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Be a Fat Cat. Use the Caymans for Your Commodity ETF

Posted on 30 September 2014 by VRS  |  Email |Print

When an investment area is pronounced dead, it often triggers a blinding rally. Past “dead” investments that went on to rule the leader boards include Japan, solar energy and most recently, long-dated U.S. Treasury bonds.
The latest area where funeral arrangements are being made is commodities. A supply glut, lack of inflation and generally good stock market has commodities out of favor. Some $7.7 billion has flowed out of commodity ETFs in the past 12 months………………………………………..Full Article: Source

Inflation-Hedge ETFs Struggle as Commodity Prices Drop

Posted on 30 September 2014 by VRS  |  Email |Print

Traditional inflation-hedging assets and related exchange traded funds are losing ground as the longest commodity decline in over two decades helped keep a lid on consumer prices. For instance, inflation hedging tools such as Treasury Inflation Protected securities have underperformed traditional government debt assets.
The iShares TIPS Bond ETF, which has a 7.64 year duration, declined 1.3% over the past three months while the iShares 7-10 Year Treasury Bond ETF, which has a 7.64 year duration, gained 0.7%. Additionally, gold, another inflation-hedging tool, has also been under pressure, with the SPDR Gold Shares down 7.6% over the past three months………………………………………..Full Article: Source

ETFs trump shares and physical metal

Posted on 30 September 2014 by VRS  |  Email |Print

Since the dawn of trade, investors have run for the safety of precious metals, in particular gold, during times of crisis and uncertainty. Renewed appetite for precious metals has coincided with perhaps the most democratising revolution in asset management since mutual funds were introduced: exchange-traded funds (ETFs).
ETFs have been incredibly successful in most asset classes, but arguably the most success has been in commodities, notably physical gold ETFs. Equity ETFs in mining stocks have been very popular as well. Assets under management in gold ETFs peaked at more than $150bn in 2012………………………………………..Full Article: Source

Overwhelmed by the number of ETFs? Here’s how to handle it

Posted on 29 September 2014 by VRS  |  Email |Print

The top challenge for people looking to invest in ETFs? It could be this simple: there are just too many of them. “My biggest concern centers around just product proliferation,” said Ben Johnson, Morningstar’s director of manager research for passive strategies, at a panel discussion last week at the Morningstar ETF Conference in Chicago.
“There’s a risk — when the menu expands and expands and expands — just for confusion. We forget why it is we’re here to begin with.” U.S. investors have gone from having just one of these low-cost, index-tracking funds to choose from in early 1993 to more than 1,600 today. Along the way, the number of U.S. exchange-traded funds topped 100 in 2001, then surpassed 1,000 in 2010. Over the past decade, the number of ETFs has increased by 27% a year on average………………………………………..Full Article: Source

Inflows on the rise for US dollar ETF

Posted on 29 September 2014 by VRS  |  Email |Print

A growing number of investors are looking to capitalise on a potential further decline in the Australian dollar with trading data from BetaShares, a leading exchange traded fund (ETF) provider, showing significant inflows into its US Dollar ETF in September.
With the Australian dollar hitting seven month lows against the US dollar, BetaShares has seen approximately $30 million of net inflows into the BetaShares US Dollar ETF (ASX code “USD”) since the start of September. The fund is designed to provide exposure to the performance of the US dollar relative to the Australian dollar, meaning the value of the fund will go up as the US dollar appreciates, and vice versa. The fund now has over $200 million in assets under management………………………………………..Full Article: Source

Commodity ETFs Sail Choppy Seas This Year

Posted on 29 September 2014 by VRS  |  Email |Print

This was supposed to be the year when commodities, from agriculture to energy to metals, were going to outshine equities thanks to tight supplies and a favorable economic outlook. Instead, most commodity markets have plummeted year-to-date, with some now hovering at four-year-lows, while the U.S. equity market has forged new highs.
There are several explanations for what happened. Some say the supply shocks that marked the beginning of the year met enormously benign growing-season weather across much of the U.S. this summer. Markets such as grains and livestock have been hugely pressured by abundance at a time when global demand is relatively uncertain………………………………………..Full Article: Source

