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Eric Nelson: Why ETFs Are Inferior

Posted on 07 May 2015 by VRS  |  Email |Print

Advisor and investment writer Eric Nelson joins Jack Bogle in the lonely corner of market observers who don’t share the general public affection for ETFs. In his two most recent posts, the feisty investment pundit whose pen (or keyboard) has not spared even St. Jack, this time forms common cause with the Vanguard founder who counsels investment in index-based mutual funds but not ETFs.
In a broader examination of the topic, Nelson, a registered investment advisor who is principal of Oklahoma City-based Servo Wealth Management, decries the ease with which ETFs can be abused. That is, their stock-like tradability invites frequent portfolio adjustments that end up hurting long-term investors………………………………………..Full Article: Source

The 5 scariest things about ETFs for investors

Posted on 05 May 2015 by VRS  |  Email |Print

Liquidity worries have bubbled up lately in the world of exchange-traded funds, meaning heebie-jeebies about the tradability of certain ETFs. So here’s a look at that oft-mentioned worry, as well as four other fears.
Sure, ETFs can be low-cost, diversified investing vehicles that track broad market indexes. But you’re no psycho to worry about their relatively quick rise to become a $3 trillion force in global financial markets—or if you fret about the more esoteric funds………………………………………..Full Article: Source

Top ETFs of 2015: Believe the Hype?

Posted on 05 May 2015 by VRS  |  Email |Print

ETFs — exchange-traded funds — have exploded in popularity in recent years. A basket of multiple companies, bonds or commodities, ETFs give investors exposure to a given sector, commodity or currency. It’s also possible to short sectors, commodities, etc. with ETFs. If you’re trading with the current trend, ETFs offer the potential to make a lot of money. They also tend to be less volatile than individual stocks.
However, you need to be careful not get caught in a trend change — when an index that has been moving in a particular direction suddenly changes course. You also have to make sure you’re not holding leveraged ETFs, ones that use financial derivatives and debt to amplify the returns of an underlying index, with high expense ratios for long periods of time………………………………………..Full Article: Source

The Top 5 Inverse Oil ETFs

Posted on 05 May 2015 by VRS  |  Email |Print

Out of all the potential investments in the universe, oil might be the most difficult to predict at this point in time, but only for geopolitical reasons. If you eliminate the geopolitical factor, oil would undoubtedly move lower.
There are several reasons for this, which include slowing growth in China (a major factor), the threat of deflation in Europe and Japan (temporarily being staved off by monetary policies), the rise of the U.S. dollar, and members of the Organization of Petroleum Exporting Countries (OPEC) being hesitant to cut production. However, geopolitical tensions do exist and there is so much tension around the world that there is definitely potential for an unexpected event to lead to a spike in oil prices………………………………………..Full Article: Source

2015’s Hottest ETFs Share Currency Hedges

Posted on 05 May 2015 by VRS  |  Email |Print

The WisdomTree Europe Hedged Equity ETF and the Deutsche X-trackers MSCI EAFE Hedged Equity ETF are the most popular ETFs year-to-date, gathering a combined $22 billion in fresh net assets so far. That’s roughly $1 of every $3 finding its way into the ETF market this year. Behind that enormous investor appetite for these two funds is concern that the dollar strength in the past few years risks wrecking returns for U.S. investors who own international equities funds.
The problem has been thorniest for U.S. investors interested in value plays in the downtrodden eurozone. After all, the euro has slid 7 percent so far this year, and by nearly a fifth in the past year. Owning a fund like HEDJ that peels out this currency cross has saved U.S. investors a lot of pain………………………………………..Full Article: Source

Have Mutual Funds Lost a Key Advantage Over ETFs?

Posted on 04 May 2015 by VRS  |  Email |Print

Before ETFs became widely adopted, some brokerages charged ETF investors a transaction cost for dividend reinvestments, says Heather Pelant, a personal investor strategist with BlackRock. Hence the notion that mutual funds are a better vehicle for reinvesting dividends. “These platforms have since come up with procedures and features that are parallel to mutual funds,” she says.
Today, most large brokerages give investors the option of depositing dividend payouts into their cash accounts or automatically reinvesting dividends back into the security – be it an individual stock, mutual fund, or ETF. You should be able to make this choice on a fund by fund basis, change your preference at any time, and reinvest your dividends for free………………………………………..Full Article: Source

