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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

For the First Time, There’s More Money in ETFs Than Hedge Funds

Posted on 21 July 2015 by VRS  |  Email |Print

Exchange-traded funds may be relative upstarts compared with hedge funds, but financial advisers and other investors have for the first time entrusted them with more cash. Assets in the 5,823 ETFs and other exchange-traded products listed globally totaled $2.971 trillion at midyear, according to ETFGI LLP, a London-based exchange-traded-product consultancy.
Meanwhile, assets in hedge funds world-wide totaled $2.969 trillion, according to a report released Monday by Hedge Fund Research Inc. in Chicago. As of HFR’s previous quarterly report, hedge funds around the world had $2.939 trillion in assets, while ETPs had $2.926 trillion as of that same March 31 date, according to ETFGI………………………………………..Full Article: Source

Mining ETFs Feel Gold’s Pain

Posted on 21 July 2015 by VRS  |  Email |Print

Gold mining stocks are getting slammed today, and the exchange-traded funds that track them are feeling the pain. Funds linked to gold miners accounted for eight out of the 10 worse-performing ETFs tracked by Barrons.com, with the Market Vectors Gold Miners (GDX) falling almost 8.3% after more than 47.6million shares changed hands.
Among leveraged ETFs, the Direxion Daily Gold Miners Bull 3X fund (NUGT) plunged almost 24% and the Direxion Daily Junior Gold Miners Index Bull 3X ETF (JNUG) dropped almost 21%. The ProShares Ultra Gold Miners ETF (GDXX) plunged almost 16%………………………………………..Full Article: Source

ETFs a cheaper, low-risk option for stock investors

Posted on 20 July 2015 by VRS  |  Email |Print

Index-tracking funds are enjoying a revival as investor appetite for regional equities grows. Trading in such exchange-traded funds (ETFs) rose 39.4 per cent to $1.51 billion in the first half, from $1.08 billion in the same period last year. In contrast, the total turnover on the Singapore Exchange (SGX) inched up 6.2 per cent to $145.66 billion in the six months to June 30.
This marks a remarkable about-turn from the past three years when ETF activity declined. Total ETF turnover had fallen by 27.7 per cent last year to $2.35 billion from 2013’s $3.25 billion, which was itself a 37 per cent drop from $5.16 billion in 2012………………………………………..Full Article: Source

Huge Inflows To High Yield ETFs Once Again Swamp Mutual Fund Withdrawals

Posted on 17 July 2015 by VRS  |  Email |Print

There was a net $1.23 billion inflow to U.S. high-yield funds in the week ended July 15, following the diminutive $45 million inflow the week prior, according to Lipper. However, for a second consecutive week, the net inflow this week represents an inverse flow of a $273 million withdrawal from mutual funds overfilled greatly by an inflow of $1.5 billion to the ETF segment.
Last week it was the same, but to a much lesser extent, at negative $261 million and positive $306 million, respectively. This week’s observation is the third such negative correlation in that manner in four weeks. Indeed, the week ended June 24 had $668 million of mutual fund withdrawals overpowered handsomely by inflows of $1.3 billion to ETFs………………………………………..Full Article: Source

Carl Icahn Fuels Criticism of Bond ETFs

Posted on 17 July 2015 by VRS  |  Email |Print

The Greek government is working on a bailout, Chinese stocks are slumping and U.S. investors are counting down to an expected interest-rate increase. But what is really concerning a growing number of investors is whether a crisis is brewing in the expanding world of exchange-traded bond funds.
Bond ETFs have emerged as one of Wall Street’s most lucrative niches in recent years, promising buyers the steady income of bonds in a package that is as easy to trade as stocks. Now, a building chorus of investors—including activist investor Carl Icahn—is warning that this best-of-all-worlds pitch may be a mirage……………………………………….Full Article: Source

