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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

The 3 Best Silver ETFs

Posted on 20 May 2016 by VRS  |  Email |Print

A silver ETF should closely track the performance of the silver index for the physical commodity. Likewise, a silver mining ETF should track and magnify the gain and losses of silver as it rises and falls. Amid a dearth of silver ETF choices, these three funds do exactly what they should. iShares MSCI Global Silver Miners, iShares Silver Trust, and Global X Silver Miners ETF.
iShares MSCI Global Silver Miners: This fund invests in companies that mine silver all over the world, holding positions in 36 different miners at the time of writing. Designed to track the MSCI ACWI Select Silver Miners Investable Market Index, it invests only in companies in the silver mining industry that are “highly sensitive to the underlying prices of silver.”……………………………………….Full Article: Source

Bank of Japan enters ETF market

Posted on 19 May 2016 by VRS  |  Email |Print

ETFs are so hot, even the Bank of Japan is getting into the market. The BOJ in December told Japan’s fund management industry to launch exchange traded funds, better known as ETFs, that will help further the government’s growth policies and the central bank’s massive monetary easing program.
And on Thursday that finally comes to fruition when two of the three new “physical and human capital” ETFs will hit the market. The BOJ will be the biggest buyer because it needs more assets to satisfy its plan to buy 32 billion yen worth of ETFs each month. Already, the BOJ has bought 50% of Japan’s 15 trillion yen “plain vanilla” market………………………………………..Full Article: Source

Defensive ETFs: Too Good to Be True?

Posted on 19 May 2016 by VRS  |  Email |Print

Defensive strategies, like those followed by low-volatility ETFs, can produce better risk-adjusted returns while smoothing out the highs and lows of the market. Low-volatility strategies offer defensive exposure to the stock market, attempting to give investors a smoother ride with better performance during market downturns.
In exchange, they tend to lag during strong rallies. That’s an attractive trade-off for risk-averse investors. There are other ways to reduce risk, such as allocating a larger portion of a portfolio to cash or bonds and less to stocks. But low-volatility stocks will likely offer a better risk/reward trade-off than the broad stock market or a stock/bond portfolio of comparable volatility. ……………………………………….Full Article: Source

ETFs Get Their Timing Wrong

Posted on 18 May 2016 by VRS  |  Email |Print

Timing is everything when launching new investment products, but some asset managers just don’t have it on their side. A host of exchange-traded commodity products closed last year amid a deep slump in the prices of raw materials and energy, only to miss a strong rebound in the prices of oil, gold and other commodities this year.
At the same time, the number of exchange-traded products that seek to mitigate the return-eating effect of a strengthening dollar while investing in securities outside of the U.S. soared last year to 90 from 33 in 2014, according to consulting firm ETFGI………………………………………..Full Article: Source

The volatile gold play that’s nearly doubled this year

Posted on 17 May 2016 by VRS  |  Email |Print

Can you dig it? This year’s best-performing exchange-traded funds are all gold plays. Among ETFs with more than $500 million in market value, the top dog is triple-leveraged gold miners product (NUGT), with an insane 315 percent rally.
But nipping at its heels is unleveraged gold mining pick (GDXJ), which tracks smaller, or “junior” gold miners, which tend to be more volatile. That ETF is up 98 percent this year, outperforming its bigger brother (GDX), which is also a VanEck Vectors product. What’s incredible is that even after nearly doubling this year, the GDXJ is still down 73 percent over the past five………………………………………..Full Article: Source

Higher Gold Prices Driven By ETFs

Posted on 17 May 2016 by VRS  |  Email |Print

The World Gold Council reported last week that demand for the yellow metal grew at 21% in the first quarter, its fastest quarterly pace on record. This comes despite the fact that demand in China and India—the two biggest countries when it comes to gold purchases—was down.
What’s driving the price of gold in 2016 are physically backed gold ETFs. Nearly $10 billion of new inflows have hit the SPDR Gold Trust, $7.7 billion year-to-date, and the iShares Gold Trust, $1.7 billion. For perspective, the two funds had combined outflows of $2.4 billion in 2015 and outflows of $3.5 billion in 2014………………………………………..Full Article: Source