A New Milestone for ETF Adoption

Posted on 04 May 2015 by VRS  |  Email |Print

Individual investors have a lot more money invested in traditional mutual funds than in exchange-traded funds. But as people continue pumping dollars into ETFs, their ETF holdings grew by more in dollar terms than their mutual-fund investments over the year through March—apparently for the first time—according to an analysis by Broadridge Financial Solutions.
That conclusion is based on the company’s tally of fund and ETF holdings in accounts at “retail” companies, including full-service and discount brokerages, which cater to individual investors and their advisers. Broadridge, based in Lake Success, N.Y., sells communications and technology services to financial-services companies………………………………………..Full Article: Source

Best And Worst ETFs Of April

Posted on 04 May 2015 by VRS  |  Email |Print

Despite a dovish Fed session at the end of March, the domestic market could not break all the barriers in April. Instead like the first quarter, international investing was in vogue all through the month. While the top performing ETF of April went on delivering over 40% in return, gains out of SPDR S&P 500 ETF were muted at around 2.5%.
Below, we highlight a few of these strong international plays, which may be worth paying attention going forward should the trend seen in April stay in the market for a while. China ETFs have been delivering an all-star performance this year on a policy easing spree………………………………………..Full Article: Source

Should you applaud recent surge in metal ETFs?

Posted on 30 April 2015 by VRS  |  Email |Print

The commodity markets saw a choppy 2014, with the metals and mining ETF space being one of the most hurt spaces. A rising greenback amid QE-wrap in the U.S., concerns of further Fed tightening, global growth worries, deflationary fears and last but not the least the Chinese economic slowdown caused metal ETFs to see their worst days in several years.
However, to many investors’ surprise, metal ETFs received a fresh lease of life and logged refreshing returns in the last five days (as of April 27, 2015) along with several other commodity ETFs. In fact, metal and mining ETFs have been displaying a pretty nice trend lately healing their year-to-date bloodbath to a large extent………………………………………..Full Article: Source

Currency-Hedged ETFs Are 2015’s Hottest Trend

Posted on 30 April 2015 by VRS  |  Email |Print

Currency-hedged exchange-traded funds (ETFs) are perhaps the hottest trade in 2015. Since the beginning of the year, over $33 billion has flowed into these ETFs, which hold foreign equities but neutralize the foreign currency exposure.
The WisdomTree Europe Hedged Equity ETF (HEDJ), for instance, has experienced inflows of nearly $13 billion, the most of any ETF. And the Deutsche X-Trackers MSCI EAFE Hedged Equity ETF (DBEF) isn’t far behind with inflows of over $9 billion. Of course, the popularity of these funds has been driven by a strong U.S. dollar, which has gained over 20% in value against the euro over the past year………………………………………..Full Article: Source

Global Growth to Benefit Commodity Exporting Countries, ETFs

Posted on 30 April 2015 by VRS  |  Email |Print

With aggressive monetary easing policies supporting growth across Europe and Asia, investors can take a look at materials-based economies that help fuel the expansion, along with related international exchange traded funds. Europe, Japan and China are seeing improvements after the governments enacted loose monetary policies to stimulate their economies, writes Scott Colyer, chief executive of Advisors Asset Management, for InvestmentNews.
“One thing the world has learned is that asset prices generally love quantitative easing,” Colyer said. “Europe and Japan both have engaged in massive asset purchases, while China has lowered interest rates and bank reserve requirements.”……………………………………….Full Article: Source

Should You Applaud Recent Surge in Metal ETFs?

Posted on 29 April 2015 by VRS  |  Email |Print

The commodity markets saw a choppy 2014, with the metals and mining ETF space being one of the most hurt spaces. A rising greenback amid QE-wrap in the U.S., concerns of further Fed tightening, global growth worries, deflationary fears and last but not the least the Chinese economic slowdown caused metal ETFs to see their worst days in several years.
However, to many investors’ surprise, metal ETFs received a fresh lease of life and logged refreshing returns in the last five days (as of April 27, 2015) along with several other commodity ETFs. In fact, metal and mining ETFs have been displaying a pretty nice trend lately healing their year-to-date bloodbath to a large extent……………………………………….Full Article: Source

How Humdrum ETFs Are Overtaking Racy Hedge Funds

Posted on 29 April 2015 by VRS  |  Email |Print

It’s part of a gradual change in culture on Wall Street that’s encouraging low costs and long-term thinking. It’s like the investment world’s version of the race between the tortoise and the hare. And the hare is losing its lead.
Hedge funds, investment pools known for their exotic investment strategies and rich fees, have long been considered one of the raciest investments Wall Street has to offer, with $2.94 trillion invested globally as of the first quarter, according to researcher Hedge Fund Research………………………………………..Full Article: Source

