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Global ETF Assets Reach A Record $3 Trillion

Posted on 08 June 2015 by VRS  |  Email |Print

Assets invested in ETFs/ETPs listed globally broke through the US$3 trillion milestone at the end of May to reach a new record of US$3.015 trillion in assets under management (AUM), according to ETFGI’s preliminary monthly ETF and ETP global insight report for May 2015.
At the end of May 2015, the global ETF/ETP industry had 5,757 ETFs/ETPs, with 11,117 listings, from 256 providers listed on 62 exchanges in 51 countries. “Our forecast was that assets would break through US$3 trillion by the middle of 2015. It took the global ETF/ETP industry 19 years to reach US$1 trillion in assets under management, 23 years to reach US$2 trillion in AUM and just 25 years to reach US$3 trillion in AUM……………………………………….Full Article: Source

New ETFs Marry Currency Hedging and Dividends

Posted on 05 June 2015 by VRS  |  Email |Print

It has been established that investors like dividend exchange traded funds and it has been affirmed this year that there is plenty of affinity for currency hedged funds. After all, four of the top 10 asset-gathering ETFs on a year-to-date basis are currency hedged products.
The two concepts have been previously married in single ETFs and WisdomTree (NasdaqGS: WETF) adds to the group of currency hedged dividend funds today with the debuts of the WisdomTree International Hedged SmallCap Dividend Fund (NYSEArca: HDLS) and the WisdomTree Global ex-U.S. Hedged Dividend Fund (NYSEArca: DXUS)………………………………………..Full Article: Source

World’s biggest gold ETF loses place in U.S. top 10

Posted on 05 June 2015 by VRS  |  Email |Print

The world’s largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares, is no longer one of the top 10 U.S.-listed ETFs by value, according to data from FactSet. The value of the GLD fund, which issues securities backed by physical bullion, dwindled to $27.148 billion this week, data on its website showed, as its gold holdings fell to their lowest since mid-January at 709.9 tonnes.
That makes it the 12th largest fund by value listed by ETF.com, which uses FactSet data. At its peak in August 2011, a month before gold prices hit a record high of $1,920.30 an ounce, its value reached $77.5 billion………………………………………..Full Article: Source

Goldman Says Options Traders Too Relaxed Before OPEC Meeting

Posted on 05 June 2015 by VRS  |  Email |Print

Tranquility reigns in exchange-traded funds tracking oil and its producers. Too much, says Goldman Sachs Group Inc. Decreasing levels of implied volatility on the United States Oil Fund LP and the Energy Select Sector SPDR Fund show options speculators see little prospect of turmoil in the commodity even as the Organization of Petroleum Exporting Countries meets in Vienna, according to Goldman Sachs derivatives strategists Katherine Fogertey and John Marshall. The lack of concern could backfire with a rush to purchase hedges after OPEC’s decision, they said.
While the consensus is that OPEC won’t announce any changes to production, there could still be swings as traders focus on other details released in the decision, according to BMO Capital Markets Corp.’s Max Breier………………………………………..Full Article: Source

Gold ETF holdings fall to six year low

Posted on 04 June 2015 by VRS  |  Email |Print

Holdings of gold-backed exchange-traded products have fallen to their lowest levels since 2009 despite rising market uncertainty over Greece’s debt payments. Holdings in ETFs tracked by Bloomberg were at 1,594.1 tonnes Tuesday, down from 1,598.3 tonnes at the beginning of the year, reports Henry Sanderson in London.
Gold rose above $1,200 a troy ounce last month but has failed to hold onto those gains, trading at $1,189.7 Wednesday………………………………………..Full Article: Source

Here’s Why Growth ETFs Continue To Beat Value

Posted on 04 June 2015 by VRS  |  Email |Print

When building out an exchange-traded fund portfolio, many investors prefer to slant their large-cap U.S. stock exposure towards growth or value characteristics. The benefit to this methodology is that you have greater flexibility to hone in on a specific theme that you (or your advisor) believe will outperform over the long run. The downside is that you may choose wrong and end up leaving money on the table versus a traditional broad-based index such as the iShares Core S&P 500 ETF (IVV).
Now, fear of making a wrong choice should never hold you back from implementing a structured ETF portfolio. In fact, there is a commonly held belief that if you aren’t worried about something in your account, then you aren’t diversified enough — meaning that a truly broad array of assets should always have something underperforming based on the prevailing market environment………………………………………..Full Article: Source