New School ETFs Think Global to Track Local

Posted on 26 September 2014 by VRS  |  Email |Print

Is a tomato a fruit or a vegetable? Is Bob Dylan folk or rock? Is the Alibaba initial public offering China or U.S.? The largest IPO in history showed how tricky it is for index-makers to fit some foreign companies into tidy categories. As a Chinese company domiciled in the Cayman Islands and listed on a U.S. stock exchange, Alibaba Group Holding Ltd.’s (BABA) entered an index no-man’s land.
It was stunning to learn — even for an ETF analyst — that the criteria used by many indexes meant that a company with a market cap the size of Amazon’s couldn’t go into any of the 250 largest ETFs………………………………………..Full Article: Source

3 (More) Mistakes to Avoid With Your ETF Portfolio

Posted on 26 September 2014 by VRS  |  Email |Print

A little over a year ago, I wrote a well-received article about five mistakes to avoid with your ETF portfolio. The tips ranged from not falling in love with your ETFs to trade execution and tax consequences. Fast-forward to today, and the ETF universe has expanded in a number of ways that warrant some additional advice in a number of key areas. So today, I’d like to share a few thoughts to help you make more informed decisions about your ETF portfolio.
The single-biggest driver of your returns in each diversified ETF you purchase will be how the index is constructed. That isn’t to say fees, taxes and liquidity aren’t important, but the makeup of the underlying holdings will ultimately determine how the portfolio reacts under various conditions and if any outsized holdings will impact returns………………………………………..Full Article: Source

World Gold Council: ETFs ‘Good For Investors – And For Gold’

Posted on 25 September 2014 by VRS  |  Email |Print

Gold-backed exchange-traded funds “have been good for investors — and for gold,” said the World Gold Council in a report Wednesday. “Over the past decade, gold-backed exchange-traded funds have transformed the gold investment market,” the report said. “Yet, their rise has not been universally popular. They may have put pressure on gold vendors’ margins, and some investors believe that they have led to an increase in volatility of the gold market.
“As we see it, ETFs may not be an answer to every gold investor’s needs, but the gold market has benefited more broadly since their launch. Overall, we believe that ETFs have reduced total cost of ownership, increased efficiencies, provided liquidity and access, and brought new interest – and demand – into gold as a strategic investment.”……………………………………….Full Article: Source

Goldman Details Plans To Foray Into Active ETF Market

Posted on 25 September 2014 by VRS  |  Email |Print

Goldman Sachs filed a request with the SEC late last week to launch a series of actively-managed exchange-traded funds (ETFs) – making it the latest addition to the list of banking giants that have expressed an interest in the rapidly growing investment option. The bank joins Wells Fargo and JPMorgan in seeking regulatory approval to provide active ETFs to retail and institutional investors.
The move marks yet another step by Goldman Sachs to grow its asset management business as it looks to increase the share of less volatile revenue streams in its business model amid increasing regulatory pressure to downsize its riskier trading operations………………………………………..Full Article: Source

Read this before you invest in energy ETFs

Posted on 25 September 2014 by VRS  |  Email |Print

Investors who want exposure to the energy sector through commodities like oil and natural gas have several choices. One way is to invest in ETFs that hold futures contracts, but there are several wrinkles you should be aware of first. The United States Oil fund (USO) is the largest ETF tied to oil prices, while United States Natural Gas ETF (UNG) is the largest that tracks natural gas prices.
It has been well documented, however, that while these ETFs do a good job of tracking prices over short periods of time, they have significantly underperformed the markets they are designed to track over longer periods………………………………………..Full Article: Source

The alternative asset classes best accessed via ETFs

Posted on 25 September 2014 by VRS  |  Email |Print

Early in my career, I was given a book called Reminiscences of a Stock Operator by Edwin Lefevre, written almost 100 years ago. Investment behaviour does not seem to change. At the time, the author could not understand why most people buy after things have fallen – or while they are going down – and sell when they are going up. He believed in doing the opposite and it served him well.
As I write, however, the main US equity index, the S&P 500, has risen by almost 25% over the past 12 months and leveraged positions via futures and other derivatives are at near record levels………………………………………..Full Article: Source

