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Enjoy The Ride: Low Volatility ETFs Deliver In August

Posted on 28 August 2015 by VRS  |  Email |Print

Low volatility ETFs delivered in what has been a decidedly rocky month for global markets. China’s yuan devaluation, intended to shore up its economy, sent U.S. and international stocks into a tailspin in August.
Against that backdrop, smart beta ETF investment strategies that focus on less volatile stocks held up relatively better. Smart beta ETFs screen and select stocks based on alternative weighting methods or specific factors such as volatility………………………………………..Full Article: Source

Be Cautious With Commodity Exchange-Traded Products

Posted on 27 August 2015 by VRS  |  Email |Print

Academic research suggests that commodities can play a role in a balanced asset allocation. A track record of providing uncorrelated returns has won the commodities Morningstar Category a place in many portfolios as an attractive diversifier in a mix of stocks, bonds, and cash.
Exchange-traded funds have made a category that was once the realm of large institutional investors accessible to the masses. But, as with everything, investors should be aware of what they are actually buying when they go shopping for a commodity-focused exchange-traded product. A look behind these funds’ labels will show that they are often not what they seem………………………………………..Full Article: Source

Look Under the Hood When Investing in Commodity ETFs

Posted on 27 August 2015 by VRS  |  Email |Print

Exchange traded funds allow investors to diversify a traditional stock and bond portfolio with commodities. However, the commodities asset class comes with its own risks. “As with everything, investors should be aware of what they are actually buying when they go shopping for a commodity-focused exchange-traded product,” writes John Gabriel, a strategist for Morningstar‘s manager research team.
“A look behind these funds’ labels will show that they are often not what they seem.” For starters, most commodity ETFs do not track the spot price, or commodity prices as investors see them in the headlines………………………………………..Full Article: Source

The One-Man, $1.2 Billion ETF Shop

Posted on 27 August 2015 by VRS  |  Email |Print

Starting an exchange-traded mutual fund is a little like launching a rocket. There are lots of different contractors and regulations. There are plenty of crashes. Andrew Chanin, the 30-year-old founder of New York–based PureFunds, watched two of his first three ETFs fail before reaching Earth orbit.
They liquidated because they couldn’t gather enough assets to cover expenses. A third fund barely made it aloft; it still has just $3.6 million in assets. Chanin kept at it. In November, he launched the PureFunds ISE Cyber Security ETF (Symbol: HACK). By July, HACK had attracted $1.4 billion—one of the fastest ascents in ETF history. (On Aug. 25, after two days of turmoil in the market, it had $1.2 billion.)……………………………………….Full Article: Source

Forget Dollar, Look at These European Currency ETFs

Posted on 26 August 2015 by VRS  |  Email |Print

Surprising many investors, the global currency market underwent a trend reversal lately. A dovish Fed, which is still in two minds about raising the key interest rates next month, and extreme tantrums from the Chinese market stoked global growth worries all over again.
The economic data points remained sturdy in the U.S.; but inflation is still short of the Fed’s longer-term target due to the free fall in energy prices last year and declining prices of non-energy related imports, per the Fed minute. The September timeline of the Fed lift-off now appears distant as subdued inflation shifted the speculative timeline to December………………………………………..Full Article: Source

How Low-Volatility ETFs Can Protect You From Wild Market Swings

Posted on 25 August 2015 by VRS  |  Email |Print

A good chunk of the stock market’s rewards, with less risk. That’s the promise of low-volatility exchange-traded funds. And if there were a time when the funds should prove their worth, it’s now. The goal of low-volatility ETFs is simple: Provide a smoother ride when investing in equity markets.
The ETFs have taken in more than $1 billion in the past month, the most in seven months and the ETFs’ second-biggest month since they launched in 2011. So far it’s paying off for investors: The ETFs are down significantly less than the market—half as much, to be exact. So while these investors may still need some Rolaids, they can hold off on busting out the Xanax………………………………………..Full Article: Source

Bond and Gold ETFs Are Up on a Flight to Safety as Commodities and Dollar Lag

Posted on 25 August 2015 by VRS  |  Email |Print

It’s a flight to safety for investors. Here’s how to trade the market’s moves. The yield on the U.S. Treasury 30-year bond is tracking its 200-week simple moving average lower, while the 20+ Year Treasury Bond ETF (TLT) tracks its 200-week simple moving average higher.
The bond exchange-traded fund represents a basket of U.S. Treasury bonds with maturities of 20+ years to 30 years, and is a flight to safety alternative for investors. Comex gold ended last week with a positive weekly chart. Investors trading gold like a stock are doing so using the SPDR Gold Shares ETF (GLD), which is backed by gold bullion………………………………………..Full Article: Source

