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ETFs to Be Wounded Not Crushed in a Stampede From Junk Bonds

Posted on 24 June 2016 by VRS  |  Email |Print

Exchange-traded funds will not be hit as hard as mutual funds if there’s large redemptions of investments in illiquid assets. If there’s a stampede for the exit in the junk bond market, it won’t be investors in exchange-traded funds that get hit hardest.
That’s the conclusion of the Financial Stability Board, whose members include the U.S. Federal Reserve and the Bank of England, published in a consultation document……………………………………….Full Article: Source

Should You Bet on Dow ETFs over S&P 500?

Posted on 24 June 2016 by VRS  |  Email |Print

Risk-on sentiments returned at the start the week, catching a lift from receding Brexit fears. Most U.S. equity indices rallied with the Dow Jones industrial average gaining over 100 points. Investors started to position their portfolio taking cues of the fact that chances of Britain staying in the EU is higher.
Also, a dovish Fed meeting in June and chances of a delayed rate hike acted as catalysts to the rally. And most importantly, a rebound in oil prices on easing supply glut led the Dow Jones to stage a sturdy comeback this week. Investors should note that the index lost over 0.6% in the month-to-date frame (as of June 17, 2016) before springing back to gains on June 20, 2016………………………………………..Full Article: Source

Currency ETFs That Will Move Regardless of Brexit

Posted on 24 June 2016 by VRS  |  Email |Print

The day of decision is finally here for Brexit, the vote that will determine whether or not Great Britain remains part of the European Union. Regardless of the outcome of the Brexit vote, some market observers see big moves ahead for some currency exchange traded funds with an obvious candidate being the CurrencyShares British Pound Sterling Trust.
Polls show mixed results, with online surveys revealing a much closer result while phone calls have suggested a lead for a remain. Sterling has acted as a barometer of sentiment in the run-up to the June 23 referendum, hitting a seven-year low against the U.S. dollar in February after the date of the vote was announced………………………………………..Full Article: Source

Silver ETFs Surge Thanks to Safe-Haven Demand

Posted on 23 June 2016 by VRS  |  Email |Print

Precious metals are among this year’s top performing commodities with the iShares Silver Trust (SLV) and ETFS Physical Silver Shares (SIVR) being leaders of that charge. As a result, holdings of the white metal at silver ETFs are swelling.
Silver and other precious metals enjoyed safe-haven demand as the equities market plunged into a correction. The metal also maintained its momentum as the Federal Reserve lowered its interest rate outlook to only two hikes this year from a previously expected four rate hikes. Additionally, with the dovish Fed stance, the U.S. dollar weakened, which made USD-denominated silver cheaper for foreign buyers and a better store of value for U.S. investors………………………………………..Full Article: Source

How to Invest in Water ETFs

Posted on 23 June 2016 by VRS  |  Email |Print

Water. We drink it, we swim in it and it’s vital to human life. Despite being the world’s most precious resource, many people are only beginning to realize it’s becoming scarce. Think back to Kevin Costner’s 1995 post-apocalyptic film, “Waterworld,” where the polar ice caps had melted and earth was covered by the rising seas.
Drifter pirate-types searched for land and fresh water. Many laughed off the science fiction. According to a recent report by the United Nations, the world will only have 60 percent of the water it needs by 2030 without significant global policy change………………………………………..Full Article: Source

4 Steps To Picking The Right Commodity ETF

Posted on 22 June 2016 by VRS  |  Email |Print

Picking the right exchange-traded fund for your investment portfolio can be an arduous task that is often compounded by the sheer number of available offerings. In some sections of the ETF marketplace, there can be 10, 15, or even 20 competing funds that offer just slightly different variations on the same theme.
This is especially true in the commodity space through its wide variety of single-sector and diversified indexes. Many investors will default to the ETF with the longest history, lowest expenses, or largest assets under management. However, that strategy doesn’t always result in the best overall returns and can often lead to surprises in tax treatment or other unforeseen risks. ……………………………………….Full Article: Source