Paulson Cut Gold ETP Stake as Metal Surged Most Since ’86

Posted on 17 May 2016 by VRS  |  Email |Print

Billionaire hedge-fund manager John Paulson retreated from gold for a second straight quarter, even as prices of the metal posted the biggest gain in three decades. At the end of the first quarter, Paulson & Co., owned 4.8 million shares of SPDR Gold Shares, the world’s biggest exchange-traded product backed by bullion, a government filing showed.
That compares with 5.8 million shares in the three months ended December. Gold futures have climbed 20 percent this year, including a 17 percent surge in the first three months that marked the best quarter since 1986………………………………………..Full Article: Source

Why the ETF acronym can be misleading

Posted on 17 May 2016 by VRS  |  Email |Print

Sometimes an ETF isn’t exactly an ETF. As investors, the media and regulators put more focus on exchange-traded funds, it’s worth asking what exactly an ETF is. The term was coined back in 1996 by Morgan Stanley, which needed a generic name to put into the prospectus for its new World Equity Benchmark Series (WEBS) products, which years later became iShares.
Until 1996, that really was just the SPDR S&P 500 Trust (SPY). Little did the bank know how quickly the ETF acronym would catch on, eventually growing to include an eclectic group of products – some of which aren’t technically funds and don’t always trade on an exchange, if they trade at all. Here’s a breakdown of an acronym that can, at times, be a bit misleading………………………………………..Full Article: Source

Why they say no to ETFs

Posted on 16 May 2016 by VRS  |  Email |Print

Exchange Traded Funds, which are very popular in developed markets, have not really taken off in Indian markets. Sample this: there are 1,577 ETFs traded on the NYSE, 1,109 listed on Deutsche Börse and 2,315 ETFs on London SE group towards the end of December 2015, according to World Federation of Exchanges. But the National Stock Exchange trades just 54 ETFs.
Exchange Traded Funds (ETFs), as their name denotes, are mutual funds that are traded on stock exchanges and bought and sold like stocks. They mostly track an underlying index and are passive investment tools, that is, the fund manager has no role to play in ETFs. The expense ratio is, therefore, much lower in ETFs………………………………………..Full Article: Source

2016 gold price rally’s all about ETFs, hedge funds

Posted on 13 May 2016 by VRS  |  Email |Print

On Wednesday, gold snapped back some of its recent losses adding nearly $10 in New York in another day of brisk trading. At $1,275 an ounce, gold is up just over 20% since the start of the year. A new study shows the rally – the best start to the year in almost three decades – has been almost entirely driven by investors in physical gold-backed exchange traded funds and large-scale futures speculators like hedge funds.
According the the World Gold Council’s Gold Demand Trends study ETF investors who’ve been stocking up on the metal right out of the gate in 2016 were behind the best ever first quarter for the metal and the second largest quarter on record after Q1 2009………………………………………..Full Article: Source

European ETFs Reach Record Assets After $3.1B In April Inflows

Posted on 13 May 2016 by VRS  |  Email |Print

U.S. exchange-traded funds and products set a new asset record last month, and the same goes for their European counterparts, according to data from ETFGI out Thursday. Europe-listed ETFs and ETFPs saw their assets swell to US$533.34 billion by the end of last month, after attracting $3.13 billion in inflows. As of April 30, the industry had 2,197 products for investors to choose from, from 52 providers on 25 exchanges in 21 countries.
European ETFs have seen 19 straight months of inflows, with fixed-income products seeing the most investor interest ($4.16 billion in inflows), while commodity ETFs were a close second, with $901 million in inflows, easily offsetting $2.08 billion in outflows seen by equity-based products………………………………………..Full Article: Source

