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Unique ETFs to spice up your portfolio

Posted on 14 November 2014 by VRS  |  Email |Print

Are your investments boring? Do ETFs that track major indexes put you to sleep? Have regular old commodity holdings made you question your purpose in life? Maybe it’s time to spice up your portfolio. We went looking for the most unique ETFs we could find—investments you’d find hitchhiking on the side of the road at 2 a.m. wearing a Viking helmet and a tutu.
Should you give them a ride? We asked Morningstar fund analyst Robert Goldsborough, S&P Capital IQ director of ETF and mutual fund research Todd Rosenbluth, and ETF.com ETF analyst Spencer Bogart to find out…………………………………Full Article: Source

4 Large Cap ETFs Leading the Current Market Rally

Posted on 14 November 2014 by VRS  |  Email |Print

The U.S. stock market extended its multi-year record rally this week. The S&P 500 enjoyed the consecutive fifth day of gains, the longest rally since June, and hit an all-time high for the 40th time this year, compared to 45 times in 2013. On the other hand, the Dow Jones industrial average climbed for the sixth session in a row.
The recent rally was sparked off by healthy third-quarter earnings, continued job growth, higher-than-expected U.S. GDP growth numbers, improving business conditions, renewed optimism in housing recovery and some upbeat economic indicators. Additionally, low commodity prices, low interest rates, as well as improving sentiments across the globe supported the strength…………………………………Full Article: Source

Global ETFs/ ETPs Added $35B in October

Posted on 13 November 2014 by VRS  |  Email |Print

ETFGI’s research finds October’s global net new asset (NNA) inflows of US$35.8 Bn, while large, are not a record month. The largest month for NNA inflows was September 2012 with US$45.8 Bn. Year-to-date ETFs and ETPs globally have gathered a record US$233.0 Bn in NNA through the end of October 2014, surpassing the previous high of US$205.2 Bn set in the first 10 months of 2013.
At the end of October 2014, the global ETF/ETP industry had 5,516 ETFs/ETPs, with 10,628 listings, from 228 providers listed on 61 exchanges with assets of US$2.68 Tn, which is down slightly from the record high of US$2.70 Tn at the end of August 2014, according to preliminary data from ETFGI’s end October 2014 Global ETF and ETP industry insights report………………………………………..Full Article: Source

Energy ETPs attract bumper inflows in October after oil price tumbles

Posted on 13 November 2014 by VRS  |  Email |Print

Energy exchange traded products (ETPs) attracted a bumper $840.7 million in net inflows in October, according to data from asset manager BlackRock, after a plunge in the oil price triggered interest from bargain hunters.
“The biggest driver was the oil price,” said Ursula Marchioni, head of ETP research EMEA at BlackRock’s iShares. “Some energy ETP investors saw the lower price as an opportunity to extend their long exposures.”……………………………………….Full Article: Source

ETF Securities: commodities still attractive for investors

Posted on 12 November 2014 by VRS  |  Email |Print

Commodities are starting to attract buyers looking to benefit from the recent sharp prices falls. ETF Securities associate research director Nitesh Shah suggests that despite several weeks of falling commodity prices, further falls should not be expected without causing a supply response. This has prompted an increase in inflows to the company’s commodity exchange traded products (ETPs), with energy currently the favoured play.
The previous week saw the largest inflows in six weeks, with investors looking to take advantage of oil prices slumping to a five-year low. Some $12.3 million went into long crude oil ETPs, with the majority favouring WTI over Brent………………………………………..Full Article: Source

Small Investors See Silver Lining

Posted on 12 November 2014 by VRS  |  Email |Print

Mom-and-pop investors are loading up on silver despite a price drop that has left the metal at a four-year low. The enduring interest can be seen in iShares Silver Trust , the largest exchange-traded fund that buys silver bars and is a popular bet for individual investors. As cash pours in, the ETF has accumulated 345 million ounces of silver, close to a 3½-year high.
Another indicator of the metal’s untarnished allure: The U.S. Mint said Wednesday it sold out of one ounce American Eagle silver coins, a quintessential small-investor purchase. October saw the Mint’s strongest silver coin sales since January 2013, the last time the Mint sold out of its silver inventory………………………………………..Full Article: Source