Calendar Could Be Good News For These Commodities ETFs

Posted on 22 June 2016 by VRS  |  Email |Print

Commodities are on the mend. That much is confirmed by the year-to-date performance of the PowerShares DB Com Indx Trckng Fund(ETF) and other diversified exchange-traded products. DBC is up 15.3 percent this year.
Mending Commodities: Some individual commodities, namely energy and precious metals fare, have easily surpassed broader commodities benchmarks this year. For example, the United States Brent Oil Fund, LP, which tracks Brent crude futures, is up 24.7 percent this year. Gold is another commodities leader as highlighted by the SPDR Gold Trust (ETF), which is higher by 21.4 percent………………………………………..Full Article: Source

Oil ETP investors should take profits as speculators move in

Posted on 22 June 2016 by VRS  |  Email |Print

Oil investors should consider cashing in their profits as a high number of speculators currently in the market may leave the commodity exposed to a swift correction, according to research from exchange-traded product provider WisdomTree Europe.
ETPs linked to the performance of oil futures have enjoyed significant gains over the past five months as the commodity has rallied from multi-year lows. Front month Brent crude futures recently reached $52.51 per barrel on 8 June 2016, representing an 88.3% gain from its 2016 low of $27.88 per barrel on 20 January 2016………………………………………..Full Article: Source

Index ETFs: Broad Market ETFs See Inflows

Posted on 21 June 2016 by VRS  |  Email |Print

Despite another rough week for US equities, investors didn’t throw in the towel. Instead, they started buying into broad market US equity index ETFs, while taking money out of more volatile plays. This mentality can be seen by examining flows across the four major US index-based ETFs.
The SPDR S&P 500 ETF Trust (SPY) attracted ~$1.5 billion in inflows. The SPDR Dow Jones Industrial Average ETF Trust (DIA) came in second with ~$300 million in inflows. On the other end of the spectrum, high-beta and technology stocks fell out of favor in aggregate. Both the iShares Russell 2000 ETF (IWM) and the PowerShares QQQ Trust (QQQ) continued to see outflows similar to the prior week………………………………………..Full Article: Source

U.S. Commodity Funds Planning Canadian Crude ETF

Posted on 21 June 2016 by VRS  |  Email |Print

United States Commodity Funds (USCF), the issuer of popular commodities exchange traded funds such as the United States Oil Fund (NYSEArca: USO) and the United States Brent Oil Fund (NYSEArca: BNO), is planning an exchange traded product that focuses on Canadian oil.
California-based USCF is working with Auspice Capital Advisors, Ltd. (Auspice), a Canada-based alternatives fund manager, to develop an ETF that tracks the price movements of the Canadian Crude Excess Return Index (CCIER)………………………………………..Full Article: Source

Father of ETFs urges ever more creative disruption

Posted on 20 June 2016 by VRS  |  Email |Print

Disrupt or die – that was the message to the exchange-traded funds industry from Lee Kranefuss, the man who engineered the ETFs that led to the products’ global success. Although global assets in ETFs have soared to trillions of dollars, there is still immense scope to devise creative versions of the products that subvert conventional approaches to asset management, Kranefuss, chairman of ETF provider Source, said.
Assets will be attracted only by products that are inventive in providing what investors want, he said, warning that cheap copies of ETFs that already exist would not succeed………………………………………..Full Article: Source

Hot ETF Options to Track Popular Hedge Fund Positions

Posted on 20 June 2016 by VRS  |  Email |Print

The S&P 500 utilities sector rose 15% in the first quarter, as investors sought out the relative safety of these dividend-paying domestically focused companies amid elevated global market volatility. Meanwhile, demand for in gold ETFs was quite strong in the first quarter, as SDDR Gold’s $6.8 billion of inflows was nearly twice as much as any other product regardless of investment style, though not all institutional managers were in agreement to start 2016.
Paulson & Co reduced its stake in GLD in the first quarter, while Soros Fund Management initiated a position in the commodity ETF………………………………………..Full Article: Source