ETFs, from Creation to Trading

Posted on 24 August 2015 by VRS  |  Email |Print

With retail investor funds favoring ETFs over mutual funds, Finance Magnates reviews the process of how ETFs are created. For years, mutual funds have been synonymous among retail investors as the long term investment of choice. But, that trend is ending with Exchange-Traded Funds (ETFs) grabbing a larger market share of new retail investor funds.
This development was on display as data from Broadridge’s Fund Distribution Intelligence tool showed that ETF assets increased by $265 billion on a year over year basis and the end of Q2 2015, compared to $200 billion growth in long term mutual funds. According to the research, the ETF growth was primarily led by retail customer flows………………………………………..Full Article: Source

Using ETFs To Run Your Own Hedge Fund

Posted on 21 August 2015 by VRS  |  Email |Print

Broadly speaking, hedge funds have not been attracting the best press over the past few years. Simply put, the overall performance has not been strong enough to justify the high fees fund managers charge. Still, investors are drawn to hedge funds and some managers, such as Bill Ackman, David Einhorn and Daniel Loeb, are afforded celebrity status by the financial media.
A growing number of exchange traded funds give investors access to some of the most widely-held hedge fund stocks and the advantage is investors merely pay a brokerage fee to buy and sell the fund along with the ETF’s annual fee (if they hold the fund for at least a year), all of which is more affordable than the 2 percent and 20 percent hedge funds are notorious for charging………………………………………..Full Article: Source

The Currency-Hedged ETF Wars Are Upon Us

Posted on 20 August 2015 by VRS  |  Email |Print

Competition within funds industry to launch currency-hedged exchange-traded funds is getting white hot. Deutsche Asset & Wealth Management launched six new ETFs on Wednesday tied to overseas stock indexes in Europe, Australia and Japan. Some of these stake out new territory, but others are clones of what’s already on the market, a strong signal that a land grab in full swing.
Currency-hedged ETFs have become enormously popular in a world where loose central bank policies reign. These neutralize currency shifts — perfect fits for when the Bank of Japan and European Central Bank policies send currencies falling and stocks rising………………………………………..Full Article: Source

How ETFs Passed Hedge Funds in Assets

Posted on 20 August 2015 by VRS  |  Email |Print

At the end of the second quarter this year, assets in global exchange traded products surpassed those of hedge funds. It was a major milestone for the ETF industry which is just about 25 years old while hedge funds have been around for more than 66 years.
According to London based ETF consulting firm ETFGI, assets in global ETF industry totaled US$2.971 trillion at the end of Q2 2015, while assets in the global hedge fund industry, were US$2.969 trillion. Reasons for the surging popularity of ETFs are not difficult to understand. Most ETFs are low-cost, transparent and tax-efficient products that track the performance of an index………………………………………..Full Article: Source

Best ETFs: Currency and Commodity Funds

Posted on 19 August 2015 by VRS  |  Email |Print

There are a lot of ways to bet against the U.S. dollar. Several plausible but expensive options are displayed here. The gold and silver funds owns stacks of metal. They will definitely do well if inflation surges, and they might do well if the dollar weakens against other currencies. A Swiss franc fund will probably do well if the dollar weakens, and it might do well if the U.S. reverts to the inflationary habits of the 1970s.
As hedges, currencies and commodities can make sense. As standalone long-term holdings, they probably can’t. Gold’s long-term real return (return net of inflation) is not much above zero, and is likely to be below zero in a fund that nicks you 0.4% annually for holding costs. There is no reason to expect much more from francs and Aussies………………………………………..Full Article: Source

Best ETFs for Investors 2016

Posted on 19 August 2015 by VRS  |  Email |Print

Fifteen hundred exchange-traded funds are vying for your business. We have a formula that will steer you to the best buys. ETFs are the funds with shares that trade like shares of corporate stock. Most of them are index funds, passively tracking an index. That makes cost the focal point of your search. Your search will be well rewarded, since competition in the $2 trillion ETF industry has given rise to some screaming bargains in money management.
If you want a diversified mix of U.S. stocks, either the Vanguard or the Schwab product is a fine choice. The Vanguard Total Stock Market ETF (VTI) will cost you only $46 over a decade per $10,000 invested, we calculate. The Schwab U.S. Broad Market Index fund (SCHB) is almost as good at $50………………………………………..Full Article: Source