Investors pour money into surging currency-hedged ETFs

Posted on 12 November 2014 by VRS  |  Email |Print

U.S. investors who believe the dollar’s 2014 surge will continue are pouring money into exchange-traded funds that invest in foreign markets but hedge the currency part of the bet. BlackRock Inc, WisdomTree Investments Inc and Deutsche Bank AG are among the companies starting new currency-hedged funds this year to take advantage of a flow of some $3.9-billion into currency-hedged ETFs so far this year.
There are now 35 U.S. listed currency-hedging ETFs managing $19.3-billion in assets, compared with only about $6.7-billion in assets in 2011, meaning total assets in currency hedged ETFs have nearly tripled over the past three years, according data from Lipper and ETF.com………………………………………..Full Article: Source

Falling Commodity Prices a Boon for Some EM ETFs

Posted on 12 November 2014 by VRS  |  Email |Print

The weakness in the commodities market could help alleviate inflationary pressure in developing economies and bolster some emerging market stocks and exchange traded funds. According to Credit Suisse, cheaper commodities prices could diminish aggregate emerging market inflation, excluding China and India, by one to 6.6 percentage points by the end of 2015, reports Simon Kennedy for Bloomberg.
Specifically, commodity importers or countries with more stable currencies could benefit from the cheaper raw materials, including South Korea, Taiwan, the Philippines, eastern European countries, Turkey and South Africa………………………………………..Full Article: Source

Gold Slides as Assets in Global ETPs Drop Most This Year

Posted on 11 November 2014 by VRS  |  Email |Print

Gold resumed its retreat in New York, falling for the eighth time in nine sessions, on signs of waning investor demand. Money managers cut their bullish wagers on the metal by the most this year, U.S. government data showed after the market settled on Nov. 7.
Holdings in global exchange-traded products backed by bullion tumbled 1.4 percent last week, the biggest drop in 2014. Prices reached a four-year low last week on a stronger dollar and expectations that the Federal Reserve will raise interest rates as the economy improves, cutting demand for a store of value………………………………………..Full Article: Source

China’s $9-trillion untapped market spurs ETF frenzy in U.S.

Posted on 11 November 2014 by VRS  |  Email |Print

The race is on to give U.S. exchange-traded fund investors access to $9-trillion of stocks and bonds in mainland China. Money managers including BlackRock Inc. and CSOP Asset Management Ltd. have now registered almost 40 ETFs tracking the country’s domestic shares and debt with U.S. regulators, six times the number of existing funds.
The products allow anyone with a U.S. brokerage account to gain exposure to Chinese securities that were previously off limits to all but a few qualified institutions………………………………………..Full Article: Source

The Buoyant ETF Sector Takes Bigger Piece of the Pie in Europe

Posted on 11 November 2014 by VRS  |  Email |Print

Exchange Traded Funds (ETFs) in the EU region have seen record inflows of investor money year-to-date. Research from consultancy firm, ETFGI, shows that ETFs and ETPs appreciated in the value of assets held during the month, thus taking the total funds for the year above $459 billion. In October, listed funds saw an uptake of $8.7 billion in new client assets.
ETFs and ETPs saw net inflows of US$8.7 billion, with the bulk of the funds coming in from the equities space. Investors held $5.2 billion of their funds in stocks; this was followed by fixed income products at $3.5 billion. Thus signalling investor preference for less-riskier instruments. On the other hand, investors reduced their holdings of ETFs in the commodity markets with net outflows of US$183 million………………………………………..Full Article: Source

ETFs break annual inflows record…with two months to spare

Posted on 11 November 2014 by VRS  |  Email |Print

European exchange traded funds (ETFs) have enjoyed a record year for net inflows, taking in $56.2bn by the end of October, according to consultancy ETFGI. The firm said the year to date figure “surpasses any full year net new assets [figure] for the European-listed ETF/ETP industry.”
Perhaps unsurprisingly, iShares, the region’s largest ETF provider, attracted the most money in the first ten months of the year. Inflows of $18.4bn mean its total AUM now stands at $213bn………………………………………..Full Article: Source

