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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

How New Commodity ETFs Really Work

Posted on 20 October 2014 by VRS  |  Email |Print

BlackRock Launches the First ETF to Provide Long-Only Broad Exposure to Commodities in a ’40 Act Regulated Structure. After all, the biggest hassle for most investors looking to get exposure to commodities is that you get a “K-1 Partnership Income” form at the end of the year. That means your gains are taxed as if you personally were buying and selling futures.
Specifically, you pay a 60 percent/40 percent blended capital gains rate, and your gains get marked to market at the end of the year. In other words, on an up year, you can pay taxes despite having received no income, and not having sold. That’s a pain, to be blunt. So hey, this new fund is great. Someone solved the K-1 problem………………………………………..Full Article: Source

The game has changed for ETFs in Australia

Posted on 20 October 2014 by VRS  |  Email |Print

Australia’s exchange traded funds market has long puzzled industry watchers, who describe its slow development as a mystery. But that might be about to change. Before the turn of the year ETF assets in the country stood at $8.9bn. However, that number has quickly grown to $11.3bn in the past nine months. Australian ETFs (funds and products) attracted inflows of $2.6bn, surpassing the $1.1bn gathered over the whole of 2013, according to ETFGI, the consultancy.
Jonathan Howie, Australian head of iShares, the ETF arm of BlackRock, the world’s largest fund manager, says that an “enormous roadblock” for ETFs was overcome in 2012 with the removal of commission payments to financial advisers in return for selling actively managed mutual funds………………………………………..Full Article: Source

Depositary receipt structures open ETF horizons

Posted on 20 October 2014 by VRS  |  Email |Print

Stock exchanges across the world are competing to attract cross-border exchange-traded fund listings, and depositary receipt structures might yet prove to be an easy, less expensive, way to win business. While American investors can access foreign shares through depositary receipts listed in the US, listing rules mean they can’t buy foreign funds and ETFs in any form, including DRs.
Other countries, however, do allow ETFs to be listed in a depositary format and this could be good news for US-listed products, which generally offer tighter spreads than their European equivalents, due to the fragmented nature of their local trading base. In the months ahead, exchanges and providers will be looking closely at Japan, where ETF Japanese depositary receipts, known as ETF-JDRs, are being used to attract new types of clients and to give traditionally domestically focused investors exposure to foreign opportunities………………………………………..Full Article: Source

Goldman Sachs in talks to acquire ETF provider IndexIQ

Posted on 17 October 2014 by VRS  |  Email |Print

Goldman Sachs Group (GS.N) is in discussions to acquire IndexIQ, a Rye Brook, New York-based exchange-traded fund provider, according to three sources familiar with the situation. The deal, if finalised, would enable Goldman to introduce passively managed and actively managed exchange traded funds within months.
A Goldman Sachs Asset Management spokeswoman declined to comment. A call and email to Adam Patti, the chief executive of IndexIQ, was not immediately returned………………………………………..Full Article: Source

Nasdaq Lists iShares Commodities Select Strategy ETF

Posted on 17 October 2014 by VRS  |  Email |Print

iShares is offering another exchange traded fund for investors. Nasdaq announced that BlackRock will list a new exchange-traded fund, the iShares Commodities Select Strategy ETF (Symbol: COMT). COMT will begin trading on Nasdaq today, October 16th.
COMT is innovatively structured to provide cost-effective, simple access to a diversified mix of commodities through futures and commodity-related companies. The fund is intended to be an all-in-one commodity solution by providing comprehensive commodity exposure in a smarter, more efficient way through both futures and equities; removing a tax barrier that may have kept investors away from commodities and utilizing a roll methodology that seeks to improve returns………………………………………..Full Article: Source

