susceptible to adverse economic, political or regulatory developments due to concentrating in a single theme. The prices of gold, precious metals, and precious minerals are subject to substantial price fluctuations over short periods of time and may be affected by unpredicted international monetary and political policies. We suggest investing no more than 5 percent to 10 percent of your portfolio in these sectors. Investing in real estate securities involves risks including the potential loss of principal resulting from changes in property value, interest rates, taxes and changes in regulatory requirements.
Tax-exempt income is federal income tax free. A portion of this income may be subject to state and local income taxes, and if applicable, may subject certain investors to the Alternative Minimum Tax as well. Each tax free fund may invest up to 20 percent of its assets in securities that pay taxable interest. Income or fund distributions attributable to capital gains are usually subject to both state and federal income taxes. Bond funds are subject to interest-rate risk; their value declines as interest rates rise. The tax free funds may be exposed to risks related to a concentration of investments in a particular state or geographic area. These investments present risks resulting from changes in economic conditions of the region or issuer.
Past performance does not guarantee future results.
These market comments were compiled using Bloomberg and Reuters financial news.
Holdings as a percentage of net assets as of 6/30/10: Hartford Financial Services Group Inc.: 0.0% Unum Group: 0.0% Principal Financial Group Inc.: 0.0% E-Trade Financial Group Inc.: 0.0% Apartment Investment & management Co.: 0.0% Freeport-McMoRan Copper & Gold Inc.: Global Resources Fund: 0.20% CB Richard Ellis Group Inc.: 0.0% Priceline.com Inc.: 0.0% Amazon.com Inc.: 0.0% Brown-Forman Corp.: 0.0% H&R Block Inc.: 0.0% Monsanto Corp.: 0.0% Goldcorp: Gold and Precious Metals Fund: 2.66%; World Precious Minerals Fund: 3.70%; Global Resources Fund: 1.37% Andean Resources Ltd.: World Precious Minerals Fund: 2.72% Eldorado: Gold and Precious Metals Fund: 1.91%; All American Equity Fund: 1.42%; Holmes Growth Fund: 1.58%; Global MegaTrends Fund: 1.37%; Eastern European Fund: 0.97%; Global Emerging Markets Fund: 2.29% BHP Billiton Ltd.: 0.0% Vale SA: 0.0% Posco: 0.0% Daewoo International Corp.: 0.0% Anglo American Corp.: 0.0% Tau-Ken Samruk: 0.0% Petrobras: 0.0% First Quantum Minerals Ltd.: 0.0% PAZ Chile: 0.0% Engelux: 0.0% Banco de Estado de Chile: 0.0% Banco de Chile: 0.0% Corpbanca: 0.0% TAM: 0.0% LAN: 0.0% Pemex: 0.0%
Axtel: 0.0% Mexicana: 0.0% GAP: 0.0% ASUR: 0.0%
*The above-mentioned indices are not total returns. These returns reflect simple appreciation only and do not reflect dividend reinvestment.
The Dow Jones Industrial Average is a price-weighted average of 30 blue chip stocks that are generally leaders in their industry. The S&P 500 Stock Index is a widely recognized capitalization-weighted index of 500 common stock prices in U.S. companies. The Nasdaq Composite Index is a capitalization-weighted index of all Nasdaq National Market and SmallCap stocks. The S&P BARRA Growth Index is a capitalization-weighted index of all stocks in the S&P 500 that have high price-to-book ratios. The S&P BARRA Value Index is a capitalization-weighted index of all stocks in the S&P 500 that have low price-to-book ratios. The Russell 2000 Index® is a U.S. equity index measuring the performance of the 2,000 smallest companies in the Russell 3000®, a widely recognized small-cap index. The Hang Seng Composite Index is a market capitalization-weighted index that comprises the top 200 companies listed on Stock Exchange of Hong Kong, based on average market cap for the 12 months. The Taiwan Stock Exchange Index is a capitalization-weighted index of all listed common shares traded on the Taiwan Stock Exchange. The Korea Stock Price Index is a capitalization-weighted index of all common shares and preferred shares on the Korean Stock Exchanges. The Philadelphia Stock Exchange Gold and Silver Index (XAU) is a capitalization-weighted index that includes the leading companies involved in the mining of gold and silver. The U.S. Trade Weighted Dollar Index provides a general indication of the international value of the U.S. dollar. The MSCI Russia Index is a free-float weighted equity index developed in 1994 to track major equities traded in the Russian market. The S&P/TSX Canadian Gold Capped Sector Index is a modified capitalization-weighted index, whose equity weights are capped 25 percent and index constituents are derived from a subset stock pool of S&P/TSX Composite Index stocks. The S&P 500 Energy Index is a capitalization-weighted index that tracks the companies in the energy sector as a subset of the S&P 500. The S&P 500 Materials Index is a capitalization-weighted index that tracks the companies in the material sector as a subset of the S&P 500. The S&P 500 Financials Index is a capitalization-weighted index. The index was developed with a base level of 10 for the 1941-43 base period. The S&P 500 Industrials Index is a Materials Index is a capitalization-weighted index that tracks the companies in the industrial sector as a subset of the S&P 500. The S&P 500 Consumer Discretionary Index is a capitalization-weighted index that tracks the companies in the consumer discretionary sector as a subset of the S&P 500. The S&P 500 Information Technology Index is a capitalization-weighted index that tracks the companies in the information technology sector as a subset of the S&P 500. The S&P 500 Consumer Staples Index is a Materials Index is a capitalization-weighted index that tracks the companies in the consumer staples sector as a subset of the S&P 500. The S&P 500 Utilities Index is a capitalization-weighted index that tracks the companies in the utilities sector as a subset of the S&P 500. The S&P 500 Healthcare Index is a capitalization-weighted index that tracks the companies in the healthcare sector as a subset of the S&P 500. The S&P 500 Telecom Index is a Materials Index is a capitalization-weighted index that tracks the companies in the telecom sector as a subset of the S&P 500. The ISM manufacturing composite index is a diffusion index calculated from five of the eight sub-components of a monthly survey of purchasing managers at roughly 300 manufacturing firms from 21 industries in all 50 states. The China Purchasing Managers’ Index, a gauge of nationwide manufacturing activity, is issued by the China Federation of Logistics & Purchasing and co-compiled by the National Bureau of Statistics. The Toronto Stock Exchange Gold and Precious Minerals Index is a capitalization-weighted index designed to measure the performance of the gold and precious minerals sector of the TSX 300 Index.
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