Mon, Feb 8, 2016
A A A
Welcome preal121
RSS

Commodities Briefing - Category | ETFs / ETCs more

ETFs hit ‘record-breaking’ mark in 2015

Posted on 05 January 2016 by VRS  |  Email |Print

Global exchange traded funds have grown at a record-breaking level, hitting the $347bn (£235bn) mark in 2015, according to BlackRock. The fund house claimed its iShares business led the global exchange traded fund industry by winning $130bn (£88.2bn) in new flows in 2015.
The fund house said it saw 13 per cent annual growth rate in 2015. It also claimed to have set new growth records in the US, with growth totalling $97bn (£66bn) against $87bn (£59bn) in 2014, and in Europe, with growth reaching $34bn (£25bn) from $20bn (£14bn) over the same period………………………………………..Full Article: Source

The Best ETFs for 2016

Posted on 05 January 2016 by VRS  |  Email |Print

We Fools are big believers in diversification, as having all yours egg in one basket is a recipe for disaster. One easy way to broaden your portfolio’s diversity is to buy into an exchange-traded funds, or ETF, as they typically hold dozens or even thousands of different individual stocks, giving their investors instant diversification. But with thousands of ETFs on the market, which one is the best choice heading into the new year?
We reached out to our team of Motley Fool contributors and asked them to share an ETF that they think is a great buy heading into 2016. Read below to see which ETFs they singled out………………………………………..Full Article: Source

16 ETFs You Can’t Go Wrong With in 2016

Posted on 05 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. This suggests that the broad-based performance of the stocks was not ugly………………………………………..Full Article: Source

Record number of companies launch exchange traded funds

Posted on 04 January 2016 by VRS  |  Email |Print

A record number of companies entered the exchange traded fund market last year even though the vast majority of existing ETFs have failed to generate profits for fund managers. Forty-three fund companies launched ETFs, which give investors cheap exposure to markets by passively tracking an index, for the first time in 2015.
These new providers have been drawn to the record-breaking growth of the ETF industry, which drew $338bn of net assets in 2014 and $319bn in the first 11 months of last year. Growing dissatisfaction with high fees in the traditional fund market has also forced more asset managers to consider adding ETFs to their existing ranges of actively managed mutual funds………………………………………..Full Article: Source

Greatest ETFs for 2016

Posted on 04 January 2016 by VRS  |  Email |Print

ETFs can be excellent choices for investors who want to create a diverse portfolio, but don’t want to deal with the homework that comes with choosing individual stocks and bonds. Fortunately, there are thousands of ETFs that offer pre-packaged investment portfolios in the form of single, easy-to-purchase funds.
Before you get started, however, there are a few things you should know about choosing great ETF investments for your portfolio. Here’s what you should keep in mind as you begin your ETF search, and some examples of great ETFs to consider in 2016………………………………………..Full Article: Source

Performance of Precious Metals–Based ETFs in 2015

Posted on 30 December 2015 by VRS  |  Email |Print

Investing in physical precious metals can be a costly proposition due to associated factors like transportation and warehousing. For precious metal investors, ETFs can provide an alternative investment option, as can gold stock investments and gold-based mutual funds.
The largest ETF, the SPDR Gold Shares ETF (GLD), has generally followed the returns in gold. GLD fell 9.3% due to the 9.6% fall in gold prices so far in 2015. The iShares Silver Trust ETF (SLV) fell 9.1% owing to the 8.9% fall in silver prices………………………………………..Full Article: Source

ETFs tracking China’s onshore markets struggle to find an audience

Posted on 30 December 2015 by VRS  |  Email |Print

The lopsided performance of exchange-traded funds tracking China’s turbulent domestic markets is stanching the flow of new money into a market that once excited investors. Investors pulled $418 million out of ETFs tracking Chinese stocks that trade on the Shanghai and Shenzhen exchanges in the year to Dec. 21, withdrawals representing more than half the total assets held in those funds, according to FactSet Research Systems Inc.
Over the same period, ETFs tracking Chinese stocks not traded on the mainland attracted $1.2 billion. Much of the outflows came during a late-summer rout of once-high-flying stocks that exposed issues with government intervention, corruption and strict regulations for foreign investment………………………………………..Full Article: Source