Time for another look at ETFs

Posted on 04 June 2015 by VRS  |  Email |Print

Amid growing speculation that liquidity in some sectors of the US market such as corporate bonds may be a lot lower than most investors assume, raising risks in the event of another market downturn, one large market player believes liquidity will come from an unlikely source: ETFs.
Exchange traded funds tend to remain liquid in stressed market scenarios and can actually help boost market liquidity, according to the head of iShares Australia, Jon Howie. “Time and again, across multiple asset markets, what we see is liquidity improves in stressed markets and not the opposite. Investors, particularly institutions, look to the ETFs as their source of liquidity,” he says………………………………………..Full Article: Source

International ETFs Stoke $18.3B in May Inflows

Posted on 03 June 2015 by VRS  |  Email |Print

Exchange traded funds continued their breakneck pace of asset gathering in May, adding $18.3 billion in new capital as investors shuffled into international funds. “Global ETP flows of $18.3bn were concentrated in developed market EAFE equities and Japan funds. Europe and U.S. flows were modest as mixed economic data for both regions has led to uncertainty over growth prospects.”
“Still, 2015 asset gathering remains ahead of the record year-to-date pace set in 2013 and nearly matched last year on the way to a new full-year high,” according to BlackRock, parent company of iShares, the world’s largest ETF issuer………………………………………..Full Article: Source

Commodity Currency ETFs in Trouble as Dollar Resumes Rally

Posted on 03 June 2015 by VRS  |  Email |Print

After a strong start to the second quarter, commodities were hit by the resumption of the U.S. dollar rally over the last couple of weeks. In particular, oil and copper have returned to their declining trend, triggering off worries over inflation and chaos in the currency market.
Notably, two ETFs offering exposure to U.S. dollar (USD) against a basket of world currencies - PowerShares DB US Dollar Bullish Fund ( UUP ) and WisdomTree Bloomberg U.S. Dollar Bullish Fund ( USDU ) - gained over 4% over the past 10 days. This is especially true as a string of upbeat economic data boosted the near-term Fed rate hike bets………………………………………..Full Article: Source

Investment trusts vs ETFs: There’s no contest

Posted on 03 June 2015 by VRS  |  Email |Print

Friends of mine with a lump sum to invest went to an adviser recently and their suggested portfolio was composed almost entirely of exchange-traded funds (ETFs). To me, that seemed such a lazy way of constructing a portfolio it made me determined to prove that a portfolio of investment companies could do a much better job.
Coincidentally, I saw a comment in an online forum asking whether anyone had any statistics on the performance of investment companies versus ETFs and I offered to look into this. We know investment companies regularly outperform open-ended funds – each quarter, the Association of Investment Companies (AIC) publishes data that backs this up – but do they regularly outperform ETFs?……………………………………….Full Article: Source

Can Anyone Match WisdomTree in Currency-Hedged ETFs?

Posted on 02 June 2015 by VRS  |  Email |Print

The second quarter saw a weak start no doubt in the U.S. weighing on the dollar. But the resilient U.S. dollar resumed its strength over the past couple of weeks thanks to the Fed rate hike bets. In fact, the U.S. Dollar Index rose nearly 4% in the same period, erasing most of the spring losses. The surge in the greenback brought back the appeal for currency hedged ETFs and this trend is likely to continue in the summer months.
This is especially true as a raft of upbeat economic data of late and an accelerating job market indicate that the world’s largest economy is improving after the first-quarter slump. If this continues, the Fed might finally increase the interest rates for the first time since 2006, albeit at a slower pace………………………………..Full Article: Source

4 Ways to Short the Energy Sector with ETFs

Posted on 02 June 2015 by VRS  |  Email |Print

After a strong start to the second quarter, the energy sector again lost momentum last month. This is especially true, as the ultra-popular Energy Select Sector SPDR (XLE) shed $648 million in its asset base, as per ETF.com and lost 5.5% in May compared to a gain of 0.3% for the broad market fund.
The steep decline came in the wake of deteriorating fundamentals and a 3.2% decline in Brent oil price, though crude is up 0.5% in the same period. Investors should note that oil prices jumped nearly 5% on Friday on a higher-than expected fall in rig count……………………………….Full Article: Source

The ETF red flags to look out for

Posted on 01 June 2015 by VRS  |  Email |Print

With the exchange traded fund (ETF) market growing rapidly and new providers entering the fray, including active houses launching passive suites, investors face increasing choice. But what red flags should buyers look out for when selecting an ETF? Cheap as you think? Seven Investment Management senior investment manager Peter Sleep highlights several areas as critical, particularly costs.
‘Large creation and redemption costs are a red flag,’ said Sleep, who recently chose to buy Indian futures (with high roll costs) rather than an Indian ETF. ‘The killer for the ETF was the creation and redemption costs………………………………….Full Article: Source

