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5 Reasons Your Portfolio Needs More ETFs And Index Funds

Posted on 02 December 2015 by VRS  |  Email |Print

Even though exchange traded funds and index funds have gained mainstream popularity over the past 10-years a lot of investors have yet to fully embrace them as a primary investment vehicle in their portfolio.
There are numerous reasons for this, but the bottom line for investors is that there’s likely no easier or cost effective way to improve a portfolio than to replace most of the mutual funds, hedge funds, and structured products with exchange-traded funds and indexes. Here are five reasons why ETFs and index funds are worthy of a dominant role in most portfolios:……………………………………….Full Article: Source

Best and Worst Sector ETFs for December

Posted on 02 December 2015 by VRS  |  Email |Print

The month of December has been one of the strongest periods of the year for equities, and some areas of market and sector-related exchange traded funds may stand out during the Santa Claus rally. Over the past month, the SPDR S&P 500 ETF, iShares Core S&P 500 ETF and Vanguard 500 Index have gained 0.4%. Year-to-date, the S&P 500 ETFs rose 3.0%.
After a weak November, the S&P 500 may enjoy a better run this month. According to Kensho data, over the past 25 years, the S&P 500 has been positive 80% of the time for an average gain of 1.78%, reports Bob Pisani for CNBC………………………………………..Full Article: Source

Currency Hedged ETFs Are Not All The Same

Posted on 01 December 2015 by VRS  |  Email |Print

Currency fluctuations can be problematic for investors. If not hedged properly, gains in one part of a portfolio can be lost by the down cycles within currency values in another part of the portfolio. Investors in the US, for example, see this issue all the time with global or non-US investments eating into profit that had been realized at the US dollar level.
Exchange Traded Funds (ETFs) often use certain tactics to help investors reduce foreign exchange risk and provide an offsetting short position in the foreign currency to match the total notional principal of the underlying portfolio, typically through the use of a forward or a futures contract. A forward allows an investor to lock in the price of a currency today, regardless of fluctuations………………………………………..Full Article: Source

November’s Worst Commodity Nightmare

Posted on 01 December 2015 by VRS  |  Email |Print

Unfortunately for commodities, there’s no waking up from this nightmare. It’s real. Since 1970, the S&P GSCI has never seen a Nov. with as many as 21 negative commodities. After a glimmer of hope in Oct., only 3 commodities, sugar, cotton and cocoa are on track to be positive in Nov. In other words, for every one commodity that is positive, seven are negative in Nov., 2015.
Moreover, Nov. 2015 is the 5th worst Nov. on record since 1970, only behind 1997, 1998, 2008 and 2014. Year-to-date, the index is also on pace to be the 5th worst year with 1998, 2001, 2008 and 2014 losing more. Though YTD through Nov. 2014, the index was in better shape than the index is through this Nov………………………………………..Full Article: Source

November ETF Asset Report

Posted on 30 November 2015 by VRS  |  Email |Print

The month of November was all about heightened Fed lift-off bets and geo-political flare-ups on the Paris terror attacks. While the first confirms the U.S. growth momentum, more so after the upward revision in the Q3 GDP numbers (from 1.5% to 2.1%), the second points to lingering geopolitical threats in the coming months.
Investors seem to have reacted along the headlines. At least, the asset flow pattern says that. Let us explain the trend below. After nagging speculations on the rate hike timeline, direct hints from the Fed this time were well digested by the market. Investors appeared to have paid more attention to the improving economy than to the fears that cheap money will now call it quits………………………………………..Full Article: Source

Commodities ETP round-up: Investors abandon gold but favour oil and PGM

Posted on 27 November 2015 by VRS  |  Email |Print

Investors’ patience with gold ETPs wore thin last week as further price declines prompted the first net outflow from gold ETPs in ten weeks, signalling a change in investor sentiment in the yellow metal. Meanwhile, despite slight price declines in oil-based and platinum-group-metals (PGM), significant net inflows were recorded across all ETPs tracking these commodities, as investors who were bargain hunting placed bets on upcoming price reversals.
Despite global demand for gold receiving boosts from Chinese imports (currently at a 7 month high) and Diwali celebrations, whereby gifts of golden jewellery are commonplace, the gold price has failed to rally; the ETFS Physical Gold fell by 0.4% last week………………………………………..Full Article: Source

