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The $2trn question: Why have ETFs failed to catch fire in the UK?

Posted on 08 February 2016 by VRS  |  Email |Print

Exchange traded funds (ETFs) have attracted $2trn in the US, but despite the sweeping away of commission that was expected to open up the British market, UK advisers are reluctant mirror their American cousins.
ETFs have been a monumental success since the first US listing in 1993. Globally over the last ten years, assets under management in ETFs have grown by 600% to over US$3trn. But in the UK, the growth of ETFs is limited mainly to the institutional arena; we have not seen their adoption by retail markets and among advisers. Many UK advisers remain entrenched in the use of active vehicles………………………………………..Full Article: Source

For now, Gold ETFs Pinch Short Sellers

Posted on 08 February 2016 by VRS  |  Email |Print

Last week, gold exchange traded funds such as the SPDR Gold Shares, iShares Gold Trust and the ETFS Physical Swiss Gold Shares each rose nearly 5% in a jump that some market observers attribute to short covering.
Some options traders appear comfortable betting that GLD has more near-term upside in store. Investors pulled $2.2 billion from GLD, the world’s largest bullion-backed ETF last year, after pulling $3.2 billion from the fund in 2014. To start 2016, the trend of gold ETF outflows is abating as investors have poured more than $956 million into GLD………………………………………..Full Article: Source

4 Global ETFs to Outperform in Q1

Posted on 08 February 2016 by VRS  |  Email |Print

Global growth is certainly edgy at this moment with the main culprits being the Chinese economic slowdown, commodity market rout and its adverse impact on emerging markets and obviously the relentless tension in the energy sector. The World Bank and the International Monetary Fund (IMF) also lowered their outlook on global growth.
The World Bank expects the global economy to grow 2.9% in 2016, down from the forecast of 3.3% it made in June while IMF projected world economic growth at 3.4% in 2016 and 3.6% in 2017, down 0.2 percentage point for each year from the estimates given last October………………………………………..Full Article: Source

Positive Vibes for Gold ETFs

Posted on 05 February 2016 by VRS  |  Email |Print

The SPDR Gold Shares, the largest bullion-backed exchange traded fund in the world, is off to a solid start to 2016 and while GLD and rival gold ETFs have a long way to go to snap out of what has become a lengthy bear market, momentum is building for gold.
Speculation of higher interest rates weighed on gold ETFs last year, but traders have lowered expectations for multiple rate hikes this year. Even if rates rose a couple basis points, the continued low rate environment is good for gold, which does not pay a yield and would struggle to compete with yield-generating assets when rates rise………………………………………..Full Article: Source

Equity ETF Outflows Hit $16Bn in January

Posted on 05 February 2016 by VRS  |  Email |Print

Exchange-traded funds backed by equities saw outflows of $16 billion in January, while fixed income backed ETFs benefited. According to latest “U.S ETF Flash Flows” report from State Street Global Advisors (SSGA), the drop in equity ETF holdings was due to the confluence of concerns around oil, China, and the potential threat of a global recession. As a result, ETF investors sought out other asset classes such as U.S. Treasuries and gold in January.
In the report, SSGA noted that equity ETFs saw outflows of approximately $16 billion as fixed income ETFs attracted over $13 billion of inflows. Financial and Technology ETFs saw outflows of $2.4 billion and $2.6 billion respectively, while defensive sectors such as Utilities ($916 million) and Consumer Staples ($661 million) attracted inflows………………………………………..Full Article: Source

Why 2016 Will Be The Year Of ETFs

Posted on 04 February 2016 by VRS  |  Email |Print

The commodity shock, which has sent oil prices down to their lowest level in over 10 years, had a resounding negative impact on Canada’s economy, currency and equity markets in 2015, resulting in one of the most challenging years for investors since the financial crisis. But amidst the turmoil, exchange traded funds (ETFs) in Canada finished the year off strong, crossing $90 million in assets under management (AUM), and finishing the year with all-time net inflows.
To put it simply, as more investors embrace ETFs, recognizing the versatility, cost efficiency and transparency they provide, we anticipate that the Canadian ETF industry will continue its momentum, surpassing $100-billion in AUM by the end of 2016 and reaching $300-billion five years from now………………………………………..Full Article: Source