Not falling short: The rise of inverse ETFs

Posted on 17 June 2016 by VRS  |  Email |Print

While flows to short and leveraged ETFs as a group have been consistently strong in 2015 and 2016, the products into which the money is going has changed considerably in recent months. In 2016, investors have favoured short products – also known as inverse ETFs.
According to ETF provider WisdomTree, inverse products so far in 2016 have attracted $4.63 billion in global net inflows, more than double the $2.22 billion for long leveraged products. That compares with $3.93 billion and $13.87 billion, respectively, for 2015, showing appetite has done an about-turn………………………………………..Full Article: Source

Understanding Gold And Silver ETFs

Posted on 17 June 2016 by VRS  |  Email |Print

If you have begun recently to consider investing in gold or silver — congratulations for thinking outside the box of conventional asset classes. Whether you’ve arrived at this point due to the recent turbulence in the stock market, or you’d like to diversify into an asset class that will always maintain some intrinsic value, or you’d simply like to profit from an increase in the price of gold or silver, you’ve made an important step toward protecting your wealth and profiting in the future.
And if you’ve followed our analysis in other articles, you know why we anticipate significant rises in the price of both metals in the coming years………………………………………..Full Article: Source

Commodity ETFs Are Outperforming The S&P

Posted on 16 June 2016 by VRS  |  Email |Print

The commodity bear market seems to be over. Outperforming most equities year-to-date, commodities represent a significant investment opportunity while the S&P continues trading sideways. Instead of targeting individual commodities, I am analyzing the pros and cons of investing into a diversified commodity basket via ETFs.
Investor sentiment and the U.S. Dollar index are the most crucial determinants of the near-term commodity price performance. Despite the skepticism surrounding the year-to-date commodity price movements, one cannot deny the fact that equity markets are starting to fall behind………………………………………..Full Article: Source

European ETF assets record 20th consecutive month of net inflows

Posted on 16 June 2016 by VRS  |  Email |Print

The European exchange-traded funds and exchange-traded products sector recorded its 20th month of positive net inflows by gathering $2.68bn during May, according to ETF consultancy ETFGI. Fixed income ETFs/ETPs gathered the largest net inflows with $2.77bn, followed by commodity ETFs/ETPs with $982m, while equity ETFs/ETPs experienced net outflows of $1.20bn.
iShares was the most successful gatherer of net new assets in Europe during May with $1.40bn of net inflows, followed by SPDR ETFs with $584m and db X/db ETC with $500m………………………………………..Full Article: Source

Currency-Hedged ETFs for an Uncertain Dollar Outlook

Posted on 16 June 2016 by VRS  |  Email |Print

When looking to international markets, traders have turned to both international stocks and even included some currency-hedged strategy to manage foreign exchange currency fluctuations. On the other hand, investors can consider partial currency-hedged exchange traded funds to diminish currency risks.
Currency traders are seeing wild swings, with the U.S. dollar oscillating on foreign market risks, global central bank policies, Federal Reserve speculation and economic data at home. The U.S. Dollar Index (DXY), which tracks the U.S. dollar’s movement against a basket of major foreign currencies, has declined 3.8% year-to-date. The dollar index, though, has bounced back off its May lows………………………………………..Full Article: Source

Can Silver ETFs Extend Bullish Ways?

Posted on 15 June 2016 by VRS  |  Email |Print

The iShares Silver Trust and ETFS Physical Silver Shares are already among this year’s best-performing precious metals exchange traded funds, but some market observers see the good times continuing for silver and the related ETFs. Silver and other precious metals enjoyed safe-haven demand as the equities market plunged into a correction.
The metal also maintained its momentum as the Federal Reserve lowered its interest rate outlook to only two hikes this year from a previously expected four rate hikes. Additionally, with the dovish Fed stance, the U.S. dollar weakened, which made USD-denominated silver cheaper for foreign buyers and a better store of value for U.S. investors………………………………………..Full Article: Source