China’s $9 Trillion Untapped Market Spurs U.S. ETF Frenzy

Posted on 10 November 2014 by VRS  |  Email |Print

The race is on to give U.S. exchange-traded fund investors access to $9 trillion of stocks and bonds in mainland China. Money managers including BlackRock Inc. and CSOP Asset Management Ltd. have now registered almost 40 ETFs tracking the country’s domestic shares and debt with U.S. regulators, six times the number of existing funds.
The products allow anyone with a U.S. brokerage account to gain exposure to Chinese securities that were previously off limits to all but a few qualified institutions. Equities in the biggest emerging market are heading for the best annual gain since 2009, outpacing shares of mainland companies listed overseas amid speculation government plans to ease capital controls will narrow the valuation discount on domestic securities………………………………………..Full Article: Source

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A New Era Dawns for ETFs: ‘Nontransparent’

Posted on 10 November 2014 by VRS  |  Email |Print

Twenty-one years after the first exchange-traded fund arrived as an alternative to the traditional mutual fund, a new regulatory ruling could spur a rush into the ETF vehicle by traditional stock-picking asset managers.
The Securities and Exchange Commission late Thursday cleared Boston-based Eaton Vance to launch a so-called nontransparent ETF that will trade on an exchange but that doesn’t have to disclose its holdings and doesn’t follow an index. Eaton Vance has plans to launch 18 such funds over the coming months, the first fund company to do so, it says………………………………………..Full Article: Source

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A Unique Global ETF For A Commodity Rebound

Posted on 07 November 2014 by VRS  |  Email |Print

The state of the world commodity markets can only be described as deflationary. This year has seen falling prices across nearly the entire spectrum of commonly traded precious metals, energy, grains and industrial goods.
While there have been limited bright spots in niche sectors such as coffee and cocoa, a broad-based index such as the iPath Bloomberg Commodity Index Total Return ETN DJP, down more than 8 percent this year. In fact, this index is currently sitting on its year-to-date lows………………………………………..Full Article: Source

How to Assemble a Solid Index Fund and ETF Portfolio

Posted on 07 November 2014 by VRS  |  Email |Print

Aside from core funds, consider investing in a diverse mix of sector funds, REITs and individual stocks. Most financial advisors recommend new investors open their portfolios with a broad-based index fund or exchange-traded fund. An index fund or ETF could include a wide and balanced range of stocks in the Standard & Poor’s 500 index or ones tracking indices as though on cruise control and at minimal expense.
But as your portfolio grows, you’ll want a more sophisticated mix of funds that reflect your investing perspective. You’ll also want to introduce an additional ballast of solid but less basic investments. Here’s how three financial advisors navigate this transition………………………………………..Full Article: Source

Are Commodities At A Major Turning Point?

Posted on 07 November 2014 by VRS  |  Email |Print

As most of you probably know, I have been expecting the CRB to form a major three year cycle low sometime next summer. However I’m now starting to see some things that might indicate that major cycle bottom is going to occur earlier than I expected.
Since oil is the main driver of the CRB, and most commodities will follow its lead I’m going to focus on the action in oil. Notice in the next chart that oil has now reached oversold levels similar if not more extreme than the previous two 3 year cycle lows………………………………………..Full Article: Source

10 Best Performing ETFs Year To Date

Posted on 06 November 2014 by VRS  |  Email |Print

There are a myriad themes coursing through our tally of the 10 best-performing ETFs year-to-date. So far, 2014 has been a good year for funds tapping into an emerging market such as India, or for those linked to a drought-ravaged commodity market such as coffee.
It has also been a stellar year for U.S. Treasury bond funds, particularly those investing in longer-dated debt, as well as for strategies that own equities in one of the in-vogue segments within health care: biotech. There’s indeed a lot of outsized performance to note in this list, which we are breaking down in five groups detailed below in ascending order of performance………………………………………..Full Article: Source