Global equity mutual funds, ETFs post $31.8 billion April inflows

Posted on 29 April 2015 by VRS  |  Email |Print

Global equity mutual funds and exchange-traded funds showed $31.8 billion of net inflows in April through Friday, TrimTabs Investment Research said on Tuesday, putting them on track to surpass the record inflow of $34.8 billion in March.
U.S. equity mutual funds and exchange-traded funds have posted net withdrawals of $15.4 billion this month through April 24. “Equity flows shifted into emerging markets recently as investors chased the monster rally in China,” said Winston Chua, analyst at TrimTabs. “Interest in Europe cooled off in recent days, and investors still want nothing to do with the U.S.”……………………………………….Full Article: Source

Money Pours Out of Oil ETFs

Posted on 28 April 2015 by VRS  |  Email |Print

Exchange-traded funds, or ETFs, that invest in U.S. oil futures are showing signs of outflows in a negative signal for a monthlong crude-price rally, Nicole Friedman reports. An inflow that began in January, as oil prices continued to fall, totaled roughly $6 billion through mid-March, when U.S. crude hit a six-year low, according to Macquarie Group Ltd.
But the ETFs, which can be bought and sold like stocks and include the $3.1 billion United States Oil Fund LP, have registered about $2.7 billion of investor outflows in April. Traders and analysts say crude prices are vulnerable to a pullback following a 32% run-up since March 17. Also, many ETFs will sell futures contracts near their expiration and buy later-dated contracts, which currently are more expensive than front-month contracts………………………………………..Full Article: Source

Institutional investors warming up to ETFs

Posted on 28 April 2015 by VRS  |  Email |Print

Some 34% of officials at defined benefit plans, foundations and endowments say they use ETFs or ETNs, and of those, one-quarter plan to increase their usage, a new Pensions & Investments survey shows.
Among non-users, about 14% of those surveyed say it’s “somewhat likely” they would begin to invest via exchange-traded funds and notes within the next year, according to the survey. Among defined contribution plan officials, 10% reported using ETFs or ETNs………………………………………..Full Article: Source

Oil vs. Gas ETFs: Which One Should I Choose?

Posted on 24 April 2015 by VRS  |  Email |Print

Energy is one of the last places an investor wanted to be over the past year. Many analysts are calling a bottom. This is often based on nothing more than oil and natural gas prices being low combined with an improving U.S. economy. As far as the latter is concerned, this trend is debatable. Though unemployment has improved, there is minimal wage growth.
Without wage growth, consumers save more and spend less. Additionally, the Baby Boomer generation is retiring in droves, and retirees tend to save more and spend less. Furthermore, China is consistently slowing and the Eurozone and Japan are fighting deflation…………………………………..Full Article: Source

How To Purchase Shares of an Exchange-Traded Fund in the Market

Posted on 24 April 2015 by VRS  |  Email |Print

The rise in the popularity of exchange-traded funds (ETFs) is occurring, because investors are drawn to their lower fees, liquidity and ease of diversification. Although ETFs have been around since 1993, their attractiveness has soared in the past few years as more 401(k) and IRA plans are offering them as an option.
A decade ago, the total amount of funds in ETFs totaled $200 billion and investors could only chose from a few dozen options, said Wayne Connors, a managing partner of Retirement Investor, a Glastonbury, Conn. company where investors build their own IRA portfolios…………………………………..Full Article: Source

The CEW Emerging Market Currency ETF

Posted on 24 April 2015 by VRS  |  Email |Print

If you would like to invest in emerging market currencies, take a good look at the Wisdom Tree Emerging Currency Strategy Fund (CEW) exchange-traded fund (ETF). That said, “invest” might not be the best word. With a 0.56% expense ratio, holding this ETF long term will eat into your profits.
While the expense ratio 0.56% isn’t exorbitant, it is above the average of 0.46%. You should also know that the average volume on CEW is 42,175. This isn’t high and can lead to wide bid/ask spreads. Be sure to use limit orders. Perhaps the most important factor is that this isn’t likely to be the best time to invest in CEW. If you’re going to take a position, strongly consider a short-term trade…………………………………..Full Article: Source

