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ANZ to launch 6 ETFs in Australia’s USD15bn market

Posted on 27 May 2015 by VRS  |  Email |Print

ANZ Banking Group, the third largest bank by market capitalisation in Australia, is launching six exchange traded funds linked to currency, gold and equities as it embarks on its first venture into the domestic ETF market that is now valued at AUD18bn (USD14.1bn).
Reuters quoted Danny Laidler, co-head of ANZ ETFs, as saying that ANZ is partnering with ETF Securities, a London-based investment firm focused on exchange-traded funds, commodities and currencies, to launch the fund in Australia, with plans to launch similar products in other Asian countries ………………………………….Full Article: Source

Invest In These ETFs To Tap Into Cross-Border Merger Boom

Posted on 27 May 2015 by VRS  |  Email |Print

A cross-border merger boom is boosting ETFs holding Catamaran, Dresser-Rand and other pharma and energy companies that are hot takeover targets. Merger-arbitrage exchange traded funds profit from the difference between a stock’s price when a deal is announced and its final purchase price. Typically, that’s an upward move.
Cross-border mergers and acquisitions have totaled roughly $594 billion in 2015, up 29% from a year ago, IBD recently reported. That surge doesn’t surprise Adam Patti, CEO of ETF provider IndexIQ. ………………………………….Full Article: Source

Coal ETF Outlook Growing Dim

Posted on 27 May 2015 by VRS  |  Email |Print

Some bargain hunters may be looking at the downtrodden coal industry and related exchange traded funds as the market remains near historic lows. However, coal remains depressed for a reason. Over the past three months, the Market Vectors-Coal ETF , which tracks the coal industry, has declined 6.9%. Additionally, the recently launched GreenHaven Coal Fund, which is designed to offer investors with exposure to daily changes in the price of coal futures contracts, has decreased 3.6%.
Some may be tempted to catch the falling knife as the economy still depends on coal to meet growing electricity needs. However, the other fundamental factors may weigh on the space…………………………………..Full Article: Source

ANZ enters $18b ETF market with six listings

Posted on 26 May 2015 by VRS  |  Email |Print

ANZ Banking Group has become the first Australian bank to enter the $18 billion Australian exchange traded fund market, teaming up with London based ETF Securities to list six new securities on the Australian Securities Exchange that are tied to currencies, commodities and the share-market.
The new joint venture will list ETFs linked to US dollar and the Chinese renminbi via deposits at the bank, physical gold stored in its giant vault in Singapore and three equity index linked ETFs tied to the US and Australian share markets. ANZ’s co-head of fixed income currencies and commodities Eddie Listori said the ETF market “had enormous potential in Australia” predicting the market will double in size to $40 billion by 2018………………………………………..Full Article: Source

Energy Sector ETFs for the Bargain Hunters

Posted on 25 May 2015 by VRS  |  Email |Print

After the multi-year rally, broad U.S. benchmarks look fairly valued if not pricey. Nevertheless, investors can still find potential opportunities in energy sector exchange traded funds. “Most sectors appear to be either fairly or modestly overvalued at present,” writes Ben Johnson, director of global ETF research for Morningstar.
“However, the late-2014 downdraft in oil prices appears to have created a potential opportunity in the energy sector. ” When comparing the energy sector’s price-to-earnings, price-to-book and yields to historical averages, oil-related stocks are trading at the lowest valuations in the current market………………………………………..Full Article: Source

Picking the Right Commodity ETF

Posted on 25 May 2015 by VRS  |  Email |Print

Currently in the commodity world there are three main types of ETFs available: first generation, next generation (sometimes referred to as second/third generation), and physically-backed products. These are ETFs that are backed by the physical commodities.
For now, this only applies to the precious metals space, as all four have their own physically-backed products (as well as a few that invest in baskets of physical metals). These are by far the most popular commodity ETFs on the Street, accounting for the lion’s share in AUM. But the distinction that we want to focus on is that of first-generation and next-generation commodity ETFs………………………………………..Full Article: Source

ETFs continue to storm the global market with growth

Posted on 22 May 2015 by VRS  |  Email |Print

Fixed-income exchange traded funds are continuing to grow in the global market with unparalleled growth acheived so far this year, according to Brett Pybus, a member of the product strategy team within BlackRock’s Fixed Income Portfolio Management Group.
Speaking today (21 May) at an event held by BlackRock in London, Mr Pybus, who is currently head of iShares EMEA Fixed Income Product Strategy, said that the fixed income ETF industry now stands at about $460bn (£293bn) globally. “This is really reflective of what was a stand out 2014 when we had about $85bn (£54bn) come into the industry as a whole.”……………………………………….Full Article: Source