ETFs Are The Most Popular Products For Advisors

Posted on 15 June 2016 by VRS  |  Email |Print

For the second year in a row, ETFs topped the popularity list among financial planners, with 83% of advisers indicating that they currently use ETFs or are recommending them to clients in a recent survey.
Not only that, many of the respondents say they plan to increase their use of ETFs next year. This contrasts sharply with mutual funds, the standby product of personal finance for decades, which found favor with a relative minority of advisers. The survey, which included 17 other investment options, was conducted by the Journal of Financial Planning and the FPA Research and Practice Institute………………………………………..Full Article: Source

ETFs/ETPs In Europe Gathered $2.68 Billion In Net New Assets In May 2016

Posted on 14 June 2016 by VRS  |  Email |Print

ETFGI the leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, today reported ETFGI reports ETFs/ETPs in Europe gathered US$2.68 billion in net new assets in May marking 20 consecutive months of positive net inflows, according to preliminary data from ETFGI’s May 2016 global ETF and ETP industry insights report.
Record levels of assets invested in ETFs/ETPs were reached at the end of May for ETFs/ETPs listed globally at US$3.143 trillion, in the United States at US$2.229 trillion and in Japan which reached US$147 billion. At the end of May 2016, the European ETF/ETP industry had 2,219 ETFs/ETPs, with 6,927 listings, assets of US$530 Bn, from 52 providers listed on 25 exchanges in 21 countries………………………………………..Full Article: Source

Investments in Commodity, Fixed Income ETFs Hit Record High

Posted on 14 June 2016 by VRS  |  Email |Print

In May, U.S.-listed funds gathered net inflows of $3.3 billion, with the biggest gainers commodity ETFs/ETPs. Assets invested in exchange-traded funds and products listed in the U.S. hit a new record high $2.23 trillion at the end of May, ETFGI reported.
The U.S. sector had 1,902 ETFs/ETPs from 96 providers listed on three exchanges. ETFGI also reported record levels of assets invested in globally listed ETFs/ETPs, $3.14 trillion, and in Japan, $147 billion………………………………………..Full Article: Source

Why Oil ETFs Can’t Catch a Break

Posted on 14 June 2016 by VRS  |  Email |Print

Suppose that when West Texas Intermediate crude fell to $26 a barrel on Feb. 11 you had a stroke of genius and figured it couldn’t get much lower. Since you don’t have the billion-dollar backing of a commodities-trading house, you acted in the only way you could and bought into an oil exchange-traded fund.Nice work, you’d think.
Crude is up almost 90 percent since then. Not quite so good for you, though — ETF returns are about half that. Traders generally find life easier when futures curves are in backwardation — with longer-dated contracts cheaper than shorter-term ones — than the reverse situation, known as contango………………………………………..Full Article: Source

ETFs most popular product with advisers

Posted on 13 June 2016 by VRS  |  Email |Print

For the second year in a row, ETFs topped the popularity list among advisers, with 83% of survey respondents indicating that they currently use ETFs or are recommending them to clients.
Moreover, many of the respondents said they plan to increase their use of ETFs next year. This contrasts sharply with mutual funds, the standby product of personal finance for decades, which found favor with a relative minority of advisers. The survey, which included 17 other investment options, was conducted by the Journal of Financial Planning and the FPA Research and Practice Institute………………………………………..Full Article: Source

Gold ETF Investing: 10 Facts Investors Need to Know

Posted on 10 June 2016 by VRS  |  Email |Print

Gold ETFs have come back into focus for many investors this year thanks to the soaring price of gold bullion in 2016. Gold is actually up about 20% so far this year which easily trounces broad markets in the time frame, while there has been quite a bit less volatility too.
This is in stark contrast to how the yellow metal had been performing for much of the past few years, as gold was mired in a serious bear market, pushing the commodity far lower than the S&P 500 over the trailing five-year time frame………………………………………..Full Article: Source