Energy ETF investors are betting oil’s rally is already over

Posted on 29 May 2015 by VRS  |  Email |Print

Investors are cautiously pulling money out of energy producers for the first time in eight months, taking short-term gains after oil rebounded from a six-year low. More than $1.55 billion has been withdrawn this month from exchange-traded funds concentrated on energy stocks such as Exxon Mobil Corp. and Chevron Corp. It’s on pace for the first monthly setback for the group since investors began pouring into the sector in October with an eye toward profiting from an eventual recovery in prices.
“The thesis that oil is too cheap and it has to go higher maybe is not as compelling a case with oil at $60 as it was when it was at $42,”said Ryan Issakainen, a strategist at First Trust Advisors LP in Wheaton, Illinois…………………………………Full Article: Source

Energy ETF Investors Grow Wary of Oil Outlook

Posted on 29 May 2015 by VRS  |  Email |Print

Exchange traded fund investors are exiting energy sector bets for the first time in eight months after oil prices rebounded off a six-year low. Investors have yanked over $1.55 billion from energy stocks exchange traded funds, setting up the first monthly outflows from the sector since October, reports Jim Polson for Bloomberg.
Month-to-date, the Energy Select Sector SPDR experienced $628.6 million in net outflows, Vanguard Energy ETF lost $9.5 million and iShares U.S. Energy ETF saw $533.2 million in outflows, according to ETF.com…………………………………Full Article: Source

Energy ETFs a Riskier Bet Last Week Than Commodity ETFs

Posted on 28 May 2015 by VRS  |  Email |Print

As we saw in the previous part, WTI (West Texas Intermediate) oil futures gained 0.05% last week. While retail investors don’t have easy access to the futures market, they can benefit from access to safer, low-cost avenues to bet on WTI crude prices. The first avenue is energy ETFs such as the United States Oil Fund (USO), an ETF that tracks prompt WTI crude oil futures. Shares of USO trade on the NYSE (New York Stock Exchange) like company stock. The fund lost 1.3% last week.
The second avenue is commodity ETFs such as the SPDR S&P Oil & Gas Exploration & Production ETF (XOP). It holds many American energy companies that have exposure to oil prices due to their upstream oil production operations…………………………………….Full Article: Source

5 Factors to Consider Before Investing in an ETF

Posted on 28 May 2015 by VRS  |  Email |Print

There are now over 1,600 exchange-traded products available to investors, and total assets are quickly approaching $2 trillion. Traditionally, the primary way an investor could get access to a diversified portfolio of stocks was through a mutual fund. But today, many of these investment products mirror the overall market, providing very little differentiation. Good managers are hard to come by.
This, coupled with sometimes high expenses, has resulted in subpar performance for much of the mutual fund industry. If an investor’s goal is to replicate the holdings of an index, another investment option is the often low-priced exchange-traded fund. However, there are complexities in this emerging investment class. With the continued interest in utilizing exchange-traded products for investors’ portfolios, it’s crucial to consider a number of things before you invest in an ETF…………………………………….Full Article: Source

ANZ to launch 6 ETFs in Australia’s USD15bn market

Posted on 27 May 2015 by VRS  |  Email |Print

ANZ Banking Group, the third largest bank by market capitalisation in Australia, is launching six exchange traded funds linked to currency, gold and equities as it embarks on its first venture into the domestic ETF market that is now valued at AUD18bn (USD14.1bn).
Reuters quoted Danny Laidler, co-head of ANZ ETFs, as saying that ANZ is partnering with ETF Securities, a London-based investment firm focused on exchange-traded funds, commodities and currencies, to launch the fund in Australia, with plans to launch similar products in other Asian countries ………………………………….Full Article: Source

Invest In These ETFs To Tap Into Cross-Border Merger Boom

Posted on 27 May 2015 by VRS  |  Email |Print

A cross-border merger boom is boosting ETFs holding Catamaran, Dresser-Rand and other pharma and energy companies that are hot takeover targets. Merger-arbitrage exchange traded funds profit from the difference between a stock’s price when a deal is announced and its final purchase price. Typically, that’s an upward move.
Cross-border mergers and acquisitions have totaled roughly $594 billion in 2015, up 29% from a year ago, IBD recently reported. That surge doesn’t surprise Adam Patti, CEO of ETF provider IndexIQ. ………………………………….Full Article: Source