3 Year-End Portfolio Tips For ETF Investors

Posted on 30 December 2015 by VRS  |  Email |Print

Many investors have now mentally put the bow on 2015 and are looking ahead to greener pastures in 2016. The lack of forward progress this year has likely created a sense of longing for a more discernable trend to develop in the New Year.
That being said, there are still a few days left to shape up your ETF portfolio and put it in a position to achieve success prior to tilting that glass of champagne and signing off for 2015. 1. Review Your Current Holdings: It may seem simplistic, but objectively reviewing your holdings on a regular basis is something that few investors take the time to do………………………………………..Full Article: Source

Why Investors Are Fleeing Commodity ETFs (Video)

Posted on 29 December 2015 by VRS  |  Email |Print

Investors can’t seem to get away from non-energy commodities fast enough. A record $857 million was pulled this year from U.S. exchange-traded funds backed by broad baskets of everything from grains to metals. Bloomberg’s Joe Deaux reports on “Bloomberg Markets.”.………………………………………Full Article: Source

10 Most Heavily Traded ETFs of 2015

Posted on 29 December 2015 by VRS  |  Email |Print

The ETF industry has been roaring with explosive growth seen in recent years and is now a preferred investment vehicle for financial advisors over mutual funds and hedge funds. Thanks to unique strategies, creativity, transparency, diversification benefits, enhanced tax competences, low turnover and low cost, the ETF now has a bigger asset base than hedge funds, overcoming all odds in its investment tool.
In particular, investors seek to trade in ETFs that can easily be purchased and sold on the market, suggesting that the ETF should have enough liquidity. Volume, or the number of shares traded in a particular period, is definitely the most important consideration for determining the liquidity of a particular fund………………………………………..Full Article: Source

Top Performing ETFs Of 2015

Posted on 29 December 2015 by VRS  |  Email |Print

What was the top-performing ETF of 2015? The answer might surprise you. After all the hoopla surrounding the bursting of China’s stock market bubble only a few months ago, it’s somewhat ironic that the No. 1-performing ETF on this list is a China fund.
China ETFs Surprise To The Upside: The Market Vectors China AMC SME-ChiNext ETF surged 52.6% in the year-to-date period through Dec. 22, making it far and away the best-performing ETF of 2015 (excluding leveraged and inverse ETFs). That said, the fund’s ascent has been anything but smooth. At its highest point in June, CNXT was up as much as 129% for the year; at its lowest point in September, the fund gave back essentially all of those gains………………………………………..Full Article: Source

ETF Issuers with Currency-Hedged ETFs Ride High on Strong Dollar

Posted on 28 December 2015 by VRS  |  Email |Print

As the U.S. dollar strengthened throughout 2015, managers of currency-hedging exchange-traded funds had a banner year—they collected one of every four dollars invested in U.S. ETFs and rewarded their investors well.
Now, they are doubling down with plans for as many as 41 new currency-hedging funds on file with regulators. But many of those funds may come to market after the easy money in currency hedging has been made………………………………………..Full Article: Source

The 7 Best ETFs for 2016

Posted on 28 December 2015 by VRS  |  Email |Print

Exchange-traded funds keep gaining new fans. And why shouldn’t they? The average actively managed fund trails its benchmark index by roughly its expense ratio. Low-cost ETFs. Of course, you’ll do best with ETFs that are positioned in the market’s sweet spots. ETFs, for the most part, run on autopilot. So the responsibility for good and bad choices rests squarely with you.
I don’t claim to be a clairvoyant, but I do like to buy what’s cheap. The following are my seven best ETF picks for 2016. My selections are designed to capitalize on opportunities I see in the coming year; please don’t confuse this list with my recommended buy-and-hold ETF portfolio………………………………………..Full Article: Source

4 Factors to Consider Before Buying a Commodity ETF

Posted on 28 December 2015 by VRS  |  Email |Print

Among the nearly 2,000 ETFs available to U.S. investors are products with various levels of risk and degree of complexity. Commodity ETFs, which can potentially provide diversification benefits to a portfolio or be used to bet on a short-term movement in natural resource prices, fall toward the high-risk and high-complexity end of this spectrum.
For any investor thinking about adding a commodity ETF to his/her portfolio, there are several nuances that should be understood and factors that should be considered before placing a buy order………………………………………..Full Article: Source