Commodities ETFs Pullback on Strong USD, Overseas Weakness

Posted on 22 May 2015 by VRS  |  Email |Print

The rebounding U.S. dollar and concerns about China, the second largest world economy, are dragging down commodities prices and related exchange traded funds. Since the Monday close, the PowerShares DB Commodity Index Tracking Fund dipped 2.2%, iPath Dow Jones-UBS Commodity Index Total Return ETN fell 2.3% and iShares GSCI Commodity-Indexed Trust declined 1.8%.
The recent ell-off corresponded with jump in the U.S. dollar, with the PowerShares DB U.S. Dollar Index Bullish Fund, which tracks the price movement of the U.S. dollar against a basket of currencies, gaining 2.3% so far this week………………………………………..Full Article: Source

Inverse ETFs to Hedge Against Hurdles Ahead

Posted on 22 May 2015 by VRS  |  Email |Print

Various markets are chugging along after the recent hiccup. If we continue to experience some short-term volatility ahead, investors can utilize short or inverse exchange traded funds to hedge their positions.
Goldman Sachs has issued a warning on the corporate bond market, oil prices and the broader commodities space, reports Jenny Cosgrave for CNBC. Specifically, Goldman analysts argue that oil prices could see a double dip and revisit the recent lows over the second half………………………………………..Full Article: Source

A Rush to Gold ETF Options

Posted on 21 May 2015 by VRS  |  Email |Print

After stumbling through much of the first quarter, gold and bullion-related exchange traded funds have regained some lost luster, which has prompted increased options activity on ETFs such as the SPDR Gold Shares.
Tuesday “as in in recent sessions, the GLD call buying has been driven by the idea that gold, as a safe-haven asset, could benefit amid the turmoil in currency and bond markets, says Rebecca Cheong, head of Americas equity derivatives strategy at UBS Securities. And since gold prices haven’t swung to the same degree as currencies and government bonds, that means GLD options are cheaper for investors looking to hedge, she added,” reports Saumya Vaishampayan for the Wall Street Journal………………………………………..Full Article: Source

Do ETFs pose a ’systemic risk?’

Posted on 21 May 2015 by VRS  |  Email |Print

Do ETFs pose a risk to the marketplace in times of high volatility? Possibly, according to a government watchdog report, but there are no specific accusations. The report I’m referring to comes from the Financial Stability and Oversight Council (FSOC), which is the governmental organization created by the Dodd-Frank Act in 2010.
Its purpose is to identify and monitor excessive risks to the U.S. financial system. They have issued an annual report since 2011 outlining risks to the financial system, which has turned into a “this is what we’re worried about” report on anything and everything that could possibly go wrong in the financial system………………………………………..Full Article: Source

5 Tips For Trading ETFs

Posted on 21 May 2015 by VRS  |  Email |Print

Some investors gloss over the “ET” in ETF, failing to understand or appreciate what these two letters stand for and the implications of investing in a fund that trades like a stock. The exchange-traded nature of these funds is increasingly taken for granted as many of the largest ETFs trade at tight spreads in very narrow bands around their net asset values through most market conditions.
But not all ETFs are created equal from a liquidity perspective, and investors shouldn’t take ETFs’ liquidity for granted. Also, the market mechanisms that underpin the ETF ecosystem have experienced hiccups of varying magnitude, ranging from the “flash crash” to more recent episodes of lesser scope and impact………………………………………..Full Article: Source

7 Unique, Boutique ETFs

Posted on 21 May 2015 by VRS  |  Email |Print

Exchange-traded funds have exploded into public consciousness with a popularity to match mutual funds, so it’s easy to think that a cursory look makes you a near expert. There isn’t much to the basics: These securities track a commodity, asset group (such as an index fund) or index (such as the Standard & Poor’s 500), and trade like stocks.
But scanning and spanning the globe (and the market) for more exotic ETFs requires more moxie. “If you’re going to beat the market over time, you have to do something fundamentally different,” says Charles Sizemore, chief investment officer of Sizemore Capital in Dallas and manager of two portfolios on Covestor. “You can’t beat the market by investing in something that substantially tracks it, like an S&P 500 index fund.”……………………………………….Full Article: Source

Are precious metals breaking out?