Commodity ETFs Starting to Turn Around

Posted on 23 April 2015 by VRS  |  Email |Print

Some investors may be easing back into commodities and related exchange traded funds as a strengthening global economy, a slowing U.S. dollar and fall off in prices are enticing some bottom fishers. Over the past month, the PowerShares DB Commodity Index Tracking Fund (NYSEArca: DBC) added 3.8%, iPath Dow Jones-UBS Commodity Index Total Return ETN (NYSEArca: DJP) gained 2.2% and iShares GSCI Commodity-Indexed Trust (NYSEArca: GSG) increased 7.3%.
The rebounding oil prices are lifting the broad asset class, along with the recovering copper, sugar, gold and other raw materials, reports Ira Iosebashvili for the Wall Street Journal……………………………………Full Article: Source

The Top 3 Silver ETFs

Posted on 23 April 2015 by VRS  |  Email |Print

Silver, like gold, is a precious metal that also has industrial applications.. Silver Exchange Traded Funds (ETFs) are pools of funds that enable traders and investors to gain exposure to silver ownership or price movement. Owning the physical commodity requires the owner to take delivery and store and secure the asset at additional costs and risks.
On the other hand, trading silver ETFs is like a passive holding, allowing investors to mimic its price movement without having to manage the physical asset or entering into a derivative contract. Generally, the performance of ETF funds reflect the performance of its total investments in the underlying without the fund’s expenses……………………………………Full Article: Source

A Look at the Top 5 Performing Commodity ETFs YTD

Posted on 23 April 2015 by VRS  |  Email |Print

Over the past month, certain corners of the commodity market have managed to claw their way back from steep declines; oil, gold, sugar, and copper have all posted solid gains in recent weeks. Below, we take a look at five of the best performing Commodity ETFs year-to-date, a few of which were the worst performers earlier in the year.
Gartman Gold/Euro ETF (GEUR): This AdvisorShare’s actively-managed fund offers investors an alternative method to invest in gold by financing gold purchases with euros instead of the U.S. dollar. The fund is relatively new, launching in February of 2014……………………………………Full Article: Source

The Top Gold Mining ETFs

Posted on 23 April 2015 by VRS  |  Email |Print

Gold mining attracts enormous retail trading interest, even though the gold bull market ended in 2010. The mystique of the yellow metal captivates market players seeking hedges against inflationary pressure, safe haven in turbulent times and speculative resource plays looking to profit from the most promising digging and extracting operations around the world.
Traders can play individual gold miners profitably if they do their homework but sector exchange traded funds (ETF) offer an easier alternative, with broad exposure to the industry at different capitalization levels. They can also play gold directly through the futures markets and ETFs constructed to follow fluctuations in spot gold prices……………………………………Full Article: Source

China’s Currency Ambitions Could Lift Gold Market, ETFs

Posted on 22 April 2015 by VRS  |  Email |Print

As China pushes to make its yuan currency a global competitor to the U.S. dollar, the country could stockpile bullion to bolster its reserves, potentially lifting gold prices and related exchange traded funds. Year-to-date, the SPDR Gold Shares (NYSEArca: GLD) rose 1.8%, iShares Gold Trust (NYSEArca: IAU) added 1.8% and ETFS Physical Swiss Gold Shares (NYSEArca: SGOL) returned 1.7%.
While gold has been faltering lately, the market could pick up if China begins to hoard the precious metal. Speculators believe the Chinese government could be stockpiling gold as part of a plan to diversify $3.7 trillion in foreign-exchange reserves, Bloomberg reports…………………………………..Full Article: Source

The ETF Decision Is Not All or None

Posted on 22 April 2015 by VRS  |  Email |Print

Shoebox design has not changed much in 50 years. Shoeboxes are still the same shape, made of the same flimsy cardboard and hold one pair of shoes. The color and lid design do vary among companies, but it’s not a big deal for shoe buyers. We’re only interested in what’s inside the box.
The expansion of exchange-traded products (ETPs), which include exchange-traded funds (ETFs), has provided investors and advisers with more choices over the years. As of March 31, 2015, “The global ETF/ETP industry had 5,669 ETFs/ETPs, with 10,961 listings, from 247 providers listed on 63 exchanges in 51 countries,” according to data compiled by ETFGI.com…………………………………..Full Article: Source

The Top Gold Mining ETFs

Posted on 22 April 2015 by VRS  |  Email |Print

Gold mining attracts enormous retail trading interest, even though the gold bull market ended in 2010. The mystique of the yellow metal captivates market players seeking hedges against inflationary pressure, safe haven in turbulent times and speculative resource plays looking to profit from the most promising digging and extracting operations around the world.
Traders can play individual gold miners profitably if they do their homework but sector exchange traded funds (ETF) offer an easier alternative, with broad exposure to the industry at different capitalization levels. They can also play gold directly through the futures markets and ETFs constructed to follow fluctuations in spot gold prices…………………………………..Full Article: Source

Emerging market ETFs: solving the liquidity problem or storing it up?