UBS launches 8 currency-hedged smart beta ETFs

Posted on 04 February 2016 by VRS  |  Email |Print

UBS Asset Management has launched eight GBP-hedged smart beta ETFs as it sees currency playing a bigger part in returns. The launches will give investors access to factor-based exposures in the US and Europe, but with results hedged back to the pound. UBS says.
“Currency fluctuations can have a major impact on investment returns with more proactive global monetary policy exacerbating currency volatility in recent years,” says UBS………………………………………..Full Article: Source

There’s a Rush for Gold ETFs

Posted on 03 February 2016 by VRS  |  Email |Print

You can learn a lot about an investor from whether they invest in gold, and how they do it. As people pile into gold exchange-traded funds at the fastest rate in more than a year, it’s clear that the precious metal’s appeal as the ultimate safe haven now extends well beyond the universe of dollar-doubters and doomsayers otherwise known as ”gold bugs.”
Gold is up almost 6 percent this year, compared with a 6 percent loss for the S&P 500-stock index. This is a major turnaround from the past two years, when gold ETFs were down 34 percent, and $33 billion flowed out of those funds………………………………………..Full Article: Source

ETFs in Focus with Continued Emerging Market Asset Outflow

Posted on 03 February 2016 by VRS  |  Email |Print

Emerging markets have been struggling for quite some time now. China’s economic problems are at the heart of the emerging markets’ woes. This along with weak emerging market currencies, a strong U.S. dollar and falling oil prices have resulted in a massive sell-off in emerging market stocks for quite some time now.
Last week was particularly disastrous for emerging market ETFs as outflows from these funds were approximately $1.17 billion, according to data put together by Bloomberg . Last week’s outflow along with outflow of $2.12 billion in the week before that brings total outflow till January third week to $3.9 billion. Outflows of this magnitude have not been witnessed since August 2015 ……………………………………….Full Article: Source

Why Institutional Investors Are Embracing ETFs

Posted on 02 February 2016 by VRS  |  Email |Print

Are ETFs really “weapons of mass destruction” as some critics claim? Despite the doom and gloom, U.S. banks, insurance companies, pension funds, and other large U.S institutions are increasing their ETF exposure.
U.S. institutions, which currently represent around $756 billion of the total $2.1 trillion in U.S. ETF assets, plan to increase their use of ETFs in 2016 according to findings from Greenwich Associates………………………………………..Full Article: Source

Energy ETFs for Long-term Growth Investors

Posted on 02 February 2016 by VRS  |  Email |Print

Feeling bold? With energy prices at 10 year lows, it could be time to add commodities to your portfolio. We highlight some ETFs that offer exposure to the oil and gas industry. With the price of crude oil hovering at levels not seen for over a decade. Some investors may see this as a great opportunity to increase their exposure to the commodity.
One way in which this can be done is by investing indirectly in the equity firms that operate in this space. Investors can buy single stocks such as BP or Shell. Although this approach has a significant idiosyncratic or firm specific risk………………………………………..Full Article: Source

Gold ETF investors come roaring back

Posted on 01 February 2016 by VRS  |  Email |Print

Ole Hansen, chief commodity strategist at Danish bank Saxo, says gold has been the clear winner in 2016 as the uncertainty on financial markets reduce the likelihood of rate hikes in the US and geopolitical turmoil spur safe-haven buying.
Gold futures in New York were trading at $1,116.90 an ounce on Friday, up more than 5% since the start of the year, after hitting a near three-month high earlier in the week. Hansen says gold is following a similar pattern to January last year when the metal was boosted by the surprise currency move by Switzerland’s monetary authorities, speculation about quantitative easing by the European Central Bank and the Greek debt crisis………………………………………..Full Article: Source

ETFs for Targeted Emerging Market Opportunities

Posted on 01 February 2016 by VRS  |  Email |Print

The developing world is showing uneven growth, with countries like Russia and Brazil floundering. Consequently, investors should pick their spots in the emerging markets and pay particular attention to exchange traded funds that track tech-heavy Taiwan, India, China and Korea.
The deepening recession in Brazil and Russia have weakened the BRICs – Brazil, Russia, India and China – investment thesis. Alternatively, emerging market fund managers may replace the group with the TICKs, using tech-heavy Taiwan and Korea as a replacement to commodity-focused Brazil and Russia, reports Steven Johnson for the Financial Times………………………………………..Full Article: Source

Are ETFs causing volatility?