ETFs/ETPs Listed Globally Reach Record $3.143 Trillion At End Of May 2016

Posted on 10 June 2016 by VRS  |  Email |Print

ETFGI the leading independent research and consultancy firm on trends in the global ETF/ETP ecosystem, today reported assets invested in ETFs/ETPs listed globally reached a new record high US$3.143 trillion at the end of May 2016, according to preliminary data from ETFGI’s May 2016 global ETF and ETP industry insights report.
Record levels of assets invested in ETFs/ETPs were also reached at the end of May for ETFs/ETPs listed in the United States at US$2.229 trillion, and in Japan which reached US$147 billion. At the end of May 2016, the Global ETF/ETP industry had 6,374 ETFs/ETPs, with 12,200 listings, from 280 providers listed on 65 exchanges in 53 countries………………………………………..Full Article: Source

When It Comes to ETFs, Keep Your Eye on These Three Metrics

Posted on 09 June 2016 by VRS  |  Email |Print

Quick: Choose between buying 1) a biotech exchange-traded fund that trades about 2.3 million shares a day, or 2) a tech ETF that trades less than 7,300 shares per day. If you chose 1, in this case you’d be wrong – but I understand your decision there.
After all, I just told you that to make money in tech stocks, you must consider volume along with price action, fundamentals, and other factors. That’s because some micro-cap stocks are so thinly traded that you might not be able to get out quickly should you need to………………………………………..Full Article: Source

Commodities Enter Bull Market: 6 ETF Winners

Posted on 08 June 2016 by VRS  |  Email |Print

Broad commodities saw a strong start this year and are clearly outperforming global equities and bonds, indicating that the five-year bear market for commodities has finally come to halt. Notably, the Bloomberg Commodity Index, which tracks returns from 22 raw materials, is up over 11% compared to gains of 6% for the global bond market and over 2% for equities from a year-to-date look.
Commodities gained over 20% from the lowest level it touched on January 20, reflecting that the index has entered a bull market. This represents the best start since the notorious commodities’ price spike of 2008………………………………………..Full Article: Source

Gold And Silver Miner ETFs Top Performers So Far in 2016

Posted on 08 June 2016 by VRS  |  Email |Print

With nearly half of 2016 over, the theme for this year in the ETF industry is golden with a silver lining. That’s because the best-performing ETFs of the year and the most popular funds are all related to gold and silver.
The top 10 performing ETFs through May 31 are gold ETFs and silver miner ETFs, which are equity funds comprising gold and silver mining companies. The PureFunds ISE Junior Silver (Small Cap Miners/Explorers) ETF is the best-performing fund so far in 2016 with 130.97% returns since the beginning of the year………………………………………..Full Article: Source

Commodity ETFs in Bull Market for First Time in Four Years

Posted on 07 June 2016 by VRS  |  Email |Print

The commodity market and related exchange traded funds are finally having their moment in the sun, rallying back into a bull market and outperforming traditional equities and fixed-income assets.
Since their January lows, the PowerShares DB Commodity Index Tracking Fund is up 29.7%, iPath Bloomberg Commodity Index Total Return ETN is up 25.3% and iShares GSCI Commodity-Indexed Trust is up 31.5%. ……………………………………….Full Article: Source

SEC Moves to Curb Leveraged ETFs

Posted on 07 June 2016 by VRS  |  Email |Print

It is a rare case of regulator’s remorse. During a deregulatory heyday a decade ago, the Securities and Exchange Commission approved a type of exchange-traded fund allowing mom-and-pop investors to try to double or even triple the daily return of stock markets or bet on such swings in the opposite direction.
Now, after nearly $30 billion has flowed into the products, the SEC is moving to limit them, citing 76-year-old restrictions on how much mutual funds can use potentially risky borrowing to try to juice returns………………………………………..Full Article: Source

ETFs are ‘best’ for investors, says Selftrade

Posted on 07 June 2016 by VRS  |  Email |Print

Investment broker offers performance comparison tool to encourage investors to use index-tracking exchange-traded funds. Online stockbroker Selftrade is aiming to encourage investors into exchange traded funds (ETFs) with reduced prices and a tool to compare returns with actively managed funds.
Richard Donegan, managing director of Selftrade, is championing ETFs and wants to ‘bring them to the forefront because we believe it is in retail investors’ best interest to invest in ETFs’………………………………………..Full Article: Source