Pimco, WisdomTree join Schwab’s ETF platform

Posted on 25 September 2014 by VRS  |  Email |Print

Pimco and WisdomTree are among the seven new shops that have signed on to a vastly expanded Schwab ETF OneSource platform. Beyond bringing on new partners, Charles Schwab has added 65 exchange traded funds to the commission-free platform it launched in 2013, bringing the total number of products available to 182.
Twenty-eight of the newly participating funds are from providers new to the list, including Pimco, WisdomTree, ProShares, Direxion Investments, ALPS, Global X and IndexIQ………………………………………..Full Article: Source

The Virtue of Patience With Silver ETFs

Posted on 24 September 2014 by VRS  |  Email |Print

With the iShares Silver Trust and the ETFS Physical Silver Shares down an average of 8.6% over the past month and both having hit new 52-week lows on Monday, a cursory glance of silver and silver exchange traded funds would seem to indicate a buying opportunity its afoot.
A buying opportunity in volatile silver and the aforementioned ETFs may eventually materialize, but investors would do well to examine the charts and realize that patience is likely to indeed be a virtue when it comes to the white metal………………………………………..Full Article: Source

More Trouble Ahead For Gold Mining ETFs?

Posted on 24 September 2014 by VRS  |  Email |Print

Gold as a commodity had seen a lot of euphoria this year thanks to prolonged global worries over militant attacks in Iraq, bleak U.S. growth data in winter and the much talked about geopolitics between Ukraine and Russia. The metal’s safe haven status has bolstered its prices by 4.8% in Q1 and 2.7% in Q2.
However, the metal snapped the trend stepping into Q3, losing about 8.7% so far this quarter. Investors should note that gold mining products generally trade as a leveraged play on underlying commodities. So when gold prices rise, these mining ETFs emerge as true winners and vice versa, which unfortunately has been the case as of late………………………………………..Full Article: Source

Currency-Hedged ETFs Unwisely Underused: Deutsche

Posted on 24 September 2014 by VRS  |  Email |Print

In an increasingly global world, investors want to be able to put their money to work anywhere. However, moves in currency—caused by everything from monetary policy to inflation expectations and balance of trade—pose a real threat to investors’ ultimate returns.
Currency-hedged ETFs a good way to control for this phenomenon, but Deutsche Bank’s Dodd Kittsley and Abby Woodham call these products “underutilized,” even as they argue investors should be more concerned with currency changes, not less, in the current environment………………………………………..Full Article: Source

Goldman Sachs files for active ETFs, joins Wall Street bank trend

Posted on 23 September 2014 by VRS  |  Email |Print

Goldman Sachs Group Inc has laid the groundwork to launch actively managed exchange-traded funds, becoming the latest Wall Street bank to set its sights on the fast-growing market.
The company late on Friday sought permission from the U.S. Securities and Exchange Commission to introduce what could be a series of active ETFs, according to the filing, which names an equity dividend ETF as its initial fund………………………………………..Full Article: Source

Inverse Gold ETFs: Volatility Drag Is Noticeable

Posted on 23 September 2014 by VRS  |  Email |Print

Over the last few years I have examined leveraged index ETFs and reverse ETFs for evidence of volatility drag: that is, the penalty owners of the shares suffer because of the need to rebalance the ETF’s portfolio at the start of each trading day. An example of the mathematics of volatility drag is shown here.
I have found since percentage fluctuations in the broad indexes are minimal, using leveraged and inverse ETFs to amplify returns or accrue profits during a correction without having to sell short is a profitable strategy even when these ETFs are held for intermediate time periods—several months to even a year………………………………………..Full Article: Source

Will the slump in oil ETFs continue?

Posted on 23 September 2014 by VRS  |  Email |Print

In the beginning of the year, oil prices witnessed smooth sailing. This was largely thanks to a chilly winter and escalating geopolitical tensions, which helped to buoy prices. However, the favorable demand-supply conditions, which once led crude oil prices to trade above the triple-digit mark, are now waning.
Last week Brent oil slumped to a two-year low of $96.72, while West Texas Intermediate (WTI) futures slipped to $90.43 – the lowest level since May 1, 2013. Slowing global demand on the back of rising supplies is believed to be the main culprit for bringing oil prices back to the double digits, which had crossed above $115 not so long ago in June. In fact, Brent oil is down roughly 11% in the third quarter………………………………………..Full Article: Source