Posted on 29 January 2016 by VRS  |  Email |Print

Trading volumes in exchange-traded funds (ETFs) could be causing volatility in less liquid asset classes, fund selectors have warned. ETFs are increasingly being used at times of volatility by investors seeking to enact market views quickly. For instance, on January 15, a day when the S&P 500 fell 2.1 per cent, seven of the 10 most-traded securities in the US were ETFs.
Victor Lin, director of Credit Suisse’s quantitative equity trading strategy business, said in a note to clients that daily ETF trading volumes in the US between January 11 and 15 were 40 per cent higher than 2015 averages………………………………………..Full Article: Source

NYSE’s $2 Trillion ETF Business Sees Heightened Competition

Posted on 28 January 2016 by VRS  |  Email |Print

NYSE Group Inc. may still be the king of exchange-traded funds among U.S. stock markets, but challengers to the throne are gaining ground. Last year, a record 23 ETFs left the company’s NYSE Arca exchange, shifting their listing to rival markets, according to data compiled by Bloomberg.
BlackRock Inc., the world’s largest asset manager, this month said it was diversifying by moving 11 iShares ETFs away from NYSE Arca, the first time it’s yanked funds from the exchange. While the vast majority of ETFs still list at NYSE Arca — its funds amount to about 94 percent of the total market value of all U.S. ETFs — other exchanges are making inroads as investors increasingly use the products. ……………………………………….Full Article: Source

The best ETFs for 2016

Posted on 28 January 2016 by VRS  |  Email |Print

Investors could learn a thing or two from the ice cream business. Since 1945, Baskin-Robbins has released more than 1,300 flavours. Yet most of us opt for one of just a handful of classics, including chocolate, mint chocolate chip and pralines and cream. The single most popular flavour hands down? You guessed it. Vanilla.
A quarter century since exchange-traded funds arrived in Canada, there are more than 400 ETFs trading on the Toronto Stock Exchange alone, and at least 2,000 trading on stock exchanges around the world. Most will appeal to just a tiny percentage of investing palettes………………………………………..Full Article: Source

No Surprise: Commodity ETF Assets Dwindled in Q4

Posted on 27 January 2016 by VRS  |  Email |Print

Amid an ongoing rout in commodities prices during the latter stages of 2015, some commodities exchange traded products continued bleeding assets. Gold ETFs were pressured last year amid speculation the Federal Reserve is preparing to raise interest rates, which has pushed the dollar higher.
Higher interest rates would diminish gold’s attractiveness since the precious metal does not pay interest like fixed-income assets. Investors yanked $2.2 billion from the SPDR Gold Shares last year, including $1.4 billion in the last three months of the year………………………………………..Full Article: Source

As ETFs explode in popularity, industry pioneer State Street lags

Posted on 27 January 2016 by VRS  |  Email |Print

State Street Corp, the company behind the first and best-known U.S. exchange traded fund, reported a record $22.8 billion in estimated withdrawals in 2015, even as sales for the broader ETF industry were strong.
Moreover, its flagship fund - the SPDR S&P 500 ETF - did the worst, losing $39 billion to withdrawals while a competing Vanguard ETF took in $12 billion, according to Lipper. Since its founding in 1993, State Street’s so-called “Spider” has been the largest ETF to package every stock in the S&P 500. ……………………………………….Full Article: Source

Are Storm Clouds Gathering Over ETFs?