Safe-Haven Bets Help Gold ETFs Shine

Posted on 16 October 2014 by VRS  |  Email |Print

Gold exchange traded funds are regaining some safe-haven demand as traders pushed up bullion to its highest in four weeks in response to rising volatility in the equities market.
Over the past week, the SPDR Gold Shares, iShares Gold Trust and ETFS Physical Swiss Gold Shares have increased over 2%. Gold-backed exchange traded products saw holdings increase by 3.7 metric tons Monday to 1,666 tons, the first increase in two weeks, Bloomberg reports………………………………………..Full Article: Source

Oil Collapse Highlights ETF Differences

Posted on 16 October 2014 by VRS  |  Email |Print

Crude oil prices are plummeting this week, accelerating a steep downward trajectory that took hold this summer, thanks to an abundance of supplies that’s met by weakening global demand. This supply/demand imbalance has pushed WTI crude and the global benchmark Brent to multiyear lows in a decline that is showing no signs of stopping.
A day after WTI fell an additional 4.5 percent on Tuesday, and Brent nearly as much, both benchmarks fell further this morning. WTI was down an additional 2 percent to just above $80 a barrel, while Brent lost 1.4 percent to fall under $84. Both are down more than 20 percent since their peak this year in June………………………………………..Full Article: Source

The Most Popular ETF Debuts of 2014

Posted on 16 October 2014 by VRS  |  Email |Print

Despite recent global unrest and questions about global growth, United States equity markets remain near record highs, and the U.S. economy continues to strengthen, with still-declining unemployment, solid growth, and modest inflation.
Much-ballyhooed predictions of higher interest rates haven’t yet come to pass, and with U.S. equity market valuations at such elevated levels, investors with extra cash to put to work may be asking themselves where to find compelling investment opportunities………………………………………..Full Article: Source

3 reasons to avoid ETFs: Advisor

Posted on 15 October 2014 by VRS  |  Email |Print

Exchange-traded funds—commonly referred to as ETFs—are all the rage. While there are several excellent reasons to use an ETF over the seemingly archaic traditional mutual fund, they are not a universally preferable solution. First, to be fair, let’s review a few reasons why ETFs can be a better solution than mutual funds.
ETFs generally have lower associated costs than comparable mutual funds. This isn’t news, I know, but since costs are one of the few variables over which we have control as investors, I don’t mind flogging this deceased ungulate………………………………………..Full Article: Source

Money flows into gold ETFS

Posted on 15 October 2014 by VRS  |  Email |Print

Gold-backed Exchange Traded Funds (ETFs) were beneficiaries of the latest stock market sell-off. Stocks remain under pressure on worries about global growth, reports Reuters. The news agency says there is renewed interest in defensive assets. Meanwhile, analysts said earlier this year that they expected gold ETFs to do well this year.
Gold retreated from four-week highs on Tuesday as lacklustre euro zone data pressured the euro versus the dollar, though the metal was underpinned by fears over global growth, which hurt stocks and other commodities………………………………………..Full Article: Source

Liquid Alternative ETFs for a Changing Investment Landscape

Posted on 14 October 2014 by VRS  |  Email |Print

Instead of relying on the traditional 60/40 equity and fixed-income split, investors should consider diversifying a portion of their investments with alternative exchange traded fund strategies to diminish portfolio volatility. “The old 60-40 stock-bond paradigm is unlikely to work the way it has for the past 50 years,” Jason Schwarz, president of Wilshire Funds Management, said in InvestmentNews article, pointing to the currently high equities valuations and rising rate risks ahead.
Just five years ago, alternatives only made up 10% of average portfolio allocations, but they have since expanded to between 15% to 30%, according to Andrew Rice, vice president and chief financial officer of Money Management………………………………………..Full Article: Source

Climate Change ETF Expected At India’s BSE In Couple Of Years

Posted on 14 October 2014 by VRS  |  Email |Print

BSE Ltd, formerly known as the Bombay Stock Exchange, is in talks with asset managers to launch an exchange-traded fund (ETF) based on its climate change index in the next couple of years, its chief executive said on Monday.
BSE launched the S&P Carbonex index in 2012 based on its popular BSE 100 index, giving increased weighting to companies depending on carbon footprint scores. “We continue to prod investors and people who specialize in those kind of investments about tracking this index and having an ETF,” Ashishkumar Chauhan said at the Reuters Global Climate Change Summit………………………………………..Full Article: Source