Bats to launch trade reporting service for ETFs

Posted on 22 September 2014 by VRS  |  Email |Print

Bats Chi-X Europe, the stock exchange, is to begin a trade reporting service for exchange traded funds (ETFs) in a bid to bring more order and transparency to the fragmented market. The UK-based exchange is seeking to create a tape of record for the ETF market, in which the majority of instruments are traded over-the-counter.
Current European regulations do not mandate reporting of the trades although some exchanges, including Bats and the London Stock Exchange Group, make it part of their rule book. Even so, less than half of trading in the market is reported and it is split between more than five repositories………………………………………..Full Article: Source

Silver ETP Buyers Defy Hedge Fund Exit Amid Price Slump

Posted on 19 September 2014 by VRS  |  Email |Print

Buyers of exchange-traded products backed by silver are betting $11.9 billion that big speculators are wrong about the outlook for prices, which slumped today to a 14-month low.
ETP holdings are up 1.5 percent since mid-July to 19,898.8 metric tons, nearing a record reached in October, data compiled by Bloomberg show. At the same time, money managers shrank bullish wagers by 95 percent, government data show. To protect against the risk of lower prices, producer Coeur Mining Inc. (CDE) has hedged about a third of its output……………………………………..Full Article: Source

Schwab Adds 65 ETFs to Fee-Free Platform

Posted on 19 September 2014 by VRS  |  Email |Print

Charles Schwab (SCHW) said that it has added 65 exchange-traded funds to Schwab ETF OneSource. This brings the total number of ETFs on the platform to 182, all of which trade online without commissions. New ETF providers to OneSource are ALPS, Direxion Investments, Global X Funds, IndexIQ, PIMCO, ProShares and WisdomTree. They are bringing a total of 28 new funds.
Existing providers, such as ETF Securities, Guggenheim Investments, PowerShares, State Street SPDR, United States Commodity Funds and Charles Schwab Investment Management are adding 37 ETFs to the platform. “We know that every dollar counts for investors – and trading commissions can really add up, so they are crucial when evaluating the total cost of an ETF,” said Heather Fischer, Schwab’s vice president of ETF Platform Management, in a press release……………………………………..Full Article: Source

Smart Beta Grows In Commodity ETFs

Posted on 18 September 2014 by VRS  |  Email |Print

Commodities are notoriously hard to index. While rational people argue about how to make an equity index, it’s fairly easy to agree on a few basic principles like “what is a large-cap stock,” or even more fundamentally, “what’s a stock.”
In commodities, there’s no such common ground. Otherwise-rational people in the commodities world rarely agree on things as simple as whether gold is even a commodity that should be indexed, or which version of oil (Brent or West Texas crude oil) should be included…………………………………….Full Article: Source

Silver ETP Buyers Defy Hedge Fund Exit Amid Price Slump

Posted on 18 September 2014 by VRS  |  Email |Print

Buyers of exchange-traded products backed by silver are betting $11.86 billion that big speculators are wrong about the outlook for prices, which slumped last week to a 14-month low.
ETP holdings are up 1.5 percent since mid-July to 19,898.8 metric tons, nearing a record reached in October, data compiled by Bloomberg show. At the same time, money managers shrank bullish wagers by 95 percent, government data show. To protect against the risk of lower prices, producer Coeur Mining Inc. (CDE) has hedged about a third of its output…………………………………….Full Article: Source

Hedged European ETFs in Focus: Best Choice for Europe Now?

Posted on 18 September 2014 by VRS  |  Email |Print

Mario Draghi finally announced his long awaited action plan to spur growth in the slumping Euro zone. The European Central Bank (ECB) cut its ultra-low interest rates even further and said that it will buy asset-backed securities and euro-denominated covered bonds from October to boost growth and inflation.
Among the latest measures, ECB cut its main refinancing rate to another historic low of 0.05% from 0.15% and drove the deposit rate paid by the ECB to banks for parking funds with it overnight further into negative territory at - 0.20% ……………………………………Full Article: Source

