Nasdaq Dorsey Wright

With no changes to any of the iShares models this week we take a look at the iShares Convertible Bond ETF (ICVT).

There are no changes to any of the iShares models this week. Convertible bonds have reached the top of the Asset Class Group Scores (ACGS) fixed income rankings with an average group score of 4.88, the highest level it has ever reached; the group now ranks sixth out of all 135 groups in the ACGS system. Those who are interested to convertible bonds in light of their relative strength should consider the iShares Convertible Bond ETF ICVT.

After reaching an all-time high of $76 in Monday’s (7/13) trading, ICVT reversed down on Tuesday and currently sits at $73 on its default chat. ICVT currently has a near-perfect 5.88 fund score and a positive 4.32 fund score direction. Since bottoming in at $47 in March, the fund has rebounded sharply and given four consecutive buy signals. Year-to-date (through 7/15) ICVT has gained 19.04% outperforming the S&P 500 SPX which has returned -0.13% and the iShares US Core Bond ETF AGG which has notched a price return of 5.62%. The fund currently yields 1.54%. Even with Monday’s reversal down, ICVT remains in overbought territory with a weekly overbought/oversold reading of 90%, so investors adding exposure may be best served to do so on a pullback or after prices have normalized at current levels. ICVT has most recently found support at $66.

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DISCLOSURE

**Unless otherwise stated, the performance numbers herein are based on price returns and do not include dividends or all transaction costs. Past performance is not indicative of future results. Potential for profits is accompanied by possibility of loss. BlackRock sponsors the Dorsey Wright iShares ETF Models. However, analysis, models and recommendations are created and provided solely by Dorsey, Wright & Associates (Dorsey Wright). Neither BlackRock, BlackRock Advisors and its affiliates, nor SEI Investments Distribution Co. or its affiliates (SEI) are affiliated with Dorsey Wright. Neither BlackRock nor SEI provides investment advice or recommendations regarding any security, fund or market. Analysis, models and recommendations should not be considered an offer to purchase or sell, or a solicitation of an offer to buy or purchase any security, including iShares. The examples presented do not take into consideration commissions, tax implications, or other transactions costs. No individual risk management tools are used in maintaining this model. This model may not be suitable for all investors. As the investment professional making the final decision with respect to allocations, remember to adhere to NASD Rules 2090 and 2111 (formerly NYSE Rule 405, Know Your Customer). The percentage of the portfolio devoted to any iShares strategy, as well as final individual weightings are at the sole discretion of the financial advisor and not Dorsey, Wright & Associates, BlackRock or SEI Investments Distribution Co. or its affiliates (SEI) . If you are not familiar with the Point & Figure methodology, we suggest you read "Point & Figure Charting, 4th Edition" by Thomas J. Dorsey or visit the PnF University at www.dorseywright.com. If you are not familiar with the iShares products, or Exchange Traded Funds (ETFs), we suggest you visit www.ishares.com for more information.