Call for fund platforms to integrate ETFs

Posted on 27 November 2015 by VRS  |  Email |Print

Financial advisers are increasingly outsourcing the management of their client’s investments to discretionary fund managers (DFMs) and this, in turn, is driving the demand for exchange-traded funds. Improving access and providing a greater variety of ETFs on UK fund platforms is imperative to foster this demand.
Speaking at a media event held by BlackRock, experts from investment service providers Fidelity, Novia and Brewin Dolphin advised that fund platform providers that can provide DFMs with cost effective and granular exposures through ETFs possess a competitive advantage………………………………………..Full Article: Source

Fed Fans Flame on Inverse Commodity ETFs

Posted on 26 November 2015 by VRS  |  Email |Print

Weakening global growth and the strong U.S. dollar have weighed on demand for raw materials and pressured commodities-related exchange traded funds, with a major commodity index now trading near a 16-year low.
The broad commodities market has been trending lower. Year-to-date, the GreenHaven Continuous Commodity Index Fund dipped 17.8%, PowerShares DB Commodity Index Tracking Fund fell 21.3%, iPath Dow Jones-UBS Commodity Index Total Return ETN declined 24.4% and iShares GSCI Commodity-Indexed Trust dropped 26.4%………………………………………..Full Article: Source

Bad News Mounting for Gold ETFs

Posted on 26 November 2015 by VRS  |  Email |Print

As the Federal Reserve moves closer to boosting interest rates for the first time in nine years, the U.S. dollar is gaining strength, punishing commodities in the process. Gold and gold exchange traded funds are not exceptions to this rule.
For example, the SPDR Gold Shares, iShares Gold Trust and ETFS Physical Swiss Gold Shares have each posted losses in excess of 8% in just the past month and GLD is one of the worst offenders among ETFs in terms of fourth-quarter assets lost………………………………………..Full Article: Source

Hedge fund-inspired ETFs hurt by ‘crowded’ sell-off

Posted on 25 November 2015 by VRS  |  Email |Print

Exchange-traded funds designed to mimic the strategies of hedge funds are mimicking their way into some serious losses of late. Since the start of August, the Global X Guru Index ETF, which is tied to hedge funds’ top holdings using 13F filings, has slipped 10 per cent, a casualty of popular trades that fell during this summer’s sell-off and have so far failed to get back up.
(All hedge funds with more than $100-million in U.S. equity investments are required to publish their holdings in a publicly available document called the 13F.) The S&P 500 index has declined just 1.2 per cent over the same period and recovered all of its 11-per-cent August correction………………………………………..Full Article: Source

Assets in Active ETFs/ETPs Reach 32.9 Billion Dollars, A New Record

Posted on 25 November 2015 by VRS  |  Email |Print

Assets invested in Active ETFs/ETPs listed globally have reached US$32.9 billion - a new record - at the end of October 2015. In the first ten months of 2015 record levels of net new assets have been gathered by Active ETFs/ETPs listed globally with net inflows of US$8.9 billion marking a 23% increase over the prior record set at this time in 2013.
We are on track to end the year with record net inflows and assets in the global Active ETF/ETP industry. The Global active ETF/ETP industry had 232 ETFs/ETPs, with 322 listings, assets of US$32.9 billion, from 45 providers on 15 exchanges at the end of October, according to ETFGI’s new Global Active ETF/ETP report for October 2015………………………………………..Full Article: Source

Gold Whipped Again: ETF Slumps To Six-Year Low

Posted on 24 November 2015 by VRS  |  Email |Print

Gold’s tumble continues. The yellow metal dropped 0.9% to $1,066 an ounce on Monday, extending declines into a sixth straight week. The $23 billion SPDR Gold Shares (GLD) fell 0.9% on Monday to $102.19, on pace for the the lowest close since October 2009, according to FactSet.
The strong dollar continues to weigh on commodity prices including gold, oil and copper, The prospect of a Federal Reserve rate hike next month is only goosing the dollar further. A valuable greenback means that gold, priced in dollars, is pricier to overseas buyers. While the PowerShares DB US Dollar Index Bullish Fund (UUP) has climbed 2.9% over the past month, the GLD is down 8.4% over the same period………………………………………..Full Article: Source