4 Currency ETFs On The Move

Posted on 06 November 2014 by VRS  |  Email |Print

With declining volatility since mid-2013, September was the turning point where volatility began to expand in many currencies. Currencies, and their corresponding currency exchange-traded funds (ETFs), have seen steadily rising in daily ranges, which means bigger moves and more profit potential if you’re on the right side of the trade.
Volatility was further expanded last week, as the Japanese yen saw a sharp drop following a surprise announcement by the Bank of Japan that it would continue to ease. This action typically devalues the currency. This put the yen into the spotlight, but it isn’t the only currency ETF worth paying attention to right now………………………………………..Full Article: Source

Gold Assets in Top ETF Reach Lowest Since Lehman Collapse

Posted on 05 November 2014 by VRS  |  Email |Print

Gold bears are betting that the rout in the metal isn’t over, sending assets in the biggest bullion-backed fund to the lowest since the month that Lehman Brothers Holdings Inc. collapsed.
Holdings in the SPDR Gold Trust slid 0.3 percent yesterday to 738.8 metric tons, the lowest since September 2008. Oil’s tumble into a bear market and the Federal Reserve’s exit from bond buying has cut the appeal of bullion as a hedge against rising consumer costs………………………………………..Full Article: Source

ETFs climb toward $2 trillion mark

Posted on 05 November 2014 by VRS  |  Email |Print

It has been clear for a while that exchange-traded funds would eventually break through $2 trillion in assets in the US. But it now looks like it will happen much sooner than most observers expected.
Backed by a relentless stream of new money and supported by a five-year rally in stocks—broken only by occasional volatility—assets in US-listed exchange-traded products are rapidly approaching the $2 trillion milestone and likely will pass it by early next year………………………………………..Full Article: Source

U.S. exchange-traded products attracted $27.5-billion in October

Posted on 05 November 2014 by VRS  |  Email |Print

Investors poured $27.5-billion into U.S.-listed exchange-traded products in October, with a large part of that money going into fixed-income funds for the biggest monthly inflow so far this year, according to data from BlackRock Inc.
The $17.3-billion that investors added to fixed-income exchange-traded products in October beat February’s record of $17-billion, with the bulk of those inflows in October going into U.S. government and broad aggregate bond exchange-traded funds………………………………………..Full Article: Source

Gold price: ETF investors, speculators continue to exit

Posted on 04 November 2014 by VRS  |  Email |Print

The gold market was catching a breather on Monday with futures trading sideways after a brutal week which ended with gold falling through key support levels to a more than four-year low. In early afternoon trade on the Comex division of the New York Mercantile Exchange gold for December delivery was changing hands for $1,170.90 an ounce, down $0.60 from Friday’s close.
The gold price was battered on Friday by a quadruple shot – the end of US economic stimulus, a record-setting surge in equities, further falls in the crude oil price and a rampant dollar – falling to levels last seen July 2010………………………………………..Full Article: Source

ETFs Climb Toward $2 Trillion Mark

Posted on 04 November 2014 by VRS  |  Email |Print

It has been clear for a while that exchange-traded funds would eventually break through $2 trillion in assets in the U.S. But it now looks like it will happen much sooner than most observers expected.
Backed by a relentless stream of new money and supported by a five-year rally in stocks—broken only by occasional volatility—assets in U.S.-listed exchange-traded products are rapidly approaching the $2 trillion milestone and likely will pass it by early next year………………………………………..Full Article: Source

Best and Worst ETFs of October

Posted on 04 November 2014 by VRS  |  Email |Print

October was extremely volatile in the U.S. equity markets. This is especially true as concerns over global economic health, strong dollar, lower oil prices , Ebola and a semiconductor meltdown hurt stock prices to start the final quarter.
However, the sentiments reversed later in the month buoyed by robust corporate earnings and some upbeat economic indicators across the globe. Further, the hopes of a new stimulus from European Central Bank (ECB) added to the market strength. The U.S. stock market was hovering around the all-time high on the last day of the month after Bank of Japan ramped up its stimulus measures and the country’s government pension fund boosted its target for equity holdings……………………………………….Full Article: Source