Commodities return best three months since 2009

Posted on 06 June 2016 by VRS  |  Email |Print

Commodities have enjoyed their biggest three month gain since 2009, according to a note from S&P Dow Jones Indices. The S&P GSCI (formerly Goldman Sachs Commodity Index) has seen a total return of 9.8% this year-to-date, with commodities now outperforming stocks for the first year since 2007.
While not every broad commodity index has performed as strongly as the S&P GSCI, which is weighted by world production and significantly energy sector-heavy, 2016 has seen a rebound in most commodities from their five-year trend, providing benefits to investors in a range of exchange-traded funds linked to these indices………………………………………..Full Article: Source

3 ETFs to Keep You Invested After Retirement

Posted on 06 June 2016 by VRS  |  Email |Print

Just because you’re retired doesn’t mean you shouldn’t keep investing. Here are three funds that our contributors think are ideal for investing after you’ve retired. If you’re a retiree, you have to strike an important balance with your retirement savings. Not only do you have short-term needs which require you to preserve capital and create income, but you also must continue to invest at least part of your portfolio with the long term in mind.
After all, millions of retirees will live well into their 80s, and if you don’t continue to grow — or at least maintain — some of your nest egg for those later years, you could be in for a pinch later in life………………………………………..Full Article: Source

Best & Worst Performing ETFs So Far In 2016

Posted on 06 June 2016 by VRS  |  Email |Print

It’s been a good year for financial markets so far in 2016. After a bumpy start to the year, most major asset classes are up through the end of May, including stocks, bonds and commodities. Even international stocks are hanging in there, with a slight gain for the year. As of this writing, the Vanguard Total International Stock ETF was up by 1.1% year-to-date.
U.S. stocks are doing a bit better―the SPDR S&P 500 ETF is up 3.5%. That’s essentially the same return that bonds have given investors this year; the iShares Core U.S. Aggregate Bond ETF gained 3.3% on the year………………………………………..Full Article: Source

Defensive ETFs Dominate May Flows

Posted on 03 June 2016 by VRS  |  Email |Print

Investors poured just $2.1 billion into U.S.-listed ETFs in May, putting year-to-date ETF net creations at only $49 billion, about half of May 2015’s net inflows of $84 billion.
The asset-gathering pace has been slow—much slower than the industry has gotten accustomed to—and investors continue to pile in to defensive-type strategies as the market chops sideways………………………………………..Full Article: Source

Fund Flows: Gold ETFs Are In, Equities Are Out

Posted on 03 June 2016 by VRS  |  Email |Print

Asset gathering by U.S.-listed exchange-traded funds has slowed significantly compared to last year, with investors piling into defensive sectors, according to a report by ETF.com.
ETF creations totaled $49 billion in 2016 through the end of May, or roughly half the net inflows for 2015. And according to ETF.com’s Cinthia Murphy, gold and fixed-income funds have led the charge. Of the $12 billion that found its way into commodity-focused ETFs, most of it landed in gold funds. In particular, the SPDR Gold Trust (GLD) alone lured $8.8 billion………………………………………..Full Article: Source

No matter the presidential outcome, a diversified, large-cap ETF is the best bet

Posted on 02 June 2016 by VRS  |  Email |Print

Brace yourself for the financial advice on which presidential outcome will reward which investments. You may be advised, for example, that an exchange-traded fund focused on alternative energy, health care or women in leadership will flourish under a President Hillary Clinton, while an aerospace and defence, real estate, or oil or coal ETF will be trotted out as a smart play for a Donald Trump presidency.
It’s fun – for a parlour game. Now go back to early 2009, when President U.S. Barack Obama was being sworn in. Investing in alternative energy was the best way to play an Obama administration, according to articles written at the time………………………………………..Full Article: Source