Coal ETF Outlook Growing Dim

Posted on 27 May 2015 by VRS  |  Email |Print

Some bargain hunters may be looking at the downtrodden coal industry and related exchange traded funds as the market remains near historic lows. However, coal remains depressed for a reason. Over the past three months, the Market Vectors-Coal ETF , which tracks the coal industry, has declined 6.9%. Additionally, the recently launched GreenHaven Coal Fund, which is designed to offer investors with exposure to daily changes in the price of coal futures contracts, has decreased 3.6%.
Some may be tempted to catch the falling knife as the economy still depends on coal to meet growing electricity needs. However, the other fundamental factors may weigh on the space…………………………………..Full Article: Source

ANZ enters $18b ETF market with six listings

Posted on 26 May 2015 by VRS  |  Email |Print

ANZ Banking Group has become the first Australian bank to enter the $18 billion Australian exchange traded fund market, teaming up with London based ETF Securities to list six new securities on the Australian Securities Exchange that are tied to currencies, commodities and the share-market.
The new joint venture will list ETFs linked to US dollar and the Chinese renminbi via deposits at the bank, physical gold stored in its giant vault in Singapore and three equity index linked ETFs tied to the US and Australian share markets. ANZ’s co-head of fixed income currencies and commodities Eddie Listori said the ETF market “had enormous potential in Australia” predicting the market will double in size to $40 billion by 2018………………………………………..Full Article: Source

Energy Sector ETFs for the Bargain Hunters

Posted on 25 May 2015 by VRS  |  Email |Print

After the multi-year rally, broad U.S. benchmarks look fairly valued if not pricey. Nevertheless, investors can still find potential opportunities in energy sector exchange traded funds. “Most sectors appear to be either fairly or modestly overvalued at present,” writes Ben Johnson, director of global ETF research for Morningstar.
“However, the late-2014 downdraft in oil prices appears to have created a potential opportunity in the energy sector. ” When comparing the energy sector’s price-to-earnings, price-to-book and yields to historical averages, oil-related stocks are trading at the lowest valuations in the current market………………………………………..Full Article: Source

Picking the Right Commodity ETF

Posted on 25 May 2015 by VRS  |  Email |Print

Currently in the commodity world there are three main types of ETFs available: first generation, next generation (sometimes referred to as second/third generation), and physically-backed products. These are ETFs that are backed by the physical commodities.
For now, this only applies to the precious metals space, as all four have their own physically-backed products (as well as a few that invest in baskets of physical metals). These are by far the most popular commodity ETFs on the Street, accounting for the lion’s share in AUM. But the distinction that we want to focus on is that of first-generation and next-generation commodity ETFs………………………………………..Full Article: Source

ETFs continue to storm the global market with growth

Posted on 22 May 2015 by VRS  |  Email |Print

Fixed-income exchange traded funds are continuing to grow in the global market with unparalleled growth acheived so far this year, according to Brett Pybus, a member of the product strategy team within BlackRock’s Fixed Income Portfolio Management Group.
Speaking today (21 May) at an event held by BlackRock in London, Mr Pybus, who is currently head of iShares EMEA Fixed Income Product Strategy, said that the fixed income ETF industry now stands at about $460bn (£293bn) globally. “This is really reflective of what was a stand out 2014 when we had about $85bn (£54bn) come into the industry as a whole.”……………………………………….Full Article: Source

Commodities ETFs Pullback on Strong USD, Overseas Weakness

Posted on 22 May 2015 by VRS  |  Email |Print

The rebounding U.S. dollar and concerns about China, the second largest world economy, are dragging down commodities prices and related exchange traded funds. Since the Monday close, the PowerShares DB Commodity Index Tracking Fund dipped 2.2%, iPath Dow Jones-UBS Commodity Index Total Return ETN fell 2.3% and iShares GSCI Commodity-Indexed Trust declined 1.8%.
The recent ell-off corresponded with jump in the U.S. dollar, with the PowerShares DB U.S. Dollar Index Bullish Fund, which tracks the price movement of the U.S. dollar against a basket of currencies, gaining 2.3% so far this week………………………………………..Full Article: Source

Inverse ETFs to Hedge Against Hurdles Ahead

Posted on 22 May 2015 by VRS  |  Email |Print

Various markets are chugging along after the recent hiccup. If we continue to experience some short-term volatility ahead, investors can utilize short or inverse exchange traded funds to hedge their positions.
Goldman Sachs has issued a warning on the corporate bond market, oil prices and the broader commodities space, reports Jenny Cosgrave for CNBC. Specifically, Goldman analysts argue that oil prices could see a double dip and revisit the recent lows over the second half………………………………………..Full Article: Source