ETFs/ETPs Listed In Europe Reach Record $533 Billion At End of April 2016

Posted on 13 May 2016 by VRS  |  Email |Print

Assets invested in ETFs/ETPs listed in the Europe reached a new record high of US$533.34 billion at the end of April 2016, according to preliminary data from ETFGI’s April 2016 global ETF and ETP industry insights report.
Record levels of assets were also reached at the end of April for ETFs/ETPs listed in Canada which reached US$77.42 billion, in the United States US$2.217 trillion, in Japan US$145.93 billion, in Asia Pacific ex-Japan US$125.21 billion, and for ETFs/ETPs listed globally which reached US$3.317 trillion………………………………………..Full Article: Source

Soaring Silver ETFs to Snap Up as Metals Shine

Posted on 12 May 2016 by VRS  |  Email |Print

The iShares Silver Trust ETF and the ETFS Physical Silver Shares ETF are each up about 23% year-to-date clearly making the duo two of the best-performing precious metals exchange traded funds this year.
An alternative view is that betting against silver ETFs and betting on an inverse product such as the ProShares UltraShort Silver ETF has been hazardous to a portfolio’s health. Silver and other precious metals enjoyed safe-haven demand as the equities market plunged into a correction………………………………………..Full Article: Source

Gold ETFs to Continue Their Bull Run: Here’s Why?

Posted on 12 May 2016 by VRS  |  Email |Print

Gold has been on investors’ radar since the start of the year given that the bullion has made a spectacular comeback after being shunned for three years. After hitting the 15-month high of $1,300 per ounce on May 2, the precious metal lost its momentum to trade around $1,275 per ounce currently. Notably, the yellow metal has risen about 20% so far this year.
Given this, many investors are concerned about the continuation of the bull run in gold. For them, we have highlighted some strong reasons to remain invested in gold and gold ETFs or buy on pullbacks:……………………………………….Full Article: Source

ETFs/ETPs In U.S. Reach Record Of $2.217 Trillion Dollars At April’s End

Posted on 12 May 2016 by VRS  |  Email |Print

Assets invested in ETFs/ETPs listed in the United States reached a new record high of US$2.217 trillion at the end of April 2016, according to preliminary data from ETFGI’s April 2016 global ETF and ETP industry insights report.
Record levels of assets were also reached at the end of April for ETFs/ETPs listed in Canada which reached US$77.42 billion, in Europe US$533.34 billion, in Japan US$145.93 billion, in Asia Pacific ex-Japan US$125.21 billion, and for ETFs/ETPs listed globally which reached US$3.317 trillion. ……………………………………….Full Article: Source

Breaking Down The Big Move In Gold ETFs

Posted on 11 May 2016 by VRS  |  Email |Print

The move higher in gold ETFs this year may be one for the record books. Through the first four months of 2016, the SPDR Gold Shares ETF has gained 21.87% and shown little sign of waning strength. This counter-trend move has likely caught many investors off-guard as a half decade of weakening prices and false rallies led to significant outflows in gold-related ETFs.
Nevertheless, that trend may be turning as we see momentum and speculation coalesce into a broader interest in the precious metals space. Purchasing physical gold as an investment may be a daunting task for many investors who simply wish to participate in the associated price action. To solve that problem, GLD tracks the daily price movement of gold bullion through a trust that buys and sells the physical asset on behalf of its investors………………………………………..Full Article: Source

How To Become A World-Class Expert In ETFs

Posted on 11 May 2016 by VRS  |  Email |Print

Exchange-traded funds are the fastest-growing segment of the financial services industry with 25% annual asset growth. Assets invested in ETFs reached a new apex of $3.14 trillion globally from 283 providers, traded on 65 exchanges in 51 countries, as of April’s end, according to industry tracker, ETFGI.
U.S. investors lead the ETF world with $2.22 trillion invested, followed by Europe with $533.34 billion and Japan at $145.9 billion. Despite their furious growth, ETFs remain a mystery to most. Only 4% of U.S. households own ETFs, as of mid-2014, whereas 14% of households own individual stocks………………………………………..Full Article: Source