Gold ETF Slips As Fed Rate Worries Spook Investors

Posted on 16 July 2015 by VRS  |  Email |Print

The largest gold ETF briefly hit a 52-week low before closing at the top of its trading range Wednesday. Gold prices sank to an eight-month low after the Federal Reserve signaled it’s on track to raise interest rates by year-end.
The outlook for the precious metal isn’t all grim. The second half of the year is typically a stronger season for the metal, as gold fabricators return to the market to replenish supplies, said RalphAldis, a portfolio manager at U.S. Global Investors………………………………………..Full Article: Source

Carl Icahn calls BlackRock a ‘dangerous’ company, cites ETF concerns

Posted on 16 July 2015 by VRS  |  Email |Print

Billionaire activist investor Carl Icahn on Wednesday lambasted BlackRock Inc, the world’s largest asset manager, as an “extremely dangerous company” because of the prevalence of its exchange-traded fund products, which Icahn deems illiquid.
“They sell liquidity,” Icahn said in reference to BlackRock’s ETF business. “There is no liquidity. That’s my point. And that’s what’s going to blow this up.” Icahn was speaking at the CNBC Institutional Investor Delivering Alpha Conference in New York, sharing the stage with Larry Fink, chief executive of BlackRock. Icahn said he was concerned about the amount of money invested in high-yield ETFs, which he called “overpriced.”……………………………………….Full Article: Source

Energy leads ETP outflows in June after Q1 ramp up

Posted on 16 July 2015 by VRS  |  Email |Print

Energy led a net $976 million in outflows from commodity exchange-traded products (ETPs) in June after a rally in Brent crude oil futures petered out while silver drew inflows, data from BlackRock showed on Wednesday.
Some $891 million was redeemed from energy ETPs last month, the data showed, following a period of range-bound trading in Brent that developed into a 4 percent decline in June. In total, some $2.67 billion was pulled from energy ETPs in the second quarter - a reversal of sentiment from the first quarter when investors put $8 billion into energy ETPs, trying to position for an oil price rebound………………………………………..Full Article: Source

Gold ETFs Fail The Volatility Test

Posted on 15 July 2015 by VRS  |  Email |Print

In my experience as an investment advisor, gold bullion and other precious metals are often times a very polarizing asset class to own. You either love it because you are worried about inflation, currency manipulation and market volatility, or hate it because you have no idea when it actually works to hedge those themes.
Anyone who has been watching the price of the SPDR Gold Shares ETF over the last four years has seen the deflationary pressures this yellow metal has succumbed to. GLD peaked near $185 back in 2011 and is currently trading near its lowest levels of this bull market at $110. That represents a total decline from peak to present day of 40%………………………………………..Full Article: Source

What is in Store for Industrial Metal ETFs After China Rout?

Posted on 15 July 2015 by VRS  |  Email |Print

Things were fragile for long in China given the protracted slowdown in the domestic manufacturing sector, credit crunch concerns and a property market slowdown. As a result, the Chinese economy has been undergoing a tumultuous phase for the last few months.
To inject fresh optimism into the ailing economy, the People’s Bank of China (PBOC) went into an accommodative policy mode last year, cutting interest rates thrice in just six months, announcing a mini stimulus package mainly targeted at railways and other construction investment, declaring a tax relief for small enterprises and so on. But nothing could repair the economic hole………………………………………..Full Article: Source

Asia Pacific ex-Japan ETFs/ETPs increased 4.3% in H1 2015

Posted on 15 July 2015 by VRS  |  Email |Print

Assets invested in ETFs/ETPs listed in Asia Pacific ex-Japan increased 4.3% in the first half of 2015, according to research and consultancy firm ETFGI’s preliminary ETF and ETP global insights report for that period. At the end of June, the Asia Pacific (ex-Japan) ETF/ETP industry had 682 ETFs/ETPs, with 821 listings, assets of US$123 billion, from 113 providers listed on 17 exchanges in 13 countries.
“June was a difficult month for most markets around the world,” said Deborah Fuhr, managing partner of ETFGI. “The S&P 500 index ended June down 2% for the month and finished the first half of 2015 up 1%. Market performance in the first half of 2015 was impacted by a number of uncertainties: the situation in Greece and the impact on the eurozone, when the Fed will raise interest rates, volatility in the Chinese market and the MERS outbreak in South Korea.”……………………………………….Full Article: Source