A Rush to Gold ETF Options

Posted on 21 May 2015 by VRS  |  Email |Print

After stumbling through much of the first quarter, gold and bullion-related exchange traded funds have regained some lost luster, which has prompted increased options activity on ETFs such as the SPDR Gold Shares.
Tuesday “as in in recent sessions, the GLD call buying has been driven by the idea that gold, as a safe-haven asset, could benefit amid the turmoil in currency and bond markets, says Rebecca Cheong, head of Americas equity derivatives strategy at UBS Securities. And since gold prices haven’t swung to the same degree as currencies and government bonds, that means GLD options are cheaper for investors looking to hedge, she added,” reports Saumya Vaishampayan for the Wall Street Journal………………………………………..Full Article: Source

Do ETFs pose a ’systemic risk?’

Posted on 21 May 2015 by VRS  |  Email |Print

Do ETFs pose a risk to the marketplace in times of high volatility? Possibly, according to a government watchdog report, but there are no specific accusations. The report I’m referring to comes from the Financial Stability and Oversight Council (FSOC), which is the governmental organization created by the Dodd-Frank Act in 2010.
Its purpose is to identify and monitor excessive risks to the U.S. financial system. They have issued an annual report since 2011 outlining risks to the financial system, which has turned into a “this is what we’re worried about” report on anything and everything that could possibly go wrong in the financial system………………………………………..Full Article: Source

5 Tips For Trading ETFs

Posted on 21 May 2015 by VRS  |  Email |Print

Some investors gloss over the “ET” in ETF, failing to understand or appreciate what these two letters stand for and the implications of investing in a fund that trades like a stock. The exchange-traded nature of these funds is increasingly taken for granted as many of the largest ETFs trade at tight spreads in very narrow bands around their net asset values through most market conditions.
But not all ETFs are created equal from a liquidity perspective, and investors shouldn’t take ETFs’ liquidity for granted. Also, the market mechanisms that underpin the ETF ecosystem have experienced hiccups of varying magnitude, ranging from the “flash crash” to more recent episodes of lesser scope and impact………………………………………..Full Article: Source

7 Unique, Boutique ETFs

Posted on 21 May 2015 by VRS  |  Email |Print

Exchange-traded funds have exploded into public consciousness with a popularity to match mutual funds, so it’s easy to think that a cursory look makes you a near expert. There isn’t much to the basics: These securities track a commodity, asset group (such as an index fund) or index (such as the Standard & Poor’s 500), and trade like stocks.
But scanning and spanning the globe (and the market) for more exotic ETFs requires more moxie. “If you’re going to beat the market over time, you have to do something fundamentally different,” says Charles Sizemore, chief investment officer of Sizemore Capital in Dallas and manager of two portfolios on Covestor. “You can’t beat the market by investing in something that substantially tracks it, like an S&P 500 index fund.”……………………………………….Full Article: Source

Are precious metals breaking out?

Posted on 19 May 2015 by VRS  |  Email |Print

There is some talk among traders about precious metals breaking out. Silver broke a trendline dating back to summer 2011 and will make its highest weekly close in more than three months. Gold will make its highest weekly close in three months and gold miners had a very strong week. However, do these moves really register as breakouts? Not quite yet, say the charts.
First let’s start with the miners. The weekly candle charts for GDX and GDXJ are shown below along with their 80-week moving averages (in blue) and lateral resistance (in red). For GDX and other indices, the 80-week moving average has perfectly defined bull and bear markets going back five years………………………………………..Full Article: Source

The Complete Guide to Oil and Gas ETF Investing

Posted on 19 May 2015 by VRS  |  Email |Print

Crude prices posted 46% annual loss in 2014; the biggest yearly fall since 2008. Such was the ferocity of the crash that last year’s three worst-performing stocks in the S&P 500 index were all energy companies - Transocean Ltd. (RIG), Denbury Resources Inc. (DNR) and Noble Corp. plc (NE), which were down approximately 63%, 52% and 49%, respectively. The broad-based S&P 500 index gained 11.5% over the same period.
Still in stormy waters, many analysts believe that the commodity will fall further before mounting a real recovery. From about $105 per barrel last July to around $60 now - sinking in between to a 6-year low of under $44 recently - the plummeting value of oil represents a decline of roughly 45% over ten months………………………………………..Full Article: Source