Investors dump gold ETPs in July but oil inflows rebound

Posted on 18 August 2015 by VRS  |  Email |Print

Investors withdrew a whopping $2.3 billion from gold exchange-traded products (ETPs) in July as the dollar strengthened, but energy ETP inflows surged by some $1.9 billion after oil futures sold off. Investors have taken a contrarian approach to oil ETPs this year, shovelling in $8 billion in the first quarter on expectations of an oil price rebound, then withdrawing $2.67 billion in the second quarter.
An 18 percent fall in Brent crude oil futures in July prompted investors to return to the market, as many took the view that prices had troughed. “The oil price further corrected on greater inventory builds, the expectation of incremental Iranian production coming to the market, and dollar strength,” said Wei Li, iShares investment strategist at BlackRock………………………………………..Full Article: Source

Consider a Small Position in Commodity ETFs to Diversify a Portfolio

Posted on 18 August 2015 by VRS  |  Email |Print

Despite the underperformance in commodities, some financial advisors suggest holding commodity-related exchange traded fund exposure to help diversify an investment portfolio in case traditional assets experience greater volatility.
Some advisors argue that a small allocation to broad commodity exchange traded products, such as the PowerShares DB Commodity Index Tracking Fund or iPath Bloomberg Commodity Index Total Return ETN, is important investments for a long-term portfolio strategy as the the asset class provides diversification and inflation-hedging benefits, and investors should not be dissuaded by short-term moves, reports Daisy Maxey for the Wall Street Journal………………………………………..Full Article: Source

Investors dump gold ETPs in July but oil inflows rebound

Posted on 18 August 2015 by VRS  |  Email |Print

Investors withdrew a whopping $2.3 billion from gold exchange-traded products (ETPs) in July as the dollar strengthened, but energy ETP inflows surged by some $1.9 billion after oil futures sold off. Investors have taken a contrarian approach to oil ETPs this year, shovelling in $8 billion in the first quarter on expectations of an oil price rebound, then withdrawing $2.67 billion in the second quarter.
“The oil price further corrected on greater inventory builds, the expectation of incremental Iranian production coming to the market, and dollar strength,” said Wei Li, iShares investment strategist at BlackRock. “Speculative investors may have come in at these levels to try to find the bottom.” ……………………………………….Full Article: Source

ETF industry grows by $1.3bn in July

Posted on 17 August 2015 by VRS  |  Email |Print

According to BetaShares’ Australian ETF Review, the industry increased by 7.0 per cent in July, with $700 million attributed to new money inflows. BetaShares managing director Alex Vynokur said: “It is pleasing to see that investor appetite for exchange-traded products in Australia is stronger than ever, resulting in the fastest monthly industry growth we’ve experienced to date occurring in July.”
“We’re also seeing Australian investors continuing to embrace exchange-traded products as a means to access overseas equity markets.” The review found that investors are moving towards a preference for international equities – over 50 per cent of the month’s inflows were allocated overseas………………………………………..Full Article: Source

Advisers Stick by Commodity ETFs Despite Dramatic Declines

Posted on 17 August 2015 by VRS  |  Email |Print

The rise of exchange-traded funds and notes makes it easy for everyone to own commodities, and many financial advisers recommend small stakes as permanent elements of a diversified portfolio. But the average broad-basket commodities ETF has lost an average of 7.9% a year in the past five years through July, according to Morningstar Inc.
And the bloodletting has only intensified this year. The S&P GSCI, a benchmark for commodity-markets investments, for example, has plummeted 43.1% in the 12 months through Thursday………………………………………..Full Article: Source

Currency-Hedged ETFs Soften Blow of Dollar’s Rise

Posted on 14 August 2015 by VRS  |  Email |Print

Investors are pouring billions of dollars into a fashionable corner of one of the fastest-growing areas on Wall Street: exchange-traded funds that aim to protect investors against the return-crimping impact of a rising dollar.
Currency-hedged funds aim to help investors to invest in assets outside of the U.S., such as European stocks, a popular goal at a time many advisers are counseling clients to diversity their holdings. ETFs typically track an index or other basket of assets, and trade on an exchange, offering investors the ability to buy and sell it like a stock………………………………………..Full Article: Source