Future Price Range Forecasts Of Leveraged Long ETFs Signal Broad Market Moves

Posted on 13 October 2014 by VRS  |  Email |Print

Recent wild market price gyrations get emphasized in Leveraged Long ETFs by 200% to 300%. Over 40 of these exciting wealth-builders (and destroyers) present big-gain prospects.
Constantly changing outlooks, not only for equities markets, but also geographic markets, commodities, and industry specialties offer intriguing opportunities. But the thrill-seeker needs to know what the market pros think is likely for each one so that intelligent choices of best odds-to-win can be made……………………………………….Full Article: Source

Commodity ETF Traders Have to Be Picky

Posted on 13 October 2014 by VRS  |  Email |Print

With the U.S. dollar strengthening and global growth concerns lingering, the commodities market have stumbled. Nevertheless, traders can still find some opportunities, but they will have to target single commodity-specific exchange traded funds.
The PowerShares DB Commodity Index Tracking Fund, the largest commodity-related ETF and tracks a broad basket of the 14 most heavily traded commodities, has declined 12.6% over the past three months. Meanwhile, the iShares GSCI Commodity-Indexed Trust, which includes a broader group of 24 commodities, has decreased 13.5%………………………………………..Full Article: Source

Gold ETFs and Stocks Surge, Benefit Most from Fed Minutes

Posted on 10 October 2014 by VRS  |  Email |Print

Although the Fed minutes held last month did not deliver anything new, the U.S. stock market strongly recovered from the sell-off seen early this week following the minutes. The Fed continued to maintain its accommodative stance by promising to keep interest rates low for a considerable period of time after the end of the quantitative easing (QE) program.
This is because the Fed officials are concerned over the global economic slowdown and a strong U.S. dollar that will weigh on overall domestic growth and inflation, one of the keys to stick to low interest rates. The International Monetary Fund (IMF) cut its global economic growth for the third time this year to 3.3%, citing persistent weakness in the Euro zone, Japan as well as key emerging and developing markets like China, Brazil, Russia and the Middle East. The dismal overseas growth will hamper exports in the U.S. and knock down economic recovery………………………………………..Full Article: Source

Commodity ETPs Nosedive in Q3; Gold Leads Outflow

Posted on 09 October 2014 by VRS  |  Email |Print

Assets in global commodity exchange traded products (ETPs) plunged 10% to $110.7 billion in the third quarter. The drop reversed two previous quarters of inflow, which seemed to indicate that the asset class was moving back into favor. Total commodity ETP assets tumbled to $122.1 billion at the end of 2013, which saw outflow in each quarter.
Almost all the recent quarterly losses came from falling commodity prices. Actual ETP outflow accounted for only $550 million of Q3’s $12.6 billion asset decline, according to a commodities report released Wednesday………………………………………..Full Article: Source

Something You Need To Know About These Commodity ETFs

Posted on 09 October 2014 by VRS  |  Email |Print

While major-market indices in the United States have enjoyed tremendous gains since the beginning of 2013, things haven’t been all peachy across the entire investing landscape. In the world of grains, there has been a world of hurt. Corn, soybeans, and wheat are all in their own personal bear markets, with declines accelerating in recent months.
The declines were so precipitous, I’ve become interested in looking for a way to gain long-term exposure to those commodities. With that in mind, I recently considered buying three commodity-focused ETFs; the Teucrium CORN fund, the Teucrium Soybean fund, and the Teucrium Wheat fund. Each of these funds provides unleveraged exposure to the futures prices of their respective commodity………………………………………..Full Article: Source