Posted on 21 April 2015 by VRS  |  Email |Print

Anyone looking for financial bubbles at risk of bursting will be watching the rise of hard currency emerging market corporate bonds. Ten years ago, the asset class hardly existed. Today, at an estimated $2tn, it is bigger than the $1.6tn market in US high yield corporate bonds, familiar to investors for decades.
Investors have been drawn by high yields, offered even by investment-grade EM corporate issuers. But with high returns come high risks, and not only those related to repayment. EM corporate bonds are often dangerously illiquid, making them hard to get rid of in a crisis and meaning their prices can change rapidly when the mood of the market turns…………………………………..Full Article: Source

Investors: Think Twice Before Buying Exotic ETFs

Posted on 21 April 2015 by VRS  |  Email |Print

For many investors, an exchange-traded fund is an easy, inexpensive way to gain exposure to traditional, broad-market indexes such as the Standard & Poor’s 500 index. Since the first U.S. ETF launched in 1993, the category has grown to include commodity and currency funds, alternatively-weighted funds and, as of 2008, actively managed ETFs. According to the Investment Company Institute, which tracks and analyzes data on mutual funds and ETFs, there were 1,141 U.S.-domiciled ETFs at the end of 2014.
The largest number of ETFs still track major market-capitalization-weighted indexes. But fund companies have rolled out plenty of offerings that track arcane indexes, regions of the world with less-accessible capital markets and narrow slivers of broad sectors. Other products have complicated methodologies, such as leveraged and inverse ETFs, and some use currency-hedging strategies………………………………….Full Article: Source

A Look At the U.S. Natural Gas (UNG) ETF

Posted on 20 April 2015 by VRS  |  Email |Print

On Feb. 26, 2015, the U.S. Energy Information Administration announced that natural gas storage was down to 219 billion cubic feet vs. an expectation of down 241 billion cubic feet. Total working stocks of natural gas were 1.94 trillion cubic feet compared to 1.36 trillion cubic feet for the same period one year ago.
This comes down to oversupply. The winter’s cold weather helped buoy the price of natural gas due to increased demand, but cold weather doesn’t last forever. Interestingly, none of the above information matters if you’re considering an investment in United States Natural Gas ETF (UNG). Let’s delve a little deeper into this popular ETF. (For more, see: Futures Exchange-Traded Funds.)…………………………………..Full Article: Source

ETFs: Is Window For Currency Hedge Closed?

Posted on 16 April 2015 by VRS  |  Email |Print

Last year the ETF industry launched 10 currency-hedged exchanged traded funds, doubling the total number available, in time to maximize their potential against the falling yen and the euro. But some are now beginning to wonder if the strategy these ETFs follow has hit its sell-by date and the currency hedge is no longer needed.
“When the euro cost $1.40, no one believed that Europe would do a quantitative easing,” said Brent Schutte, senior investment strategist at Chicago’s BMO Global Asset Management, which has $271 billion under management. ……………………………………….Full Article: Source

Low costs and liquidity lure investors to ETFs

Posted on 16 April 2015 by VRS  |  Email |Print

Investors and their advisers have been turning to exchange-traded funds over recent years thanks to their low-cost nature, Rachel Lord has claimed. The head of Europe, the Middle East and Africa for iShares – part of asset manager BlackRock – said that as the product gained more traction in the UK, it would not be long before the European ETF industry, including the UK, hit its milestone of £680bn (US$1trn) of assets under management.
Reasons for its growing popularity among investors, she said, included product innovation, more confidence in the market and the cost-effective nature of ETFs, which tend to have lower total expense ratios than actively managed funds………………………………………..Full Article: Source

Look out OPEC! Oil ETF investors head for exit, risking new slump

Posted on 15 April 2015 by VRS  |  Email |Print

Oil investors who amassed a $6 billion long position in exchange traded funds, occupying as much as a third of the U.S. futures market, are now racing for the exit at a near record pace.
Outflows from four of the largest oil-specific exchange traded funds, including the largest U.S. Oil Fund (USO), reached $338 million in two weeks to April 8, according to data from ThomsonReuters Lipper. That is the first two-week outflow since September and the biggest since early 2014, marking a turnaround from heavy inflows in December and January on bets that oil prices would quickly rebound from six-year lows………………………………………..Full Article: Source

ETFs vs. mutual funds: Which is more cost effective?