Commodities ETF Running on Fumes

Posted on 28 December 2015 by VRS  |  Email |Print

Like many commodities exchange traded products, the United States Gasoline Fund has had a rough year. And like many commodities ETFs and ETNs, UGA could be facing more problems heading into 2016.
ETFs, like UGA, that track front month contracts benefit from backwardation as they roll front month contracts to avoid physical delivery of the commodity. When the contract is about to expire, UGA sells the futures contract and buys a cheaper later-dated contract in a backwardated market at a profit………………………………………..Full Article: Source

Currency-Hedged ETFs Storm the Scene in 2015

Posted on 21 December 2015 by VRS  |  Email |Print

One of the big stories of 2015 in the ETF industry has been the impact of currency volatility and the suite of products it has spawned. Heading into the second-half of the year there were currency-hedged ETF offerings but broad awareness was near non-existent. No one is to blame for that – advisors haven’t been compelled to focus on currency with the way the markets have gone in the current long-term bull market.
Then the end of August hit and consistent dollar strength began to show its pervasiveness. The result has been a sprint by ETF issuers to bring currency-hedged products to market so that investors can remove the risk that many will become all to familiar with when reviewing their 2015 unhedged returns………………………………………..Full Article: Source

3 Commodity ETFs Defying Weakness in 2015

Posted on 21 December 2015 by VRS  |  Email |Print

After a terrible 2014, broad commodities ranging from natural resources to metals have been beaten down badly 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.
Notably, the most popular commodity fund – PowerShares DB Commodity Index Tracking Fund – which tracks a broad basket of 14 most heavily traded commodity futures contract has seen terrible trading in the year-to-date time frame, tumbling nearly 28.4%. While the U.S. economy has been on a firmer footing with increased confidence, international fundamentals are not so encouraging………………………………………..Full Article: Source

Commodity ETFs Take Beating from Fed

Posted on 18 December 2015 by VRS  |  Email |Print

As the U.S. dollar rallies off the Federal Reserve’s tightening monetary policy, commodity exchange traded funds are slipping to new lows. On Thursday, the GreenHaven Continuous Commodity Index Fund fell 0.9%, PowerShares DB Commodity Index Tracking Fund declined 0.8%, iPath Dow Jones-UBS Commodity Index Total Return ETN decreased 0.9%% and iShares GSCI Commodity-Indexed Trust retreated 1.0%.
The four broad commodity-related exchange traded products all hit new lows Thursday. The commodities market was weakening Thursday after the Fed hiked interest rates and the U.S. dollar rallied………………………………………..Full Article: Source

The Risk (and Opportunity) of Commodity ETFs

Posted on 18 December 2015 by VRS  |  Email |Print

Commodity ETFs have piqued the interest of many investors, especially after a prolonged drop in prices. While some detailed academic research has highlighted the potential benefits, the live track records have generally been disappointing.
Below are five charts that illustrate the significant impact — both good and bad — that an allocation to commodities can have on a portfolio. The following chart shows the performance for the PowerShares DB Commodity ETF (DBC) since its launch in 2006. Though DBC had doubled at one point, it has now lost more than one-third of its value since formation………………………………………..Full Article: Source

No Danger from COP21 for Airline and Shipping ETFs

Posted on 18 December 2015 by VRS  |  Email |Print

The world is striving to arrest the rise in the global temperature to 2 degree Celsius by the end of this century. In that vein, global leaders assembled in Paris at the COP 21 meet - which was the 21st annual conference of parties - to chalk out an elaborate and comprehensive plan to lower carbon emissions and moderate the warming of the planet. In any case, efforts to check global warming have been constant across countries.
Not only developed economies, but the emerging ones too are pushing themselves to attain this goal. However, following two weeks of sharp diplomacy, 196 countries agreed upon a historic agreement on climate change last Saturday………………………………………..Full Article: Source