A good time to invest in gold ETFs

Posted on 03 November 2014 by VRS  |  Email |Print

Gold prices have corrected sharply in the last few weeks with the US Federal Reserve winding up its stimulus programme. Long-term investors can use this decline to accumulate gold with a two/three year perspective. At $1,172/ounce, prices are down 38 per cent from their lifetime high. Indian investors can start an SIP (systematic investment plan) in gold exchange traded funds (ETFs) now. The largest and most liquid gold ETF in India is Goldman Sachs’ gold ETF, GoldBeES. It trades at about ₹2,428.
Gold ETF units were trading at a considerable premium to their NAV (net asset value) till recently due to supply disruptions following Government restrictions on gold imports. However, they are now available in the market at close to NAV price………………………………………..Full Article: Source

ETF Investors Losing Faith in Industrial Metals

Posted on 03 November 2014 by VRS  |  Email |Print

A slowing global economy is sending skittish investors out of industrial metals-related exchange traded funds at the fastest clip in over a year. The PowerShares DB Base Metals Fund, which tries to evenly split its portfolio with aluminum, copper and zinc futures, now has $279.7 million in assets under management after seeing $53.4 million in net outflows so far this month, according to ETF.com data.
Meanwhile, the iPath Dow Jones-UBS Copper Subindex Total Return ETN, an exchange traded note that tracks coppers futures and holds $63.5 million in assets, experienced $1.8 million in outflows………………………………………..Full Article: Source

ETPs struggle in low volatility

Posted on 03 November 2014 by VRS  |  Email |Print

Volatility in foreign exchange markets has been muted for much of this year and exchange traded funds and products that provide exposure to currency fluctuations have struggled to win investors’ attention.
Investors have pulled $386m from currency ETPs (funds and products) in the first nine months of this year following withdrawals of $553m over the whole of 2013, according to ETFGI, a consultancy………………………………………..Full Article: Source

Blow to asset managers in ETF arena

Posted on 31 October 2014 by VRS  |  Email |Print

The long-running war between the mutual fund industry and the burgeoning exchange traded fund sector appears to have reached a turning point. Asset managers who run mutual funds have watched with envy as ETFs have grown into a $2.6tn global asset class by offering investors cheaper products that trade like stocks but passively track indices or other baskets of securities.
Seeking their own slice of the rapidly growing ETF market, asset managers have for years been trying to create specialised versions of exchange-traded products………………………………………..Full Article: Source

How to Invest in ETF’s

Posted on 31 October 2014 by VRS  |  Email |Print

ETF investment is commonly regarded as a favorite of investors because of their convenience, simplicity, and low cost – so, it is a favorite of new investors and seasoned experts alike. The acronym “ETF” refers to “exchange-traded fund,” an investment vehicle that can be comprised of stocks, commodities, or currencies. It can also be designed to track a particular market or market sector.
ETF investment is similar to financial instruments like mutual funds in that it offers the same benefit of diversification of funds – however, since the majority ETF investment funds do not involve active management, they usually incur lower operating expenses than other investment options………………………………………..Full Article: Source

Bad Things are Happening to Silver ETFs

Posted on 31 October 2014 by VRS  |  Email |Print

There is plenty of attention being paid to gold’s slide below $1,200 per ounce and the yellow metals dangerous flirtation with the $1,180 an ounce level, which would represent a four-year low.
That also means silver is being taken to task. To this point in Thursday’s trading session, 20 exchange traded funds have touched new 52-week lows, three of which are physical silver funds. The motley crew is comprised of the iShares Silver Trust, ETFS Physical Silver Shares (NYSEArca: SIVR) and the Sprott Physical Silver Trust……………………………………….Full Article: Source