Non-gold ETFs set to shine this year

Posted on 19 May 2015 by VRS  |  Email |Print

The equity-linked and other non-gold related Exchange Traded Funds (ETFs) have been attracting greater interest from investors during 2014-15 and this trend is likely to continue, according to experts. Gold ETFs on the other hand have lost their charm, thanks to the dip in gold prices.
Equity-related ETFs are riding on the bull-run witnessed in the equity markets. “The phenomenal growth of about 24% posted by equity related ETFs is the main reason for the increasing interest in equity-related ETFs,” explains Renjith R G, national head – distribution, Geojit BNP Paribas. In fact, certain ETFs representing the banking sector are said to have posted returns as high as 38%………………………………………..Full Article: Source

Commodity ETFs vs Futures 2015 Returns

Posted on 19 May 2015 by VRS  |  Email |Print

If you’ve been paying attention to the futures markets recently, you know that crude oil has rallied. Not back to the $100 range, but a 20% bounce from its low. We’re certainly due to another Crude Oil post, but it seems our “How to Play a Bounce in Oil (Hint: Not $USO)” post seems to be playing out nicely. December WTI is up 6.09% YTD and the $USO ETF is only up 0.74% {Disclaimer: Past performance is not necessarily indicative of future results}.
Nevertheless, here’s our monthly look at: 1. How the numerous commodity ETFs which have sprung onto the scene the past few years are tracking a simple strategy of just buying the December futures market of that commodity, under the theory that the ETF will have to roll their positions periodically throughout the year, and in doing so take on costs the simple strategy does not have………………………………………..Full Article: Source

New ETFs Aim to Better Track Commodity Prices

Posted on 18 May 2015 by VRS  |  Email |Print

Investing with commodity exchange-traded funds has always been a bit like eating pancakes with Log Cabin syrup: Close enough for most people, but still a long way from the real thing. ETFs can’t own real-life barrels of oil, for instance, so instead they rely on oil futures, forward-looking derivatives. This recipe comes at a high cost, rendering most of these ETFs nearly useless for long-term investors.
An industry newcomer is about to debut a new ETF structure that aims to provide investors something purer—not a barrel of oil itself, but an ETF that tracks the oft-quoted “spot” price of one. If it works, ETF investors could have a better mechanism for tracking commodities prices. But there are quirks………………………………………..Full Article: Source

Is A 50% Hedged ETF A Good Idea?

Posted on 18 May 2015 by VRS  |  Email |Print

U.S. dollar strength is on a roller-coaster ride this year with the currency strengthening massively in the early part of the year on rising rate speculations in the U.S., but falling against a basket of key global currencies since April 2015.
Market participants were earlier strongly wagering on the faster-than-expected rise in Fed rates that fueled the strength in the greenback, but the bet was quelled soon after the Fed showed incredible patience in hiking the key rate in the U.S. The Fed has cited ‘moderation’ in the U.S. growth rate in Q1 as a reason for the delayed rate hike………………………………………..Full Article: Source

A Huge Run for Natural Gas ETFs

Posted on 18 May 2015 by VRS  |  Email |Print

Previously downtrodden natural gas exchange traded funds, such as the United States Natural Gas Fund, are taking part in the commodities rebound. UNG jumped 5.3% last week, bringing its one-month gain to 10.6%.
More impressive is the fact that UNG is up 20% over the past three weeks after languishing amid abundant supplies and extreme pessimism. Natural gas is one of the most volatile members of the already volatile commodities complex and that much has been proven by UNG moving from bear market to bull market territory in less than a month………………………………………..Full Article: Source

Will Recent Gains in Copper Mining ETFs Last?

Posted on 15 May 2015 by VRS  |  Email |Print

Copper prices had a distressful 2014 on soft manufacturing sector in China, global growth worries, a multi-year high U.S. dollar and surplus supplies. The trouble deepened in 2015 as the greenback continued to gain strength on rising rate speculations in the U.S.
However, the red trading patches in the red metal soon turned green thanks to some encouraging data from both China and the U.S. China matters the most for this metal as the country is the world’s biggest consumer of this industrial metal, making up roughly 40% of the global copper demand………………………………….Full Article: Source

The right way to buy energy sector ETFs

Posted on 15 May 2015 by VRS  |  Email |Print

Investors are chided continually for getting excited and buying assets at the top and panicking and selling at the bottom. For example, TrimTabs Investment Research recently admonished those who were buying energy exchange-traded funds after those commodities had lost as much as 60% of their value.
Energy-sector exchange-traded funds attracted $1.2 billion in the first three weeks of March, a period during which the ETFs suffered an average decline of 7.2%, the firm said in a recent research note. “Fund investors have been tremendously complacent about recent price declines in commodities, particularly energy-related commodities,” the note said. David Santschi, TrimTabs’s chief executive, is quoted as saying: “Investors keep piling into commodities ETFs even though their performance has been terrible. How steep will losses have to get before investors start selling?”………………………………….Full Article: Source