10 biggest commodity ETPs

Posted on 09 October 2014 by VRS  |  Email |Print

ETF Securities releasded it quarterly report “Trends in the Global Commodity Exchange Traded Products Market” this July, which showed a second consecutive quarterly increase in assets under management for commodity ETPs. Here are the top 10 commodity exchange traded products by assets under management.
10. ETFS Zinc: ETFS Zinc is an open-ended Exchange Traded Commodity, incorporated in Jersey and UCITS eligible. It is designed to track the Bloomberg Zinc Total Return (previously DJ-UBS) Index, allowing investors to invest in the commodity market. Counterparty credit risk is minimised as it is 100% collateralised with eligible securities……………………………………….Full Article: Source

ETFs and ETPs Globally Gather A Record $199.0 Billion In Net New Assets

Posted on 08 October 2014 by VRS  |  Email |Print

ETFGI’s research finds ETFs and ETPs globally have gathered a record 199.0 billion US dollars in net new assets through the end of Q3 2014, surpassing the previous high of US$185.8 Bn set in the first three quarters of 2012. The Global ETF/ETP industry has 5,463 ETFs/ETPs, with 10,510 listings, assets of US$2.6 Tn, from 225 providers listed on 61 exchanges, according to preliminary data from ETFGI’s end Q3 2014 Global ETF and ETP industry insights report.
YTD NNA flows reached record levels for the ETF/ETP industries in Japan at US$15.0 Bn, Europe at US$47.4 Bn, and globally at US$199.0 Bn. “In September investors invested the majority of net new money into North American equity exposures. Due to the on-going situation in the Ukraine, Scotland’s referendum vote, and the Bank of England Governor’s statement that a rate increase was “getting closer”, investors reduced their exposure to Europe………………………………………..Full Article: Source

These ETFs Are Winning in the Pimco Total Return Fund Derby

Posted on 08 October 2014 by VRS  |  Email |Print

An exchange-traded fund horserace is under way and the purse — courtesy of the Pimco Total Return Fund’s (PTRRX) outflows — is $23.5 billion and growing. Fixed-income ETFs hauled in $7.5 billion last week, which was $6.5 billion more than their weekly average.
There’s no way to pinpoint where exactly the cash is coming from. However, given no traumatic events in the bond market and the types of ETFs that brought in the cash, it isn’t a stretch to say most or all of it is Bill Gross fallout money………………………………………..Full Article: Source

ETF Bulls Fuel Biggest Inflow in Emerging Markets

Posted on 08 October 2014 by VRS  |  Email |Print

Waning tension in Ukraine and bargain prices are helping make Russian stocks a favorite among emerging-market investors. Asset managers added $154 million to U.S.-based exchange-traded funds focused on Russian equities last week, the biggest inflow among developing-nation ETFs, even as the benchmark index slumped to a two-month low, data compiled by Bloomberg show.
Money is coming into Russia at the same time as traders pulled $1.2 billion from ETFs that invest across emerging markets in the five days ended Oct. 3………………………………………..Full Article: Source

Silver ETFs Tumble on Soaring Dollar, Economic Uncertainty

Posted on 08 October 2014 by VRS  |  Email |Print

The year 2014 opened up nicely for safe havens like gold and silver thanks to frozen U.S. economic data, blazes of geo-politics and sluggish growth in several global forces including China, Japan and Europe. But the trend reversed in the second half.
A rough ride for commodities began, and the asset class has had trouble reversing the momentum. This was truer as the U.S. economy gained considerable strength succeeding almost every economic benchmark in Q2, the stock markets hit multi-year highs and the Fed decided to exit the QE era this October………………………………………..Full Article: Source

Bets On Stronger Dollar Lure ETF Investors

Posted on 07 October 2014 by VRS  |  Email |Print

So much for the dollar’s much-heralded demise. The risk today is the currency’s spectacular comeback, which has sent investors clamoring for ETFs that promise protection – and profit – from a stronger greenback.
Central bankers in Japan and Europe are loosening the liquidity spigot at precisely the same moment the Federal Reserve is scaling back bond buying, spurring a rising dollar that has bludgeoned Yen- and Euro-denominated funds and helped trigger a rush into ETFs designed to cash in on Europe and Japan’s weakening currencies………………………………………..Full Article: Source

