Using Shiller's CAPE Index to Trigger ETF Asset Movement

MyPlanIQ submits:Yale Professor Robert Shiller’s Cyclically Adjusted Price Earning Ratio (CAPE10) was reviewed October 2009. CAPE10 is defined as the ratio of price to the average of last 10 year trailing S&P 500 annual earnings.

MyPlanIQ submits:Yale Professor Robert Shiller's Cyclically Adjusted Price Earning ratio (CAPE10) as an alternative to the PE ratio to value the US stock

By Morningstar: By Samuel Lee

Yale professor Robert Shiller was one of a relative handful of stock-market observers who warned that the bull market of the late 1990s was a colossal bubble in the making. Shiller's book, Irrational Exuberance, was published moments before the 2000 top, and it foretold much of the carnage that was to come.

By Ron Rowland:Barclays introduced a new exchange traded note (“ETN”) on October 11 under the ETN+ brand instead of the more familiar iPath brand. The Barclays ETN+ Shiller CAPE ETN (CAPE) will track the Shiller Barclays CAPE US Core Sector Index minus the 0.45% annual fee.

MyPlanIQ submits:In a previous article we looked at how the CAPE can be used as a signal to drive selection of assets. We created five regions based on the ratio of the current CAPE10 to the long term average CAPE10:

By Tom Lydon: Adding to the growing number of enhanced or "intelligent" beta indexing strategies, Barclays, the bank behind the iPath suite of exchange traded notes, launched a new ETN based on Yale finance professor Robert Shiller's cyclically adjusted P/E ratio, or CAPE.