Posted on 19 May 2015 by VRS  |  Email |Print

There is some talk among traders about precious metals breaking out. Silver broke a trendline dating back to summer 2011 and will make its highest weekly close in more than three months. Gold will make its highest weekly close in three months and gold miners had a very strong week. However, do these moves really register as breakouts? Not quite yet, say the charts.
First let’s start with the miners. The weekly candle charts for GDX and GDXJ are shown below along with their 80-week moving averages (in blue) and lateral resistance (in red). For GDX and other indices, the 80-week moving average has perfectly defined bull and bear markets going back five years………………………………………..Full Article: Source

The Complete Guide to Oil and Gas ETF Investing

Posted on 19 May 2015 by VRS  |  Email |Print

Crude prices posted 46% annual loss in 2014; the biggest yearly fall since 2008. Such was the ferocity of the crash that last year’s three worst-performing stocks in the S&P 500 index were all energy companies - Transocean Ltd. (RIG), Denbury Resources Inc. (DNR) and Noble Corp. plc (NE), which were down approximately 63%, 52% and 49%, respectively. The broad-based S&P 500 index gained 11.5% over the same period.
Still in stormy waters, many analysts believe that the commodity will fall further before mounting a real recovery. From about $105 per barrel last July to around $60 now - sinking in between to a 6-year low of under $44 recently - the plummeting value of oil represents a decline of roughly 45% over ten months………………………………………..Full Article: Source

Non-gold ETFs set to shine this year

Posted on 19 May 2015 by VRS  |  Email |Print

The equity-linked and other non-gold related Exchange Traded Funds (ETFs) have been attracting greater interest from investors during 2014-15 and this trend is likely to continue, according to experts. Gold ETFs on the other hand have lost their charm, thanks to the dip in gold prices.
Equity-related ETFs are riding on the bull-run witnessed in the equity markets. “The phenomenal growth of about 24% posted by equity related ETFs is the main reason for the increasing interest in equity-related ETFs,” explains Renjith R G, national head – distribution, Geojit BNP Paribas. In fact, certain ETFs representing the banking sector are said to have posted returns as high as 38%………………………………………..Full Article: Source

Commodity ETFs vs Futures 2015 Returns

Posted on 19 May 2015 by VRS  |  Email |Print

If you’ve been paying attention to the futures markets recently, you know that crude oil has rallied. Not back to the $100 range, but a 20% bounce from its low. We’re certainly due to another Crude Oil post, but it seems our “How to Play a Bounce in Oil (Hint: Not $USO)” post seems to be playing out nicely. December WTI is up 6.09% YTD and the $USO ETF is only up 0.74% {Disclaimer: Past performance is not necessarily indicative of future results}.
Nevertheless, here’s our monthly look at: 1. How the numerous commodity ETFs which have sprung onto the scene the past few years are tracking a simple strategy of just buying the December futures market of that commodity, under the theory that the ETF will have to roll their positions periodically throughout the year, and in doing so take on costs the simple strategy does not have………………………………………..Full Article: Source

New ETFs Aim to Better Track Commodity Prices

Posted on 18 May 2015 by VRS  |  Email |Print

Investing with commodity exchange-traded funds has always been a bit like eating pancakes with Log Cabin syrup: Close enough for most people, but still a long way from the real thing. ETFs can’t own real-life barrels of oil, for instance, so instead they rely on oil futures, forward-looking derivatives. This recipe comes at a high cost, rendering most of these ETFs nearly useless for long-term investors.
An industry newcomer is about to debut a new ETF structure that aims to provide investors something purer—not a barrel of oil itself, but an ETF that tracks the oft-quoted “spot” price of one. If it works, ETF investors could have a better mechanism for tracking commodities prices. But there are quirks………………………………………..Full Article: Source

Is A 50% Hedged ETF A Good Idea?

Posted on 18 May 2015 by VRS  |  Email |Print

U.S. dollar strength is on a roller-coaster ride this year with the currency strengthening massively in the early part of the year on rising rate speculations in the U.S., but falling against a basket of key global currencies since April 2015.
Market participants were earlier strongly wagering on the faster-than-expected rise in Fed rates that fueled the strength in the greenback, but the bet was quelled soon after the Fed showed incredible patience in hiking the key rate in the U.S. The Fed has cited ‘moderation’ in the U.S. growth rate in Q1 as a reason for the delayed rate hike………………………………………..Full Article: Source

A Huge Run for Natural Gas ETFs

Posted on 18 May 2015 by VRS  |  Email |Print

Previously downtrodden natural gas exchange traded funds, such as the United States Natural Gas Fund, are taking part in the commodities rebound. UNG jumped 5.3% last week, bringing its one-month gain to 10.6%.
More impressive is the fact that UNG is up 20% over the past three weeks after languishing amid abundant supplies and extreme pessimism. Natural gas is one of the most volatile members of the already volatile commodities complex and that much has been proven by UNG moving from bear market to bull market territory in less than a month………………………………………..Full Article: Source

Will Recent Gains in Copper Mining ETFs Last?