The 13 Best and Most Interesting ETFs to Launch in the First Half of 2015

Posted on 14 July 2015 by VRS  |  Email |Print

Each month, countless new ETFs hit the market. Many of these funds fail to offer up anything new or simply stay underneath investors’ radars. And with over 100 new ETFs hitting the market in the first half of 2015 alone, it can be tough to find the truly important-or potentially useful-new funds in this massive bunch.
Fortunately for you, I have combed through the list and picked out a baker’s dozen (OK I am being generous by counting two different ‘types’ as one) of ETFs that are worth noting out of this nearly 150 new fund group. Some of these have already gone on to great popularity while several others are waiting for the right moment or may not even be known by investors right now ……………………………………….Full Article: Source

Junk-Bond ETFs Show Just How Desperate Traders Are for Liquidity

Posted on 14 July 2015 by VRS  |  Email |Print

Junk-bond investors are getting more and more desperate for liquidity as the Federal Reserve moves closer to ending its era of unprecedented stimulus. The proof is in the hefty price they’re willing to pay to own the most frequently traded bonds, which have steadily returned less than the broader $1.7 trillion U.S. high-yield market for more than three years.
They’re also increasingly turning to exchange-traded funds to enter and exit the market, as evidenced by bigger trade sizes. “People will say, ‘I just need a liquid way to gain exposure or reduce exposure,’” said Oleg Melentyev, a credit strategist at Deutsche Bank AG in New York. “The more liquid part of the market is trading at more of a premium.”……………………………………….Full Article: Source

Should You Buy Commodity ETFs?

Posted on 13 July 2015 by VRS  |  Email |Print

Of all the asset classes available to investors, commodities are probably the least understood. That’s not surprising, because most financial content centers around stocks and bonds. Commodity markets are strange and exotic by comparison. Commodity ETFs differ from equities in one very substantial way.
Equities are expected, over time, to appreciate. The idea is that stock prices tend to follow earnings, and earnings generally appreciate over the long term. This expectation contrasts with, say, a casino, where the expectation for the gambler is negative over time. The house will always win in the long run, although gamblers may experience brief periods of positive return………………………………………..Full Article: Source

Gold ETFs Fail The Volatility Test

Posted on 10 July 2015 by VRS  |  Email |Print

In my experience as an investment advisor, gold bullion and other precious metals are often very polarizing asset classes to own. You either love gold because you’re worried about inflation, currency manipulation and market volatility, or you hate it because you have no idea when it actually works to hedge those themes.
Anyone who has been watching the price of the SPDR Gold Shares ETF (GLD) over the past four years has seen the deflationary pressures this yellow metal has succumbed to. GLD peaked near $185 back in 2011 and is currently trading near its lowest levels of this bull market at $110. That represents a total decline from peak to present day of 40%………………………………………..Full Article: Source

Inflows into ETFs see record first half despite market volatilty

Posted on 10 July 2015 by VRS  |  Email |Print

Strong inflows into exchange traded funds (ETFs) this year, which have grown during the recent market volatility, has underscored the growing strategic role the products are playing in investor portfolios, according to industry observers. A record level of $152bn (£99bn, €138bn) in net new assets flowed into exchange traded funds and products (ETFs/ETPs) around the world in the first six months of 2015, according to preliminary data from research firm ETFGI.
The rise in net assets, particularly for equity ETFs which saw a big rise in June, came during a period when the Chinese stock markets fell by around 30% and the Greek crisis rattled markets around the world. Globally the ETF industry had assets of $2.97trn by the end of June held in 11,295 listed products from 259 providers available on 62 exchanges in 51 countries, the London-based data provider said………………………………………..Full Article: Source

Dude, Where’s my pot ETF?