ETFs/ETPs Listed Globally Reach Record $3.137 Trillion Dollars In April

Posted on 10 May 2016 by VRS  |  Email |Print

Assets invested in ETFs/ETPs listed globally reached a new record high US$3.137 trillion at the end of April 2016, according to preliminary data from ETFGI’s April 2016 global ETF and ETP industry insights report. (click here to view the ETFGI chart showing global asset growth).
Record levels of assets were also reached at the end of April for ETFs/ETPs listed in the United States at US$2.217 trillion, in Canada US$77.42 billion, in Europe US$533.34 billion, in Japan US$145.93 billion and in Asia Pacific ex-Japan which reached US$125.21 billion. At the end of April 2016, the Global ETF/ETP industry had 6,297 ETFs/ETPs, with 12,126 listings, assets of US$3.137 trillion, from 283 providers listed on 65 exchanges in 51 countries………………………………………..Full Article: Source

Commodities Call For The Colombia ETF

Posted on 10 May 2016 by VRS  |  Email |Print

When commodities swooned over the past two years, plenty of emerging markets and the corresponding exchange-traded funds felt the pain. The Global X MSCI Colombia ETF was among those ETFs, losing an average of 34 percent in 2014 and 2015.
Those loses were severe, though not surprising, when considering Colombia’s status as a major producer of copper, gold and silver. Colombia, South America’s second-largest economy behind Brazil, is also one of Latin America’s fastest-growing oil producers, putting GXG in a tough spot during oil’s recent bear market………………………………………..Full Article: Source

WisdomTree launches commodity ETF

Posted on 10 May 2016 by VRS  |  Email |Print

WisdomTree has launched its first Commodity Ucits ETF on the London Stock Exchange. The fund aims to outperform the Bloomberg Commodity Total Return Index, which consists of 22 commodities with sector exposures of 35.5 per cent in agriculture, 30.9 per cent in energy, 17 per cent in industrial metals and 15.6 per cent in precious metals.
The fund tracks the Optimised Roll Commodity Total Return Index, which aims to outperform the Bloomberg index. Viktor Nossek, director of research at WisdomTree Europe, says commodity fundamentals are improving due to a “steadier environment” for the oil price, sentiment towards gold improving after negative interest rates and a more positive view on emerging markets………………………………………..Full Article: Source

Best-Performing ETF Bets Emerging-Market Gains to Extend to 2018

Posted on 09 May 2016 by VRS  |  Email |Print

Emerging-market stocks and bonds have only started a rally that may last until 2018 as a new bull market takes hold in commodities, according to the best-performing exchange-traded fund focused on developing nations.
Invesco PowerShares Capital Management LLC studied data since 1973 to show that commodities typically go through a boom-and-bust cycle every seven years, with the greatest gains ensuing in the first two. The latest round may have started in January and emerging markets will benefit most due to their reliance on exporting raw materials like oil, precious metals and agricultural goods, the Illinois-based asset manager said………………………………………..Full Article: Source

Investing in Gold Through ETFs (Video)

Posted on 06 May 2016 by VRS  |  Email |Print

Greg King, chief executive officer at Rex Shares, discusses the price of gold, investing through ETFs and the outlook for the commodity. Last month REX launched the REX Gold Hedged S&P 500 ETF and the REX Gold Hedged FTSE Emerging Markets ETF . Both exchange-traded funds enable investors to diversify their portfolios by accessing exposure to the precious metal without reducing equity allocations.
The exchange traded funds also can help protect against the risk of a weakening U.S. dollar through exposure to the yellow metal, according to King. King speaks to Bloomberg’s Vonnie Quinn on “Bloomberg Markets.”……………………………………….Full Article: Source