Record growth in European ETF AUM

Posted on 14 August 2015 by VRS  |  Email |Print

Exchange-traded funds (ETFs) listed in Europe have gathered 13% more assets year-to-date than in any prior year, according to data from ETF industry consultants ETFGI. A record $48.4bn in net new assets were gathered by ETFs in Europe in the first seven months of 2015, well ahead of the prior record of $42.9bn set in 2014.
“Although investors faced uncertainty in China and Greece during July they continued to invest significant net new assets in equity ETFs”, said Deborah Fuhr, managing partner of ETFGI. Over the course of July, European ETFs gathered net inflows of $8.4bn. Equity ETFs continued to see the largest inflows, posting $6.9bn of net new assets, fixed income ETFs saw $2.1bn of assets flow in, while commodity ETFs experienced net outflows of $1.1bn………………………………………..Full Article: Source

ETFs, ETPs Listed In Japan Are Gathering Net New Assets 59 Percent Faster Than Prior Years

Posted on 14 August 2015 by VRS  |  Email |Print

ETFs and ETPs listed in Japan are gathering net new assets 59% percent faster than in prior years according to ETFGI. A record level of US$23.8 billion in net new assets (NNA) was gathered by ETFs and ETPs listed in Japan in the first seven months of 2015, surpassing the prior record of US$15.0 billion gathered in the same period in 2014.
At the end of July 2015, the Japanese ETF/ETP industry had 154 ETFs/ETPs, with 209 listings, assets of US$125 Bn, from 21 providers listed on 2 exchanges, according to ETFGI’s preliminary ETF and ETP global insights report for the July 2015………………………………………..Full Article: Source

ETFs, ETPs Listed In Canada Gathered $7 Billion In Net New Assets This Year

Posted on 14 August 2015 by VRS  |  Email |Print

ETFs and ETPs listed in Canada gathered 7 billion US dollars in net new assets year to date (YTD) through end of July 2015 according to ETFGI. At the end of July 2015, the Canadian ETF industry had 368 ETFs, with 524 listings, assets of US$66 Bn, from 11 providers listed on 1 exchange, according to ETFGI’s preliminary ETF and ETP global insights report for the July 2015.
“The S&P 500 index ended up 2% for the month of July and finished the first seven months of 2015 up 3%. Although investors faced uncertainty in China and Greece during July they continued to invest significant net new assets in equity ETFs”, according to Deborah Fuhr, managing partner of ETFGI. ……………………………………….Full Article: Source

The ‘dark side’ of ETFs: 6pc higher costs for everyone else

Posted on 13 August 2015 by VRS  |  Email |Print

Exchange-traded funds tie up shares for long periods, reducing supply and pushing up the cost of trading for other investors, researchers say. The rise of exchange-traded funds has increased costs for other investors and reduced the incentive for stockpickers to search for undervalued shares, researchers say.
Exchange-traded funds or ETFs, which buy and hold shares for as long as they remain in the relevant stock market index, in effect “tie up” shares that would otherwise be available to buy and sell on the market. This reduces supply and makes the market less efficient, pushing up trading costs for more active investors, said the authors of an academic report entitled “Is there a Dark Side to Exchange Traded Funds (ETFs)? An Information Perspective”………………………………………..Full Article: Source

ETFs Resume Record Growth Pace

Posted on 13 August 2015 by VRS  |  Email |Print

Exchange traded funds aren’t just growing fast. They’re growing faster than ever. ETFs and their kissing cousins, such as ETNs, listed in the U.S. pulled in net new assets 8% faster than in recent years, according to research and consulting firm ETFGI. A record $125.1 billion in net new assets were gathered during the first seven months of 2015.
That topped the prior record of $115.9 billion, which were drawn in during the same period in 2013. ETF and related asset growth slackened during 2014 amid investor concerns over the impact of the Federal Reserve’s eventual lifting of interest rates, Deborah Fuhr, managing partner of ETFGI, told IBD from London via email………………………………………..Full Article: Source