ETF SEcurities backs commodities

Posted on 30 October 2014 by VRS  |  Email |Print

Advisers and their clients would be wise to capitalise on a “short-lived” downward correction in commodity prices, researchers at exchange-traded product provider ETF Securities have suggested.
In a 10-page report, ETF Securities Commodity ETP Weekly: Commodities back in favour as recent correction deemed excessive, Simona Gambarini, associate director for research, and Nicholas Brooks, head of research and investment strategy, stated: “While most commodity prices continued to lose ground last week, investors started to realise that prices cannot fall much further, prompting inflows into precious metals, West Texas Intermediate crude and agriculture………………………………………..Full Article: Source

Investors Continue to Abandon Gold ETFs

Posted on 30 October 2014 by VRS  |  Email |Print

ETF Trends reported that investors continue to pull out of gold exchange-traded funds. They have done so for the last few weeks. As quoted in the market news: ‘Last week, assets in global ETPs fell 0.8 percent to 1,654.2 metric tons, the lowest since September 2009,’ report Debarati Roy and Nicholas Larkin for Bloomberg.
Even with the start of Diwali, the Indian festival of lights, which often leads to increased bullion demand in the world’s second-largest gold-consuming country, investors have not been warming to gold ETFs………………………………………..Full Article: Source

ETFs Are Required to Be Transparent? Not Always

Posted on 30 October 2014 by VRS  |  Email |Print

Transparency is often talked about as a hallmark of exchange-traded funds. Many investors are used to being able to look up the current holdings of their ETFs daily, generally on the fund firms’ websites.
And last week, the Securities and Exchange Commission said no dice to a proposal for actively managed ETFs that wouldn’t provide daily holdings disclosure. Without portfolio transparency or an adequate substitute, the SEC said, the funds can’t guarantee that shares will consistently trade at or close to the value of the underlying holdings………………………………………..Full Article: Source

New Commodity ETF Reveals Tax Loophole

Posted on 29 October 2014 by VRS  |  Email |Print

Exchange-traded funds (ETFs) are still hot investments. It seems a new ETF pops up almost daily. The total number of ETFs offered by the end of 2013 reached 1,294 and represented $1.675 trillion in assets under management. That’s up from a mere 113 in 2002.
And now some investors are using a lucrative trick to get rich with their ETF – a tax loophole. But you can’t use just any ETF to take advantage of this loophole. Investors need to take a page from the hipster handbook and go vintage… back to the 1940s………………………………………..Full Article: Source

ETFs for an Income Portfolio

Posted on 29 October 2014 by VRS  |  Email |Print

Actively managed UK equity income funds are among the most popular investments for dividend seekers - but don’t forget passive investments can pay out too. UK Equity Income Funds have once again topped the polls as the most popular actively managed open-end fund sector last month.
According to the latest statistics from the Investment Management Association (IMA) show that UK equity income funds recorded sales of £606 million in September – raking in more cash than any other sector for the fourth month in a row. In part this boost is down to the launch of star manager Neil Woodford’s equity income fund in June, but low cash rates and rock bottom gilt yields also contribute………………………………………..Full Article: Source

Gold price: ETF investors cash out

Posted on 28 October 2014 by VRS  |  Email |Print

On Monday gold futures drifted lower for the fifth straight session in anticipation of an end to the US Federal Reserve’s economic stimulus program, slipping back from a six-week high reached a week ago.
In afternoon trade on the Comex division of the New York Mercantile Exchange gold for December delivery was changing hands for $1,225.30 an ounce, down $6.50 from Friday’s close. The gold market has been unpredictable this month, hitting a high of $1,255 an ounce last Tuesday after a sharp recovery from the 2014 sub-$1,200 low early in October………………………………………..Full Article: Source

U.S. Banks See Worst Outflow of Money in ETF Since 2009

Posted on 28 October 2014 by VRS  |  Email |Print

The Financial Select Sector SPDR (XLF), an exchange-traded fund targeting banks and investment firms, had the biggest withdrawal last week since 2009 amid concern low interest rates and market gyrations will hurt profits.
Investors pulled $913.4 million from the $17.5 billion ETF, whose top holdings include Berkshire Hathaway Inc. (BRK/B), Wells Fargo & Co. and JPMorgan Chase & Co. (JPM), a shift that turned its flow of funds negative for the year. About 143 million shares of the ETF have been borrowed and sold to speculate on declines, the most since June 2012, according to exchange data compiled by Bloomberg………………………………………..Full Article: Source