Global Growth Worries Loom: ETFs to Play

Posted on 06 May 2016 by VRS  |  Email |Print

It seems that the comfort level in the broader market has started to fade again in May and the woes of Q1 are back. Global growth worries once again flared up with the latest U.S. and China manufacturing data failing to pick up momentum (the numbers just expanded not accelerated) and a slew of downbeat releases from the U.S.
Added to this, Markit’s manufacturing PMI showed that factory output in the U.K. declined to the lowest level in three years in April. In any case, China has been at the root of the global market turmoil since mid 2015. Many U.S. companies generate a considerable portion of their earnings from the world’s second-largest economy………………………………………..Full Article: Source

Myths about investing in ETFs

Posted on 05 May 2016 by VRS  |  Email |Print

Exchange Traded Funds (ETFs) are one of the top investment trends of the last few years. We are seeing a growing number of investors buying ETFs and incorporating them into their strategies. But as the popularity of these investments has grown, so have the misconceptions. Below are five of the most common ETF myths.
ETFs can be a natural complement to a portfolio of individual shares. This is mainly because they offer access to a wide range of markets globally, many of which may not be accessible to UK investors………………………………………..Full Article: Source

Slow-and-Steady ETFs for a Volatile Market

Posted on 05 May 2016 by VRS  |  Email |Print

After enjoying a multi-year bull run, equities may be in for greater volatility ahead. Nevertheless, exchange traded fund (ETF) investors can still keep their toe in stock market but hedge against large drawdowns through a low-volatility strategy as a way to potentially generate steadier returns over the long run.
While not as glamorous as high-flying growth strategies, a low- or minimum-volatility portfolio has helped generate better long-term, risk-adjusted returns………………………………………..Full Article: Source

Dollar Declines Mean Go-Go Days for Commodities ETFs

Posted on 05 May 2016 by VRS  |  Email |Print

The inverse relationship between the U.S. dollar and commodities is on full display this year for exchange traded fund (ETF) investors. For example, the PowerShares DB U.S. Dollar Index Bullish Fund, which tracks the price movement of the U.S. dollar against a basket of currencies, including the euro, Japanese yen, British pound, Canadian dollar, Swedish krona and Swiss franc, is off nearly 6%.
On the other hand, the PowerShares DB Commodity Index Tracking Fund is higher by almost the exact same amount by which UUP is down. Supporting the commodities outlook, the China, the world’s top consumer of metals, grains and energy, is seeing its economy stabilize………………………………………..Full Article: Source

32 Best ETFs to Track Crude Oil

Posted on 04 May 2016 by VRS  |  Email |Print

Crude oil prices are finally bouncing back, and investors can also track the ups and downs of the energy market through commodity-related exchange traded funds (ETFs). West Texas Intermediate crude oil futures were down 2.4% Tuesday to $43.7 per barrel while Brent crude oil futures were 1.7% lower to $45.1 per barrel.
Oil prices fell for a third straight session Tuesday on expectations of rising crude oil inventories, renewed concerns over weaker Chinese demand and expanding global supply, reports Nicole Friedman for the Wall Street Journal………………………………………..Full Article: Source

Commodities rally in April, but will it last?

Posted on 04 May 2016 by VRS  |  Email |Print

The S&P Goldman Sachs Commodity Index (GSCI) recorded its best performing month for a year and the second best April on record. The index is up 15.5% since 29th February 2016, marking the biggest consecutive two months in almost seven years since May-June 2009 when it gained 20.4%.
According to data from S&P Dow Jones Indices, the Dow Jones Commodity Index and S&P GSCI total return indices also saw positive performances with gains of 9.1% and 10.1%, respectively. However, the rally could be short lived, proving hard to sustain as a result of poor fundamentals underpinning the commodities………………………………………..Full Article: Source

Uranium ETF Fights off Commodity’s Slump

Posted on 03 May 2016 by VRS  |  Email |Print

In what amounts to a vexing scenario, the Global X Uranium ETF, which tracks uranium miners, is up more than 4% over the past month and more than 8% year-to-date even as uranium prices slide.
With nuclear energy industry looking brighter, uranium demand is expected to rise. According to the World Nuclear Association, the number of new nuclear plants due to go online this year and in the next three years is expected to total around 40, and more are planned in the years ahead, mostly in Asia, writes Lawrence Williams for Mineweb………………………………………..Full Article: Source