Silver ETFs Tumble On Soaring Dollar, Economic Uncertainty

Posted on 07 October 2014 by VRS  |  Email |Print

The year 2014 opened up nicely for safe havens like gold and silver thanks to frozen U.S. economic data, blazes of geo-politics and sluggish growth in several global forces including China, Japan and Europe. But the trend reversed in the second half.
A rough ride for commodities began, and the asset class has had trouble reversing the momentum. This was truer as the U.S. economy gained considerable strength succeeding almost every economic benchmark in Q2, the stock markets hit multi-year highs and the Fed decided to exit the QE era this October. If this was not enough, tension over precious metals intensified in September as the greenback soared to the six-year level against the yen, talks of rate hike started doing rounds and demand prospects from many key markets remained vague………………………………………..Full Article: Source

Low silver price triggers ETF bargain hunting, but may not last: UBS

Posted on 06 October 2014 by VRS  |  Email |Print

The selling pressure under which silver currently finds itself is a trigger for accelerated bargain hunting for Exchange Traded Fund buying, with net inflows amounting to around 3.94 million ounces this week, Swiss bank UBS said in a research note Friday — although the trend may not last.
Strategist Edel Tully and analyst Joni Teves said in a joint note that with the price of silver trading around four-year lows, it “appears to have encouraged some bargain-hunting among ETF investors. The 3.92 million oz added Tuesday was the highest daily increase since May and brought the global tally to a fresh high of 639.71 million oz.”……………………………………….Full Article: Source

A Beacon of Light Among Commodities ETFs

Posted on 06 October 2014 by VRS  |  Email |Print

With nine months of 2014 in the proverbial books, investors that actively follow exchange traded funds know at least one thing: This has been a particularly rough year for commodities funds, both in terms of performance (or lack thereof) and outflows.
There have, however, been some bright spots. The iPath Dow Jones-UBS Coffee Total Return Sub-Index ETN and the iPath Pure Beta Coffee ETN are two of the year’s top-performing non-leveraged exchange traded products of any stripe. The Teucrium Corn Fund and the Teucrium Wheat Fund have defied weakness in those commodities to add assets at an impressive rate even as investors scamper out of scores of other commodity funds………………………………………..Full Article: Source

Investors rush to sell commodities ETFs in September, says Markit

Posted on 03 October 2014 by VRS  |  Email |Print

Investors rushed to sell holdings in commodity exchange traded funds (ETFs) in September, data from Markit showed on Thursday, as prices slumped for the month. Physical gold ETF holdings saw a monthly outflow of $1.67 billion, the biggest drop this year, while sugar saw a fall of $315 million the largest outflow for any month for the past five years, the data showed.
Gold futures fell 6.1 per cent in September, the biggest such slide since June 2013, while sugar prices fell to the lowest level in more than four years last month with the slide driven by abundant supply. There were outflows of $221 million from crude oil for the month, the biggest such movement since May. The price of Brent crude fell 8.3 per cent, its biggest drop since May 2012………………………………………..Full Article: Source

Commodity ETF outflows reach highest this year on supply

Posted on 03 October 2014 by VRS  |  Email |Print

Investors last month pulled more money out of US exchange-traded products backed by commodities than they have all year, as signs of supply gluts drove the biggest price slump since the financial crisis. About $1.05 billion was removed from the exchange trade funds (ETFs) in September, the biggest monthly withdrawal since December, data compiled by Bloomberg show.
Outflows were led by redemptions from precious metals and energy. Money managers have cut their combined bullish bets across 18 US traded commodities for 13 straight weeks, the longest streak since the data begins in 2006, while open interest in raw materials fell last quarter by the most in two years………………………………………..Full Article: Source