ETFs to Prosper from China’s New Growth Markets

Posted on 24 November 2015 by VRS  |  Email |Print

In China, the economy is transitioning from an export-led growth model to a consumption-driven one. According to China’s Premier Li urbanisation will narrow the income gap between rural and urban residents, and urban household-income will increase at least twofold by 2022.
All of these changes create investment opportunities; savvy investors may well be eyeing funds targeting China’s fastest-growing sectors including retail, e-commerce, internet and mobile, while limiting their exposure to heavy industries. The problem is the European ETF offering exposed to China’s growing businesses is paltry………………………………………..Full Article: Source

11 Most Popular Currency Hedged ETFs

Posted on 24 November 2015 by VRS  |  Email |Print

Currency hedging strategies have been in vogue since the start of this year given the ultra-lose monetary policy across the globe in stark contrast to the U.S. Fed policy of tightening its stimulus program. The popularity saw a rise last month when the Fed hinted at a modest hike in interest rates in December.
The diverging policies have been pushing the U.S. dollar higher and other currencies lower While monetary easing is making international investment a compelling opportunity in the U.S., a strong dollar could wipe out gains when repatriated in U.S. dollar terms, pushing international investment into red even when international stocks performed well. ……………………………………….Full Article: Source

El Nino Heating Up Commodity ETF Impacts

Posted on 23 November 2015 by VRS  |  Email |Print

Record high temperatures in October may be a prelude to a strengthening El Nino weather pattern, potentially leading to opportunities in the commodities space and related exchange traded products.
Last month was the hottest October since records have been kept in the past 136 years and the eighth record-breaking month so far this year, reports Tom Randall for Bloomberg. This week, the El Nino phenomenon started setting records as well, with some of the highest weekly temperatures ever recorded across the equatorial Pacific………………………………………..Full Article: Source

Copper Crisis in Commodity ETFs

Posted on 23 November 2015 by VRS  |  Email |Print

On Wednesday, 23 exchange traded products hit all-time lows and the bulk of those products were commodities funds. The iPath Dow Jones-UBS Copper Subindex Total Return ETN, an exchange traded note, is included in that group. JJC has tumbled 29.4% year-to-date as slack demand for the red metal from China has prompted an array of global banks to pare their outlooks on copper.
Goldman Sachs argues that the base metal is headed for a seven-year-long bear market cycle, reports Aza Wee Sile for CNBC. “It is, in our view, highly likely that the four-year trend decline in copper prices is set to continue through at least 2018,” Goldman Sachs said in a note………………………………………..Full Article: Source

Gold bonds may make a dent in assets of ETFs

Posted on 19 November 2015 by VRS  |  Email |Print

The launch of sovereign gold bonds might not be good news for the gold exchange-traded fund (ETF) schemes of the mutual fund sector. Gold ETFs are passive investment instruments, based on gold prices and investing in bullion. Each unit of the ETF is equivalent to a gramme of gold.
Market participants expect the assets under management (AUM) of gold ETFs to halve over the next six months, to about Rs 3,000 crore from the current Rs 6,000 crore. Till end-October, gold ETFs have seen 29 straight months of outflow, with the category AUM declining by more than half, primarily due to strengthening of the dollar and, owing to import restrictions, less demand for gold in the domestic market………………………………………Full Article: Source

El Nino Heating Up Commodity ETF Impacts

Posted on 19 November 2015 by VRS  |  Email |Print

Record high temperatures in October may be a prelude to a strengthening El Nino weather pattern, potentially leading to opportunities in the commodities space and related exchange traded products. Last month was the hottest October since records have been kept in the past 136 years and the eighth record-breaking month so far this year, reports Tom Randall for Bloomberg.
This week, the El Nino phenomenon started setting records as well, with some of the highest weekly temperatures ever recorded across the equatorial Pacific. Even if November and December show unusually cool temperatures, which observers highly doubt, the past few months have been so sizzling that 2015 will go down as the hottest year on record………………………………………Full Article: Source

Will the Tax Man Cometh for Your ETF?