Posted on 15 May 2015 by VRS  |  Email |Print

Copper prices had a distressful 2014 on soft manufacturing sector in China, global growth worries, a multi-year high U.S. dollar and surplus supplies. The trouble deepened in 2015 as the greenback continued to gain strength on rising rate speculations in the U.S.
However, the red trading patches in the red metal soon turned green thanks to some encouraging data from both China and the U.S. China matters the most for this metal as the country is the world’s biggest consumer of this industrial metal, making up roughly 40% of the global copper demand………………………………….Full Article: Source

The right way to buy energy sector ETFs

Posted on 15 May 2015 by VRS  |  Email |Print

Investors are chided continually for getting excited and buying assets at the top and panicking and selling at the bottom. For example, TrimTabs Investment Research recently admonished those who were buying energy exchange-traded funds after those commodities had lost as much as 60% of their value.
Energy-sector exchange-traded funds attracted $1.2 billion in the first three weeks of March, a period during which the ETFs suffered an average decline of 7.2%, the firm said in a recent research note. “Fund investors have been tremendously complacent about recent price declines in commodities, particularly energy-related commodities,” the note said. David Santschi, TrimTabs’s chief executive, is quoted as saying: “Investors keep piling into commodities ETFs even though their performance has been terrible. How steep will losses have to get before investors start selling?”………………………………….Full Article: Source

ETF/ETP assets could surpass those for hedge funds

Posted on 15 May 2015 by VRS  |  Email |Print

Assets invested in the global exchange-traded product industry could be set to surpass those going into hedge funds around the world, research has suggested. The three-page research note from ETFGI, a research and consultancy firm, predicted that the industry for ETPs and ETFs could surpass hedge funds in terms of assets invested during the second quarter of 2015.
Recent analysis by the firm found assets in the global ETF and ETP industry had reached US$2.926trn (£1.919trn) at the end of the first quarter. According to Hedge Fund Research, in the same period assets invested in the global hedge fund industry reached US$2.939trn (£1.927trn)…………………………………..Full Article: Source

Soft Commodity ETFs Could Rebound on El Niño Weather

Posted on 14 May 2015 by VRS  |  Email |Print

The El Niño weather pattern is officially back, and commodity exchange traded funds, notably those that track agricultural products, could enjoy a nice boost as dry conditions weigh on the supply outlook. El Niño describes a period of warming sea-surface temperatures in the Pacific, which typically causes heavy rains and floods in South America and heatwaves across Asia and even east Africa, reports Naveen Thukral for Reuters.
Due to the scorching temperatures, the weather pattern can affect the supply chains of agricultural commodities, notably in Australia and southeast Asia. On Tuesday, the Australian Bureau of Meteorology, U.S. Climate Prediction Center and Japan Meteorological Agency declared that sea-surface temperatures are high enough to correspond with an El Niño event, reports Brian K Sullivan for Bloomberg…………………………………….Full Article: Source

ETF Assets Set to Overtake Hedge Funds This Year

Posted on 14 May 2015 by VRS  |  Email |Print

ETFs at $3 trillion means they’ll eclipse hedge funds. They’re cheap, easy to use, and they’re winning over more investors than ever. Now exchange-traded funds — investment tools that seek to replicate the performance of a portfolio of securities — are growing at such a clip that their assets are poised to overtake those of hedge funds.
It’s no secret hedge funds have had a rough couple of years. Without the returns to make up for high taxes and fees, more investors are turning to the ever-growing range of ETF products on offer. ETFs have lower fees than mutual funds, lower taxes than index funds and are easier to buy or sell quickly than either. And underpinning gains is loose central-bank policy that has been fueling a general movement toward passive investing…………………………………….Full Article: Source