Is It Time to Buy Market Vectors Gold Miners ETF

Posted on 17 September 2014 by VRS  |  Email |Print

Over the past month, I’ve written two articles about Market Vectors Gold Miners ETF discussing both reasons it could be a good investment and reasons it could lose value. The yellow metal is a divisive topic in the investing world. Some people tout gold investing — whether in gold itself through a vehicle like the SPDR Gold or in gold miners as a proxy for gold — as a safe and market-beating way to invest. Others are stoutly against gold as an investment vehicle.
What I haven’t discussed, however, is whether the Market Vectors Gold Miners ETF is worth buying today. And my answer, in short, is no. Let me explain. Gold’s recent performance is alluring, but this gold miners ETF may not be a good proxy From early 2001 to 2011, gold had its best bull run in more than a century as an investment asset before losing about 30% of its value from 2011 until now………………………………………Full Article: Source

Predicted Iron Ore Demand Could Fuel Steel ETF

Posted on 17 September 2014 by VRS  |  Email |Print

Steel prices–and thus steel companies and ETFs–are driven in part by the price of iron. Analysts are expecting the price to fall near term, but see reasons for a late year rally. Iron To Fall, Then Rally? The price of iron ore is hanging around the $82/ton level and some analysts are looking for a short-term drop of another 15 percent before the bottom is formed.
Morgan Stanley came out with a call this week that said it feels iron ore could hit $70/ton before a year-end rally in the price of the commodity. The research firm predicts it could rally to $90/ton by the end of the year. Vale SA VALE, +0.24% a large global metals company, stated last week it feels iron ore prices could reach $100/ton by the end of December. Related Link: 2 New Income ETFs Launched Catalysts The two catalysts that will be moving iron ore are Chinese demand and the supply at the ports………………………………………Full Article: Source

Silver ETF holdings set record high as price drop sparks interest

Posted on 16 September 2014 by VRS  |  Email |Print

Holdings at the world’s largest silver-backed exchange-traded funds (ETFs) rose to a record high as a pullback in prices prompted long-term retail investors to increase purchases of the precious metal.
The tonnage of silver bullion held by the world’s six largest silver ETFs increased by 104 tonnes, or 0.6 percent, to a record 17,135.04 tonnes on Friday, the latest Reuters data shows………………………………………..Full Article: Source

Who’s winning the ETF fee war? Hopefully, you are

Posted on 16 September 2014 by VRS  |  Email |Print

Exchange-traded fund providers, including Vanguard, Charles Schwab and BlackRock’s iShares, have been slashing the expense ratios on their index ETFs in the past two years, trying to one-up each other and win more of your investing money.
The stakes are high among the ETF industry giants, as investors embrace the passive style of fund management in greater numbers. The exchange-traded fund industry reached more than $1.9 trillion in assets at the end of August, according to ETF.com data, and 2013 saw a record level of flows into ETFs—$188 billion………………………………………..Full Article: Source

Shine Comes Off Gold ETFs As Dollar Gains Strength

Posted on 16 September 2014 by VRS  |  Email |Print

Gold continues to lose its luster. Last week, spot gold went on a five-day losing streak. Prices melted from $1,270 to $1,228 an ounce in New York trade, a drop of 3%. The metal fell to a six-month low as the European Central Bank moved to revitalize European economies. Those moves strengthened the dollar, which put downward pressure on gold.
Additionally, the Federal Reserve meeting on Wednesday is increasing speculation about the first interest rate hike in eight years, says Chuck Self, CIO of investment manager iSectors. Precious metals decline in value as interest rates go up, since investors flock to interest-bearing bonds. ……………………………………….Full Article: Source

Commodity ETFs Are Dying And That’s A Good Thing

Posted on 15 September 2014 by VRS  |  Email |Print

One of the points I stress in my book is how commodities are not really a wise asset class to allocate assets to for long periods of time. History has shown us that commodities generate poor real, real returns over the long-term. But we don’t have only history on our side. It makes perfect sense that commodities aren’t good long-term performers because they’re huge cost inputs in the capital structure. So they tend to have a very high correlation with inflation.
It’s interesting to look at commodity trading exchanges where these financial products were created primarily as hedging products and slowly became trading vehicles. As a hedging vehicle commodities often make a lot of sense. But as a long-term allocation they make no sense………………………………………..Full Article: Source

Will 2014 Be The Tipping Point For Active ETFs?

