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Leveraged ETFs Versus Margin ETFs (FAS)

Posted on 03 March 2015 by VRS  |  Email |Print

Both leveraged exchange-traded funds (ETFs) and buying ETFs on margin allow you to maximize your upside potential by using debt. On the other hand, if your investments don’t go well then you’re going to suffer substantial losses. The key is to figure out which option is better. But first it’s important to understand the difference.
A leveraged ETF tracks an index, industry, commodity or currency to name a few. There are also inverse leveraged ETFs which means the price-per-share for the ETF appreciates when that index, industry, commodity or currency performs poorly………………………………………..Full Article: Source

Investing in Alternative Mutual Funds and ETFs

Posted on 03 March 2015 by VRS  |  Email |Print

Alternative investments are gaining popularity, especially those offered in a liquid format by mutual fund and exchange-traded fund (ETF) providers. Mutual fund companies can’t develop new alternative products fast enough to offer to financial advisors or directly to individual investors.
In the past alternatives were offered primarily in investment products like hedge funds with requirements that investors be accredited, meaning they meet minimum income and net worth conditions. In the wake of the turbulence in the financial markets during the 2008-2009 financial crisis they are increasingly being packaged in more liquid and accessible formats………………………………………..Full Article: Source

ETF Performance Report: February

Posted on 02 March 2015 by VRS  |  Email |Print

While pullback somewhat in the last week , U.S. equities and stock exchange traded funds advanced toward new highs in February, shaking off the January doldrums. Over February, the Dow Jones Industrial Average rose 5.6%, the Nasdaq Composite increased 6.7% and the S&P 500 gained 5.4%.
The best performing non-leveraged exchange traded products over the past month include the United States Gasoline Fund (NYSEArca: UGA) up 21.1%, United States Brent Oil Fund (NYSEArca: BNO) up 20.8% and Deutsche X-trackers 2040 Target Date ETF (NYSEArca: TDV) up 19.5%………………………………………..Full Article: Source

Coffee ETFs Tumble, What’s Behind the Slump?

Posted on 27 February 2015 by VRS  |  Email |Print

Coffee - a top-performing commodity in 2014 - returned a fabulous 50%. The winning streak continued into the New Year as drought conditions in Brazil - the primary driver of coffee’s incredible run-up last year - continued to play foul. Brazil is the world’s top coffee producer and supplies about one-third of the world’s coffee.
However, coffee prices have recently been badly hit, falling to their lowest levels in a year as improving weather conditions in Brazil took investors by surprise. Moreover, there are expectations of more rains going forward. This has raised fears of abundant supplies, dragging coffee prices lower………………………………………..Full Article: Source

The Various Costs of Trading ETFs

Posted on 26 February 2015 by VRS  |  Email |Print

Investors can access exchange traded funds on a normal brokerage account throughout the day. Consequently, people should be aware of all the explicit and implicit costs of using the investment vehicle.
For starters, investors will typically compare the explicit fee or expense ratio to determine how costly it is to hold onto an ETF. Most have adopted ETFs due to their cheap fees, especially when compared to traditional mutual funds. The average mutual fund charges 1.25%, writes Dan Moskowitz for Investopedia………………………………………..Full Article: Source

3 big surprises in ETF flows so far in 2015

Posted on 26 February 2015 by VRS  |  Email |Print

With February almost over, we revisit where U.S.-listed exchange-traded fund money flows are pointing. At the beginning of the year, the answer was “nowhere.” Things have since picked up a lot. One-month flows into ETFs now stand at over $30.7 billion, putting year-to-date inflows at $23.9 billion.
Big surprise No. 1: U.S. equities may be at all-time highs, but year-to-date flows are negative $18.4 billion, thanks to $28.7 billion out of SPY (the largest U.S.-listed ETF). Surprise No. 2: Fixed-income ETFs are the big winners year-to-date, with $20.1 billion of fresh money — 85% of the total ETF flows so far in 2015………………………………………..Full Article: Source