Currency-Hedged ETFs Can Serve as Core Holdings

Posted on 17 December 2015 by VRS  |  Email |Print

Currency-hedged exchange-traded funds continue to enjoy strong inflows in 2015. Through the first 11 months of the year, a net $45 billion flowed into these products, accounting for a significant slice of the net $209 billion of flows into international-equity funds and ETFs. Much of this flow can be attributed to those looking for a short-term trade as the U.S. dollar continues to strengthen.
However, there are also investors who are starting to use these products as a long-term, strategic allocation. Most investors have unhedged currency exposure in their international-equity allocation, as most international-equity funds are not hedged. To temper this foreign-currency exposure (that is, the volatility from moving currencies), investors can replace unhedged international-equity funds with currency-hedged ETFs………………………………………..Full Article: Source

The 7 Best ETFs to Buy for 2016

Posted on 17 December 2015 by VRS  |  Email |Print

While U.S. markets have not done much of anything this year, 2015 will go down as another banner for the exchange-traded fund industry. In November, ETFs around the world added $28.2 billion in new assets, with the best ETFs coming in U.S. equity — they saw $21.4 billion of inflows, according to BlackRock data.
Yes, the largest ETF market is on pace for another year of record asset-gathering. And more than 200 new ETFs have come to market this year, confirming that the ETF business continues to experience exponential growth. Better yet, the quality of new products is improving as some rookie ETFs, with the appropriate seasoning, have the potential to become some real powerhouses………………………………………..Full Article: Source

European ETFs see EUR3.1bln of net inflows during November

Posted on 16 December 2015 by VRS  |  Email |Print

Lipper, a global leader in fund flow data, has released November figures for the European exchange-traded fund industry showing strong growth with assets under management (AUM) increasing by €13.1bn during the month.
The increase was driven by a combination of market performance (+€10.0bn) and net inflows which accounted for €3.1bn. AUM in the European ETF industry now stands at €457.4bn with the majority held in equity funds (€334.8bn), followed by bond funds (€105.6bn) and commodity products (€13.1bn)………………………………………..Full Article: Source

How Well will Gold Mining ETFs Weather a Rate Hike?

Posted on 16 December 2015 by VRS  |  Email |Print

In the third quarter of 2015, gold demand for investment purposes - bars, coins and ETFs - increased 27% year on year to 229.7 tons, the highest third-quarter total since 2012. Overall, in the quarter, ETFs witnessed an outflow of 65.9 tons. However, breaking down on a monthly basis, outflows of 71.8 tons in July were partly offset by inflows in the two successive months.
Till October, ETFs witnessed an inflow on positive institutional investor attitudes. Compared to the previous year, longer-term outflows from ETFs have slowed down considerably. Till this October, ETF holdings were down by just 54 tons compared with declines of 780 tons in 2013 and 133 tons in 2014………………………………………..Full Article: Source

Oil’s Rout Ripples Beyond Energy ETFs

Posted on 15 December 2015 by VRS  |  Email |Print

Sharp drops last week in the major market indexes and many ETFs may have more to do with plunging oil prices than the keenly watched Fed move expected Wednesday. Benchmark ETFs tracking the S&P 500, Dow and Nasdaq dumped 3% to 4% each. Many exchange-traded funds turned negative for 2015.
Investors are by and large braced for the first rake hike in nearly a decade, which is expected to be a very small one, says Russ Koesterich, BlackRock’s global chief investment strategist………………………………………..Full Article: Source

Asia ETFs/ETPs suffer net outflows of US$1.2 billion in November

Posted on 15 December 2015 by VRS  |  Email |Print

ETFs/ETPs listed in Asia Pacific ex-Japan suffered net outflows of US$1.2 billion in November 2015. The Asia Pacific (ex-Japan) ETF/ETP industry had 772 ETFs/ETPs, with 916 listings, assets of $116 billion, from 115 providers on 17 exchanges in 13 countries at the end of the same month, according to independent research and consultancy firm ETFGI’s Global ETF and ETP Insights Report for November 2015.
In the first 11 months of the year, record levels of net new assets had been gathered by ETFs/ETPs listed globally with net inflows of $319.3 billion, marking a 15% increase over the prior record set during the first 11 months of 2014. In the United States, net inflows reached $201.7 billion, which is 5% higher than the prior record set last year;……………………………………….Full Article: Source