Posted on 15 April 2015 by VRS  |  Email |Print

The last five years have been very good for diversified common-stock portfolios with mutual funds and exchange-traded funds (ETFs). The annual costs for both types of fund have never been lower. This has certainly made it easier for investors to have excellent results.
I can’t forecast the future, but I believe it is prudent (even for retirees) to maintain a significant percentage of one’s portfolio in common stocks, rebalancing regularly. (I like to rebalance annually.) Most investors will be better off with the majority of their stock investments in index funds, mutual funds or ETFs………………………………………..Full Article: Source

ETFs expand into Bitcoins

Posted on 15 April 2015 by VRS  |  Email |Print

WinklevossBitcoin Trust Exchange Traded Fund (ETF), which will track the performance of Bitcoins, the most talked about digital currency, will be available to investors later this year. Launched by Cameron and Tyler Winklevoss – the twins who worked with Mark Zuckerberg in the early stages of Facebook – the ETF is currently in the process of regulatory approval.
According to the Winklevoss brothers, Bitcoins is a better investment than gold as they believe it to be more durable due to the fixed supply built into the rules of the digital currency. The model of the product is based off the SPDR Gold Trust GLD ETF………………………………………..Full Article: Source

The explosion of ETFs has been unstoppable

Posted on 14 April 2015 by VRS  |  Email |Print

The growth of Exchange Traded Funds has been unstoppable. In a note Friday, Goldman’s Robert Boroujerdi points out that ETF assets under management was at $230 billion ten years ago in the US.
Today, it stands at over $2 trillion. ETFs trade like stocks but track a basket of securities, tracking stock indexes, or specific commodities or stocks in a particular country or region………………………………………..Full Article: Source

Saudis, ETF trend could exacerbate oil drop: Citigroup

Posted on 14 April 2015 by VRS  |  Email |Print

Saudi Arabia has increased the amount of crude it is pushing into an already oversupplied world market at a time when a surge in ETF investing could exaggerate any drop in oil prices, according to Citigroup analysts.
In a new report, the Citigroup energy analysts say inflows into crude-linked exchange traded funds have created “significant froth” in the oil market and could exacerbate a downside correction in the second quarter, given the market’s bearish fundamentals………………………………………..Full Article: Source

Investing Basics: ETFs and Tracker Funds

Posted on 14 April 2015 by VRS  |  Email |Print

Passive funds in their simplest form offer highly efficient and transparent vehicles through which investors can access a market. But can introduce an element of counterparty risk.
The rise of passive investing in Europe is built on the realisation that active managers struggle to outperform their benchmarks over time. While this trend reflects a deep underlying shift in investor behaviour, several common misconceptions about passive funds remain………………………………………..Full Article: Source

Exchange traded funds make strongest ever start to a year

Posted on 13 April 2015 by VRS  |  Email |Print

The exchange traded funds industry made its strongest ever start to a year with net inflows of just under $96bn in the first three months of 2015, a first quarter record. First quarter inflows were more than double the $37.2bn recorded in the same period last year, according to ETFGI, a consultancy.
The ETF industry’s best ever year was 2014, when investors ploughed a record $339.7bn into exchange traded funds and products. The surge in ETF inflows will strengthen the hand of regulators pushing for tighter supervision of asset managers………………………………………..Full Article: Source

ETF boom sees investor demand outstrip advice supply

Posted on 13 April 2015 by VRS  |  Email |Print

Financial advisers have the opportunity to extend their advice offering with only around a quarter of exchange traded funds (ETF) investments coming off the back of advice despite a 46 per cent increase in the number of investors in that space.
According to data gathered as part of the BetaShares/Investment Trends ETF Report released on Friday, financial planners are involved in only 27 per cent of investment decisions related to ETFs, a number which has been steady for the past five years. However Investment Trends senior analyst, Recep Peker, said while investor numbers are set to continue their rapid growth the number of advisers looking to provide advice on ETFs was also set to climb for the fourth year in a row………………………………………..Full Article: Source