European ETFs hit by record outflows

Posted on 02 May 2016 by VRS  |  Email |Print

ETFs tracking European assets have suffered a rush to the exits, with particularly heavy redemptions from equities as the rally that pushed the region’s stocks to multi-month highs runs out of steam.
Some $2.63bn poured out of ETFs tracking European assets in the first four days of this week, according to Markit data, which is already a record outflow. Most of these redemptions- $2.41bn- came from equity funds……………………………………….Full Article: Source

Commodity ETFs Are Outperforming Stocks, Bonds

Posted on 02 May 2016 by VRS  |  Email |Print

Commodity exchange traded funds are enjoying their best month since 2010 and are beating traditional equities and fixed-income assets to boot. Over the past month, the PowerShares DB Commodity Index Tracking Fund (NYSEArca: DBC) rose 7.8%, iPath Bloomberg Commodity Index Total Return ETN (NYSEArca: DJP) increased 7.4% and iShares GSCI Commodity-Indexed Trust (NYSEArca: GSG) gained 8.0%.
Both DBC and DJP are trading back above their long-term, 200-day simple moving averages while GSG is still trying to break through the resistance………………………………………..Full Article: Source

ETF Industry Assets Grow in Q1 2016

Posted on 29 April 2016 by VRS  |  Email |Print

ETF growth across the industry in Q1 was fueled by the retail space, climbing to $2.3 trillion overall. More specifically, during Q1 2016, ETF assets climbed by 2.4% QoQ to $2.3 trillion, which was fueled in part by retail channels, as calculated by its Fund Distribution Intelligence.
However, this performance was mitigated by an overall net decline of new assets (-0.68%), which corresponded to a decrease of $15.0 billion. In terms of the retail space, ETFs in this realm also saw increases in assets, namely across fixed income, alternative and commodity products, though equity, convertibles and allocation product assets were all down QoQ………………………………………..Full Article: Source

Water ETFs to Invest in 2016 - Best ETFs for Full Exposure to Water

Posted on 29 April 2016 by VRS  |  Email |Print

With the droughts on the West Coast, and led crisis expanding from Flint to the rest of the East Coast, investing in water companies sounds like a no brainer. To further back the opportunity, the genius from the movie “The Big Short” also has explained why water is the commodity to buy.
Especially if you have passed your Financial Assessment test and are eligible to expand your investing portfolio. With that I finally sat down and wrote about the best water ETFs to invest in 2016, which we have been advising to some Invest Diva students. You don’t have to search no more!……………………………………….Full Article: Source

Nasdaq mulls new exchange to ease trading in illiquid ETFs - CEO

Posted on 28 April 2016 by VRS  |  Email |Print

The acquisition of U.S. options exchange operator ISE from Deutsche Boerse AG was approved by the U.S. Department of Justice last week, Robert Greifeld, Nasdaq’s chief executive officer, said on a call with analysts.
The deal still needs approval from the U.S. Securities and Exchange Commission, but could close as early as the end of the quarter, versus earlier guidance of the second half of the year, he said on the call following the announcement of Nasdaq’s first-quarter earnings, which topped expectations………………………………………..Full Article: Source

Oil ETFs Are Battling Bearish Energy Earnings

Posted on 28 April 2016 by VRS  |  Email |Print

Oil sector exchange traded funds are facing some hurdles as major energy producers ready their first quarter results. With overwhelmingly weak expectations after crude prices plunged to near 13-year lows in February, the sector ETFs could surprise if oil producers reveal conditions weren’t as bad as previously expected.
Energy traders will be watching for the ConocoPhillips’ (COP) first quarter earnings announcement on Thursday, April 28, followed by Exxon Mobil (XOM) and Chevron (CVX) on Friday, April 29………………………………………..Full Article: Source

Will Energy ETFs Surprise This Earnings Season?