Posted on 15 September 2014 by VRS  |  Email |Print

The pace of new actively managed ETFs being released to the market has continued to heat up this year. Of the 106 total ETFs that are designated as active by the SEC, 35 have been released this year and many more are planned in the near future.
Active management has historically received a bad rap when compared to passive index funds that offer much lower costs, transparent holdings, and known risk parameters. The higher fees and fluctuating performance variables of actively managed portfolios has largely kept these strategies subdued in the ETF world………………………………………..Full Article: Source

Commodity ETFs at Multi-Year Lows on Supply Glut

Posted on 12 September 2014 by VRS  |  Email |Print

Slowing global growth has stifled demand for raw materials, pushing down commodity-related exchange traded funds to multi-year lows, with one broad commodity index trading near a five-year low. The PowerShares DB Commodity Index Tracking Fund has declined 7.5% over the past three-months and is hovering around its lowest since September 2010.
Additionally, the iPath Dow Jones-UBS Commodity Index Total Return ETN 8.8% and the iShares GSCI Commodity-Indexed Trust fell 8.7% over the past three months………………………………………..Full Article: Source

Industrial Metal ETFs To Buy Amid Weak Global Trends

Posted on 12 September 2014 by VRS  |  Email |Print

Industrial metals, in particular nickel, aluminum and zinc, have been showing strength and are gaining enough investor interest despite the recent broad commodity sluggishness and strengthening dollar.
The positive sentiment was mainly driven by increasing industrial demand and limited supplies from existing mines and absence of new development projects. Since industrial metals are used in a number of applications in construction and manufacturing businesses, rising global population, urbanization of other Asian countries and increasing need from developed countries will continue to create unprecedented demand for industrial metals………………………………………..Full Article: Source

Currency Hedged ETFs Are Back In Play

Posted on 12 September 2014 by VRS  |  Email |Print

The recent weakness in the euro and yen currencies, along with subsequent strength in the U.S. dollar index, has put currency hedged ETFs back in the center of investors’ radar screens. The Guggenheim CurrencyShares Euro Trust and Guggenheim CurrencyShares Japanese have fallen 3.4 percent and 4.8 percent respectively over the last month. The monetary policies set forth by central banks in Europe and Japan has been one of the key drivers for this swift dive lower.
However, as with any significant shift in price, there are opportunities that have emerged from the turmoil in the currency markets that ETF investors can take advantage of. Specifically, currency hedged ETFs are now once again making waves for superior performance versus a similar basket of non-hedged stocks………………………………………..Full Article: Source

Palladium Problems Could Spell Trouble for Precious Metals ETFs

Posted on 11 September 2014 by VRS  |  Email |Print

With the recent weakness in gold and silver exchange traded funds, year-to-date returns for precious metals ETFs are turning increasingly mediocre. For example, the SPDR Gold Shares enters Wednesday with year-to-date performances of up 2.3% for GLD and down 5% for the iShares Silver Trust. The ETFS Physical Platinum Shares has not been anything to write home about, either, with a loss of 1.5%.
The lone beacon of light among physically-backed precious metals ETFs in 2014 has been the ETFS Physical Palladium Shares with a gain of 18.4%. PALL has surged amid a variety of catalysts………………………………………..Full Article: Source

Is There a Warren Buffett ETF?

Posted on 11 September 2014 by VRS  |  Email |Print

It’s a question ETF analysts are used to. The short answer is that no exchange-traded fund can replicate Buffett’s investing brilliance. For access to that, investors can buy Berkshire Hathaway B shares (BRK/B), which have gained 16 percent this year. Berkshire’s stock portfolio accounts for a minor portion of its earnings, though, and Buffett has two portfolio managers doing some of the stock picking now.
While there’s no Buffett-in-a-box, a handful of ETFs are often labeled Buffett-esque. Here’s a look at three that offer convenient, low-cost ways to get a piece of that oracular action out in Omaha………………………………………..Full Article: Source

Overweight Equity ETFs on Goldman Bullish View

Posted on 11 September 2014 by VRS  |  Email |Print

With signs of a possible return to health for the world economy, global equity markets are set to climb. This is especially true, as the world’s largest economy is showing robust growth and China has stabilized after the slowdown early in the year.
Growth in Europe, which is currently struggling to boost growth and inflation, is expected to rebound in the coming months thanks to the latest round of European Central Bank (ECB) stimulus. Also, emerging markets have gained immense popularity in recent months and hit three-year highs last week on compelling valuations, growing middle class population, election euphoria and political reforms in key emerging markets………………………………………..Full Article: Source