ETFs Commonly Found In Retirement Accounts

Posted on 28 October 2014 by VRS  |  Email |Print

Despite their overall popularity among investors exchange-traded funds (ETFs), which represent more than $1.8 trillion in assets in the U.S. alone, are still nascent in retirement plans. But they are beginning to gain steam.
Charles Schwab Corp. (SCHW), for example, became the latest of a handful of firms to offer ETFs in retirement plans when earlier this year it launched an ETF 401(k) platform. Other firms that offer ETFs in 401(k) platforms include TD Ameritrade and ShareBuilder………………………………………..Full Article: Source

Exchange-traded funds: Emerging Trouble in the Future?

Posted on 27 October 2014 by VRS  |  Email |Print

Could the hottest trend in investment management be the greatest danger to financial stability? Exchange-traded funds (ETFs)—pooled portfolios of assets that trade on stockmarkets, usually linked to an index—have grown from a total value of $416 billion in 2005 to $2.5 trillion today. Their rapid growth has left regulators worrying about what might happen if the money that has flowed into ETFs decides to flow out again.
Investors can sell their holdings in ETFs throughout the day, but the assets of some ETFs may be hard to sell immediately. One obvious area is the corporate-bond market, where banks have retreated from trading, and so hold less inventory. There are some 46,000 separate bond issues, not all of which will find ready buyers during a rout………………………………………..Full Article: Source

Opaque ETFs not in the public interest

Posted on 27 October 2014 by VRS  |  Email |Print

Score one for the little guy. Last week, the Securities and Exchange Commission bucked the conventional wisdom and denied applications by fund managers BlackRock Inc. and Precidian Investments to offer nontransparent exchange-traded funds to investors, saying such products were not in the public’s interest.
Just a month ago, many industry pundits expected the agency to approve the measure but, in a sometimes rare moment of clarity, the SEC said no, explaining that approving the proposals in their current form could “inflict substantial costs on investors, disrupt orderly trading and damage market confidence in … trading of ETFs.”……………………………………….Full Article: Source

As ETF M&A heats up, industry wonders who is next

Posted on 24 October 2014 by VRS  |  Email |Print

When it comes to expanding in the $1.9 trillion U.S. exchange-traded fund market, which some forecasts say will pass the traditional mutual fund industry in size within 10 years, some companies have concluded it’s better to buy than to build.
ETFs are baskets of securities, like mutual funds, but trade on exchanges, like individual securities. They are cheaper than mutual funds and allow investors to trade throughout the day, with simultaneous pricing, unlike mutual funds, which price at the end of the day………………………………………..Full Article: Source

Will - and Should - These ETF Ishtars Ever Catch On?

Posted on 23 October 2014 by VRS  |  Email |Print

“Ishtar,” the 1987 movie starring Warren Beatty and Dustin Hoffman, seemed like a surefire hit on paper. At the box office? $14 million. It is the go-to emblem of disaster. We go to it here because giant flops happen in the ETF world, too. Sure, many exchange-traded funds fail to collect assets, and more than 500 have less than $30 million, the failure fault line.
Some, though, came out with a lot of hype or with a really novel investment idea, and in the end no one cared. Why? And is there still hope for some of these ETF Ishtars?……………………………………….Full Article: Source

Shipping ETF Sails Out Of The Storm

Posted on 23 October 2014 by VRS  |  Email |Print

The shipping industry-related exchange traded fund is seeing clearer skies as China increases imports of raw goods. The Guggenheim Global Shipping ETF (SEA) rose 2.6% Tuesday. Year-to-date, SEA has declined 9.1%.
China is purchasing a record amount of commodities, importing an average 77.72 million tons a month this year, despite slowing economic growth, reports Naomi Christie for Bloomberg.“We’re seeing an increased push towards Chinese volume being shipped,” Alex Gray, chief executive officer of Clarkson Securities Ltd., said in the article. “That’s what’s driving us upwards at the moment.”……………………………………….Full Article: Source