Platinum oversold as price tanks

Posted on 03 October 2014 by VRS  |  Email |Print

It’s rather remarkable in light of the year’s events. The platinum price (January delivery) reached a five-year low Wednesday ($1,263/oz.) highlighting a precipitous few months for the precious metal, largely used in catalytic converters.
The selloff in platinum - with ETF holdings dropping alongisde - started in August and has been relentless since. Platinum traded near $1,500/oz back in late July and early August, but it has since crumbled to under $1,300/oz. Many will recall that platinum climbed, if tentatively, on the back of a crushing strike in the South African platinum mining sector earlier in the year, which was eventually resolved but only after months of long-fruitless negotiation………………………………………..Full Article: Source

Investors Turn Sour On Commodity ETFs

Posted on 03 October 2014 by VRS  |  Email |Print

In response to the bumper crop year, rising oil output and slowing global demand for raw materials, commodity exchange traded funds experienced their largest monthly outflows this year. In September, commodity ETFs experienced $1.05 billion in outflows, the largest monthly withdrawal since December, and saw more money redeemed for commodity-backed ETFs for the month than in the combined nine months of the year, reports Luzi Ann Javier for Bloomberg.
The PowerShares DB Commodity Index Tracking Fund, the largest commodity-related ETF, which tracks a broad basket of the 14 most heavily traded commodities, saw $107.2 million in outflows over September, according to ETF.com data………………………………………..Full Article: Source

Two Ag Commodities ETFs Buck the Outflows Trend

Posted on 03 October 2014 by VRS  |  Email |Print

A rough year for some commodities exchange traded funds got even more tumultuous in September as gold sank and investors scurried out of a spate of commodities ETFs. In September, commodity ETFs experienced $1.05 billion in outflows, the largest monthly withdrawal since December, and saw more money redeemed for commodity-backed ETFs for the month than in the combined nine months of the year, reports Luzi Ann Javier for Bloomberg.
Exchange traded products offering exposure to agriculture commodities have been particularly hard hit. The PowerShares DB Agriculture Fund lost $154.1 million during the third quarter. The iPath Dow Jones-UBS Coffee Total Return Sub-Index ETN and the iPath Pure Beta Coffee ETN saw modest third-quarter outflows, a continuation of theme seen for coffee ETPs this year, despite the fact that JO and CAFÉ are two of this year’s top-performing non-leveraged ETPs……………………………………….Full Article: Source

Commodity ETF Outflows Reach Highest This Year on Supply

Posted on 02 October 2014 by VRS  |  Email |Print

Investors last month pulled more money out of U.S. exchange-traded products backed by commodities than they have all year, as signs of supply gluts drove the biggest price slump since the financial crisis.
About $1.05 billion was removed from the ETFs in September, the biggest monthly withdrawal since December, data compiled by Bloomberg show. Outflows were led by redemptions from precious metals and energy………………………………………..Full Article: Source

Will the Commodity Slump Weigh on Agribusiness ETFs?

Posted on 02 October 2014 by VRS  |  Email |Print

Agricultural commodities performed impressively in the first four months of 2014 helped by a weaker dollar, adverse weather and greater demand. However, the space snapped the trend soon to reflect a benign weather outlook and accelerated crop plantation that exceeded demand.
If this was not enough, the six-year high U.S. dollar against the yen put pressure on commodity prices. Sluggish global demand thanks to rough global recovery has also been playing a crucial role in pulling down agricultural commodity prices. Some crops including corn, soybeans and wheat are expected (by market participants) to leave the year with huge inventories………………………………………..Full Article: Source

Good News for Investors as ETFs Continue to Get Cheaper

Posted on 02 October 2014 by VRS  |  Email |Print

The list of ETF providers who are cutting fees, or launching ever-cheaper funds, continues to grow and this can only be good news for investors. There’s been a hotly-denied price war taking place in the passive fund space for some time now. The reputation of exchange-traded funds as one of the cheapest ways to get exposure to a broad range of markets and indices has fuelled ETF providers to repeatedly try to undercut each other.
Though the providers have repeatedly denied there’s any war going on, this is a battle that should be welcomed by the end investor, who will benefit by having to give up less and less of their returns in the forms of fees………………………………………..Full Article: Source