Posted on 27 January 2016 by VRS  |  Email |Print

Two ETF analysts on what worries them about the rise of exchange-traded funds, including increased regulations over perceived liquidity concerns, broken markets and leveraged funds.
Dave Nadig, FactSet’s director of exchange-traded funds and co-host of Inside ETFs, the largest conference for ETF investors, suggested during the conference’s opening keynote address on Monday that 2016 will be the year of “the battle for the soul of the ETF revolution.”……………………………………….Full Article: Source

Commodity AUM Reflect Big Q4 Moves: Citi

Posted on 26 January 2016 by VRS  |  Email |Print

Citi’s Aakash Doshi and team take a look at commodity flows in hedge funds, ETFs, and indexes Monday, writing that asset under management estimates for the end of 2015 suggest a “sharp” 18% year over year drop, well below their 2011 highs.
Doshi writes that oil’s big losses in the fourth quarter were behind an $11 billion loss in passive index valuations, a trend he sees continuing this month. “The passive index market, valued at c$125Bn, is now c$100Bn below levels seen during the height of the commodity super cycle.” Meanwhile, market caps of commodity ETFs slid 8% in the fourth quarter, in large part thanks to gold’s decline in the face of an interest rate hike from the Federal Reserve………………………………………..Full Article: Source

A Sweet but Volatile Commodity ETN

Posted on 26 January 2016 by VRS  |  Email |Print

Count cocoa exchange traded notes (ETNs) among the commodities exchange traded products that are struggling in the early stages of 2016. The iPath DJ-UBS Cocoa TR Sub-Index ETN is off nearly 13% over the past month and some market observers are forecasting increased volatility for the cocoa market.
Last year, cocoa was supported by supply concerns out of west Africa where three-quarters of the world’s cocoa is produced, and the potentially negative impact of the El Niño weather pattern, which typically brings dry conditions across the region, reports Emiko Terazono for the Financial Times………………………………………..Full Article: Source

Emerging Market ETFs Lose More Than $1 Billion Led by China Flow

Posted on 26 January 2016 by VRS  |  Email |Print

Investors pulled more than $1 billion out of U.S. exchange-traded funds that invest in emerging-markets as a third week of outflows left the ETFs down $3.9 billion this month.
Redemptions from emerging-market ETFs that invest across developing nations as well as those that target specific countries totaled $1.17 billion in the week ended Jan. 22, according to data compiled by Bloomberg. While losses narrowed from $2.12 billion the previous week, the outflows so far this month are the most since August, when they reached $6.1 billion………………………………………..Full Article: Source

How ETF industry is handling rough market run

Posted on 25 January 2016 by VRS  |  Email |Print

The growing exchange-traded fund space has endured a rocky stretch this year along with broader markets. But experts stress that, as ETF providers and investors adapt to new market dynamics, the segment can prove as effective as it did during the largely uninterrupted bull run in recent years.
ETFs saw nearly $250 billion in net inflows last year as assets under management topped $2 trillion. But amid widespread selling this year, ETFs have seen net outflows of $7.87 billion and assets have fallen by 8.2 percent, according to XTF ETF Experts………………………………………..Full Article: Source

Sizing Up 5 Ugly Oil ETFs

Posted on 22 January 2016 by VRS  |  Email |Print

It’s been an incredibly ugly stretch for oil exchange-traded funds (ETFs). Seeing as we seem to be following crude point for point these days, I figured it was time to see if we’re actually following it as much as it seems. And if so, which ETF looks the least bad.
We’ll look at five oil ETFs. They are the United States Oil Fund LP (USO), iPath S&P GSCI Crude Oil Total Return (OIL), PowerShares DB Oil Fund ETF (DBO), United States 12-Month Oil Fund (USL) and DB Crude Oil Long ETN (OLO)………………………………………..Full Article: Source

Investors Aren’t Fleeing Global Funds, ETFs

Posted on 22 January 2016 by VRS  |  Email |Print

Conventional wisdom has held that investors are bailing out of stocks in the wake of this month’s global slump. Yet TrimTabs Investment Research finds scant evidence that globally focused equities investors have been running for the hills.
While net outflows have exceeded inflows by some $30 billion for U.S. equity mutual funds and exchange-traded funds, TrimTabs estimates that there were net inflows of $1.2 billion for global equity mutual funds and net outflows of $3.3 billion for global equity ETFs. That combined $2.1 billion net outflow is “modest” and “sends a very-bearish contrary signal for international equities,” the firm contends, as those funds and ETFs are down 9% to 10% this month………………………………………..Full Article: Source