Posted on 10 July 2015 by VRS  |  Email |Print

Pot has been generating lots of buzz. Twenty-three states and the District of Columbia have legalized marijuana, either for medicinal or personal use, while an additional 13 have planned votes by 2016. If the trend toward legalization continues, there’s big profit potential, considering $2.5 billion in legal sales last year—and the estimated $60 billion in illegal sales.
ArcView Market Research estimates that the national cannabis market will reach $10.8 billion in sales (retail and wholesale) by 2019. While there are exchange-traded funds for rare earth metals and for stocks headquartered in Nashville there are no ETFs that track pot stocks. An argument against a pot ETF is that the stocks are tiny and volatile. That may actually be the best reason for such an ETF, since volatility can be lessened through diversification………………………………………..Full Article: Source

Worst 10 Commodity ETFs Of 2015

Posted on 10 July 2015 by VRS  |  Email |Print

While gasoline, cocoa, cotton and a few other commodities performed relatively well during the first half of the year, for the most part, the asset class continued to struggle. Indeed, while it only took a gain of 1.6 percent to make the top 10 performers list for commodity ETFs, it took a decline of nearly 16 percent to make this worst performers list.
All of the ETFs on this list are single-commodity products, with metals and soft commodities taking up nine of the 10 spots. Returns are as of June 30. ETFS Physical Palladium: One of the best-performing commodities last year, palladium, has taken it on the chin so far this year. A swift recovery in South African supplies following the crippling strikes of 2014 left many traders surprised………………………………………..Full Article: Source

Global ETF industry pulls in record $152 billion in first half of 2015

Posted on 09 July 2015 by VRS  |  Email |Print

A record level of $152 billion in net new assets was gathered by exchange-traded funds and exchange-traded products listed globally in the first half of 2015, according to data from industry consultants ETFGI. The figure surpasses the prior record of $130 billion gathered in the first half of 2014. At the end of June 2015, the global ETF/ETP industry had 5,823 ETFs/ETPs, with 11,295 listings, assets of $2.971 trillion, from 259 providers listed on 62 exchanges in 51 countries.
At a regional level, US listed ETFs/ETPs took the lion’s share of net new assets over the six-month period, gathering an impressive $103 billion, beating the previous record of $76 billion gathered in the first half of 2012. European listed ETFs/ETPs gathered $40 billion, beating the $32 billion gathered in the first half of 2014………………………………………..Full Article: Source

ETFs: Risky business

Posted on 08 July 2015 by VRS  |  Email |Print

We have had a halcyon period in the markets: few patches of volatility as indices have hit all-time highs. But this calm period is a good time to stop and take stock; to build the defences before the storm comes.
ETFs are often associated with profit seeking. ETFs cover a wide range of assets, some of which can add risk to a portfolio in the hope of greater returns. Low charge funds suit return maximisation, since profits are reduced by high fees, but ETFs can be used to give balance to a portfolio too – leading us to ETFs ideal for risk management………………………………………..Full Article: Source

Easy access ETFs not immune to risk

Posted on 08 July 2015 by VRS  |  Email |Print

Exchange-traded funds have revolutionised the investing world but some say they have yet to be tested in times of crisis. Exchange-traded funds (ETFs) have democratised the investment world, offering ordinary investors low-cost access to asset classes that were previously the preserve of institutional money managers.
However, there are fears that ETFs may also be a source of peril – both to ordinary investors and, in a worst-case scenario, to the broader financial system. ETFs are similar to ordinary funds in that they provide access to a basket of stocks. However, they trade like stocks and can be bought and sold throughout the trading day………………………………………..Full Article: Source