Posted on 18 November 2015 by VRS  |  Email |Print

Is your ETF setting you up for a visit from the tax man? That’s the question Todd Rosenbluth, director of ETF and mutual fund research at S&P Capital IQ, answered. Normally, exchange-traded funds are more tax efficient than mutual funds. Because of low turnover rates and the way ETF shares are created and redeemed limit, ETFs amass fewer capital gains.
So neither the Vanguard 500 Index ETF (VOO) nor the iShares S&P 500 Value ETF (IVE) expects to incur a capital gain this year. But Rosenbluth remarks that some funds do pay capital gains, particularly those tied to fixed income and currency-hedged equities……………………………………….Full Article: Source

Investors flee precious metals as ETF outflows top $1bn

Posted on 17 November 2015 by VRS  |  Email |Print

Investors are back to dumping precious metals as gold trades near five-year lows and banks including Barclays Plc forecast more price declines. Outflows from US exchange-traded funds backed by precious metals have reached $1.12 billion so far in November, heading for the first monthly loss since July, data compiled by Bloomberg show.
Gold prices have fallen for four straight weeks as Federal Reserve Chair Janet Yellen signalled that officials are getting closer to raising US interest rates, cutting bullion’s appeal as a store of value. Holdings in futures contracts have dropped to a five-week low. Until a few weeks ago, investors had poured money into precious-metal ETFs for three months, the longest stretch since 2012. Bulls were anticipating that slowing global economies, especially in China, would deter Fed policy makers from raising rates………………………………………..Full Article: Source

How exchange-traded funds have changed the financial world – for the better

Posted on 12 November 2015 by VRS  |  Email |Print

As banks have become less willing to act as shock absorbers in global bond markets, exchange-traded funds have become an important contributor to systemic stability, according to the global head of Blackrock’s giant iShares business.
The claim by Mark Wiedman, who was recently in Australia to visit clients, comes amid increased chatter in the investment management community that the rise in popularity of the listed benchmark-tracking vehicles is exacerbating moments of extreme volatility in financial asset prices. Some have gone as far as claiming ETFs played an active role in inflating this year’s bubble in Chinese mainland stocks………………………………………..Full Article: Source

Commodity Funds Planned

Posted on 12 November 2015 by VRS  |  Email |Print

Elkhorn Investmfoents, the firm founded by former Invesco PowerShares head Ben Fulton, has filed for two new funds covering the commodity futures space. The Elkhorn S&P GSCI Dynamic Roll Commodity ETF and the Elkhorn RAFI Commodity ETF will both offer actively managed exposure to commodities with a smart-beta twist.
The former, according to its prospectus, is actively managed. It invest in commodities included in the S&P GSCI Dynamic Roll Index to a certain extent but will also include an actively managed portfolio of very liquid and short-duration, high-quality bonds in an effort to achieve excess returns………………………………………..Full Article: Source

Gold assets in world’s biggest ETP fall to lowest since 2008

Posted on 11 November 2015 by VRS  |  Email |Print

Gold assets held in the world’s biggest exchange-traded product backed by the metal fell to the lowest since the financial crisis. Holdings in SPDR Gold Shares slid 0.4 percent on Monday to 666.11 metric tons, the lowest since September 2008. That’s the month that Lehman Brothers Holdings Inc. collapsed, spurring a rout across global markets. Assets fell for a seventh straight session, the longest streak since July.
Gold prices have been trapped in a bear market as the economy’s recovery from the crisis sent equity markets rallying and cut demand for haven assets. Now, with steady gains for U.S. employment, Federal Reserve officials have signaled that they’re ready to start raising interest rates for the first time in nine years. Higher rates cut the appeal of bullion because it doesn’t pay interest, unlike competing assets………………………………………..Full Article: Source

ETF Price War Heats Up as BlackRock Cuts Fees on Seven Funds

Posted on 11 November 2015 by VRS  |  Email |Print

BlackRock Inc., the largest provider of exchange-traded funds, cut fees on seven U.S.-listed ETFs aimed at price-conscious investors, as competition for market share heats up. The fee cuts bring the expense ratio for the iShares Core S&P Total U.S. Stock Market ETF to 0.03 percent from 0.07 percent, effective today, according to a statement Tuesday by the New York-based money manager. That’s less than the 0.05 percent charged by the $57 billion Vanguard Total Stock Market ETF.
“This is part of our continued drive to have really competitive funds in this space,” said Ruth Weiss, head of the U.S. iShares product team. BlackRock, which in 2012 started its “core” series of U.S. funds to attract buy-and-hold investors into the products, is stepping up fee cuts as ETF providers compete in an increasingly crowded market………………………………………..Full Article: Source