Major Market ETFs in Bear Territory

Posted on 21 January 2016 by VRS  |  Email |Print

The ongoing selling pressure has dragged on global markets, with developed market country-specific exchange traded funds falling off as Japan and Europe dip into a bear market.
British equities are joining other European markets like Germany, France and Spain in a bear market after Wednesday’s 3.5% decline in the FTSE 100 Index, reports Cecile Vannucci for Bloomberg. The ongoing commodities rout in light of China’s slowdown has dragged on the energy and materials sectors, which account for 17% of the FTSE 100 Index………………………………………..Full Article: Source

Gold ETFs Enjoying Volatility

Posted on 20 January 2016 by VRS  |  Email |Print

Down 9.3% over the past month, the S&P 500 is on the brink of correction territory and other equity markets around the world are faring worse. Elevated market volatility is having the predictable effect of sending investors in search of safe-haven investments and the result, also predictable, is benefiting gold.
Exchange traded funds such as the SPDR Gold Shares, iShares Gold Trust and the ETFS Physical Swiss Gold Shares finished modestly lower last week, but trimmed those losses by soaring last Friday as U.S. stocks tumbled………………………………………..Full Article: Source

Emerging Market ETFs Suffer $2.1 Bln Outflows, Most Since August

Posted on 20 January 2016 by VRS  |  Email |Print

Investors pulled more than $2.1 billion out of U.S. exchange traded funds that invest in emerging markets last week, the most since August. China and Hong Kong led the losses.
Redemptions from ETFs that invest across developing nations as well as those that target specific countries totaled $2.12 billion in the week ended Jan. 15, compared with $566.7 million of losses in the previous week, according to data compiled by Bloomberg. So far in January, investors have withdrawn $2.69 billion………………………………………..Full Article: Source

Inverse Leveraged ETFs

Posted on 19 January 2016 by VRS  |  Email |Print

After seeing ‘the worst two-week start to a year ever’ and the bears completely invading the market after forcing the bulls out, a look at the inverse leveraged ETFs’ performance seems intriguing.
Last week, the leveraged/inverse ETF world was mostly influenced by oil worries and hard landing fears in China. Only a handful of ETFs with an inverse approach to the broad market indices gained while rest of the pack lost. Let’s take a look at some top performing inverse leveraged ETFs to check the top players in the market now………………………………………..Full Article: Source

ETF Market’s Top Performers, By the Numbers

Posted on 19 January 2016 by VRS  |  Email |Print

Measured across a number of market indicators, the story for ETFs last year was one of growth, says Ben Johnson, director of global ETF research at Morningstar.
For instance, investors flocked to international stock ETFs , amassing a total of $105 billion in net new assets, he says. Launches of currency-hedged versions of various types of international equity exposure as ETFs or repackaging existing un-hedged versions of international equity ETFs sought to capitalize on the trend………………………………………..Full Article: Source

ETF industry to flourish in low-return world

Posted on 18 January 2016 by VRS  |  Email |Print

Low-return expectations are pushing investors towards low cost and transparent investment options like exchange-traded funds (ETFs), according to Van Eck Global. Van Eck Global said investors are attracted to ETFs due to their low cost, which will likely result in the industry gaining an additional $8 billion in investment this year.
Van Eck Australia managing director, Arian Neiron, argued that investors are looking to ETFs to diversify from traditionally owned assets like mining companies and banks. “ETF investors have always had the benefit of diversity that overcomes single company risk,” he said………………………………………..Full Article: Source

Hot exchange traded fund market leaves State Street cold

Posted on 18 January 2016 by VRS  |  Email |Print

The exchange traded fund industry enjoyed record-breaking growth in 2015, but it was a year to forget for the world’s third-largest asset manager, State Street Global Advisors. State Street was the only top-20 ranked ETF manager to register net outflows in 2015, raising more questions about its ability to compete against its faster-growing rivals BlackRock, Vanguard, WisdomTree and Charles Schwab.
Investors pulled $19bn from State Street’s ETFs last year, while both BlackRock’s iShares business and Vanguard attracted inflows of $139bn and $84bn respectively, according to figures from ETFGI, the consultancy………………………………………..Full Article: Source