Natural Gas ETF (UNG) Warms Up on Arctic Chills

Posted on 25 February 2015 by VRS  |  Email |Print

The downslide in natural gas prices, which was being noticed for last one year on lower demand and increasing stockpiles, was finally arrested in early 2015 as a severe winter draped almost the entire Northeastern U.S. This cold snap boosted electricity demand across the region putting natural gas in focus.
Last year, the Polar Vortex caused natural gas prices to jump over 50%. Investors now expect natural gas prices to repeat history in the wake of a great deal of snow in the eastern U.S. Investors should note that temperatures approached 30 to 40 degrees below average from the Mississippi River to the East Coast last week………………………………………..Full Article: Source

Alternative ETFs: Always Know What You’re Buying

Posted on 24 February 2015 by VRS  |  Email |Print

Three exchange-traded fund industry experts recently discussed how alternative ETFs work and what investors should look out for. Jackie Chin, Managing Director of ETF Platform Management at Charles Schwab; Kevin DiSano, Executive Vice President at IndexIQ; and Mike McGlone, Head of Research at ETF Securities were a part of Charles Schwab’s most recent “Every Third Friday” conference call.
“In this market environment with stocks at all-time highs, bonds at all-time highs with interest rates where they are, it’s certainly a good opportunity to look at these types of investments,” DiSano said………………………………………..Full Article: Source

Euro-Hedged Fund Poised to Dethrone Biggest Europe Stock ETF

Posted on 24 February 2015 by VRS  |  Email |Print

The slump in the euro is reshaping the landscape for exchange-traded funds that buy stocks in the region, catapulting one with built-in currency hedges to the verge of becoming Europe’s biggest equity ETF.
The WisdomTree Europe Hedged Equity Fund has a market capitalization of $11.2 billion, up more than 10-fold from a year ago. It trails the Vanguard FTSE Europe ETF by just $1.2 billion after adding $8 billion since the start of the fourth quarter. The ETF has surged 14 percent over the last year, while its peer with no currency protection has declined 6 percent………………………………………..Full Article: Source

Deep Value Oil ETFs for the Undaunted Investor

Posted on 23 February 2015 by VRS  |  Email |Print

Oil services-related exchange traded funds are among the hardest hit after the plunge in energy prices. For the more risk-tolerant investor, the pullback presents a potential value play on a beleaguered sector. For instance, the Market Vectors Oil Service ETF (NYSEArca: OIH) has declined 21.8% over the past year. Consequently, OIH is currently trading at an 18% discount, according to Morningstar analyst John Gabriel.
The oil services ETF shows a price-to-earnings of 12.6, compared to the 17.3 P/E of the SPDR S&P 500 ETF (NYSEArca: SPY). While oil services stocks look cheap as a long-term play, Gabriel warns that short-term volatility could send OIH lower over the next 12 to 18 months before it settles into equilibrium – companies can not shut down operations overnight and production is expected to rise on increased efficiency and contractual obligations………………………………………..Full Article: Source

ETF outdoes hedge funds in the M&A game

Posted on 23 February 2015 by VRS  |  Email |Print

In trying to capitalize on the news of mergers and acquisitions, hedge funds are being outdone by an exchange-traded fund clone. Thanks to stockpiles of cash and low borrowing costs, the dollar volume of global M&A deals rose 45%, to $3.3 trillion, in 2014. That’s the highest level since 2007, according to Bloomberg Intelligence.
It’s an ideal environment for the hedge fund strategy known as merger arbitrage, which involves buying the stock of a company being acquired while selling short the stock of the acquirer at the same time. Because deals can fall through, the stock of the target will initially trade for slightly less than the deal’s closing price. Arbitrageurs hope to capitalize on a valuation gap when the target’s price rises as the deal moves closer to being done………………………………………..Full Article: Source

Oil price above $50: three ETFs to watch

Posted on 20 February 2015 by VRS  |  Email |Print

A respite to the oil price decline has long been due as the commodity has been on a wild ride over the past seven months, having depleted about 60% in price. Increased production resulting in ample supplies, strength in the greenback, slower manufacturing activities in Europe which is buckling under deflationary pressure, cooling geo-political tension in the second half of the year, and sluggish Chinese and Japanese economies pushed oil prices down last year.
After closing out 2014 on a grave note, there was no celebration for oil in the New Year either. WTI crude prices dipped below $50 on a no-production cut call by OPEC. However, when all hopes on an oil price rebound seemed to be lost and some analysts even went on forecasting the price to fall as low as $30/ barrel, the momentum snapped the trend to enter February………………………………………..Full Article: Source