Japanese ETFs/ETPs Gathering Net New Assets 59% Faster Than Before

Posted on 13 August 2015 by VRS  |  Email |Print

ETFs and ETPs listed in Japan are gathering net new assets 59% percent faster than in prior years according to ETFGI. A record level of US$23.8 billion in net new assets (NNA) was gathered by ETFs and ETPs listed in Japan in the first seven months of 2015, surpassing the prior record of US$15.0 billion gathered in the same period in 2014.
At the end of July 2015, the Japanese ETF/ETP industry had 154 ETFs/ETPs, with 209 listings, assets of US$125 Bn, from 21 providers listed on 2 exchanges, according to ETFGI’s preliminary ETF and ETP global insights report for the July 2015………………………………………..Full Article: Source

ETFs to Move on Yuan Devaluation

Posted on 12 August 2015 by VRS  |  Email |Print

China has been hitting headlines this year for one reason or the other. While the economy has been reeling under pressure for long given the protracted slowdown in the domestic manufacturing sector, credit crunch concerns and a property market slowdown, its stock market has been through a wild ride on overvaluation concerns.
Meanwhile, the economy’s exports plunged 8.3% year over year in July massively falling short of analysts’ expectation of 1.5% decline as well as the 2.8% drop-off recorded in June. Though 1.3% fall in exports to the U.S. was not that alarming; exports plummeted 12.3% and 13% in the EU and Japan, respectively………………………………………..Full Article: Source

Coffee ETFs Jump on Supply Concerns

Posted on 12 August 2015 by VRS  |  Email |Print

Coffee ETFs have been in the bearish territory since last October on record crop production, lower demand and weak broad commodity fundamentals. However, this trend seems to have reversed in recent sessions on supply concerns in Brazil and Central America. This is especially true as both coffee ETFs - iPath Dow Jones-UBS Coffee Subindex Total Return ETN ( JO ) and iPath Pure Beta Coffee ETN ( CAFE ) - surged nearly 5.4% in Monday’s trading session.
Some recent reports suggest that the impact of last year’s Brazilian drought could be felt this year and could result in a smaller-than-expected bean size. In particular, the National Coffee Council of Brazil sees around 40 million bags of coffee as compared to the industry forecast of over 50 million bags. Additionally, supply of arabica beans could decline over the next 12 months, as nearly 60% of the Brazilian arabica crop was harvested this year against 80% in the year-ago period. ……………………………………….Full Article: Source

ETFs, ETPs Listed In U.S. Are Gathering Net New Assets 8 Percent Faster Than In Prior Years

Posted on 11 August 2015 by VRS  |  Email |Print

ETFs and ETPs listed in the United States are gathering net new assets 8% percent faster than in prior years according to ETFGI. A record level of US$125.1 billion in net new assets (NNA) was gathered by ETFs and ETPs listed in the United States in the first seven months of 2015, surpassing the prior record of US$115.9 billion gathered in the same period in 2013.
At the end of July 2015, the US ETF/ETP industry had 1,764 ETFs/ETPs, assets of US$2.14 trillion, from 84 providers listed on 3 exchanges, according to ETFGI’s preliminary ETF and ETP global insights report for July 2015. “The S&P 500 index ended up 2% for the month of July and finished the first seven months of 2015 up 3%. Although investors faced uncertainty in China and Greece during July they continued to invest significant net new assets in equity ETFs”, according to Deborah Fuhr, managing partner of ETFGI. ……………………………………….Full Article: Source

Commodities ETFs for the Contarian

Posted on 11 August 2015 by VRS  |  Email |Print

As an asset class, commodities have been drubbed this year. The average year-to-date loss for the SPDR Gold Shares, iShares Silver Trust and the United States Oil Fund is north of 14%. In just the past 90 days, SLV has tumbled 10.5% while USO has plunged nearly 29%.
Sixteen commodities ETFs hit 52-week lows last Friday and that number does include countless currency and single-country funds that have deep commodities exposure. Those facts and others underscore acute weakness commodities markets. They could also be a sign that now is the time to take a contrarian view of commodities and the related ETFs………………………………………..Full Article: Source

The next big market for ETFs

Posted on 10 August 2015 by VRS  |  Email |Print

ANZ, the first of the big four banks to step in to the fast-growing market for exchange-traded funds, sees big opportunities to grow the market for the low-cost, index-matching funds beyond their current narrow base. Exchange-traded funds listed on the ASX have grown at an extraordinary 57 per cent pace over the year to June but have yet to gain the critical mass they enjoy in other markets such as the US, UK and Canada.
Part of the reason is that institutional investors in Australia have been slower than their counterparts in other parts of the world to incorporate ETFs into their portfolios. In the US, a recent study by Greenwich Associates found some 21 per cent of institutions use ETFs in their portfolios, rising to 40 per cent for US endowments and 33 per cent for large public pension funds………………………………………..Full Article: Source