ETFs/ETPs Listed In Europe Gathered Record $82 Billion In Net New Assets in 2015

Posted on 15 January 2016 by VRS  |  Email |Print

ETFs/ETPs listed in Europe gathered US$82.0 billion in net new assets in 2015 which is 32.5% above the prior record level of US$61.8 billion gathered in 2014. This marks the 14th consecutive month of positive net inflows.
During 2015 there has been growth on most measures: the number of ETFs/ETPs has increased from 2,089 to 2,188, assets under management have increased from US$458 billion to US$506 billion, and the number of providers has increased from 49 to 51………………………………………..Full Article: Source

ETFs see record £269bn inflows in 2015

Posted on 15 January 2016 by VRS  |  Email |Print

Global assets in ETFs and ETPs rose by a record level last year, with $372bn (£269bn) of new inflows for 2015. Assets rose by 10 per cent on 2014’s inflows as market turmoil drove investors to passive markets, according to data from research and consultancy firm ETFGI.
ETFs and ETPs listed in Europe clocked up $82bn of inflows in 2015, beating 2014’s inflows by 32.5 per cent. ETFGI found that assets under management for products listed in Europe have risen from $458bn to $506bn over the year………………………………………..Full Article: Source

More Pain Ahead for Basic Materials ETFs in 2016?

Posted on 15 January 2016 by VRS  |  Email |Print

It’s been years since basic materials ETFs last saw their days of glory. As for the last few years, the space has been an area of concern thanks to a surging greenback, massive crash in oil prices and hard landing fears in China. Moreover, supply glut has been a long-lasting issue for this space.
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 shore up the ailing economy and the turbulent market, the Chinese government took several measures; but nothing could really heal the pain………………………………………..Full Article: Source

ETFs/ETPs Listed In The U.S. Gathered $239.8 Billion In Net New Assets In 2015

Posted on 14 January 2016 by VRS  |  Email |Print

ETFs/ETPs listed in the United States gathered US$239.8 billion in net new assets in 2015 although it is a large amount it is less than the record US$244.3 billion gathered in 2014. In December US$38.0 billion of net new assets were gathered making it the largest asset gathering month for the year and marking the 11th consecutive month of positive net inflows.
During 2015 there has been growth on most measures: the number of ETFs/ETPs has increased from 1,662 to 1,843, assets under management have increased from US$2.002 trillion to US$2.130 trillion, and the number of providers has increased from 71 to 94………………………………………..Full Article: Source

European ETF Assets to Reach EUR1tr by 2020

Posted on 14 January 2016 by VRS  |  Email |Print

The European exchange-traded industry had a record year in 2015 and could reach €1 trillion in assets under management by 2020 according to Morningstar, the fund research provider. Jose Garcia-Zarate, senior ETF analyst with Morningstar Europe, said in a report that the region had record net inflows of €70.8bn last year, 39% more than the previous high of €51bn in 2008.
As a result, total assets under management in European exchange-traded products grew by 24% from 2014 to €467.4bn at the end of last year. “Together with 2014 – another year of high inflows by historical standards – the data seems to indicate that the European ETF industry has entered a phase of strong growth, thus giving credence to industry predictions that foresee assets under management hitting the €1 trillion mark by 2020,” added Garcia-Zarate………………………………………..Full Article: Source

The Best Gold ETF to Buy in 2016 When Prices Rebound

Posted on 14 January 2016 by VRS  |  Email |Print

Buying into a gold ETF is one of our top recommendations for 2016, as Money Morning experts remain extremely bullish on gold prices. Gold prices today (Wednesday) were up a modest $2.90, or 0.27%, at $1,090.40 in mid-morning trading. But the price of gold this week is still down from the two-month high of $1,113.10 an ounce it hit last week.
Geopolitical tensions, reports of North Korea testing a hydrogen bomb, and a drop in global stocks pushed gold prices higher last week. Just four days into 2016, gold prices were up more than 3%………………………………………..Full Article: Source