Bear Gold Mining Leading Leveraged ETF Pack

Posted on 02 June 2016 by VRS  |  Email |Print

With sooner-than-expected interest rate hike speculation back on the table and regained momentum in the U.S. economy, gold lost its luster over the past week. This is especially true as chances of a rate hike in June and July increased after the April Fed minutes, which revealed that the central bank is on track to raise rates anytime soon provided inflation continues to climb, and the labor market and the economy continue to show strength.
Higher interest rates would diminish gold’s attractiveness since the yellow metal does not pay interest like fixed-income assets and the bullion will lose further………………………………………..Full Article: Source

Trading An ETF

Posted on 01 June 2016 by VRS  |  Email |Print

ETFs look like stocks. They trade like stocks. And the two are similar—up to a point. But when it comes to ETF liquidity, there’s more to the story than just trading volume. Primary vs. Secondary liquidity. When you talk about ETFs, you have to talk about two different kinds of trades.
Most retail investors—and even some institutions—trade in what’s known as the “secondary market,” meaning they buy and sell the pool of ETF shares that already exist. n the secondary market, ETFs trade just like stocks. The “secondary liquidity” is determined mostly by the volume of ETF shares currently moving about………………………………………..Full Article: Source

What You Need to Know About Investing in Currency-Hedged ETFs

Posted on 01 June 2016 by VRS  |  Email |Print

Currencies that just won’t stay still are causing havoc for investors who ventured to buy foreign stocks and bonds. It’s not a new problem, but over the past few years there has been a surge in products designed to eliminate that risk – so-called currency-hedged exchange-traded funds.
But should you consider them as part of your portfolio? “The change in currency prices explains a significant amount of the volatility when investing in international funds,” says Bob Stammers, director of investor education at the CFA Institute in New York………………………………………..Full Article: Source

Active ETFs make major leap ahead of passive brethren

Posted on 31 May 2016 by VRS  |  Email |Print

Assets in active ETFs grew at more than double the rate of passive ETFs in 2015, Pensions & Investments’ annual money manager survey found. Among managers in Pensions & Investments’ universe of the largest managers of U.S. institutional tax-exempt assets, active ETF assets grew 26.7%, to $24.7 billion.
That total, however, is still only a sliver of the $2.46 trillion total reported in ETFs and exchange-traded notes sponsored by the managers in P&I’s universe………………………………………..Full Article: Source

16 Europe ETFs to Hedge Foreign Exchange Risks

Posted on 31 May 2016 by VRS  |  Email |Print

With the U.S. dollar rebounding and European markets recovering, exchange traded fund investors may want to consider a currency-hedged strategy to capture the gains while mitigating the negative effects of an appreciating USD.
For example, the WisdomTree Europe Hedged Equity Fund , the largest Europe currency-hedged ETF, rose 7.6% over the past three months and recently broke above its long-term resistance at the 200-day simple moving average………………………………………..Full Article: Source

ETFs help London to eclipse China for Swiss gold imports

Posted on 30 May 2016 by VRS  |  Email |Print

London has overtaken the traditional gold centres of India and China for shipments of bars from refineries in Switzerland, as the precious metal is sent to UK vaults to back a surge of buying from exchange traded funds.
The UK was the biggest destination for gold exports from Switzerland last month, Swiss customs data show, the most since September 2012. At 78.761 tonnes, more gold was dispatched to UK in April than to Hong Kong, India and China combined. That reflects a sharp change from recent years, when bars were sent from London to be refined in Switzerland before heading to India and China, the largest consumers of gold………………………………………..Full Article: Source

Smart-index ETFs good for passive investors

Posted on 30 May 2016 by VRS  |  Email |Print

Sundeep Sikka, chief executive officer, Reliance Nippon Life Asset Management, believes that one of the main reasons investors should buy passive funds is the massive cost difference of about 150-200 basis points vis-a-vis actively-managed funds. “And for a relatively-low cost, passive funds allow investors to earn broader market returns,” adds Sikka.
Obviously, many fund houses are looking aggressively at this segment to attract investors. Edelweiss Asset Management recently launched Edelweiss ETF-Nifty Quality 30. This exchange-traded fund (ETF) is based on the concept of smart indices. Reliance and Kotak AMC already have ETFs based on these indices. The launch of these ETFs is an interesting development in the evolution of passive investing in India………………………………………..Full Article: Source