El Niño: Crop yields and commodity ETF strategies

Posted on 08 July 2015 by VRS  |  Email |Print

Heavy rains in the US midwest delayed the harvest and pushed wheat prices higher in June. With rising certainty that a significant El Niño weather event will occur this year, what can we expect for agricultural commodity prices? El Niño forms when temperatures in the central and eastern Pacific Ocean rise above normal levels, disrupting atmospheric circulation worldwide and often causing extreme weather events.
According to the Australian Bureau of Meteorology, sea surface temperatures are at levels unseen since 1997 when droughts in Australia and flooding in the United States led to billions of dollars of damage. While meteorologist are uncertain as to the strength of the weather event this year, it usually has most impact in the second half of the year so will be monitored with caution………………………………………..Full Article: Source

ETPs promise easy exposure to metals

Posted on 07 July 2015 by VRS  |  Email |Print

The advent of commodity exchange-traded products (ETPs) has revolutionised the way in which investors access commodity markets, providing exposure to both physical spot prices and future returns.
Physical commodity ETPs are backed by a specific quantity of a commodity and provide exposure to movements in underlying spot prices. Synthetic commodity ETPs, on the other hand, generally track indices comprised of underlying commodity futures contracts that continuously reset, or roll, and give exposure to price movements………………………………………..Full Article: Source

Greece and Safe Haven ETFs

Posted on 07 July 2015 by VRS  |  Email |Print

Whichever way you think the eurozone is going to go, there are ETFs for all investors seeking exposure to UK and European government bonds. Will Greece crash out of the Euro? No one knows for sure. Would it really matter? Yes, though probably not as much as it did two years ago. Financial markets have shown a rather sanguine reaction to the twists and turns of the Greek saga throughout this year.
Yes, there has been volatility. However, it has been fairly contained. Those expecting a major dip in peripheral bond market valuations (i.e. contagion) have been met with fairly muted moves. All the while, the Euro has proven to be surprisingly resilient. Of course, the future situation may evolve quite differently but it’s looking somewhat unlikely………………………………………..Full Article: Source

Pick and Choose Commodity Exposure with ETFs

Posted on 07 July 2015 by VRS  |  Email |Print

Investors can utilize exchange traded funds to target specific commodity opportunities as the commodities market begins to show greater divergence among its various components. Over the past three months, the broader commodities market has been turning around. For instance, the PowerShares DB Commodity Index Tracking Fund rose 2.3% and iShares GSCI Commodity-Indexed Trust increased 4.2%.
Nevertheless, investors can also target specific commodities to capture changes in fundamentals of the underlying market. For example, the United States Oil Fund, which tracks West Texas Intermediate crude oil futures, gained 8.7% over the past three months and the iPath Dow Jones UBS Agriculture Sub-Index ETN rose 5.8%………………………………………..Full Article: Source

Chinese state-owned investor purchasing ETFs

Posted on 06 July 2015 by VRS  |  Email |Print

China state-owned investment company Central Huijin Investment Ltd said on Sunday that it has recently purchased exchange-traded funds (ETFs) on the stock market and will continue to do so, according to a statement on its website.
The announcement confirms widespread speculation that a sharp rise in inflows into Chinese ETFs last week were in fact coming from Central Huijin and other government-controlled entities as authorities sought to prevent a stock market collapse………………………………………..Full Article: Source

Here’s why ETFs are a growing part of total trading value

Posted on 03 July 2015 by VRS  |  Email |Print

Many people have asked me how important ETF’s are. The simple answer is, they are important and getting more important. They are a significant portion of trading activity on all the exchanges. How important?
Volume is not the right metric to use when dealing with ETFs. It’s better to use “traded value,” which as the name implies is the actual dollar value of what is traded. In June, ETF trading was close to 28 percent of total daily exchange value, according to Credit Suisse. That’s the most since March. More importantly, it’s a 35 percent increase from last June………………………………………..Full Article: Source