Investors pull $1.2 bln from energy ETPs in April - BlackRock

Posted on 14 May 2015 by VRS  |  Email |Print

Investors pulled $1.2 billion from energy exchange-traded products (ETPs) in April, banking profits after oil prices rallied some 20 percent over the month, the latest global data from asset manager BlackRock showed. It was a sharp reversal from the first quarter of 2015, when investors piled into oil ETPs trying to position for a rebound when production numbers start to dip.
But with Saudi Arabia pumping at near-record highs in an attempt to win a battle for market share against U.S. shale production, crude supply continues to outweigh demand. Towards the end of March there were signs that investor fatigue had set in, as negative roll yields eroded profits. The April rally then gave some investors an opportunity to cash in. “With the fundamental outlook for oil not improving significantly, outflows are likely short-term investors taking money off the table after a nice recovery in oil prices since late March,” Ursula Marchioni, head of ETP research at BlackRock’s iShares EMEA, said…………………………………….Full Article: Source

Top Commodities ETFs for Your Retirement Portfolio

Posted on 13 May 2015 by VRS  |  Email |Print

Most exchange-traded funds (ETFs) are designed for trading, not a buy-and-hold strategy. Their high expense ratios leave no other choice. For instance, if you were to buy and hold an ETF with an expense ratio of 1.15%, then your profits would be limited and your losses would be exacerbated.
For most people, the appeal of ETFs is that you can make a significant amount of money in a short period of time. But what about those who want to invest in a basket of stocks without having to worry about elevated expenses?……………………………………….Full Article: Source

Value ETFs don’t really live up to their name

Posted on 13 May 2015 by VRS  |  Email |Print

Academic studies have shown that, on average since 1980, value stocks have beaten growth stocks by about 10 per cent in Canada and, depending on the market, by between 6 per cent and 10 per cent in the U.S. The figures are smaller since 1998, but still significantly positive.
But this evidence does not square with the differences in returns between U.S. and Canadian value and growth exchange-traded funds. For example, XCV-T, the iShares Canadian Value ETF, has had an average annual return of 5.7 per cent, while XCG-T, the iShares Canadian Growth ETF, has had an average annual return of 6.5 per cent, since inception in 2006………………………………………..Full Article: Source

Currency-Hedged ETFs: Making the Case for U.S. Investors

Posted on 13 May 2015 by VRS  |  Email |Print

With international equities outperforming U.S. stocks year-to-date and for the past year, it’s no surprise that U.S. investors have poured $69 billion into international ETFs while pulling out about $30 billion from U.S. equity ETFs, according to the latest data from Credit Suisse.
But those investors run the risk of smaller relative returns or even possible losses if the currencies underlying those assets decline, which is very possible given the strength of the U.S. dollar. For international stocks, “the most important lesson of the last two and half years has been the impact of the currency on any equity investment,” says Dodd Kittsley, head of ETF Strategy and National Accounts at Deutsche Asset & Wealth Management. “Currencies have hit investors where it hurts the most — in returns.”……………………………………….Full Article: Source

Exodus of Oil ETF Investors Signals Expected Market Weakness

Posted on 12 May 2015 by VRS  |  Email |Print

Oil investors are hastening their exit from exchange-traded funds, a move that some analysts argue is a form of protection in light of weak market fundamentals ahead.
Four of the largest oil-specific exchange traded funds, including the U.S. Oil Fund (USO), had outflows of $478 million in the three weeks to May 6, according to data from ThomsonReuters Lipper, marking the biggest withdrawal since the start of 2014………………………………………..Full Article: Source

European ETFs/ETPs Assets Broke Through The $500 Billion Milestone In April

Posted on 12 May 2015 by VRS  |  Email |Print

Assets in ETFs/ETPs listed in Europe broke through the US$500 billion milestone to reach a new record of US$511 billion at the end of April according to ETFGI’s preliminary monthly ETF and ETP global insight report for April 2015.
April marked the 15th anniversary of the listing of the first ETFs in Europe. 15 years ago, on April 11, 2000, the first ETFs were listed in Europe: the LDRs DJ STOXX 50 and the LDRs DJ Euro STOXX 50 were listed on the Deutsche Boerse AG, sponsored by Merrill Lynch International. iShares acquired these ETFs in September 2003 and rebranded them the iShares STOXX Europe 50 UCITS ETF and the iShares Euro STOXX 50 UCITS ETF. A few weeks later on April 28th, 2000 the iShares FTSE 100 UCITS ETF was listed on the London Stock Exchange………………………………………..Full Article: Source