Pimco ETF sees nearly $550 mln in outflows in two days

Posted on 01 October 2014 by VRS  |  Email |Print

The Pimco Total Return exchange-traded fund saw $448 million in outflows Friday following news of the departure of longtime manager Bill Gross, but outflows slowed on Monday to $98 million, according to a Pimco spokesperson.
Friday’s outflows represented a record for the ETF. With $3.12 billion in assets as of Monday, the ETF is a fraction of the Pimco Total Return Fund, the $222 billion bond fund that Gross had managed since 1987. Gross co-founded Pacific Investment Management Co, a $2 trillion asset management firm, in 1971………………………………………..Full Article: Source

Currency Hedged ETFs Not Created Equal

Posted on 01 October 2014 by VRS  |  Email |Print

Currency-hedged products like the Deutsche X-trackers MSCI Emerging Markets Hedged Equity ETF (DBEM | F-61) and the newly launched iShares Currency Hedged MSCI Emerging Markets ETF (HEEM) strip out the currency risk for U.S. investors, leaving just the pure performance of the underlying stocks in local emerging markets.
With developed Europe in the doldrums and the U.S. looking frothy, hedged emerging market ETFs could appeal by reducing the volatility and uncertainty from currency moves while retaining exposure to the potential growth of EM economies………………………………………..Full Article: Source

Be a Fat Cat. Use the Caymans for Your Commodity ETF

Posted on 30 September 2014 by VRS  |  Email |Print

When an investment area is pronounced dead, it often triggers a blinding rally. Past “dead” investments that went on to rule the leader boards include Japan, solar energy and most recently, long-dated U.S. Treasury bonds.
The latest area where funeral arrangements are being made is commodities. A supply glut, lack of inflation and generally good stock market has commodities out of favor. Some $7.7 billion has flowed out of commodity ETFs in the past 12 months………………………………………..Full Article: Source

Inflation-Hedge ETFs Struggle as Commodity Prices Drop

Posted on 30 September 2014 by VRS  |  Email |Print

Traditional inflation-hedging assets and related exchange traded funds are losing ground as the longest commodity decline in over two decades helped keep a lid on consumer prices. For instance, inflation hedging tools such as Treasury Inflation Protected securities have underperformed traditional government debt assets.
The iShares TIPS Bond ETF, which has a 7.64 year duration, declined 1.3% over the past three months while the iShares 7-10 Year Treasury Bond ETF, which has a 7.64 year duration, gained 0.7%. Additionally, gold, another inflation-hedging tool, has also been under pressure, with the SPDR Gold Shares down 7.6% over the past three months………………………………………..Full Article: Source

ETFs trump shares and physical metal

Posted on 30 September 2014 by VRS  |  Email |Print

Since the dawn of trade, investors have run for the safety of precious metals, in particular gold, during times of crisis and uncertainty. Renewed appetite for precious metals has coincided with perhaps the most democratising revolution in asset management since mutual funds were introduced: exchange-traded funds (ETFs).
ETFs have been incredibly successful in most asset classes, but arguably the most success has been in commodities, notably physical gold ETFs. Equity ETFs in mining stocks have been very popular as well. Assets under management in gold ETFs peaked at more than $150bn in 2012………………………………………..Full Article: Source

Overwhelmed by the number of ETFs? Here’s how to handle it

Posted on 29 September 2014 by VRS  |  Email |Print

The top challenge for people looking to invest in ETFs? It could be this simple: there are just too many of them. “My biggest concern centers around just product proliferation,” said Ben Johnson, Morningstar’s director of manager research for passive strategies, at a panel discussion last week at the Morningstar ETF Conference in Chicago.
“There’s a risk — when the menu expands and expands and expands — just for confusion. We forget why it is we’re here to begin with.” U.S. investors have gone from having just one of these low-cost, index-tracking funds to choose from in early 1993 to more than 1,600 today. Along the way, the number of U.S. exchange-traded funds topped 100 in 2001, then surpassed 1,000 in 2010. Over the past decade, the number of ETFs has increased by 27% a year on average………………………………………..Full Article: Source