Gold ETFs going out of favour with investors

Posted on 11 September 2014 by VRS  |  Email |Print

Once popular, gold exchange-traded funds (ETFs) now seem to be losing favour among investors. The commodity’s poor performance through the past three years has hit investment in this product. A 50 per cent rally in the equities market and adverse regulatory changes on gold import have further hit gold ETFs offered by mutual fund houses.
The poor returns from metal can be gauged from the fact that an investment of Rs 100 in gold three years ago is currently valued at Rs 92.6. For the last two- and one-year horizons, every such investment is valued at Rs 84 and Rs 85.6, respectively………………………………………..Full Article: Source

Agribusiness ETFs Fight Summer Malaise

Posted on 10 September 2014 by VRS  |  Email |Print

Agricultural business stocks have been fighting for survival amid falling commodity prices that threaten to pull them into the abyss. Corn, wheat and soybean prices all hit year-to-date lows this week as crop yields continue to produce an overabundance of supply.
These statistics have made an impact on the Market Vectors Agribusiness (ETF), which contains 52 stocks engaged in the global agriculture industry. Constituents of this ETF must be primarily engaged in the business of agriculture by deriving at least 50 percent of total revenues from it. This ETF currently has $1.7 billion in total assets and charges an expense ratio of 0.55 percent annually………………………………………..Full Article: Source

Assets in Global ETFs Hit $2.7 Trillion

Posted on 09 September 2014 by VRS  |  Email |Print

ETFGI’s research finds ETFs and ETPs listed globally reached a new record high of 2.7 trillion US dollars at the end of August 2014. Year to date, net new assets gathered of US$185.0 Bn surpass the previous high of US$140.1 Bn set in the first eight months of 2012. The Global ETF/ETP industry had 5,421 ETFs/ETPs, with 10,467 listings, from 223 providers listed on 60 exchanges according to preliminary data from ETFGI’s end August 2014 Global ETF and ETP industry insights report.
New record highs in assets were reached at the end of August by ETF/ETP industries in Canada with US$67.9 Bn, Asia Pacific (ex-Japan) with US$103.7 Bn, Europe with US$477.4 Bn, the United States with US$1.91 Tn and globally with US$2.70 Tn. YTD NNA flows reached record levels for the ETF/ETP industries in Japan at US$16.5 Bn, Europe at US$50.4 Bn, the US at US$107.3 Bn and globally at US$185.0 Bn………………………………………..Full Article: Source

Gold Bulls Retreat as $1.6 Billion Erased From ETPs

Posted on 09 September 2014 by VRS  |  Email |Print

Money managers trimmed bullish gold wagers for a third week, mirroring the retreat in prices that helped erase $1.6 billion from the value of bullion funds. The net-long position in futures and options is at its lowest in 11 weeks after speculators added the most short bets in three months, U.S. government data show.
Investors sold 13.1 metric tons of gold held through exchange-traded products last week, the most since April, as prices fell 1.6 percent. Open interest in New York futures and options is near its lowest in five years as gains in the U.S. economy, dollar and equities curb investor demand………………………………………..Full Article: Source

Assets of ETFs and ETPs Listed In The U.S. Reach A Record $1.9 Trillion

Posted on 09 September 2014 by VRS  |  Email |Print

ETFGI’s research finds ETFs and ETPs listed in the United States reached a new record high of 1.9 trillion US dollars at the end of August 2014. Year to date net new assets of US$107.3 Bn are a new record level of NNA surpassing the US$97.8 Bn set in the first eight months of 2013.
At the end of August 2014, the US ETF/ETP industry had 1,643 ETFs/ETPs, from 63 providers listed on 3 exchanges according to preliminary data from ETFGI’s end August 2014 Global ETF and ETP industry insights report. New record highs in assets were reached at the end of August by ETF/ETP industries in Canada with US$67.9 Bn, Asia Pacific (ex-Japan) with US$103.7 Bn, Europe with US$477.4 Bn, the United States with US$1.91 Tn and globally with US$2.70 Tn………………………………………..Full Article: Source