ETFs/ETPs In US Gathered Record $201.7 Billion In Net New Assets This Year

Posted on 11 December 2015 by VRS  |  Email |Print

ETFs/ETPs listed in the United States have gathered a record US$201.7 billion in net new assets as of the end of November 2015 which is 5% above the record level of US$191.8 billion of net new assets gathered at this point in 2014. This marks the 10th consecutive month of positive net inflows.
The US ETF/ETP industry had 1,824 ETFs/ETPs, assets of US$2.1 trillion, from 92 providers listed on 3 exchanges at the end of November, according to ETFGI’s Global ETF and ETP insights report for November 2015. In the first eleven months of 2015 record levels of net new assets have been gathered by ETFs/ETPs listed globally with net inflows of US$319.3 Bn marking a 15% increase over the prior record set during the first eleven months of 2014………………………………………..Full Article: Source

SEC Chases ETF Boogeyman: Geared Funds

Posted on 11 December 2015 by VRS  |  Email |Print

This week the Wall Street Journal wrote an article suggesting that the SEC might come out Friday and shut down all leveraged and inverse ETFs. This would be a bold move for a regulator that, generally speaking, hates to actually disrupt whole product lines. After all, it’s not like in 2008 when collateralized mortgage obligations and their derivatives ceased to exist, there were just new rules about who could issue them and how much risk they could take.
Regardless of what they do or don’t say this week, or next week, or next month, it’s worth understanding what all the fuss is about. It’s really about swaps, investor education and volatility………………………………………..Full Article: Source

ETFs/ETPs Listed Globally Gathered Record $319 Billion As of November 2015

Posted on 10 December 2015 by VRS  |  Email |Print

ETFs/ETPs listed globally have gathered a record US$319.4 billion in net new assets as of the end of November 2015 which is 15% above the record level of US$277.3 billion of net new assets gathered at this point in 2014. This marks the 22nd consecutive month of positive net inflows.
The global ETF/ETP industry had 6,104 ETFs/ETPs, with 11,733 listings, assets of US$3.0 trillion, from 275 providers listed on 63 exchanges in 51 countries at the end of November, according to ETFGI’s Global ETF and ETP insights report for November 2015. In the first eleven months of 2015 record levels of net new assets have been gathered by ETFs/ETPs listed globally with net inflows of US$319.3 Bn marking a 15% increase over the prior record set during the first eleven months of 2014………………………………………..Full Article: Source

No Winter Cheer for Natural Gas ETFs?

Posted on 10 December 2015 by VRS  |  Email |Print

Broad commodities have gone off the deep end on sluggish trends with the energy market rout deserving a special mention. Among the issues wrecking havoc on the energy market, rising supplies and falling demand on global growth worries are primary.
In such a situation, the Saudi-led OPEC’s decision of not cutting production and even scrapping the regular production limit to save their market share sent oil and other energy-based commodities into a tailspin. In such a scenario, the only hope for the natural gas market was the Arctic Chills which gives a fresh lease of life to this commodity every winter. The cold snap boosts electricity demand across the region putting natural gas in focus………………………………………..Full Article: Source

Investors Unchain Themselves From ETFs as Stock Volume Surges

Posted on 09 December 2015 by VRS  |  Email |Print

Individual stocks are hot again, with investors eschewing passive strategies and piling into single shares at the fastest pace in five years. It’s the latest sign of calm returning to the equity market after last August’s meltdown.
Among Standard & Poor’s 500 Index constituents, about 2.3 billion shares have changed hands each day since early November, compared with 106 million a day in the SPDR S&P 500 ETF Trust, the biggest such security tracking the benchmark gauge. The ratio between the two has almost doubled since reaching a four-year low in September and on Nov. 30 hit 24, the highest level in almost six years, data compiled by Bloomberg and FBN Securities Inc. show………………………………………..Full Article: Source

5 ETFs to Profit from the Oil Collapse

Posted on 09 December 2015 by VRS  |  Email |Print

Oil prices continued their sharp decline yesterday as mild weather forecasts added to the commodity’s woes after Organization of the Petroleum Exporting Countries (OPEC) failed to arrive at any agreement to cut production, on Friday. The commodity slumped to its lowest levels in almost seven years, dragging down shares of oil & gas companies and also weighing on the broader market.
In the absence of any agreement on production cuts, OPEC as well as non-OPEC members such as Russia, will continue to produce oil in record volume despite weak global demand. In fact, production is going to rise now with Iran set to start exporting oil next year when international sanctions are lifted………………………………………..Full Article: Source