Inflows on the rise for US dollar ETF

Posted on 29 September 2014 by VRS  |  Email |Print

A growing number of investors are looking to capitalise on a potential further decline in the Australian dollar with trading data from BetaShares, a leading exchange traded fund (ETF) provider, showing significant inflows into its US Dollar ETF in September.
With the Australian dollar hitting seven month lows against the US dollar, BetaShares has seen approximately $30 million of net inflows into the BetaShares US Dollar ETF (ASX code “USD”) since the start of September. The fund is designed to provide exposure to the performance of the US dollar relative to the Australian dollar, meaning the value of the fund will go up as the US dollar appreciates, and vice versa. The fund now has over $200 million in assets under management………………………………………..Full Article: Source

Commodity ETFs Sail Choppy Seas This Year

Posted on 29 September 2014 by VRS  |  Email |Print

This was supposed to be the year when commodities, from agriculture to energy to metals, were going to outshine equities thanks to tight supplies and a favorable economic outlook. Instead, most commodity markets have plummeted year-to-date, with some now hovering at four-year-lows, while the U.S. equity market has forged new highs.
There are several explanations for what happened. Some say the supply shocks that marked the beginning of the year met enormously benign growing-season weather across much of the U.S. this summer. Markets such as grains and livestock have been hugely pressured by abundance at a time when global demand is relatively uncertain………………………………………..Full Article: Source

New School ETFs Think Global to Track Local

Posted on 26 September 2014 by VRS  |  Email |Print

Is a tomato a fruit or a vegetable? Is Bob Dylan folk or rock? Is the Alibaba initial public offering China or U.S.? The largest IPO in history showed how tricky it is for index-makers to fit some foreign companies into tidy categories. As a Chinese company domiciled in the Cayman Islands and listed on a U.S. stock exchange, Alibaba Group Holding Ltd.’s (BABA) entered an index no-man’s land.
It was stunning to learn — even for an ETF analyst — that the criteria used by many indexes meant that a company with a market cap the size of Amazon’s couldn’t go into any of the 250 largest ETFs………………………………………..Full Article: Source

3 (More) Mistakes to Avoid With Your ETF Portfolio

Posted on 26 September 2014 by VRS  |  Email |Print

A little over a year ago, I wrote a well-received article about five mistakes to avoid with your ETF portfolio. The tips ranged from not falling in love with your ETFs to trade execution and tax consequences. Fast-forward to today, and the ETF universe has expanded in a number of ways that warrant some additional advice in a number of key areas. So today, I’d like to share a few thoughts to help you make more informed decisions about your ETF portfolio.
The single-biggest driver of your returns in each diversified ETF you purchase will be how the index is constructed. That isn’t to say fees, taxes and liquidity aren’t important, but the makeup of the underlying holdings will ultimately determine how the portfolio reacts under various conditions and if any outsized holdings will impact returns………………………………………..Full Article: Source

World Gold Council: ETFs ‘Good For Investors – And For Gold’

Posted on 25 September 2014 by VRS  |  Email |Print

Gold-backed exchange-traded funds “have been good for investors — and for gold,” said the World Gold Council in a report Wednesday. “Over the past decade, gold-backed exchange-traded funds have transformed the gold investment market,” the report said. “Yet, their rise has not been universally popular. They may have put pressure on gold vendors’ margins, and some investors believe that they have led to an increase in volatility of the gold market.
“As we see it, ETFs may not be an answer to every gold investor’s needs, but the gold market has benefited more broadly since their launch. Overall, we believe that ETFs have reduced total cost of ownership, increased efficiencies, provided liquidity and access, and brought new interest – and demand – into gold as a strategic investment.”……………………………………….Full Article: Source

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