Top 10 Best Performing ETFs at Midyear 2015

Posted on 03 July 2015 by VRS  |  Email |Print

ETFs focused on Chinese equities delivered the biggest returns in the first half of the year, according to ETF.com data. “The strong performance was largely tied to a reform-minded government that has shown itself committed to do whatever it takes to grow and open up the stock market,” writes Cinthia Murphy in a ETF.com report.
ETF.com, which just released its June Midyear 2015 ETF fund flows data, reports that midyear ETF inflows set a new record of $101 billion. The data showed total U.S.-listed ETF assets stood at $2.118 trillion at the end of June—6% higher than at the end of 2014 and 14% higher than a year ago………………………………………..Full Article: Source

Rough Days Ahead for Platinum ETF

Posted on 02 July 2015 by VRS  |  Email |Print

Thanks to a stronger dollar led by expectations of higher interest rates, many of the commodities have been reeling under pressure this year. The broad-based DB Commodity Index Tracking Fund (DBC) is down 4.5% this year, indicating that the pain has been felt across the broad.
In fact, the precious metals space has been one of the worst performers with Physical Platinum Shares (PPLT) down 10.8% since the start of the year. Despite a long-term deficit which indicates a bullish trend, the sentiment for the precious metal has been weak………………………………………..Full Article: Source

Alternative Investments, ETFs Are Increasingly Popular

Posted on 02 July 2015 by VRS  |  Email |Print

Institutional investors and hedge funds are expected to significantly raise their allocation to alternative investment strategies ahead. With exchange traded funds, any investor can access alts strategies as well.
According to PwC, the alternative investment industry is expected to expand fivefold to at least $13.6 trillion in the next half decade, compared to its current $2.5 trillion, reports Svea Herbst-Bayliss for Reuters. PwC also calculates that liquid alternative funds could grow to $664 billion by 2020 from $260 billion at the end of 2013………………………………………..Full Article: Source

Strong $1.6 bln inflows into top Shanghai ETFs fuel govt support speculation

Posted on 01 July 2015 by VRS  |  Email |Print

The four biggest exchange-traded funds (ETFs) on the Shanghai Stock Exchange attracted nearly 10 billion yuan ($1.6 billion) worth of subscriptions on Monday, when major indexes slumped more than 3 percent.
The huge single-day money flows into ETFs tracking China’s key indexes triggered speculation that state-backed institutions were stepping into the market to prop up shares of blue chips amid the market’s recent sell-off. Intensive subscriptions were seen on Monday for the four major ETFs - China AMC 50 ETF, Huatai-PB CSI300 ETF , China AMC CSI300 ETF and Hua An Shanghai 180 ETF, exchange data showed………………………………………..Full Article: Source

3 Agricultural ETFs Rising on Wet Weather

Posted on 01 July 2015 by VRS  |  Email |Print

After a rough patch over the last six months thanks to a stronger dollar and accelerated crop plantation on a favorable weather outlook, agricultural ETFs seem to have turned the corner. Last week was great for the beaten down agro-based commodities, as worries over wet weather in America’s key growing belts led traders to bet on the contracts of several agricultural commodities.
Almost all agro-based commodities added gains last week (as of June 26, 2015) and are likely to see more surges in the short term. Fears that led to this spike revolved around weather in the key grains growing states in the Midwest. Existing wet and cold weather and predictions for more rains are causing delay in the planting of this year’s crops by farmers………………………………………..Full Article: Source

Highland ETFs Offer Hedge Fund-Mimicking Alternative

Posted on 30 June 2015 by VRS  |  Email |Print

Nervous about a tired bull market, rising bond yields and a potential Greek exit? Investors no longer have to search far or pay a steep hedge fund fee for peace of mind, according to Ethan Powell, chief product strategist for Highland Capital Management Fund Advisors.
He said his company’s three new alternative exchange-traded funds “run anywhere between 50% net long to 75% net long so right off the bat you have muted exposure to the marketplace which is where you want to be in this type of uncertain market,” said Powell. The three ETFs that replicate hedge fund strategies are: Highland HFR Global ETF (HHFR), Highland HFR Event Driven ETF (DRVN) and the Highland HFR Equity Hedge ETF (HHDG). All three new Highland ETFs carry fees of 0.85% per year………………………………………..Full Article: Source

Is now a good time to buy U.S. ETFs?