ETF/ETP assets could surpass those for hedge funds

Posted on 15 May 2015 by VRS  |  Email |Print

Assets invested in the global exchange-traded product industry could be set to surpass those going into hedge funds around the world, research has suggested. The three-page research note from ETFGI, a research and consultancy firm, predicted that the industry for ETPs and ETFs could surpass hedge funds in terms of assets invested during the second quarter of 2015.
Recent analysis by the firm found assets in the global ETF and ETP industry had reached US$2.926trn (£1.919trn) at the end of the first quarter. According to Hedge Fund Research, in the same period assets invested in the global hedge fund industry reached US$2.939trn (£1.927trn)…………………………………..Full Article: Source

Soft Commodity ETFs Could Rebound on El Niño Weather

Posted on 14 May 2015 by VRS  |  Email |Print

The El Niño weather pattern is officially back, and commodity exchange traded funds, notably those that track agricultural products, could enjoy a nice boost as dry conditions weigh on the supply outlook. El Niño describes a period of warming sea-surface temperatures in the Pacific, which typically causes heavy rains and floods in South America and heatwaves across Asia and even east Africa, reports Naveen Thukral for Reuters.
Due to the scorching temperatures, the weather pattern can affect the supply chains of agricultural commodities, notably in Australia and southeast Asia. On Tuesday, the Australian Bureau of Meteorology, U.S. Climate Prediction Center and Japan Meteorological Agency declared that sea-surface temperatures are high enough to correspond with an El Niño event, reports Brian K Sullivan for Bloomberg…………………………………….Full Article: Source

ETF Assets Set to Overtake Hedge Funds This Year

Posted on 14 May 2015 by VRS  |  Email |Print

ETFs at $3 trillion means they’ll eclipse hedge funds. They’re cheap, easy to use, and they’re winning over more investors than ever. Now exchange-traded funds — investment tools that seek to replicate the performance of a portfolio of securities — are growing at such a clip that their assets are poised to overtake those of hedge funds.
It’s no secret hedge funds have had a rough couple of years. Without the returns to make up for high taxes and fees, more investors are turning to the ever-growing range of ETF products on offer. ETFs have lower fees than mutual funds, lower taxes than index funds and are easier to buy or sell quickly than either. And underpinning gains is loose central-bank policy that has been fueling a general movement toward passive investing…………………………………….Full Article: Source

Investors pull $1.2 bln from energy ETPs in April - BlackRock

Posted on 14 May 2015 by VRS  |  Email |Print

Investors pulled $1.2 billion from energy exchange-traded products (ETPs) in April, banking profits after oil prices rallied some 20 percent over the month, the latest global data from asset manager BlackRock showed. It was a sharp reversal from the first quarter of 2015, when investors piled into oil ETPs trying to position for a rebound when production numbers start to dip.
But with Saudi Arabia pumping at near-record highs in an attempt to win a battle for market share against U.S. shale production, crude supply continues to outweigh demand. Towards the end of March there were signs that investor fatigue had set in, as negative roll yields eroded profits. The April rally then gave some investors an opportunity to cash in. “With the fundamental outlook for oil not improving significantly, outflows are likely short-term investors taking money off the table after a nice recovery in oil prices since late March,” Ursula Marchioni, head of ETP research at BlackRock’s iShares EMEA, said…………………………………….Full Article: Source

Top Commodities ETFs for Your Retirement Portfolio

Posted on 13 May 2015 by VRS  |  Email |Print

Most exchange-traded funds (ETFs) are designed for trading, not a buy-and-hold strategy. Their high expense ratios leave no other choice. For instance, if you were to buy and hold an ETF with an expense ratio of 1.15%, then your profits would be limited and your losses would be exacerbated.
For most people, the appeal of ETFs is that you can make a significant amount of money in a short period of time. But what about those who want to invest in a basket of stocks without having to worry about elevated expenses?……………………………………….Full Article: Source