Another Currency Hedged ETF Swells in Size

Posted on 20 February 2015 by VRS  |  Email |Print

Observers looking for growth within the exchange traded funds industry need not look any further than currency hedged ETFs. Currency-hedged ETF assets grew 48 percent in 2014 to roughly $20.8 billion, and have grown 1,519 percent over the past two years, according to Deutsche Bank, Reuters reports. That number has grown in significant fashion in 2014 and the Deutsche X-trackers MSCI EAFE Hedged Equity ETF is a big reason why.
As has been the case with some other currency hedged ETFs, DBEF’s asset growth has been exponential, but in the case of DBEF, “jaw-dropping” is an accurate descriptor for the fund’s assert-gathering acumen. With 2015 inflows of $2.13 billion (as of Feb. 17), DBEF has nearly doubled in size just this year to over $4.6 billion………………………………………..Full Article: Source

Euro Hedged ETF Tops $10B in Assets

Posted on 19 February 2015 by VRS  |  Email |Print

The indomitable rise of the WisdomTree Europe Hedged Equity Fund continues as the exchange traded fund has officially joined the $10 billion in assets under management club. Buoyed by year-to-date inflows of $4.34 billion as of Feb. 17, by far the best inflows of any ETF, HEDJ is a $10.6 billion ETF, underscoring a growth trajectory that has been nothing short of jaw-dropping.
Roughly $9.4 billion of HEDJ’s current assets under management total has come into the ETF since the start of 2014. Last year, investors poured nearly $5.1 billion into the ETF, a number surpassed by just eight other ETFs………………………………………..Full Article: Source

Oil Price Above $50: 3 ETFs to Watch

Posted on 19 February 2015 by VRS  |  Email |Print

A respite to the oil price decline has long been due as the commodity has been on a wild ride over the past seven months, having depleted about 60% in price. Increased production resulting in ample supplies, strength in the greenback, slower manufacturing activities in Europe which is buckling under deflationary pressure, cooling geo-political tension in the second half of the year, and sluggish Chinese and Japanese economies pushed oil prices down last year.
After closing out 2014 on a grave note, there was no celebration for oil in the New Year either. WTI crude prices dipped below $50 on a no-production cut call by OPEC. However, when all hopes on an oil price rebound seemed to be lost and some analysts even went on forecasting the price to fall as low as $30/ barrel, the momentum snapped the trend to enter February……………………………………….Full Article: Source

Weighing the advantages of an all-ETF portfolio

Posted on 19 February 2015 by VRS  |  Email |Print

There’s a natural progression in the way the public responds to innovation. Something that first seems like a mere novelty becomes an interesting new niche, then a great idea and then, “How did we ever get along without this?”
In financial services, exchange-traded funds are somewhere around the third or fourth stage, between new niche and great idea. ETFs attracted more net investment last year ($239 billion) than did mutual funds ($225 billion), according to data from Morningstar. Five years earlier the net inflow into mutual funds was more than triple the net amount invested in ETFs………………………………………..Full Article: Source

Futures Exchange-Traded Funds

Posted on 19 February 2015 by VRS  |  Email |Print

Investing in commodities has grown more popular in last few years and today they find a place in any well-diversified portfolio. Exchange-traded funds (ETFs) offer multiple benefits like diversification, professional money management of a mutual fund, and real-time trading of a stock listed on an exchange. Commodity ETFs provide an efficient mode of investing and trading commodities and come in three flavors:
Physical-based ETFs: Such funds invest directly in physical commodities like gold, crude oil, or grains, while bearing the additional cost of transport, storage, and security. Equity-based ETFs: These invest in stocks of commodity-based companies, such as shares in oil companies like Royal Dutch Shell (RDS-A). Such ETFs avoid the hassles of commodity storage and operational issues. However, they carry stock-specific and overall market risks………………………………………..Full Article: Source

Paulson holds gold ETF in Q4 but cuts back on some miners

Posted on 18 February 2015 by VRS  |  Email |Print

Hedge fund Paulson & Co kept its stake in the gold-backed exchange-traded fund SPDR Gold Trust unchanged for a fifth straight quarter in the three months ending Dec. 31, a filing with the U.S. Securities and Exchange Commission showed on Tuesday.
The New York-based fund, led by longtime gold bull John Paulson, owned more than 10.2 million shares worth $1.16 billion in the ETF at year-end as bullion prices fell. The stake’s value was cut from $1.19 billion in the third quarter………………………………………..Full Article: Source