Commodities ETP round-up: investors offload gold but seek bargains in energy and copper

Posted on 09 December 2015 by VRS  |  Email |Print

Gold ETPs experienced major outflows to the tune of $58.6m last week. The ETFS Gold ETP ended the week down 0.8% but made significant gains during Friday trading on the back of underwhelming policy moves by the European Central Bank (ECB), a depreciating dollar, and a strong US payroll report which increased expectations for a rate hike by the Federal Reserve in December.
The day’s rally highlights that further movements in the price of the yellow metal may be possible in the lead up to the Federal Open Market Committee meeting on 16 December. Aneeka Gupta, Associate – Research Analyst at ETF Securities, commented: “Gold rose 2.6% on Friday after the US dollar depreciated by 2.4% on Thursday following the ECB’s disappointing policy moves………………………………………..Full Article: Source

The Commodity Landscape Heading into 2016

Posted on 08 December 2015 by VRS  |  Email |Print

The so-called commodities “super-cycle” came screeching to a halt in 2016 for exchange traded fund investors. China slowdown and a surging dollar have put stress on previously booming countries who rely on exports as crude oil led the way down.
Tom recently caught up with Kevin Baum who heads of commodities for Powershares to discuss what he makes of it all. What’s the best approach to getting commodities exposure in these difficult environments? The answer is a little more complex than that as you’d imagine but there are good, steady plays still available for those diligent investors who maintain their commodity exposure for diversification………………………………………..Full Article: Source

Should You Fear the ETF?

Posted on 08 December 2015 by VRS  |  Email |Print

Exchange-traded funds have suddenly become scary—at least to some in the investment community. “It may be time to re-examine the entire ETF ecosystem,” Securities and Exchange Commissioner Luis Aguilar said at the opening of the SEC’s Investor Advisory Committee meeting in October.
“Now is the time to be asking the hard questions about ETFs,” his fellow commissioner Kara Stein told an audience at Harvard Law School in November, adding that in stressed markets ETFs “break down in ways that we do not completely understand.”……………………………………….Full Article: Source

Green ETFs Struggle, Thanks to Fall in Oil

Posted on 08 December 2015 by VRS  |  Email |Print

The environment is in the spotlight, with the Paris climate talks in full swing. But investors in “green” exchange-traded funds have learned from experience that these funds have yet to establish a long-term footing.
There are all sorts of ETFs in this sector. Some focus on individual green technologies or market segments, while others take a broader view. As a group, however, they have mainly had a tough year. So far in 2015, through Nov. 30, some in the group were trading 15% to 22% lower………………………………………..Full Article: Source

Profit From Sub-$40 Oil with These ETFs

Posted on 07 December 2015 by VRS  |  Email |Print

It has been a regular practice for oil to break its own record on its way down for the last one and a half years. Although by now the markets are familiarized with persistently low oil prices , blows were too hard yesterday, when the’ black gold’ fell below the psychologically resistant level of $40 for the first time since late August. U.S. crude oil plunged 4.6% on December 2 and is hovering around at a 6-1/2 year low.
The latest move came in the wake of a boom in U.S. oil supplies. U.S. government data indicated crude builds for the 10 th successive week. As per Energy Information Administration (EIA), U.S. crude oil inventories increased 1.2 million barrels last week, despite a rise in refining rates………………………………………..Full Article: Source

Investors pick out best smart beta

Posted on 07 December 2015 by VRS  |  Email |Print

The first is the transparent nature of the ETF structure, which makes it easy to see how the index is constructed. Bruno Poulin, president of smart beta ETF specialist Ossiam, contrasts this with hedge funds (he is a former deputy chief investment officer of Paris-based fund Systeia Capital Management).
He said: “Because of the mystery and secrecy surrounding that industry [hedge funds] you obviously had overpriced strategies that didn’t bring any value, but it is more difficult to do that in the ETF industry. That’s the beauty of the product. The market is transparent so any serious provider must think twice before creating strategies that are over-priced and don’t stand up to close technical scrutiny.”……………………………………….Full Article: Source