Dark side of ETFs erode active managers’ outperformance

Posted on 10 August 2015 by VRS  |  Email |Print

The ability of active fund managers, who aim to beat the market, to pick winning stocks is being eroded by the huge growth in assets controlled by exchange traded funds, according to new academic research.
The report, which was written by three business schools, stated that the growth in ETFs is resulting in distortions in the share prices of those companies held by such funds and could be a factor in explaining why stockpickers are having difficulty delivering outperformance………………………………………..Full Article: Source

Boring Bullion: Gold ETFs Could be Beset by Boredom

Posted on 07 August 2015 by VRS  |  Email |Print

Down 9% over the past three months and lighter by $1.25 billion in assets this year, the SPDR Gold Shares has not been an exchange traded fund of beauty, but it cannot be said GLD and rival gold funds have been boring. While it remains to be seen if some boredom will benefit GLD and friends, putting gold volatility into historical context could be a harbinger that volatility is about to wane in the bullion market.
“At the end of the 1980s period of price volatility, gold entered a two-decade long era of relatively subdued price movement. As the inflation panic eased, so did the price of gold. In 2011, the panic was the financial crisis. That, too, has been easing; with it again, the price of gold,” reports Lorcan Roche Kelly for Bloomberg………………………………………..Full Article: Source

Silver ETFs Hit By Double Whammy

Posted on 07 August 2015 by VRS  |  Email |Print

Investors have previously turned to silver exchange traded funds as an asset with a safe store of value and as a metal with wide industrial application in a growing economy. However, the precious metal is now suffering from a bad turn on both fronts.
Silver, like gold, is losing ground among investors seeking a hedge against market volatility or a store of value against inflationary pressures, reports Christian Berthelsen for the Wall Street Journal. Many market participants are anticipating the Federal Reserve to hike interest rates for the first time in almost a decade, which will diminish the attractiveness of holding assets with no yields………………………………………..Full Article: Source

Which Currency ETFs to Buy and Sell

Posted on 06 August 2015 by VRS  |  Email |Print

Of the major currencies, the US dollar isn’t the only strong one. Some other currencies have shown strength recently, while others continue to face downside pressure. Here are two currency ETFs to watch for further strength, one which should be avoided–at least for now–and one which could go either way.
Over the last three months the CurrencyShares British Pound Sterling Trust (FXB) has been strong overall. The rally in April broke out of the prior downtrend, reaching a swing high of $155. After a pullback the price rallied in June, but only made margin progress higher, reaching $156.04. The trend is still up, but has slowed………………………………………..Full Article: Source

Investors Plough Money into ETFs in July

Posted on 05 August 2015 by VRS  |  Email |Print

The European ETF market in the second quarter of the year was marred by the combination of a plunge in money flows and capital losses against a backdrop of heightened volatility brought about by a mix of domestic (Greek debt crisis) and external (emerging markets) factors.
Assets under management were on a rollercoaster, hitting an all-time high of EUR 463 billion in May before dipping to EUR 448 billion in June to end the quarter below the EUR 459 billion totted up in the first quarter of 2015. According to our calculations, AUM in European-domiciled ETFs went back up to over EUR 460 billion in July……………………………………….Full Article: Source

A Pleasant Surprise Among Emerging Market ETFs

Posted on 05 August 2015 by VRS  |  Email |Print

Broadly speaking, these are not the best of times for emerging market exchange traded funds. Things are so bad that 22 emerging markets funds hit 52-week lows on Monday. Since the star of the current quarter, the iShares MSCI Emerging Markets ETF has bled nearly $2.5 billion in assets.
However, there is some light among the darkness and it comes courtesy of Indian small-caps. India large-cap ETFs have been significantly better or less bad than other single-country and diversified emerging markets ETFs over the past month, but funds such as the Market Vectors India Small-Cap Index ETF, EGShares India Small Cap Fund and the iShares MSCI India Small-Cap ETF have legitimately impressed………………………………………..Full Article: Source

3 Energy ETFs With Juicy Yields

Posted on 31 July 2015 by VRS  |  Email |Print

Energy stocks may be the most-cursed securities since the last one-year period, but not all is repulsive in this corner of the investment world. Investors should note that energy stocks are known for warm dividend payouts.
Energy companies normally emphasize higher capital expenditure for production growth, and focus less on profitability. However, these companies started to focus more on profitability generation and dividend distribution since the recession in order to ensure more stable cash inflows, per CNBC……………………………………….Full Article: Source