Commodity ETFs Vs Futures: Different Exposure, Different Price

Posted on 18 February 2015 by VRS  |  Email |Print

Long Only Commodities as an asset class has been plummeting since around April last year, and the downtrend continues into 2015. The average move of commodity futures in January came out to be -5.02%, compared to ETFs -7.54%, with ETFs underperforming the futures markets they supposedly track by 2.52% {Past performance is not necessarily indicative of future results}.
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

Do Commodity ETFs Deserve A Place In Your Portfolio?

Posted on 18 February 2015 by VRS  |  Email |Print

The deflationary price action of commodities over the last several years has brought into question whether investments such as gold, oil, or agriculture deserve a place in your investment portfolio. Many of these asset classes are traded on futures exchanges, but are easily accessible in a highly liquid and relatively low-cost exchange-traded fund.
The physical act of investing in commodities is easy. You can purchase a single asset class such as the United States Oil Fund (USO) or a diversified basket such as the iPath Dow Jones UBS Commodity Total Return ETN (DJP). Either way, you are going to get instant exposure to the daily price fluctuations of the underlying commodity index………………………………………..Full Article: Source

Investors Piling in to Currency-Hedged ETFs

Posted on 18 February 2015 by VRS  |  Email |Print

Investors are hedging their bets against more wild currency moves. Nearly half of all inflows into U.S.-listed exchange-traded funds this year have been invested in currency-hedged products, according to ETF.com. A total of $10 billion has entered 35 currency-hedged funds in 2015, amounting to 49% of the $20.4 billion that all ETFs had gathered as of Friday, the firm said.
Such funds have been available for several years, but have become increasingly popular as of late as the U.S. dollar appreciates. In the first six weeks of 2015, the funds have collected nearly 30% of their total asset base………………………………………..Full Article: Source

Precious Metal ETFs Shining to Start 2015: Will It Last?

Posted on 16 February 2015 by VRS  |  Email |Print

The weakness in broad commodities seen last year has spilled over into 2015. This is especially true as a strong dollar, lower oil prices, supply glut, bumper crop and weak global fundamentals are dulling the appeal for these commodities.
While the U.S. economy is improving, the slowdown in the world’s largest consumer of raw materials – China – as well as sluggish growth and deflationary pressures in Europe and Japan added to the woes. Further, key emerging markets are also witnessing a slowdown. All these are tempering demand for commodities across the globe……………………………………….Full Article: Source

The Top ETFs Used by the Top Wealth Managers: Are They for You, Too?

Posted on 16 February 2015 by VRS  |  Email |Print

If you spend any time wishing you were wealthy so that you could have a huge house, a fancy car, and a “wealth manager” to oversee and advise you on your finances, I have a little bit of good news for you. I can’t get you the house or car, but I can tell you that many of the top wealth managers have parked some of their customers’ money in exchange-traded funds (ETFs) — ones that you, too, can invest in.
And better still, they’re actually good investments. Last year, the folks at Forbes listed the top 50 wealth managers ranking them by assets under management. (The top-ranker managed $13.1 billion, and No. 50 managed $2.5 million.)……………………………………….Full Article: Source

Which ETFs You Should Avoid

Posted on 13 February 2015 by VRS  |  Email |Print

At their best, exchange-traded funds (ETFs) that track mainstream indexes and some sectors of the financial markets provide a transparent, low-cost, style-specific way to invest. They are a great portfolio building block for both long-term investors and traders.
In the wake of the financial crisis and the stock market debacle of 2007-08, the popularity of ETFs has grown exponentially. ETF providers are falling all over themselves to bring new products to the market in an effort to gather assets. While some of these ETFs are worth considering, others should probably be avoided……………………………………….Full Article: Source

Using Inverse ETFs to Diversify

Posted on 13 February 2015 by VRS  |  Email |Print

A position in a traditional exchange-traded fund typically provides a long position meaning that the investor buys the ETF with the expectation that the underlying index or commodity will rise in value. However, if an investor believes that the benchmark index or commodity will fall, then an inverse ETF may be the right tool for the job.
As with traditional ETFs, inverse ETFs also trade on a public stock market. The major difference that investors need to know is that inverse ETFs are designed so that the return over short-term investment horizons are inverse that of the benchmark that the units track………………………………………..Full Article: Source