What Every Investor Needs to Know About Commodity ETFs

Posted on 04 December 2015 by VRS  |  Email |Print

During the past decade, interest in commodities as an asset class has increased considerably. Several different factors are likely responsible, including the surge in the number of exchange-traded commodity products (there are now more than 100 ETFs and ETNs offering exposure to commodities).
Respected authors have published research that created a certain level of excitement about the potential for commodities to lower volatility and enhance overall returns when added to a traditional stock-and-bond portfolio. Perhaps the best-known study supporting commodities as a portfolio component is the 2006 paper authored by Gary Gorton and Geert Rouwenhorst………………………………………..Full Article: Source

How ETFs Have Made the Gold Price Volatile

Posted on 04 December 2015 by VRS  |  Email |Print

ETFs are fairly new to gold. The first ETF backed by physical gold was launched in Australia in 2003. However, it wasn’t until November 2004 when State Street Global Advisors and the World Gold Council launched SPDR Gold Shares (GLD) that gold-backed ETFs really took off. Although GLD is by far the largest, a number of gold-backed ETFs give investors direct exposure.
By the end of 2014, ETFs held more than 1,600 tonnes of gold, equal to about six months of mine supply. ETFs Have Had a Volatile Impact on Gold Since their introduction, gold ETFs have been one of the most volatile sources of demand and, at times, supply……………………………………….Full Article: Source

Global Climate Talks and ETFs to Play

Posted on 03 December 2015 by VRS  |  Email |Print

Leaders from around the globe have gathered to express their commitments to developing a realistic framework for reducing greenhouse emissions. President Barak Obama urged other countries to “rise to the moment” in the collective climate change efforts; for starters, he unveiled a $2 billion dollar program with Bill Gates aimed at boosting green energy research and development.
While it’s true that in the near term, these talks are unlikely to yield anything meaningful from an environmental-change perspective, the summit in Paris marks an important milestone in the multinational fight against global warming. Not surprisingly, some investors perhaps now are reconsidering their thoughts on the subject of “green energy” in light of seeing the recent round of pledges toward the cause as a meaningful enough catalyst………………………………………..Full Article: Source

Gold Gets Next Slam as Assets in Top ETP Tumble Most Since 2011

Posted on 03 December 2015 by VRS  |  Email |Print

Gold bulls were dealt another blow as holdings in the world’s biggest bullion fund posted the biggest slump in almost five years. Holdings in the SPDR Gold Trust, the largest exchange-traded product backed by the metal, dropped 2.4 percent on Wednesday to 639.02 metric tons, data on the fund’s website show. That’s the biggest tumble since January 2011. Assets are at the lowest since September 2008.
Investors are dumping bullion amid mounting speculation that the Federal Reserve will raise U.S. interest rates this month. Prices in New York reached a five-year low on Wednesday………………………………………..Full Article: Source

5 Reasons Your Portfolio Needs More ETFs And Index Funds

Posted on 02 December 2015 by VRS  |  Email |Print

Even though exchange traded funds and index funds have gained mainstream popularity over the past 10-years a lot of investors have yet to fully embrace them as a primary investment vehicle in their portfolio.
There are numerous reasons for this, but the bottom line for investors is that there’s likely no easier or cost effective way to improve a portfolio than to replace most of the mutual funds, hedge funds, and structured products with exchange-traded funds and indexes. Here are five reasons why ETFs and index funds are worthy of a dominant role in most portfolios:……………………………………….Full Article: Source

Best and Worst Sector ETFs for December

Posted on 02 December 2015 by VRS  |  Email |Print

The month of December has been one of the strongest periods of the year for equities, and some areas of market and sector-related exchange traded funds may stand out during the Santa Claus rally. Over the past month, the SPDR S&P 500 ETF, iShares Core S&P 500 ETF and Vanguard 500 Index have gained 0.4%. Year-to-date, the S&P 500 ETFs rose 3.0%.
After a weak November, the S&P 500 may enjoy a better run this month. According to Kensho data, over the past 25 years, the S&P 500 has been positive 80% of the time for an average gain of 1.78%, reports Bob Pisani for CNBC………………………………………..Full Article: Source