Oil ETFs Jump on Unexpected Inventory Drop

Posted on 30 July 2015 by VRS  |  Email |Print

An unexpected dip in U.S. crude oil inventories helped fuel a surge in energy prices and commodity-related exchange traded funds Wednesday. On Wednesday, the United States Oil Fund, which tracks West Texas Intermediate oil, was up 2.7% and the United States Brent Oil Fund, which tracks Brent crude oil futures, was 1.4% higher. USO has declined 22.2% and BNO has decreased 17.5% year-to-date.
Oil prices were rallying Wednesday after the U.S. Energy Information Administration revealed crude inventories fell by more-than-expected 4.2 million barrels last week, or over twenty times expectations for a drawdown of 184,000 barrels, Reuters reports………………………………………..Full Article: Source

Commodities Crushed: Investors are Running Away From Commodities ETFs

Posted on 29 July 2015 by VRS  |  Email |Print

Delicately stated, these are not the best of days for commodities and the corresponding exchange traded products. With a July loss of 13.6%, the S&P GSCI Total Return Index now resides at its lowest levels since late February 2002.
Not surprisingly, investors are scampering away from some well-know commodities ETFs. For example, the SPDR Gold Shares (NYSEArca: GLD) has bled $1.12 billion in assets this month. Last Friday, GLD and the iShares Gold Trust (NYSEArca: IAU) lost over $302 million in combined assets………………………………………..Full Article: Source

Short sales of eurozone bond ETFs surges

Posted on 28 July 2015 by VRS  |  Email |Print

Investors have sharply escalated their use of exchange traded funds as they seek a new way to sell exposure to eurozone bonds beyond the traditional avenues of cash and futures markets. The use of European bond ETFs for expressing a negative or short view on bond prices has surged past €500m in the first week of July.
This marks the first time activity has risen above this level and comes just a few months after short positions, which benefit from bond yields rising and prices falling, stood at just €100m, according to Markit data………………………………………..Full Article: Source

Funds flow into agriculture as El Nino threatens crops

Posted on 28 July 2015 by VRS  |  Email |Print

Funds are flowing back into agricultural commodities for the first time since 2012 as investors look to capitalize on cheap prices, bullish demand and the threat of crop damage from an El Nino weather pattern. Figures from ETF Securities, one of the largest issuers of exchange traded products, show a small net inflow so far this year after an outflow of nearly 20 percent in 2014.
Across the sector, indices and ETFs saw a net inflow of $400 million in April and a further $400 million in May, according to data from Barclays. This compares to a net outflow of $2.4 billion in the last quarter of 2014………………………………………..Full Article: Source

ETFs get the edge on hedge funds

Posted on 27 July 2015 by VRS  |  Email |Print

They’re touted as the best instruments to diversify your portfolio by those who market them, including BlackRock, the world’s largest asset manager. The marketing plan appears to be working, as investors have ploughed more funds into exchange-traded funds (ETFs) than hedge funds, according to research firm ETFGI.
There was $2.97 trillion invested in the 5,823 exchange-traded products at the end of the second quarter, an ETFGI report said. Meanwhile, the global hedge-fund industry had $2.96 trillion in assets under management………………………………………..Full Article: Source

Gold ETFs: 25 months of continuous outflow

Posted on 27 July 2015 by VRS  |  Email |Print

Fresh sales of gold ETFs remain muted, thanks to continuous weakness in gold prices for over two years, coupled with a negative outlook amid a strong stock market. Indian retail investors continue to sell their gold exchange-traded funds (ETFs). Although gold ETFs used to be one of the fast-growing asset classes, attracting a rising number of investors, they are now falling out of favour.
Fresh sales of gold ETFs remain muted, thanks to continuous weakness in gold prices for over two years, coupled with a negative outlook amid a strong stock market. In the first quarter of the current financial year, gold ETFs’ gross sales reduced to a mere Rs 23 crore; in the first six months of 2015, it stood at just Rs 26 crore………………………………………..Full Article: Source