Assets In ETFs/ETPs Listed In Japan Reached A New Record High Of 112 Billion US

Posted on 11 May 2015 by VRS  |  Email |Print

Assets in ETFs/ETPs listed in Japan reached a new record high of 112 billion US dollars at the end of April, according to ETFGI’s preliminary monthly ETF and ETP global insight report for April 2015. Record levels of assets were reached at the end of April for ETFs/ETPs listed globally at US$2.998 trillion, in the United States at US$2.132 trillion, Europe at US$511 billion, Asia Pacific ex-Japan at US$125 billion, Japan at US$112 billion and Canada at US$69.9 billion.
The Japanese ETF/ETP industry had 157 ETFs/ETPs, with 212 listings, from 20 providers on 2 exchanges. “Market performance outside the United States contributed to the overall increase in assets invested in ETFs/ETPs. Developed and emerging markets had a very good month, gaining 5% and 8%, respectively while in the United States the S&P 500 and Dow were up less than 1%”, according to Deborah Fuhr, managing partner of ETFGI………………………………………..Full Article: Source

ETFs Go Global

Posted on 11 May 2015 by VRS  |  Email |Print

For the first time in five years, American investors are turning their attention overseas. As the six-year U.S. bull market slows, international markets are surging: European benchmarks recently hit record highs; Japan’s Nikkei sits near a 15-year high; and the Shanghai composite has more than doubled over the past year. ETF investors have been quick to capitalize on this shift, pulling $29 billion from U.S. stock exchange-traded funds this year alone, and pouring $69 billion into international ETFs, according to Credit Suisse.
And there are more options than ever in international ETFs. In 2010, the last time international ETFs took in more money than those focused on U.S. stocks, there were 263 options, the vast majority of which were built to give investors broad access to a country, region, or the entire non-U.S. world in one product, according to research firm XTF………………………………………..Full Article: Source

ETFs poised to outstrip hedge funds

Posted on 08 May 2015 by VRS  |  Email |Print

The high-profile hedge fund world is about to be surpassed in terms of total assets by the unstoppable juggernaut that is the exchange-traded fund (ETF) industry, new research shows. Assets held globally in ETFs reached $2.93trn (£1.9trn) at the end of the first quarter of this year, according to research and consultancy firm ETFGI.
Meanwhile, a report from Hedge Fund Research has revealed there was $2.94trn in hedge funds at the same time. The difference in assets is the closest it has ever been (see top chart) and ETFGI predicts that given the much faster rate of inflows into ETFs seen in recent years, the tracker funds should overtake hedge funds within the second quarter of this year………………………………………..Full Article: Source

Is The Worst Over For Euro ETFs?

Posted on 08 May 2015 by VRS  |  Email |Print

After a freefall over the past one year due to a stronger greenback, a positive momentum for the euro has started to build up in recent weeks. This is especially true, as euro has rebounded over 7% against the greenback from its 12-year low of $1.05 touched in March.
In fact, the second-most traded currency in the world saw its biggest monthly gain of 4.6% in April since September 2010, according to Bloomberg. In the ETF world, the two euro products – CurrencyShares Euro Trust and iPath EUR/USD Exchange Rate ETN – gained 4.3% and 5.5%, respectively, in the last one-month period………………………………………..Full Article: Source

Eric Nelson: Why ETFs Are Inferior

Posted on 07 May 2015 by VRS  |  Email |Print

Advisor and investment writer Eric Nelson joins Jack Bogle in the lonely corner of market observers who don’t share the general public affection for ETFs. In his two most recent posts, the feisty investment pundit whose pen (or keyboard) has not spared even St. Jack, this time forms common cause with the Vanguard founder who counsels investment in index-based mutual funds but not ETFs.
In a broader examination of the topic, Nelson, a registered investment advisor who is principal of Oklahoma City-based Servo Wealth Management, decries the ease with which ETFs can be abused. That is, their stock-like tradability invites frequent portfolio adjustments that end up hurting long-term investors………………………………………..Full Article: Source

The 5 scariest things about ETFs for investors

Posted on 05 May 2015 by VRS  |  Email |Print

Liquidity worries have bubbled up lately in the world of exchange-traded funds, meaning heebie-jeebies about the tradability of certain ETFs. So here’s a look at that oft-mentioned worry, as well as four other fears.
Sure, ETFs can be low-cost, diversified investing vehicles that track broad market indexes. But you’re no psycho to worry about their relatively quick rise to become a $3 trillion force in global financial markets—or if you fret about the more esoteric funds………………………………………..Full Article: Source

Top ETFs of 2015: Believe the Hype?