Why ETFs Are Getting Riskier

Posted on 10 November 2015 by VRS  |  Email |Print

For investors, competition can come with some downsides. Such is the case with the exchange-traded fund industry. New ETFs are often based on esoteric or overly specialized strategies. Though such funds may find a niche following, they don’t belong in most investors’ portfolios.
The big challenge facing the ETF industry is that the easy pickings are gone. The mainstream indexes are all being well-tracked. Furthermore, a small number of funds control a significant portion of all ETF assets. As of June 30, 2015, the five-largest funds controlled nearly one out of every five dollars invested in ETFs, according to Morningstar data. You read that right: 20% of the money invested in ETFs is controlled by just five funds……………………………………….Full Article: Source

For ETF Investors, It’s All About Yellen

Posted on 09 November 2015 by VRS  |  Email |Print

Given the strength of the October jobs report, U.S. employers added 271,000 new jobs last month, it was disappointing to see stocks end the week in lethargic fashion. On the bright side, the S&P 500 and the Dow Jones Industrial Average each gained more than one percent on the week and are on their best weekly winning streaks since October 2014.
That strong jobs report could be all the impetus the Federal Reserve needs to raise interest rates at its December meeting and traders are acting as though a rate hike next month is a foregone conclusion. On Thursday, Fed funds futures reflected a less than 60 percent chance of a rate hike next month, but on the back of the October jobs report, that number jumped to 70 percent………………………………………..Full Article: Source

Gold Price Drops Clean Through Support as Precious ETFs Shrink

Posted on 06 November 2015 by VRS  |  Email |Print

Gold price losses of 2.4% for the week so far worsened in London trade Wednesday as global stock markets rose sharply and new US jobs data put net hiring in the world’s largest economy just ahead of analyst forecasts for October. Latest US trade data were also better than expected, showing the smallest September deficit between imports and exports since 2012 at $40.8 billion.
The Dollar jumped to new 3-month highs versus the Euro on the currency market. Erasing the last of October’s 6.8% gain on Tuesday, the Dollar gold price today dipped further below $1115 per ounce – a new 5.5-year low when first seen in July………………………………………..Full Article: Source

Gold ETF pivots around Fed expectations

Posted on 06 November 2015 by VRS  |  Email |Print

If US jobs data cement expectations for a December rate rise by the Federal Reserve, then keep an eye on gold. The chart below shows how SPDR Gold Shares (GLD), an exchange traded fund that tracks the precious metal, has been following CBOT two-year US government note futures of late.
As two-year futures fell, and short-term Treasury yields hit fresh four-year highs, so the GLD dropped sharply. The correlation shows that bullion remains very sensitive to the prospects of higher rates that are of course boosting the dollar………………………………………..Full Article: Source

Financial Advisers Continue to Warm to ETFs, Study Finds

Posted on 06 November 2015 by VRS  |  Email |Print

Financial advisers are more open to using exchange-traded funds than they were just a few years ago, a new survey found. Advisers are placing more of their clients’ assets in ETFs, showing a willingness to adopt ETFs with shorter track records, and looking for funds that use newer types of strategies, such as active management and “strategic beta,” the annual survey by ETF.com, a San Francisco-based ETF researcher, and Brown Brothers Harriman & Co., a global financial-services firm that handles ETF custody and administration, found.
There were 250 respondents to the survey, ranging from individual financial advisers to representatives of the largest brokerage firms………………………………………..Full Article: Source

How to use ETFs to hedge the market

Posted on 06 November 2015 by VRS  |  Email |Print

ETFs have come a long way since the launch of the Toronto Index Participation Units product in Canada just over 25 years ago. The increasing range and sophistication of ETFs on the market has opened up a world of new opportunities for investors, including strategies that were more commonly associated with hedge funds.
Multi-asset momentum strategies, for example, have long been used by hedge funds. Now, with an ETF tracking almost every conceivable asset class in an easily traded, low-cost vehicle, it is possible for fund managers in the regulated arena to offer investors a pure momentum multi-asset strategy via a Ucits or non-Ucits retail scheme structure. This means a higher degree of liquidity and comes without the opacity, charging structures and minimum investment requirements of hedge funds………………………………………..Full Article: Source

ETF Investors Are Unbundling Emerging Markets

Posted on 05 November 2015 by VRS  |  Email |Print

While ETF investors seem to dislike emerging markets, that doesn’t mean they aren’t investing in them. It turns out that exchange-traded funds that track emerging markets have experienced healthy inflows of investment over the past few years. They just hasn’t come in the form we’re used to.
While recent focus has centered on big outflows from emerging market ETFs—$6 billion lost over the last three years to be exact–single-country ETFs that track emerging-markets nations have enjoyed $7 billion of inflows………………………………………..Full Article: Source

Is the ETF party good enough to join?