India, China Luring ETF Investors

Posted on 13 February 2015 by VRS  |  Email |Print

Government reforms have proved a catalyst for additional growth among emerging market investment strategies. India, Mexico, Indonesia and China have all turned to reforms to invigorate domestic demand and eliminate inefficiencies.
Two firms, Emerging Global Advisors (EGA), an emerging markets asset manager founded in 2008, and S&P Capital IQ have both recently expanded on two countries where they see opportunity: India and China………………………………………..Full Article: Source

Global investors throng to ‘safe haven’ gold, but Indians dump it

Posted on 12 February 2015 by VRS  |  Email |Print

Indian investors don’t seem to consider gold as a ’safe haven’, unlike their foreign counterparts, gold exchange-traded fund data show. Local investors redeemed units worth Rs 131 crore in gold ETFs in January, up from Rs 111 crore in December, market data show.
In comparison, assets under management in SPDR Gold Shares, the world’s largest gold ETF, increased by 64 tonnes to 773 tonnes in January from 709 tonnes at the end of last year. The sentiment in Indian gold ETFs can be gauged from net inflows or outflows from these instruments. Every unit an investor purchases is backed by gold — one gram normally. An outflow from the fund reflects an investor’s negative sentiment towards the metal………………………………………..Full Article: Source

Agribusiness ETFs: Commodity Slump Pressures Farmers

Posted on 12 February 2015 by VRS  |  Email |Print

Agribusiness exchange traded funds could experience stunted growth as depressed grain prices squeeze farmers’ profit margins. Over the past year, the Market Vectors Agribusiness rose 7.7% and PowerShares Global Agriculture Portfolio increased 7.6% higher.
U.S. farmers are beginning to cut back on farming equipment as the low crop prices and rising costs diminish income, reports Alan Bjerga for Bloomberg. The U.S. government projects that farm income this year is heading toward the third consecutive decline and will post its largest fall since the Great Depression. Net-cash income from farm activity is expected to plunge 22% to $89.4 billion, the biggest drop off since 1932………………………………………..Full Article: Source

January a Strong Month for Bond, Commodity ETF Flows

Posted on 11 February 2015 by VRS  |  Email |Print

ETFGI’s new research finds overall net new asset (NNA) flows in January were US$12.2 Bn. Net inflows of US$13.3 Bn into fixed income products and US$5.2 Bn of net inflows of into commodity ETFs/ETPs globally ranked as the third largest months on record for both asset classes while equity ETFs/ETPs suffered net outflows of US$8.0 Bn in January.
The global ETF/ETP industry had 5,585 ETFs/ETPs, with 10,770 listings, assets of US$2.77 trillion, from 242 providers listed on 63 exchanges in 51 countries at the end of January 2015 according to preliminary data from ETFGI’s end January 2015 global ETF and ETP industry insights report………………………………………..Full Article: Source

European ETF industry starts year in impressive style

Posted on 11 February 2015 by VRS  |  Email |Print

The ETF/ETP industry in Europe had an impressive start to the year, gathering $14.9 billion in net new assets in January 2015, according to industry consultancy ETFGI. This is the largest amount of net inflows gathered in a month, surpassing the prior record of $10.8 billion in net inflows set in July 2014.
The European ETF/ETP industry had 2,095 ETFs/ETPs, with 6,347 listings, assets of $466 billion, from 50 providers on 26 exchanges according to preliminary data from ETFGI’s end January 2015 global ETF and ETP industry insights report. Equity ETFs/ETPs gathered the largest net inflows with $9.0 billion, followed by fixed income ETFs/ETPs with $5.2 billion and commodity ETFs/ETPs with $760 million………………………………………..Full Article: Source

Fixed Income and Commodity ETFs/ETPs Have 3rd Best Month In January

Posted on 10 February 2015 by VRS  |  Email |Print

ETFGI’s new research finds overall net new asset (NNA) flows in January were US$12.2 Bn. Net inflows of US$13.3 Bn into fixed income products and US$5.2 Bn of net inflows of into commodity ETFs/ETPs globally ranked as the third largest months on record for both asset classes while equity ETFs/ETPs suffered net outflows of US$8.0 Bn in January.
The global ETF/ETP industry had 5,585 ETFs/ETPs, with 10,770 listings, assets of US$2.77 trillion, from 242 providers listed on 63 exchanges in 51 countries at the end of January 2015 according to preliminary data from ETFGI’s end January 2015 global ETF and ETP industry insights report………………………………………..Full Article: Source