The easiest way to buy gold is actually backed by the real thing

Posted on 26 May 2016 by VRS  |  Email |Print

The largest gold exchange-traded fund (ETF) says it has the physical gold to back up every share it issues. Because investors don’t buy physical gold when they purchase shares in the ETF, there’s been concern that the fund does not.
The SPDR Gold Trust exchange-traded fund, which uses the ticker ‘GLD,’ launched in 2004. In part, it serves as a cheaper alternative to investing in the physical metal. It is sponsored by the World Gold Council, which has oversight over the Bank of New York Mellon as a trustee………………………………………..Full Article: Source

ETF investors pile in despite worst gold price run in 6 months

Posted on 26 May 2016 by VRS  |  Email |Print

On Wednesday, gold suffered its sixth straight day of declines as economic data out of the US made an early rate hike by the Federal Reserve more likely and large-scale futures market investors scrambled to liquidate long positions not seen since 2011.
In heavy early afternoon trading gold futures in New York for delivery in June, the most active contract, dropped as low as $1,217.70 an ounce to a seven-week low before clawing back some lost ground. The gold price is down $60 per ounce since Wednesday last week, its longest unbroken losing streak since late November……………………………………….Full Article: Source

Energy ETFs Gush As Oil Eyes $50 A Barrel; Gold ETF Axed

Posted on 26 May 2016 by VRS  |  Email |Print

Stock ETFs chugged higher Wednesday, as investors cheered strong gains in oil prices and a hard-won Greek debt accord. Energy Select Sector SPDR (XLE) popped 1.6% on the stock market today as the sector contributed the most to S&P 500 gains.
Energy stocks rallied as U.S. West Texas Intermediate crude oil futures settled at $49.56 a barrel, their highest level since October. Official crude data released this morning provided further evidence of a drawdown in stockpiles. Inventories fell by 4.2 million barrels to a total of 537.1 million barrels for the week through May 20, according to news reports………………………………………..Full Article: Source

Japan May Be Onto Something with Its New ETF-Style QE

Posted on 25 May 2016 by VRS  |  Email |Print

Necessity is the mother of invention, even when it comes to quantitative easing. After exhausting other, more traditional forms of asset purchase, the Bank of Japan is kicking off its investments in several custom-made exchange-traded funds, or ETFs, that screen specifically for companies that increase workers’ wages and carry out the most capital expenditure.
The new custom-made ETFs track the following indexes: the MSCI Japan Human and Physical Investment Index, the JPX/S&P Capex & Human Capital Index, and the Nomura Enterprise Value Allocation Index………………………………………..Full Article: Source

The ETF Hedge That’s Lost Its Edge

Posted on 24 May 2016 by VRS  |  Email |Print

Currency-hedged ETFs are intended to be the solution to a problem that’s always existed, but really wasn’t on most investors’ radar until recent years—that of the impact of currency on foreign security returns. Currencies are known as one of the most difficult markets to time, and an asset that’s practically impossible to forecast. That’ll never change.
Some investors may have simply viewed currency risk as one of many market risks that can’t be avoided; others who did recognize it as a problem may have seen no simple or affordable solution to manage that problem—that is, until the advent of low-cost currency-hedged ETFs………………………………………..Full Article: Source

Investors Embrace This ETF To Fight Inflation

Posted on 24 May 2016 by VRS  |  Email |Print

Last week, the federal government reported that the core Consumer Price Index in April rose by 2.1% year-over-year, above the Federal Reserve’s 2% target. There has been a recent string of reports that inflation is creeping higher.
In tandem with that trend is the popularity of one ETF that is designed to combat the impact of rising inflation on a fixed-income portfolio: the iShares TIPS Bond ETF. The fund has seen more than $3.2 billion of new inflows so far this year, making it one of the most popular fixed-income ETFs. ……………………………………….Full Article: Source

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