Currency Hedged ETFs Are Not All The Same

Posted on 01 December 2015 by VRS  |  Email |Print

Currency fluctuations can be problematic for investors. If not hedged properly, gains in one part of a portfolio can be lost by the down cycles within currency values in another part of the portfolio. Investors in the US, for example, see this issue all the time with global or non-US investments eating into profit that had been realized at the US dollar level.
Exchange Traded Funds (ETFs) often use certain tactics to help investors reduce foreign exchange risk and provide an offsetting short position in the foreign currency to match the total notional principal of the underlying portfolio, typically through the use of a forward or a futures contract. A forward allows an investor to lock in the price of a currency today, regardless of fluctuations………………………………………..Full Article: Source

November’s Worst Commodity Nightmare

Posted on 01 December 2015 by VRS  |  Email |Print

Unfortunately for commodities, there’s no waking up from this nightmare. It’s real. Since 1970, the S&P GSCI has never seen a Nov. with as many as 21 negative commodities. After a glimmer of hope in Oct., only 3 commodities, sugar, cotton and cocoa are on track to be positive in Nov. In other words, for every one commodity that is positive, seven are negative in Nov., 2015.
Moreover, Nov. 2015 is the 5th worst Nov. on record since 1970, only behind 1997, 1998, 2008 and 2014. Year-to-date, the index is also on pace to be the 5th worst year with 1998, 2001, 2008 and 2014 losing more. Though YTD through Nov. 2014, the index was in better shape than the index is through this Nov………………………………………..Full Article: Source

November ETF Asset Report

Posted on 30 November 2015 by VRS  |  Email |Print

The month of November was all about heightened Fed lift-off bets and geo-political flare-ups on the Paris terror attacks. While the first confirms the U.S. growth momentum, more so after the upward revision in the Q3 GDP numbers (from 1.5% to 2.1%), the second points to lingering geopolitical threats in the coming months.
Investors seem to have reacted along the headlines. At least, the asset flow pattern says that. Let us explain the trend below. After nagging speculations on the rate hike timeline, direct hints from the Fed this time were well digested by the market. Investors appeared to have paid more attention to the improving economy than to the fears that cheap money will now call it quits………………………………………..Full Article: Source

Commodities ETP round-up: Investors abandon gold but favour oil and PGM

Posted on 27 November 2015 by VRS  |  Email |Print

Investors’ patience with gold ETPs wore thin last week as further price declines prompted the first net outflow from gold ETPs in ten weeks, signalling a change in investor sentiment in the yellow metal. Meanwhile, despite slight price declines in oil-based and platinum-group-metals (PGM), significant net inflows were recorded across all ETPs tracking these commodities, as investors who were bargain hunting placed bets on upcoming price reversals.
Despite global demand for gold receiving boosts from Chinese imports (currently at a 7 month high) and Diwali celebrations, whereby gifts of golden jewellery are commonplace, the gold price has failed to rally; the ETFS Physical Gold fell by 0.4% last week………………………………………..Full Article: Source

Call for fund platforms to integrate ETFs

Posted on 27 November 2015 by VRS  |  Email |Print

Financial advisers are increasingly outsourcing the management of their client’s investments to discretionary fund managers (DFMs) and this, in turn, is driving the demand for exchange-traded funds. Improving access and providing a greater variety of ETFs on UK fund platforms is imperative to foster this demand.
Speaking at a media event held by BlackRock, experts from investment service providers Fidelity, Novia and Brewin Dolphin advised that fund platform providers that can provide DFMs with cost effective and granular exposures through ETFs possess a competitive advantage………………………………………..Full Article: Source

Fed Fans Flame on Inverse Commodity ETFs

Posted on 26 November 2015 by VRS  |  Email |Print

Weakening global growth and the strong U.S. dollar have weighed on demand for raw materials and pressured commodities-related exchange traded funds, with a major commodity index now trading near a 16-year low.
The broad commodities market has been trending lower. Year-to-date, the GreenHaven Continuous Commodity Index Fund dipped 17.8%, PowerShares DB Commodity Index Tracking Fund fell 21.3%, iPath Dow Jones-UBS Commodity Index Total Return ETN declined 24.4% and iShares GSCI Commodity-Indexed Trust dropped 26.4%………………………………………..Full Article: Source

banner
February 2016
S M T W T F S
« Jan    
 123456
78910111213
14151617181920
21222324252627
2829