ETFs for Global Stimulus

Posted on 09 February 2015 by VRS  |  Email |Print

Canada, India, Turkey, Australia, China and Denmark. What do all of these countries have in common? The central bank of each nation has eased monetary policy to stimulate respective economies in 2015. What’s more, none of these actions had been anticipated; rather, the media described rate cuts as “surprising” or diminished reserve requirements as “unexpected.”
In the case of Denmark, recent stimulus has been creative as well as startling. For the fourth time in less than three weeks, the Danish central bank lowered its deposit rate to keep its krone in line with the weakened euro. Maintaining the peg of the Danish krone to the severely weakened euro is a means by which Denmark can spark export-driven growth………………………………………..Full Article: Source

Currency-hedged ETFs in vogue as investors clamor for more

Posted on 09 February 2015 by VRS  |  Email |Print

U.S. investors spooked by wild swings in the foreign exchange market are piling into exchange-traded funds that strip out the local currency on their international equity portfolios, making them one of the most sought-after financial products in 2015.
With the dollar having rallied more than 19 percent since the beginning of 2014, investors are seeing gains in overseas stock markets eaten up by losses against the greenback. “People are voting with their feet,” said Luciano Siracusano, chief investment strategist for WisdomTree Investments in New York. “They’re putting billions of dollars into these funds, and what they’re saying is, ‘We don’t want to be 100 percent unhedged.”……………………………………….Full Article: Source

Can Energy ETFs Regain Fervor on Capital Spending Cuts?

Posted on 06 February 2015 by VRS  |  Email |Print

After a seven-month wild run, oil and energy stocks have bounced back strongly in recent sessions following the slew of capital spending cuts by several major players in the industry. This move, along with the latest data that a number of U.S. oil drilling rigs fell the most in 30 years last week, propelled the oil prices higher.
In fact, both the crude and Brent surged about 20% in the four days till Tuesday, marking the longest winning streak since January 2009. However, oil price again reversed its four-session rally, dropping 8.7% yesterday after U.S. crude inventories jumped to a record high last week. Notably, crude is currently hovering around $50 per barrel while Brent is trading at over $55 per barrel……………………………………….Full Article: Source

BMO gold product takes aim at big ETF market, new investors

Posted on 05 February 2015 by VRS  |  Email |Print

Bank of Montreal has launched a new way for investors to buy physical gold, offering greater security than private storage while going head to head with the $60 billion exchange-traded fund industry.
The launch comes at a critical time for bullion, with investors in recent weeks making a tentative return to the market after a prolonged exodus as the oil rout and euro zone instability reignite gold’s appeal as a safe-haven investment………………………………………..Full Article: Source

How to Score Huge, Easy Gains From the ETF War

Posted on 05 February 2015 by VRS  |  Email |Print

Another salvo has been fired in the ongoing ETF war and you, dear investor, are the winner. Among four giants duking it out, State Street’s (STT) SPDR group is the latest to fire its cost-lowering howitzer. State Street announced yesterday that it’s slashing expense ratios on select SPDR exchange-traded funds (ETFs) to as low as 0.10% annually.
Note where the decimal point is: It’s not at 1%, which is what many actively managed funds charge. The difference over time is huge and there’s nothing much you have to do to get these huge cost advantages………………………………………..Full Article: Source

Agro ETFs Gain Post Archer Daniels’ Earnings Beat, Revenue Miss

Posted on 05 February 2015 by VRS  |  Email |Print

On February 3, the agro titan Archer Daniels Midland Company came up with mixed results for 4Q14 with earnings beating the Zacks Consensus Estimate by a wide margin but revenues falling short.
This provider of agricultural products has announced a 17% hike in its quarterly cash dividend to $0.28 a share, which probably soothed investors’ nerves and pushed up its shares in the key trading session following the earnings release. Its shares, however, shed gains after hours………………………………………..Full Article: Source