Steaming Hot Coffee ETNs Lead The Pack

Posted on 09 September 2014 by VRS  |  Email |Print

Coffee prices could be poised to rise faster than steam off a piping-hot cappuccino. That’s according to commodity experts, who point to Brazil’s worst drought in 40 years that has ravaged its agricultural crops. The Latin American country is the world’s largest coffee producer, accounting for roughly a third of global output.
“We’re actually going to run out of supplies over the next 12 months,” said Shawn Hackett of Florida-based Hackett Financial Advisors, which focuses on agricultural markets. Given the bleak production outlook, coffee bean prices have soared………………………………………..Full Article: Source

Gold Bulls Retreat as $1.6 Billion Erased From ETPs: Commodities

Posted on 08 September 2014 by VRS  |  Email |Print

Money managers trimmed bullish gold wagers for a third week, mirroring the retreat in prices that helped erase $1.6 billion from the value of bullion funds. The net-long position in futures and options is at its lowest in 11 weeks after speculators added the most short bets in three months, U.S. government data show. Investors sold 13.1 metric tons of gold held through exchange-traded products last week, the most since April, as prices fell 1.6 percent.
Open interest in New York futures and options is near its lowest in five years as gains in the U.S. economy, dollar and equities curb investor demand. Prices dropped last week after Ukraine’s government agreed on a cease-fire with pro-Russian separatists and the dollar appreciated to its highest in more than a year against the euro as the European Central Bank cut interest rates………………………………………..Full Article: Source

Join the platinum circle

Posted on 08 September 2014 by VRS  |  Email |Print

A ring, band, coin or ETF — the white metal can add glitter to your portfolio in any form you choose to invest. Do you know what South Africa’s biggest fund is betting on today? Not gold, South Africa’s most famous export, but platinum. Public Investment Corporation (PIC), which manages about $150 billion of South African pension money, is betting big on platinum producers.
A recent Bloomberg interview quoted Daniel Matjila, the fund’s Chief Investment Officer, as saying, “We like industrial metals, not those about sentiment.”……………………………………….Full Article: Source

When Does an ETF Not Look Like an ETF?

Posted on 08 September 2014 by VRS  |  Email |Print

Exchange-traded funds started out as a low-cost, transparent way for investors to earn the markets’ returns. Yet these days, the hottest ETF investment strategies involve layers of fees and managers who, using complicated formulas, design model portfolios with ETFs that aim to outperform the market.
Welcome to the expanding world of “ETF managed portfolios.” The pitch is that ETF strategists can build precisely targeted portfolios across a range of investments and take advantage of the ease of trading afforded by ETFs to get in and out of markets at the right time………………………………………..Full Article: Source

What Investors Should Know About ETFs

Posted on 08 September 2014 by VRS  |  Email |Print

Exchange-traded funds are some of the fastest-growing investments today. And apparently not all that understood. That growth may be part of the problem. With around 1,400 ETFs now and more being created, the ETF universe is getting ever-tougher to navigate. Investors feel it: A survey by a unit of Charles Schwab Corp. found that about 40% of a sampling of Schwab investors wished they had a better handle on ETFs.
In some ways, choosing an ETF is similar to picking a traditional mutual fund. But because most ETFs aren’t run by people who actively buy and sell the securities in the portfolio, investing in them is more of a do-it-yourself effort………………………………………..Full Article: Source

ETF market hit record high

Posted on 08 September 2014 by VRS  |  Email |Print

Growth in the Australian exchange-traded fund (ETF) market is continuing to rise as it hit a record high of $12.4 billion in assets under management in August, according to BetaShares.
The latest BetaShares Australian ETF Review, showed that the ETF market increased by 1.9 per cent (or $234 million) in August, while the share market remained stagnant. The review showed that the EFT market had thrived over the last 12 months, with market cap growth rising by $3.9 billion………………………………………..Full Article: Source

Bearish ETFs for Gold’s Lost Luster

Posted on 05 September 2014 by VRS  |  Email |Print

Gold bullion and related exchange traded funds are under pressure as a stronger U.S. dollar makes purchases more expensive and demand dips overseas. The SPDR Gold Shares has declined 1.8% over the past month but is still up 5.2% year-to-date.
COMEX gold futures are currently trading around $1,266.8 per ounce. Bullion prices have been dipping as the U.S. dollar index rises to a near 14-month high, with the euro currency crossing below the psychological $1.3 level Thursday. Gold becomes more expensive for foreign investors as the USD strengthens………………………………………..Full Article: Source

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