Record High ETF Sales in 2015

Posted on 13 January 2016 by VRS  |  Email |Print

ETF industry in Europe experienced its best ever year yet in 2015, giving weight to industry predictions that foresee assets under management hitting the €1 trillion mark by 2020. The European ETF industry experienced its best ever year yet in 2015, with net inflows at a record high €70.8 billion, greatly surpassing the previous high of €51 billion recorded in 2008.
The combination of record high net inflows plus overall capital appreciation across most asset classes of €19.6 billion has pushed assets under management (AUM) in exchange traded products up by 24% year-on-year to €467.4 billion from €377 billion at the end of 2014……………………………………….Full Article: Source

Investors on Gold ETF Buying Spree Amid Global Stock Rout: Chart

Posted on 13 January 2016 by VRS  |  Email |Print

Investors embarked on the biggest three-day buying spree in gold-backed exchange traded funds for a year as bullion rallied at the start of 2016 amid a stock-market slump. Holdings in ETFs climbed 19.6 metric tons in the three days through Monday to 1,477.7 tons, according to data compiled by Bloomberg, the largest increase since January 2015.
Assets rebounded from the lowest in almost seven years on Jan. 6. Investors had been selling gold on expectations that U.S. borrowing costs would rise, hurting the metal as it doesn’t pay interest………………………………………..Full Article: Source

ETFs/ETPs Listed Globally Gathered Record $372.0 Billion In Net New Assets in 2015

Posted on 12 January 2016 by VRS  |  Email |Print

The global ETFs/ETPs industry is celebrating gathering a record level of US$372.0 billion in net new assets in 2015 which represents a 10% increase over the prior record of US$338.3 billion of net new assets gathered in 2014.
December marked the 23rd consecutive month of positive net inflows and was the best month for asset gathering in 2015 with US$55.0 billion in net new assets collected, according to preliminary data from ETFGI’s year-end 2015 global ETF and ETP industry insights report………………………………………..Full Article: Source

For Oil ETFs, It’s All About OPEC

Posted on 12 January 2016 by VRS  |  Email |Print

Oil prices sank to near 12-year lows last week, sending the United States Oil Fund, which tracks West Texas Intermediate crude oil futures, and the United States Brent Oil Fund, which tracks Brent crude oil futures, down an average of 12% for the week.
That dour start to the year for USO and BNO comes after the exchange traded funds each lost more than 40 percent last year. Even with the faltering prices, the Organization of Petroleum Exporting Countries (OPEC) is not doing much to reverse oil’s slide. Last month, oil prices fell to their lowest levels since early 2009 after OPEC’s meeting Friday ended without an agreement to lower production, Reuters reports………………………………………..Full Article: Source

Small-Cap ETFs to Kick-Off the New Year

Posted on 11 January 2016 by VRS  |  Email |Print

As people go bargain hunting after the recent selling pressure, investors should consider exchange traded funds that track small capitalization-weighted stocks, which have typically outperformed at the start of a new year. According to financial data provider Kensho, small-cap stocks have returned more than large-cap companies in the first quarter for the past two decades, reports Deirdre Bosa for CNBC.
Investors who have historically bet on blue-chip Dow Jones Industrial Average stocks in the first quarter for the past two decades were only positive 50% of the time and generated an average 0.92% return. In contrast, the Russell 2000 small-cap index has provided more reliable returns, trading positive 65% of the time and returning 1.6% on average………………………………………..Full Article: Source

ETF options juggernaut marches on amid market turmoil

Posted on 11 January 2016 by VRS  |  Email |Print

As investors rush to protect their portfolios in a tumultuous start to the year, odds are they will be using options on exchange-traded funds to do it. While much of the recent focus on the ETF phenomenon has centered squarely on their inflows and trading growth, they are quietly becoming the epicenter of the equity option market.
ETFs now account for about 70% of all equity option volume, or $770 billion of the approximate $1.1 trillion traded per day, using a sample of the past 20 trading days. That’s double what the average volume was five years ago, at a time when more people than ever are buying and selling puts and calls on ETFs than they are on individual stocks………………………………………..Full Article: Source

Can These Growth ETFs Winners of 2015 Shine in 2016?