Posted on 05 May 2015 by VRS  |  Email |Print

ETFs — exchange-traded funds — have exploded in popularity in recent years. A basket of multiple companies, bonds or commodities, ETFs give investors exposure to a given sector, commodity or currency. It’s also possible to short sectors, commodities, etc. with ETFs. If you’re trading with the current trend, ETFs offer the potential to make a lot of money. They also tend to be less volatile than individual stocks.
However, you need to be careful not get caught in a trend change — when an index that has been moving in a particular direction suddenly changes course. You also have to make sure you’re not holding leveraged ETFs, ones that use financial derivatives and debt to amplify the returns of an underlying index, with high expense ratios for long periods of time………………………………………..Full Article: Source

The Top 5 Inverse Oil ETFs

Posted on 05 May 2015 by VRS  |  Email |Print

Out of all the potential investments in the universe, oil might be the most difficult to predict at this point in time, but only for geopolitical reasons. If you eliminate the geopolitical factor, oil would undoubtedly move lower.
There are several reasons for this, which include slowing growth in China (a major factor), the threat of deflation in Europe and Japan (temporarily being staved off by monetary policies), the rise of the U.S. dollar, and members of the Organization of Petroleum Exporting Countries (OPEC) being hesitant to cut production. However, geopolitical tensions do exist and there is so much tension around the world that there is definitely potential for an unexpected event to lead to a spike in oil prices………………………………………..Full Article: Source

2015’s Hottest ETFs Share Currency Hedges

Posted on 05 May 2015 by VRS  |  Email |Print

The WisdomTree Europe Hedged Equity ETF and the Deutsche X-trackers MSCI EAFE Hedged Equity ETF are the most popular ETFs year-to-date, gathering a combined $22 billion in fresh net assets so far. That’s roughly $1 of every $3 finding its way into the ETF market this year. Behind that enormous investor appetite for these two funds is concern that the dollar strength in the past few years risks wrecking returns for U.S. investors who own international equities funds.
The problem has been thorniest for U.S. investors interested in value plays in the downtrodden eurozone. After all, the euro has slid 7 percent so far this year, and by nearly a fifth in the past year. Owning a fund like HEDJ that peels out this currency cross has saved U.S. investors a lot of pain………………………………………..Full Article: Source

Have Mutual Funds Lost a Key Advantage Over ETFs?

Posted on 04 May 2015 by VRS  |  Email |Print

Before ETFs became widely adopted, some brokerages charged ETF investors a transaction cost for dividend reinvestments, says Heather Pelant, a personal investor strategist with BlackRock. Hence the notion that mutual funds are a better vehicle for reinvesting dividends. “These platforms have since come up with procedures and features that are parallel to mutual funds,” she says.
Today, most large brokerages give investors the option of depositing dividend payouts into their cash accounts or automatically reinvesting dividends back into the security – be it an individual stock, mutual fund, or ETF. You should be able to make this choice on a fund by fund basis, change your preference at any time, and reinvest your dividends for free………………………………………..Full Article: Source

A New Milestone for ETF Adoption

Posted on 04 May 2015 by VRS  |  Email |Print

Individual investors have a lot more money invested in traditional mutual funds than in exchange-traded funds. But as people continue pumping dollars into ETFs, their ETF holdings grew by more in dollar terms than their mutual-fund investments over the year through March—apparently for the first time—according to an analysis by Broadridge Financial Solutions.
That conclusion is based on the company’s tally of fund and ETF holdings in accounts at “retail” companies, including full-service and discount brokerages, which cater to individual investors and their advisers. Broadridge, based in Lake Success, N.Y., sells communications and technology services to financial-services companies………………………………………..Full Article: Source

Best And Worst ETFs Of April

Posted on 04 May 2015 by VRS  |  Email |Print

Despite a dovish Fed session at the end of March, the domestic market could not break all the barriers in April. Instead like the first quarter, international investing was in vogue all through the month. While the top performing ETF of April went on delivering over 40% in return, gains out of SPDR S&P 500 ETF were muted at around 2.5%.
Below, we highlight a few of these strong international plays, which may be worth paying attention going forward should the trend seen in April stay in the market for a while. China ETFs have been delivering an all-star performance this year on a policy easing spree………………………………………..Full Article: Source

Should you applaud recent surge in metal ETFs?