3 Commodity ETFs Down 10% in January

Posted on 04 February 2015 by VRS  |  Email |Print

After a dismal performance last year, commodities have continued to hit the headlines this year for not-so-good reasons. The world’s leading index of commodity prices – Bloomberg Commodity Index – has shed more than 5% in January and is now trading at a 12-year low. Also, the index tracking the prices of 22 different commodities, such as, gold, natural gas and oil has lost more than 20% in the past one year.
A strong dollar, tumbling oil prices, supply glut and weak global fundamentals had already started to play foul on commodity prices since the final quarter of last year. In fact, the latest upbeat view by the U.S. Federal Reserve on the state of the country’s economy has increased the volatility in the commodity space………………………………………..Full Article: Source

State Street cuts fees on 41 ETFs as price competition heats up

Posted on 04 February 2015 by VRS  |  Email |Print

State Street Corp said on Tuesday it has slashed management fees on 41 of its SPDR exchange-traded funds, joining major ETF providers BlackRock Inc and Vanguard in their efforts to lower fees as price competition heats up.
The price cuts at State Street, which affect a range of international and domestic equity and bond funds, come at a time when cost has become an increasingly important factor for ETF providers. Vanguard, which recently surpassed State Street to become the No. 2 U.S. ETF provider, has been winning assets with its razor-thin fees………………………………………..Full Article: Source

ETFs and Other Ways Investors Can Bet on the Drop in Oil Prices

Posted on 03 February 2015 by VRS  |  Email |Print

Oil prices are tumbling and energy stocks have fallen. Are there exchange-traded funds or exchange-traded notes that could do well or help hedge an energy position if this environment persists? And which are the most liable to lose money besides the obvious funds that track the industry?
The rising supply of oil from U.S. shale fields has helped create a global glut, even as world-wide demand remains tepid. That, along with Saudi Arabia’s recent decision to keep its production apace, has helped send oil prices tumbling. Most analysts expect the pressure on prices to continue, raising questions about how investors can shift their portfolios to take advantage………………………………………..Full Article: Source

ETF price war continues to rage in Europe

Posted on 02 February 2015 by VRS  |  Email |Print

ETF providers show no sign of calling a halt to the drawn-out battle over fees, with many continuing to cut prices across popular products in Europe to win over cost-conscious investors and to claw at the market share of larger rivals.
Persuading providers to admit that the spate of fee cuts is driven by a desire to undercut their competitors is difficult, and there is a noticeable reluctance among the largest of them to associate fee cuts with a price war………………………………………..Full Article: Source

ETF assets tipped to double by 2020: Report

Posted on 30 January 2015 by VRS  |  Email |Print

Exchange-Traded funds (ETFs), already popular among investors big and small, are set to grow dramatically by 2020, a new report has found. Since they emerged as an asset class two decades ago, ETFs, which track stock indices or other baskets of securities and trade like stocks, have been winning investors over.
They offer transparency and lower costs than mutual funds. ETFs hold more than US$2.6 trillion (S$3.5 trillion) of assets globally, and that is set to reach US$5 trillion or more by 2020, the PwC report said………………………………………..Full Article: Source

Commodity ETFs May See More Pain Before Things Get Better

Posted on 30 January 2015 by VRS  |  Email |Print

Commodity exchange traded fund investors may have to hunker down over the short-term, but the commodities market could turn around further out. Over the past year, the GreenHaven Continuous Commodity Index Fund which follows an equal-weight methodology that covers 17 commodity positions, has declined 13.9% while the PowerShares DB Commodity Index Tracking Fund, which tracks a broad basket of the 14 most heavily traded commodities and uses an optimum yield methodology that tries to limit the negative effects of contango, has decreased 30.5%.
Goldman Sachs remains pessimistic over the commodities outlook for the next three months but believes things could turn around over the next 12 months, the Wall Street Journal reports………………………………………..Full Article: Source

Midas touch as ETF inflows grow

Posted on 29 January 2015 by VRS  |  Email |Print

Exchange-traded products focusing on gold and oil have seen significant inflows as investors shy away from the European equity markets, figures from ETF Securities has shown. According to data from ETF Securities, more than $800m (£527.36m) has flowed into commodity-based ETPs already this year, compared with $1.1bn over the whole of 2014.
Rima Haddad, head of UK institutional sales for ETF Securities, said more investors had been nervous about the macro picture, especially the uncertainty over Europe and a possible tailing off of growth in the UK and US………………………………………..Full Article: Source