Goldman Sachs explores liquid alternatives in the ETF world

Posted on 22 October 2014 by VRS  |  Email |Print

The Goldman Sachs Group Inc. is in talks to acquire IndexIQ, Reuters has reported. Index IQ is a small exchange-traded-fund firm known mostly for products that replicate hedge fund strategies, called “liquid alternative” ETFs. While IndexIQ has 11 ETFs with $1.2 billion in assets, over 80 percent of those assets are in liquid alt ETFs.
These products use the same complex strategies that many hedge funds do, such as betting on or against futures contracts in commodities or currencies. But unlike with hedge funds, investors can get in and out of the funds daily — hence their name………………………………………..Full Article: Source

Is The Natural Gas ETF Warming Up for a Winter Rally?

Posted on 22 October 2014 by VRS  |  Email |Print

The country is shivering with fears of another polar vortex with the winter approaching. Bloomberg recently reported heavy snow in Siberia, like last year, and some believe a great deal of snow in this region indicates how much freezing air will spill into the U.S. later this year, suggesting another brutal winter may be ahead of us.
Though Judah Cohen, director of seasonal forecasting at Atmospheric and Environmental Research was quoted By Bloomberg saying “It’s still early in the game”, the director indicated that there has already been an alarming start to snowfall. The analyst indicated that he needs some more time to analyze the trend before making a precise prediction, as noted by Bloomberg………………………………………..Full Article: Source

Investors Pile Into Oil Funds at Fastest Pace in 2 Years

Posted on 22 October 2014 by VRS  |  Email |Print

Investors are putting money into funds that track oil prices at the fastest rate in two years, betting that crude will rebound from a bear market. The four biggest oil exchange-traded products listed in the U.S. have received a combined $334 million so far this month, the most since October 2012, according to data compiled by Bloomberg.
Shares outstanding of the funds, including the United States Oil Fund (DBO) and ProShares Ultra Bloomberg Crude Oil, rose to 55 million yesterday, a nine-month high………………………………………..Full Article: Source

Will ETFs Eventually Replace Mutual Funds?

Posted on 21 October 2014 by VRS  |  Email |Print

Mutual funds: they’ve been the mainstay for retail investors for decades. But will they stay that way? There are lots of options now such as exchange-traded funds (ETFs) and even hedge funds for the exceptionally wealthy.
The reality is that mutual funds will probably be around for some time, and will likely remain the primary vehicle for most investors for a long time to come. The numbers bear this out: According to the Investment Company Institute, some $15 trillion was invested in mutual funds in 2013………………………………………..Full Article: Source

Goldman Explores Its (Liquid) Alternatives in the ETF World

Posted on 21 October 2014 by VRS  |  Email |Print

Can Goldman Sachs put ETF investors on a liquid diet? Goldman is in talks to acquire IndexIQ, Reuters has reported. Index IQ is a small exchange-traded-fund firm known mostly for products that replicate hedge fund strategies, called “liquid alternative” ETFs.
While IndexIQ has 11 ETFs with $1.2 billion in assets, over 80 percent of those assets are in liquid alt ETFs. These products use the same complex strategies that many hedge funds do, such as betting on or against futures contracts in commodities or currencies. But unlike with hedge funds, investors can get in and out of the funds daily — hence their name………………………………………..Full Article: Source

No Surprise: OPEC Country ETFs Crushed by Oil’s Slide

Posted on 21 October 2014 by VRS  |  Email |Print

Twelve countries are members of the Organization of Petroleum Countries (OPEC), the cartel that accounts for about 40% of global oil output and looms large when it comes to setting prices of the commodity.
Three OPEC member nations – Nigeria, Qatar and the United Arab Emirates – are represented in the world of exchange traded funds by three U.S.-listed, single-country funds. Not surprisingly, these ETFs have been punished as oil prices have plunged in recent weeks………………………………………..Full Article: Source

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