Posted on 04 November 2015 by VRS  |  Email |Print

On 21 October, Goldman Sachs Asset Management (India) Ltd’s business was acquired by Reliance Capital Asset Management Co. Ltd. Goldman Sachs AMC was India’s first fund house to focus only on exchange-traded funds (ETFs). You may remember, it had acquired Benchmark Asset Management Co. Ltd (India’s first fund house that specialized in managing passive funds) in 2011.
Just five days later, on 26 October, the National Stock Exchange organised a conference to discuss how the ETF market can grow in India. We couldn’t miss the irony. Asset size of all equity–oriented ETFs (about Rs.7,900 crore as per figures provided by Value Research) is just about 2% of all equity funds (Rs.4.10 trillion)………………………………………..Full Article: Source

Central Banks Complicate Capturing Japan ETF Returns

Posted on 04 November 2015 by VRS  |  Email |Print

While the Federal Reserve has signaled it is looking at a December rate hike, the Bank of Japan could extend quantitative easing to prop up growth and inflation. Consequently, investors may look to the Japanese markets with a currency-hedged country-specific exchange traded fund that will help diminish foreign exchange risks.
“While the Bank of Japan declined to increase its 80-trillion-yen quantitative easing (QE) program, the bank did lower its forecasts for both inflation and growth,” according to Russ Koesterich, Global Chief Investment Strategist and Head of the Model Portfolio & Solutions Business at BlackRock………………………………………..Full Article: Source

BlackRock unveils currency-hedged smart beta ETFs

Posted on 04 November 2015 by VRS  |  Email |Print

BlackRock, the asset manager behind the iShares brand of exchange-traded funds, has expanded its range of currency-hedged ETFs with the introduction of five smart beta funds based on MSCI indices.
Four of the five funds are currency-hedged versions of existing minimum volatility ETFs. These funds offer US dollar-based investors international equity exposure targeted at companies which have historically exhibited relatively low levels of price variation. The fifth fund offers currency-hedged exposure to European small-capitalisation stocks………………………………………..Full Article: Source

3 ETF Sectors Whose Earnings Could Spell Trouble This Week

Posted on 03 November 2015 by VRS  |  Email |Print

October’s rally was supported by surprising earnings-beats from across a few sectors. The exchange traded funds that track broader market segments and individual sectors enjoyed last month more than any other in recent memory but that may all get zapped away with a few troubled sectors set to release earnings this week.
1. Energy: Energy actually enjoyed a solid month last month but those expecting those gains to sustain or continue may be in for a rude awakening. West Texas Intermediate crude-oil is already down from its Friday mark and threatening to fall under the $46 a barrel mark on the New York Mercantile Exchange………………………………………..Full Article: Source

Top and Flop ETFs of October

Posted on 03 November 2015 by VRS  |  Email |Print

After a rocky Q3, the fourth quarter started off on a decent note, with the first month of the quarter - October - stepping up on gas. The U.S. markets were in green, thanks to a delayed Fed lift-off possibility at the end of September, no more economic shockers from China (the root cause of the Q3 massacre of the global market) and solid tech earnings. U.S. stocks delivered the largest monthly returns in four years.
Among the top ETFs, investors saw the S&P 500-based SPY gain about 8.5%, Dow Jones-based DIA advance 8.6% and Nasdaq-based QQQ have a stellar rally and pop about 11.4% in October. While QQQ surged from superb tech earnings, DIA got positive cues from the oil price recovery, though for a shorter period. ……………………………………….Full Article: Source

A Primer On Alternate Energy ETFs

Posted on 02 November 2015 by VRS  |  Email |Print

Despite a multitude of macro challenges like deflationary worries in Europe, a slowdown in China and Japan, along with the oil price carnage in the market, the long-term outlook for the alternative energy space has held up pretty well. Climate change is one of the defining challenges of the century. Given the attempts to combat global warming worldwide, environmental considerations have been driving demand for alternative energy sources.
The latest report from the U.S. Energy Information Administration (”EIA”) shows that renewable energy will be the fastest growing power source through 2040. “Clean energy” has long been the focus of the current administration. President Obama’s “Climate Change Action Plan” and the favorable green energy trends have already done a lot in pushing the sector northward………………………………………..Full Article: Source