Posted on 27 April 2016 by VRS  |  Email |Print

Energy continues to be the biggest drag on the overall earnings picture since the past several quarters and this quarter is not going to be an exception. This is especially true as earnings for 11.9% of the S&P 500 energy companies that have reported so far are down 60.9% on revenue decline of 30.3%, as per the Zacks Earnings Trend.
In addition, total earnings for the sector are expected to be down 110.4% from the same period last year on 29.7% lower revenues. Notably, sluggish earnings report from the world’s largest oilfield services provider -Schlumberger - last week disappointed investors as the company not only missed our top- and bottom-line estimates but also posted year-over-year declines on both metrics……………………………………….Full Article: Source

ETF Investors Are Underweight in Rebounding Emerging Markets

Posted on 27 April 2016 by VRS  |  Email |Print

Exchange traded fund investors have largely shunned developing economies as the area underperformed developed markets over the past few years. As more look to diversify away from an aging bull rally in the U.S., investors should consider re-allocating toward the developing world.
According to a recent Emerging Global Advisors survey on investor sentiment, less than a third of respondents are confident that their emerging market allocations reflects the regions and themes with the greatest investment opportunities in the next 12 months………………………………………..Full Article: Source

31 Gold ETFs Investors Should Size Up

Posted on 26 April 2016 by VRS  |  Email |Print

Gold exchange traded funds have been a bright spot in the markets this year as an extended low-rate environment, depreciating U.S. dollar and volatility pushed investors into the hard asset. At the start of the year, gold enjoyed safe-haven demand as the equities market plunged into a correction.
Gold 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 cheaper for foreign buyers and a better store of value for U.S. investors………………………………………..Full Article: Source

Emerging Market ETF Inflows Top $11 Billion in 10-Week Streak

Posted on 26 April 2016 by VRS  |  Email |Print

Investors added money to U.S. exchange-traded funds that buy emerging-market stocks and bonds for the 10th straight week, bringing the gains since mid-February to more than $11 billion.
Deposits into ETFs that invest across developing nations as well as those that target specific countries totaled $658.8 million in the week ended April 22, compared with inflows of $706.5 million in the previous period, according to data compiled by Bloomberg. The current streak is the longest since the 11 weeks that ended last May 29………………………………………..Full Article: Source

Dollars and Sense and ETFs

Posted on 25 April 2016 by VRS  |  Email |Print

Currency-hedged exchange-traded funds have been some of the biggest sellers in recent years. Now a slew of new ETFs that aim to take the guesswork out of the dollar’s direction are on the market. Feel free to pass on them.
Easy-money policies from central bankers in recent years used to mean that profiting from currency moves was, well, easy money. Times have changed. A one-way rally in the U.S. dollar has sputtered this year, leaving investors who pumped billions of dollars into currency-hedged exchange-traded funds wrong-footed………………………………………..Full Article: Source

Emerging Market ETFs Are Turning Around

Posted on 25 April 2016 by VRS  |  Email |Print

The developing markets have been falling behind developed stocks for the past few years, but as once outperforming plays grow long in the tooth, investors are taking a second look at the more cheaply valued emerging market exchange traded funds.
Over the past five years, the Vanguard FTSE Emerging Markets ETF and iShares MSCI Emerging Markets ETF, the two largest emerging market plays, generated an average annualized return of -4.2% and -4.8%, respectively, while the S&P 500 Index returned 11.9%………………………………………..Full Article: Source

Australian ETF Soars As Commodities Rebound

Posted on 22 April 2016 by VRS  |  Email |Print

Investors tuned into the foreign currency market have heard plenty this year about the dollar’s weakness, how “Brexit” could punish the British pound and about a solid rebound, sort of, for the euro. Flying somewhat under the radar has been the suddenly hot Australian dollar.
Thanks in large part to rebounding commodities prices and much to the charging of the Reserve Bank of Australia (RBA), the CurrencyShares Australian Dollar Trust, which tracks the Aussie against the U.S. dollar, is up nearly 3% over the past month and more than 7% year-to-date. That after FXA posted a double-digit loss last year, making it one of the worst-performing developed markets currency exchange traded funds. ……………………………………….Full Article: Source