Posted on 08 January 2016 by VRS  |  Email |Print

Despite global growth worries and the strength in the greenback, U.S. economic growth impressed investors in 2015 on recovering housing fundamentals, a healing job market and improving consumer confidence.
Agreed, this economic growth hardly reflected on the bourses from a broad-based perspective as evident from the 0.7% and 2.3% decline in the broader market indices like the S&P 500 and Dow Jones, respectively; but there are certain corners of the market that braved all woes and exhibited strong gains last year. One of these winning areas is growth stocks and the related ETFs……………………………………….Full Article: Source

Oil and Energy ETFs That Hit All-Time Lows

Posted on 08 January 2016 by VRS  |  Email |Print

The securities, barring safe havens, were not in any party mood this New Year. And for the already-demoralized oil, the year unfolded on a scarier note. Brent crude plunged to a fresh 11-year low of sub-$35 a barrel and crossed its late-December decline on the way down on January 6. With this the spread between Brent crude and U.S. crude has been minimizing with the difference between the duo now being just a few cents.
U.S. crude is on the verge of touching its seven-year low. The sell-off (around 6%) marked the largest single-day decline in Brent crude since last September led by the huge U.S. gasoline pile-up and China growth worries. As per the U.S. government reading, there was a spike in motor gasoline stockpiles by 10.6 million barrels………………………………………..Full Article: Source

16 ETFs You Can’t Go Wrong With In 2016

Posted on 07 January 2016 by VRS  |  Email |Print

With heightened volatility and uncertainty last year, the U.S. stocks logged in the worst performance since 2008. The S&P 500 index ended 2015 marginally in red and Dow Jones posted its first annual decline since 2008.
The woes started with the relentless slide in crude oil, political turmoil in Greece, a strong dollar, weak corporate earnings, lofty valuations and Fed uncertainty, and then extended to geopolitical tensions and global growth concerns, especially emanating from China. However, the Nasdaq Composite was up 5.7% at the close of the year………………………………………..Full Article: Source

Are Solar ETFs a Good Investment in 2016?

Posted on 07 January 2016 by VRS  |  Email |Print

Solar ETFs outperformed other energy exchange-traded funds by a huge margin last quarter. The Guggenheim Solar ETF, which holds 25 American and Chinese solar companies, gained 15.4% from Sept. 31 to Dec. 31, 2015. That beats the popular United States Oil ETF and U.S. Natural Gas Fund by a staggering 40.5% and 40.7% over the same period, respectively.
Better yet, the 103 solar stocks listed on the Bloomberg Global Solar Energy Index beat the Dow Jones Industrial Average by 12% during the fourth quarter. Money Morning Global Energy Strategist Dr. Kent Moors says 2016 will be an even better year for solar ETFs and the global solar energy industry as well………………………………………..Full Article: Source

Best and Worst Performing Currency ETFs of 2015

Posted on 07 January 2016 by VRS  |  Email |Print

The U.S. dollar continued to gain strength against a basket of major currencies for the most part of 2015. This was due to a stable U.S. economy while the other major economies were having a tough time. Meanwhile, geopolitical tensions and divergence in monetary policies between the U.S. and other major players helped the U.S. dollar to surge against the major currencies last year.
Sluggish global growth environment forced the central banks of some developed economies including China, Euro-zone and Japan to implement economic stimulus measures such as quantitative easing program and rate cuts………………………………………..Full Article: Source

Do ETFs Cause Market Volatility?

Posted on 06 January 2016 by VRS  |  Email |Print

My colleague Russ Koesterich has said it before: Market volatility is the new normal. And when markets are volatile, we see volatility in the prices of exchange traded funds (ETFs). Some investors may wonder if the ETF is simply showing us the market volatility, or if it is actually causing it. Let’s take a closer look.
We know that ETFs trade on the open market. Let’s pretend that we’re monitoring an ETF that is listed in the US but invests in Asian stocks. If we buy that ETF and keep an eye on its price when the Asian market is closed, we can see that the price of the ETF still moves throughout the day, even though the Asian market is closed………………………………………..Full Article: Source

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