Value ETFs don’t really live up to their name

Posted on 13 May 2015 by VRS  |  Email |Print

Academic studies have shown that, on average since 1980, value stocks have beaten growth stocks by about 10 per cent in Canada and, depending on the market, by between 6 per cent and 10 per cent in the U.S. The figures are smaller since 1998, but still significantly positive.
But this evidence does not square with the differences in returns between U.S. and Canadian value and growth exchange-traded funds. For example, XCV-T, the iShares Canadian Value ETF, has had an average annual return of 5.7 per cent, while XCG-T, the iShares Canadian Growth ETF, has had an average annual return of 6.5 per cent, since inception in 2006………………………………………..Full Article: Source

Currency-Hedged ETFs: Making the Case for U.S. Investors

Posted on 13 May 2015 by VRS  |  Email |Print

With international equities outperforming U.S. stocks year-to-date and for the past year, it’s no surprise that U.S. investors have poured $69 billion into international ETFs while pulling out about $30 billion from U.S. equity ETFs, according to the latest data from Credit Suisse.
But those investors run the risk of smaller relative returns or even possible losses if the currencies underlying those assets decline, which is very possible given the strength of the U.S. dollar. For international stocks, “the most important lesson of the last two and half years has been the impact of the currency on any equity investment,” says Dodd Kittsley, head of ETF Strategy and National Accounts at Deutsche Asset & Wealth Management. “Currencies have hit investors where it hurts the most — in returns.”……………………………………….Full Article: Source

Exodus of Oil ETF Investors Signals Expected Market Weakness

Posted on 12 May 2015 by VRS  |  Email |Print

Oil investors are hastening their exit from exchange-traded funds, a move that some analysts argue is a form of protection in light of weak market fundamentals ahead.
Four of the largest oil-specific exchange traded funds, including the U.S. Oil Fund (USO), had outflows of $478 million in the three weeks to May 6, according to data from ThomsonReuters Lipper, marking the biggest withdrawal since the start of 2014………………………………………..Full Article: Source

European ETFs/ETPs Assets Broke Through The $500 Billion Milestone In April

Posted on 12 May 2015 by VRS  |  Email |Print

Assets in ETFs/ETPs listed in Europe broke through the US$500 billion milestone to reach a new record of US$511 billion at the end of April according to ETFGI’s preliminary monthly ETF and ETP global insight report for April 2015.
April marked the 15th anniversary of the listing of the first ETFs in Europe. 15 years ago, on April 11, 2000, the first ETFs were listed in Europe: the LDRs DJ STOXX 50 and the LDRs DJ Euro STOXX 50 were listed on the Deutsche Boerse AG, sponsored by Merrill Lynch International. iShares acquired these ETFs in September 2003 and rebranded them the iShares STOXX Europe 50 UCITS ETF and the iShares Euro STOXX 50 UCITS ETF. A few weeks later on April 28th, 2000 the iShares FTSE 100 UCITS ETF was listed on the London Stock Exchange………………………………………..Full Article: Source

Assets In ETFs/ETPs Listed In Japan Reached A New Record High Of 112 Billion US

Posted on 11 May 2015 by VRS  |  Email |Print

Assets in ETFs/ETPs listed in Japan reached a new record high of 112 billion US dollars at the end of April, according to ETFGI’s preliminary monthly ETF and ETP global insight report for April 2015. Record levels of assets were reached at the end of April for ETFs/ETPs listed globally at US$2.998 trillion, in the United States at US$2.132 trillion, Europe at US$511 billion, Asia Pacific ex-Japan at US$125 billion, Japan at US$112 billion and Canada at US$69.9 billion.
The Japanese ETF/ETP industry had 157 ETFs/ETPs, with 212 listings, from 20 providers on 2 exchanges. “Market performance outside the United States contributed to the overall increase in assets invested in ETFs/ETPs. Developed and emerging markets had a very good month, gaining 5% and 8%, respectively while in the United States the S&P 500 and Dow were up less than 1%”, according to Deborah Fuhr, managing partner of ETFGI………………………………………..Full Article: Source

ETFs Go Global

Posted on 11 May 2015 by VRS  |  Email |Print

For the first time in five years, American investors are turning their attention overseas. As the six-year U.S. bull market slows, international markets are surging: European benchmarks recently hit record highs; Japan’s Nikkei sits near a 15-year high; and the Shanghai composite has more than doubled over the past year. ETF investors have been quick to capitalize on this shift, pulling $29 billion from U.S. stock exchange-traded funds this year alone, and pouring $69 billion into international ETFs, according to Credit Suisse.
And there are more options than ever in international ETFs. In 2010, the last time international ETFs took in more money than those focused on U.S. stocks, there were 263 options, the vast majority of which were built to give investors broad access to a country, region, or the entire non-U.S. world in one product, according to research firm XTF………………………………………..Full Article: Source

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