Posted on 30 April 2015 by VRS  |  Email |Print

The commodity markets saw a choppy 2014, with the metals and mining ETF space being one of the most hurt spaces. A rising greenback amid QE-wrap in the U.S., concerns of further Fed tightening, global growth worries, deflationary fears and last but not the least the Chinese economic slowdown caused metal ETFs to see their worst days in several years.
However, to many investors’ surprise, metal ETFs received a fresh lease of life and logged refreshing returns in the last five days (as of April 27, 2015) along with several other commodity ETFs. In fact, metal and mining ETFs have been displaying a pretty nice trend lately healing their year-to-date bloodbath to a large extent………………………………………..Full Article: Source

Currency-Hedged ETFs Are 2015’s Hottest Trend

Posted on 30 April 2015 by VRS  |  Email |Print

Currency-hedged exchange-traded funds (ETFs) are perhaps the hottest trade in 2015. Since the beginning of the year, over $33 billion has flowed into these ETFs, which hold foreign equities but neutralize the foreign currency exposure.
The WisdomTree Europe Hedged Equity ETF (HEDJ), for instance, has experienced inflows of nearly $13 billion, the most of any ETF. And the Deutsche X-Trackers MSCI EAFE Hedged Equity ETF (DBEF) isn’t far behind with inflows of over $9 billion. Of course, the popularity of these funds has been driven by a strong U.S. dollar, which has gained over 20% in value against the euro over the past year………………………………………..Full Article: Source

Global Growth to Benefit Commodity Exporting Countries, ETFs

Posted on 30 April 2015 by VRS  |  Email |Print

With aggressive monetary easing policies supporting growth across Europe and Asia, investors can take a look at materials-based economies that help fuel the expansion, along with related international exchange traded funds. Europe, Japan and China are seeing improvements after the governments enacted loose monetary policies to stimulate their economies, writes Scott Colyer, chief executive of Advisors Asset Management, for InvestmentNews.
“One thing the world has learned is that asset prices generally love quantitative easing,” Colyer said. “Europe and Japan both have engaged in massive asset purchases, while China has lowered interest rates and bank reserve requirements.”……………………………………….Full Article: Source

Should You Applaud Recent Surge in Metal ETFs?

Posted on 29 April 2015 by VRS  |  Email |Print

The commodity markets saw a choppy 2014, with the metals and mining ETF space being one of the most hurt spaces. A rising greenback amid QE-wrap in the U.S., concerns of further Fed tightening, global growth worries, deflationary fears and last but not the least the Chinese economic slowdown caused metal ETFs to see their worst days in several years.
However, to many investors’ surprise, metal ETFs received a fresh lease of life and logged refreshing returns in the last five days (as of April 27, 2015) along with several other commodity ETFs. In fact, metal and mining ETFs have been displaying a pretty nice trend lately healing their year-to-date bloodbath to a large extent……………………………………….Full Article: Source

How Humdrum ETFs Are Overtaking Racy Hedge Funds

Posted on 29 April 2015 by VRS  |  Email |Print

It’s part of a gradual change in culture on Wall Street that’s encouraging low costs and long-term thinking. It’s like the investment world’s version of the race between the tortoise and the hare. And the hare is losing its lead.
Hedge funds, investment pools known for their exotic investment strategies and rich fees, have long been considered one of the raciest investments Wall Street has to offer, with $2.94 trillion invested globally as of the first quarter, according to researcher Hedge Fund Research………………………………………..Full Article: Source

Global equity mutual funds, ETFs post $31.8 billion April inflows

Posted on 29 April 2015 by VRS  |  Email |Print

Global equity mutual funds and exchange-traded funds showed $31.8 billion of net inflows in April through Friday, TrimTabs Investment Research said on Tuesday, putting them on track to surpass the record inflow of $34.8 billion in March.
U.S. equity mutual funds and exchange-traded funds have posted net withdrawals of $15.4 billion this month through April 24. “Equity flows shifted into emerging markets recently as investors chased the monster rally in China,” said Winston Chua, analyst at TrimTabs. “Interest in Europe cooled off in recent days, and investors still want nothing to do with the U.S.”……………………………………….Full Article: Source

Money Pours Out of Oil ETFs

Posted on 28 April 2015 by VRS  |  Email |Print

Exchange-traded funds, or ETFs, that invest in U.S. oil futures are showing signs of outflows in a negative signal for a monthlong crude-price rally, Nicole Friedman reports. An inflow that began in January, as oil prices continued to fall, totaled roughly $6 billion through mid-March, when U.S. crude hit a six-year low, according to Macquarie Group Ltd.
But the ETFs, which can be bought and sold like stocks and include the $3.1 billion United States Oil Fund LP, have registered about $2.7 billion of investor outflows in April. Traders and analysts say crude prices are vulnerable to a pullback following a 32% run-up since March 17. Also, many ETFs will sell futures contracts near their expiration and buy later-dated contracts, which currently are more expensive than front-month contracts………………………………………..Full Article: Source

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