Global ETF Assets Reach A Record $2.926 Trillion

Posted on 13 April 2015 by VRS  |  Email |Print

Record levels of assets were reached at the end of Q1 for ETFs/ETPs listed globally at US$2.926 trillion, in the United States at US$2.094 trillion, Asia Pacific ex-Japan at US$119.6 billion and Japan at US$109.3 billion, according to ETFGI’s preliminary monthly ETF and ETP global insight report for Q1.
The global ETF/ETP industry had 5,669 ETFs/ETPs, with 10,961 listings, from 247 providers listed on 63 exchanges in 51 countries. Record levels of net new assets (NNA) have been reached in Q1 by ETFs/ETPs listed globally, gathering US$95.99 billion – a significant increase on the US$37.20 billion in Q1 2014………………………………………..Full Article: Source

Global ETF/ETP Assets hit a Record $2.92 Trillion in Q1

Posted on 10 April 2015 by VRS  |  Email |Print

Record levels of assets were reached at the end of Q1 for ETFs/ETPs listed Globally at US$ 2.926 trillion, in the United States at US$ 2.093 trillion, Asia Pacific ex-Japan at US$ 119.6, and Japan at US$ 109.3 billion, according to ETFGI’s preliminary monthly ETF and ETP global insight report for Q1.
The global ETF/ETP industry had 5,669 ETFs/ETPs, with 10,961 listings, from 247 providers listed on 63 exchanges in 51 countries. Record levels of net new assets NNA have been reached in Q1 by ETFs/ETPs listed globally which gathered US$ 95.98 billion up significantly from the US$ 37.19 billion in Q1 2014, products listed in the United States gathered US$ 57.53 billion which is significantly higher than the US$ 15.06 billion gathered in Q1 2014 , ETFs/ETPs listed in Europe gathered US$ 34.96 billion is more than double the US$ 11.16 billion gathered in Q1 2014 and ETFs/ETPs listed in Japan gathered NNA of US$ 10.61 billion which is greater than the US$ 7.7 billion in Q1 2014………………………………………..Full Article: Source

Funds and ETFs to Play the Chinese Market

Posted on 10 April 2015 by VRS  |  Email |Print

Investors looking to get into surging Chinese stocks can pick from a wide variety of mutual funds and exchange-traded funds that focus on varying stock exchanges and types of stocks in the region.
In years past, most China-focused mutual funds in the U.S. invested primarily in shares listed in Hong Kong and Taiwan—including Hong Kong-listed “H shares” of mainland-China companies—and also in stocks of other companies that do a lot of business in China. A newer development is exchange-traded funds that invest in mainland-listed “A shares” of Chinese companies (which may also have shares traded in Hong Kong)………………………………………..Full Article: Source

Record Investment in ETFs

Posted on 09 April 2015 by VRS  |  Email |Print

The European ETF market has posted the best ever quarter in terms of net inflows in Q1 2015. According to preliminary calculations, investors directed €30.8 billion of net new money to European-domiciled ETFs during the first three months of 2015. This was by far the highest sum channelled into ETFs in a single quarter; greatly surpassing the previous high of €17 billion posted all the way back in Q4 2008.
In fact, by historical standards, this quarterly sum is more akin to the figures the European ETF market has usually posted on a full calendar year basis. Indeed, 2014, which I personally dubbed “a fantastic year for the ETF industry” saw net inflows of €43.5 billion for the entire year………………………………………..Full Article: Source

ETFs Show $5.7 Billion Riding on Recovery in U.S. Energy Stocks

Posted on 09 April 2015 by VRS  |  Email |Print

The worst earnings season for energy companies since 2009 isn’t stopping investors from favoring the industry above all others this year. Exchange-traded funds tracking oil and gas shares have absorbed $5.7 billion in 2015, the most inflows among 12 groups tracked by Bloomberg.
Energy shares may get a boost from Royal Dutch Shell Plc’s acquisition of BG Group Plc, after the oil and gas industry’s biggest deal in at least a decade spurred speculation of further consolidation. Strategists are forecasting a 63 percent contraction in first-quarter earnings for energy companies in the S&P 500, after predicting expansion as recently as October, Bloomberg data show………………………………………..Full Article: Source

Should You Invest In A Currency-Hedged International Equity ETF?