Global ETF Assets Surpassed Global Hedge Fund Assets In Q2 of 2015

Posted on 24 July 2015 by VRS  |  Email |Print

Assets invested in the global ETF/ETP industry have surpassed the assets invested in the hedge fund industry at the end of Q2 as we had forecasted.
According to our analysis there was US$2.971 trillion invested in the 5,823 ETFs/ETPs listed globally at the end of Q2 2015, assets were down slightly from their record high of US$3.015 trillion at the end of May 2015, while assets in the global hedge fund industry, according to a new report published by Hedge Fund Research HFR, reached a new record high of US$2.969 trillion invested in 8,497 hedge funds, which is US$2 billion smaller than the assets in the global ETF/ETP industry………………………………………..Full Article: Source

Here’s why ETFs are overtaking hedge funds

Posted on 24 July 2015 by VRS  |  Email |Print

The active versus passive debate just got a new wrinkle, and one analyst thinks he knows why. Exchange-traded funds, which are the primary vehicle for passive management, now have assets under management greater than hedge funds, according to a count from research firm ETFGI.
ETFs primarily follow market indexes, while hedge funds use a mix of strategies to beat those same benchmarks. Tim Edwards, senior director of index investment strategy at S&P Dow Jones Indices, set up an experiment that put a blend of low-cost ETFs against their more expensive hedge fund brethren………………………………………..Full Article: Source

How To Measure Costs When Comparing ETFs

Posted on 24 July 2015 by VRS  |  Email |Print

Managing ETF-based portfolios, ETF selection is a key focus. With so many ETF choices now available – and often many selections for a single asset class – having a process to select which ETF to utilize is important.
In selecting ETFs, I follow two questions. First, “What is the index?” I discussed why this question is so important in my last article. But what happens if we find more than one ETF with an underlying index that would satisfy our exposure? For me, the second question is, “What’s the cost?”……………………………………….Full Article: Source

There’s now more money in ETFs than hedge funds

Posted on 23 July 2015 by VRS  |  Email |Print

Investors have put more money into exchange-traded funds than hedge funds for the first time, according to research firm ETFGI. There was $2.971 trillion invested in the 5,823 exchange-traded products listed globally at the end of the second quarter, ETFGI said in a news release Tuesday.
Meanwhile, the global hedge-fund industry had attracted $2.969 trillion. “With the positive performance of equity markets many investors have been happy with index returns and fees,” ETFGI said. ETFs and other exchange-traded products are mostly index trackers. Assets in ETFs had been expected to top assets in hedge funds during the second quarter………………………………………..Full Article: Source

ETF explosion as assets overtake hedge funds

Posted on 23 July 2015 by VRS  |  Email |Print

The global Exchange Traded Fund (ETF) industry has overtaken hedge funds, as investors have been lured by the products ultra-low costs and large range of indices.
Fresh data from research firm ETFGI said there was some $2.971 trillion invested across over 5,800 ETFs and Exchange Traded Products (ETPs) as of the end of the second quarter this year. This compares to the record high of $2.969 trillion currently invested in hedge funds, according to a report published by Hedge Fund Research HFR………………………………………..Full Article: Source

ETF strategist replaces Vanguard ETFs after index changes

Posted on 22 July 2015 by VRS  |  Email |Print

New Frontier, a Boston-based exchange-traded fund strategist, has replaced a number of Vanguard ETFs on its platform with iShares ETFs after Vanguard said it was making changes to the funds. In June, Malvern, Pennsylvania-based Vanguard said that one of its most popular ETFs, the $46 billion Vanguard FTSE Emerging Markets ETF, would begin using the FTSE Emerging Markets All-Cap China Inclusion Index, enabling the fund to hold onshore Chinese equities, known as A-shares.
At the same time, the firm announced changes to three other ETFs: the Vanguard European Stock ETF, the Vanguard FTSE Pacific Stock ETF, and the FTSE Vanguard Developed Markets ETF. The changes would add more small-cap exposure to the Pacific ETF and exposure to Canadian equities to Developed Markets ETF………………………………………..Full Article: Source

Exchange traded funds grow bigger than hedge funds

Posted on 22 July 2015 by VRS  |  Email |Print

The level of assets in exchange traded funds has surpassed those held by hedge funds for the first time, highlighting how their explosive growth has upended the global fund management industry since the financial crisis.
ETFs, including the smaller universe of exchange trade products, or ETPs, accounted for $2.971tn globally at the end of the second quarter, according to industry research group ETFGI, up $45bn since the end of March………………………………………..Full Article: Source

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