Reasons to Bet on Gold Mining ETFs Now

Posted on 22 April 2016 by VRS  |  Email |Print

Gold Mining ETFs have been firing on all cylinders lately thanks to the dual favor by a dovish Fed and an aggressive China. The Fed seems to be in no hurry to hike interest rates this year and has hinted at just two hikes this year dampening the greenback and propelling the broader commodities including gold.
In fact, a volatile market outlook, which is making places for safe-haven assets like gold and a sagging dollar, led the gold bullion to rally hard this year. Gold bullion ETF SPDR Gold Shares ( GLD ) has surged 18.3% so far this year (as of April 11, 2016), enjoying the largest first-quarter gain in three decades……………………………………….Full Article: Source

Currency Hedged ETFs Offer a Smoother Long-Term Ride

Posted on 22 April 2016 by VRS  |  Email |Print

When investing in overseas markets, investors should consider a currency-hedged international stock exchange traded fund to help diminish volatility associated with foreign exchange risks.
“Since 1978, currencies have increased volatility 91% of the time over five-year rolling periods, contributing 2.7% more volatility on average each year,” Robert Bush, ETF Strategist at Deutsche Asset Management, said on the recent webcast, Currency - Hedging Matters: Simple ETF Strategies………………………………………..Full Article: Source

Why Commodity ETPs Deviate From Spot Price

Posted on 21 April 2016 by VRS  |  Email |Print

Commodity exchange-traded products (ETPs) have raised some eyebrows over the years because their returns don’t always line up with the respective spot prices they are designed to track. Below, ETFdb.com takes a look at the various types of exchange-traded commodity investment vehicles and why their returns don’t always line up with spot prices as one might expect.
Commodity ETPs have opened up the doors to an asset class historically respected for its diversification and inflation-fighting benefits among investors. Indeed, traders too have embraced these vehicles for their easy access to a variety of once hard-to-reach corners of the market………………………………………..Full Article: Source

Silver ETFs Are Outshining Gold

Posted on 21 April 2016 by VRS  |  Email |Print

Precious metals have been surging this year, with the markets focused on the rise in gold as the U.S. dollar depreciates and market volatility sent traders to the safe-haven. Now, silver and related exchange traded funds are finally starting to outpace their golden counterpart.
A perfect storm of global central bank policies and market volatility has contributed to a surge in precious metals. Year-to-date, the SPDR Gold Shares (GLD) rose 16.1% and iShares Silver Trust (SLV) gained 16.9%. Global central banks have shown that they are willing to adopt negative interest rate policies to stimulate stagnate growth………………………………………..Full Article: Source

High Income ETFs Worth Their High Costs

Posted on 20 April 2016 by VRS  |  Email |Print

With negative interest rates dominating international headlines and the benchmark 10-year U.S. treasury yields slipping to below 2%, there is huge demand for income ETFs. Yield-hungry investors have rushed to high-dividend securities and ETFs in search of steady current income.
Global growth continues to flounder and the Fed is in no mood to hike rates frequently this year suggesting continued outperformance by dividend ETFs. That being said, we would like to note that current income turns futile if you end up paying high expenses for a high-dividend or high-income ETF……………………………………….Full Article: Source

ETFs aim to entice investors by going ultra-niche

Posted on 20 April 2016 by VRS  |  Email |Print

It’s a big day for exchange traded funds in Canada. Not only has Sphere Investments — a new ETF provider — launched a suite of funds, but Sprott Asset Management announced a new ETF that hopes to monetize Internet hype.
The Sprott BUZZ Social Media Insights Exchange Traded Fund will use Twitter, Facebook and other social media platforms to identify — and invest in — companies with strong Internet sentiment, said John Ciampaglia, Head of ETFs at Sprott, in a release………………………………………..Full Article: Source

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