Posted on 09 April 2015 by VRS  |  Email |Print

In the United States, most international equity funds do not hedge their foreign currency exposure. This long exposure to foreign currencies contributed to the performance of these funds in the past decade, as the U.S. dollar weakened against major currencies.
More recently, currency movements have reversed, starting with a sharp decline of the yen over the past three years, and the more recent gradual decline of the euro versus the U.S. dollar. This trend is now weighing on the returns of currency-unhedged international equity funds. Not surprisingly, these currency movements have prompted strong flows into currency-hedged exchange-traded funds over the past two years………………………………………..Full Article: Source

Currencies Might Not Need the ETF ‘Hedge’

Posted on 08 April 2015 by VRS  |  Email |Print

Investors have rushed into currency-hedged ETFs that invest in stocks in developed markets outside the U.S. But is the tactic worth it? Primarily focused on Japan and the eurozone, investors this year have put $23.5 billion into exchange-traded funds that lock in a current exchange-rate range to protect against dollar depreciation (through the use of “currency forwards”).
These flows represent 48% of all assets spread across 29 such funds, according to XTF, but are mostly parked in a handful of funds managed by WisdomTree Investments, the iShares unit of BlackRock and Deutsche Asset and Wealth Management, a unit of Deutsche Bank………………………………………..Full Article: Source

Hottest ETFs are currency hedges, non-US funds

Posted on 07 April 2015 by VRS  |  Email |Print

Exchange-traded funds have surged in popularity in 2015, but it’s not U.S. equities that are leading the charge. Investors poured $97.2 billion into various ETFs and other similar products in the first quarter, marking the $2.9 trillion industry’s biggest start ever despite a wobbly U.S. stock market and a testy geopolitical climate, according to data from BlackRock, the world’s largest provider of such funds. (U.S.-based ETFs have about $2.1 trillion in assets.)
There essentially have been three major investment themes this year, and players in the exchange-traded market have made each work: A quest for investment themes outside the U.S.; the offshoot of that, which has seen domestic attention turn away from large caps and toward mid- and small-sized companies, and capitalizing on the big moves in currency markets, particularly an appreciation of the U.S. dollar and the decline of its global competitors………………………………………..Full Article: Source

ETFs Haul in $36.1 Billion in March

Posted on 07 April 2015 by VRS  |  Email |Print

The S&P 500, Dow Jones Industrial Average and the Nasdaq Composite fell an average of 2.4% last month, but those glum performances did not prevent investors from pouring $36.1 billion into exchange traded funds. Strong March inflows brought first-quarter ETF inflows to $97.2 billion, or nearly triple the total from the from the first quarter of 2014, according to BlackRock data.
“Global ETFs gathered $36.1 billion in March to lift Q1 flows to $97.2 billion, nearly triple the total from Q1 2014. Investors put $71 billion into non-U.S. developed equities in the first three months of the year, making it the strongest first quarter on record. Currency hedged ETFs saw inflows of $26.8 billion in Q1 as investors looked to hedge their international equity exposure due to a stronger dollar,” according to BlackRock, parent company of iShares, the world’s largest ETF issuer………………………………………..Full Article: Source

ETF Investors Have Large Footprint in Oil Futures Market

Posted on 07 April 2015 by VRS  |  Email |Print

Retail investors have become a larger force in the oil market, betting on a potential rebound in the energy commodity through exchange traded funds that track crude futures contracts. For instance, the United States Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate oil, held 57,956 NYMEX May crude contracts as of March 30, compared to 7,151 front-month NYMEX crude contracts back at the end of September, reports Geoffrey Craig for Platts.
In the six months ended March 30, USO experienced $2.8 billion in net inflows, according to ETF.com. Nevertheless, USO experienced $252.4 million in outflows in the week ended April 2, which suggests that either some traders are engaging in the time-honored tradition of profit taking or some short-sellers are calling it quits by covering their calls and exiting positions……………………………………….Full Article: Source

London investors favour precious metals – ETF Securities

Posted on 02 April 2015 by VRS  |  Email |Print

Precious metals and agriculture-based exchange-traded products remain in favour among investors, research from provider ETF Securities has found. ETF Securities carried out a poll of 446 investment professionals at its investment conferences, which took place in Frankfurt, London, Paris, Milan and Zurich during January and February.
Polled attendees indicated that commodities remained a favoured asset class this year, with nearly 40 per cent of London-based investors believing that precious metals would be the best-performing sector. Meanwhile, Italian and Swiss investors favoured agriculture with 47 per cent and 30 per cent of the votes respectively………………………………………..Full Article: Source

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