Posted on 30 June 2015 by VRS  |  Email |Print

If you’re investing for the long haul and it isn’t a big lump sum amount, now is as good a time as any to buy U.S. ETFs. Why do I say that with such confidence? Because I’m not a market timer. I think it is almost impossible to predict where the market will move in the short term.
There are those who cite the Shiller P/E to support the view that the market is inflated. And others, like Terry Shaunessy of Shaunessy Investment Counsel, who disagree. “Both the S&P 500 and large-cap international markets continue to look attractive as the companies that dominate these indexes are global companies that sell their products worldwide, such as Apple in the U.S. or Nestlé in Europe,” he says………………………………………..Full Article: Source

2 Commodity ETFs Surging Double Digits in 1H

Posted on 29 June 2015 by VRS  |  Email |Print

After a dreadful 2014, broad commodities have continued to underperform this year too. This is especially true in the backdrop of a strong dollar, lower oil price and weak global fundamentals that have dampened the appeal for these commodities.
While the U.S. economy is improving, slowdown in the world’s largest consumer of raw materials - China - as well as sluggish growth in Europe, Japan and other emerging markets has added to the woes. Additionally, both the World Bank and the International Monetary Fund have lowered their global growth forecast for the next two years, putting further pressure on commodity prices………………………………………..Full Article: Source

The BIS on ETFs and bond market liquidity

Posted on 29 June 2015 by VRS  |  Email |Print

The latest BIS Annual Report, released on Sunday, cites numerous concerns about the unseen damage being caused to financial stability on account of ultra-low interest rates. Key among those concerns: how liquidity-guaranteeing ETFs in the bond sector may be contributing to a global liquidity illusion, disguising the true state of the ability to trade positions on the bond market — a topic very close to FT Alphaville’s heart.
As the report notes (our emphasis): Another key change in bond markets is that investors have increasingly relied on fixed income mutual funds and exchange-traded funds (ETFs) as sources of market liquidity. Bond funds have received $3 trillion of investor inflows globally since 2009, while the size of their total net assets reached $7.4 trillion at the end of April 2015……………………………………….Full Article: Source

How To Invest Your Money In The Second Half Of 2015

Posted on 29 June 2015 by VRS  |  Email |Print

The first half of 2015 is practically in the rearview mirror. SPDR Dow Jones Industrial Average ETF (DIA) added 1.8% year to date, through June 26. SPDR S&P 500 ETF (SPY) returned 3%. The tech-heavy PowerShares QQQ ETF (QQQ) jumped 6%.iShares MSCI EAFE ETF (EFA), tracking foreign-developed markets, rallied nearly 10%.
iShares MSCI Emerging Markets ETF (EEM) picked up 2.4%. How should you invest your money in the second half of the year? I asked a panel of six financial advisors to share their read on the stock market and best investment recommendations………………………………………..Full Article: Source

Price War Rages in Currency-Hedged ETFs; ProShares Fires Salvo

Posted on 26 June 2015 by VRS  |  Email |Print

A price war is raging in the white-hot market for currency-hedged exchange-traded funds. ProShares, an ETF company best known for fast-moving leveraged products, unveiled its iterations of currency-hedged European and Japanese stock ETFs on Thursday. They appear boast lowest management fees on the market. So far.
The ProShares Hedged FTSE Europe ETF (HGEU) sports an 0.27% in annual expenses, while the ProShares Hedged FTSE Japan ETF (HGJP) cost s 0.23%. ProShares reckons that the asset-weighted average expense ratio for currency-hedged European stock ETFs was 0.56%; it’s 0.48% for currency-hedged Japan ETFs was 0.48%………………………………………..Full Article: Source

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