ETF Assets Reached $2.08 Trillion in 2014

Posted on 28 January 2015 by VRS  |  Email |Print

Investor migration to independent advice drives 17% increase in ETFs in 2014; 19% increase in distribution of all passively managed investments. With an eye on key trends that emerged in 2014 including increased interest among investors to move to independent advice models and the growth of passively managed investments, Broadridge Financial Solutions, Inc.released data revealing trends in distribution of long-term mutual funds and ETFs among retail and institutional channels.
“ETF assets across all channels increased by 17 percent reaching $2.08 trillion in 2014. Overall fund and ETF assets under management increased by 12 percent in 2014 and we saw independent broker-dealers and registered investment advisors continue to outpace wirehouses – a trend that we expect to continue in 2015,” said Frank Polefrone, Senior Vice President, Access Data, a Broadridge company………………………………………..Full Article: Source

ETFs on way to $5 trillion in assets: PwC study

Posted on 27 January 2015 by VRS  |  Email |Print

Exchange-traded funds are on their way to $5 trillion in assets, a path that will travel around the globe as more nations dive into the increasingly popular investment vehicle, according to a study released Monday.
Asset managers responding to a PricewaterhouseCoopers analysis of the industry believe that lofty mark will be attained as soon as 2020. Even as growth begins to taper in the U.S., experts see untapped reservoirs around the world………………………………………..Full Article: Source

ETFs: No Stopping at $2 Trillion

Posted on 27 January 2015 by VRS  |  Email |Print

The U.S. exchange traded products industry hit a major milestone last year, eclipsing $2 trillion in assets under management, but industry observers do not see that growth slowing. Rather, it is expected that ETFs will continue their exponential growth rate in the years ahead.
While it took nearly two decades for the ETF industry to reach $2 trillion in assets, it will not need nearly as long to get to $5 trillion, according to a new report by PwC. The PwC repots says the global ETF industry will reach $5 trillion in combined AUM by 2020………………………………………..Full Article: Source

Energy ETF Holds Up Well

Posted on 26 January 2015 by VRS  |  Email |Print

Consumers aren’t the only ones fueling up on cheap oil prices. Investors are adding energy stocks to their portfolios as West Texas Intermediate crude oil is showing signs of stabilizing. The Energy Select SPDR exchange-traded fund, which tracks energy companies in the S&P 500, is up 6.9% from its intraday low Jan. 13, outpacing broader market gains and oil itself, which are both up about 3% in the same period.
Oil, which has largely been in free fall since June, has weighed on major indexes, added volatility to markets and hammered the shares and earnings of many publicly traded energy companies. The Energy ETF has held up relatively well, falling 29% from June to January on the back of oil’s 59% plunge………………………………………..Full Article: Source

PwC Exchange traded fund assets will double to $5tr by 2020

Posted on 26 January 2015 by VRS  |  Email |Print

Exchange traded fund assets will double to $5 trillion (Dh18.3 trillion) by 2020, according to a detailed study by PwC, far outstripping the asset growth of traditional fund managers, which have come under increasing pressure to prove their worth. The consultancy calls the growth a “game changer” for the asset management industry.
“All financial services firms should consider developing an ETF strategy,” said Nigel Brashaw, a partner at PwC. “This may be an obvious choice for firms planning to manage, service or distribute ETFs, but it is also important for firms competing in an environment that is increasingly shaped by ETFs.”……………………………………….Full Article: Source

Palladium ETF to Shine this Year

Posted on 23 January 2015 by VRS  |  Email |Print

ETF Trends reported that low prices of gasoline and cheap bank loans may attract more automobile buyers and hence, result in the palladium-related exchange traded funds to shine this year. As quoted in the market news: Fueling the increased palladium demand, global car sales increased 3.4% in 2014 to a record 81.6 million vehicles.
In the U.S., U.S. auto sales rose to an annualized rate of 17.2 million, the highest since November 2003. Morgan Stanley and Deutsche Bank AG both remain bullish on the palladium outlook because 70% of palladium demand comes from car-parts manufacturers. Specifically, an ounce of palladium supplies enough catalytic converters in about 10 vehicles………………………………………..Full Article: Source

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