Commodity ETFs: How To Maintain Exposure In Difficult Environment

Posted on 30 October 2015 by VRS  |  Email |Print

Ongoing global risks could continue to drag on commodity markets and related exchange traded funds, but it may leave opportunities to jump into some commodities, notably precious metals. On the recent webcast, The Global Economy: Divergence, Commodities and the Dollar, Helen Henton, director commodities at Roubini Global Economics, points out that global economies still face some significant headwinds, notably commodity exporters in the emerging markets, with Latin America expected to be the weakest region in 2016 and Brazil remaining in recession.
Consequently, Henton expects some painful supply adjustments before prices are able to stabilize, even after the significant declines in industrial metals and soft commodities this year………………………………………..Full Article: Source

How ETFs operate

Posted on 30 October 2015 by VRS  |  Email |Print

To qualify as a Ucits fund, an ETF has to abide by rules that aim to ensure the fund is well diversified to minimise market and counterparty risk. Most exchange-traded funds aim to track the performance of an index, whether that is an alternative, or a traditional market-cap-weighted index such as the S&P 500, Euro Stoxx 50 or FTSE 100.
The ETF issuer will try to ensure that the fund performs as closely as possible to the index itself. There are several ways to achieve this, but there are two main types of replication methodology – physical and synthetic. Physical replication is when the ETF holds all, or a majority of, the securities in an underlying index. Orders are typically fulfilled by exchanging baskets of securities for the ETF shares………………………………………..Full Article: Source

Inside The New Approach To Actively Managed ETFs

Posted on 29 October 2015 by VRS  |  Email |Print

Recently at the annual ETF Boot Camp, Tom sat down with Stephen Clarke, CEO of Navigate Funds Solutions, to discuss the innovative way they’re approaching actively managed ETFs. The reason for not getting in to the ETF space for a lot of active managers is due to the structure in which ETFs disclose their holdings at the end of each day – exposing trades and other strategic positions.
Navigate will be launching a line of Exchange Traded Managed Funds, that will be branded as NextShares, that aims to solve that problem. They will be licensing the approach to other active managers who would like to trade in the ETF space but protect their trades privacy………………………………………..Full Article: Source

Fast-Growing ETFs Dealt a Setback

Posted on 28 October 2015 by VRS  |  Email |Print

The New York Stock Exchange this month withdrew a proposal to the Securities and Exchange Commission that would have expedited the regulatory approval of some exchange-traded funds, a setback for the fast-expanding ETF industry.
What the Intercontinental Exchange Inc. unit sought is known as a generic listing standard, which would have cut months off the process to list actively managed ETFs. Listing currently requires a fund-by-fund evaluation by the SEC that can take several months. The SEC reported the withdrawal on Oct. 19………………………………………..Full Article: Source

India: SEBI Open to Changing ETF Norms

Posted on 28 October 2015 by VRS  |  Email |Print

Rooting for transparency, capital markets regulator Sebi will tweak regulatory norms pertaining to Exchange-Traded Funds (ETFs) if necessary, according to its chairman U K Sinha. An ETF is a marketable security that tracks an index, a commodity, bond, or a basket of assets like an index fund.
“Based on inputs from cross-section of experts or participants, if there is any need that further changes are required for rules and regulations of the ETFs, Sebi will be more than willing to listen to you and incorporate them,” said Sinha adding that more disclosures with regard to ETFs were required to benefit investors………………………………………..Full Article: Source

How Gold ETF Added $1B & Still Has Shaky Outlook

Posted on 27 October 2015 by VRS  |  Email |Print

The SPDR Gold Shares, iShares Gold Trust and ETFS Physical Swiss Gold Shares and other gold-related exchange traded products have recently been solid performers, even amid some dollar strength, and that strength is luring options bulls to some gold funds.
Gold is seeing greater support from safe-haven demand after currency devaluations across Asia added to investment demand for a better store of value than paper currencies or stocks and bonds. Bullion was recovering lost ground after dropping to a five-year low last month on concerns that the Fed would hike rates as early as September. Obviously, a rate hike for 2015 can now only happen in October or December………………………………………..Full Article: Source

NSE mulls launching more commodity ETFs

Posted on 27 October 2015 by VRS  |  Email |Print

The National Stock Exchange (NSE) hopes to see the launch of more commodity exchange traded fund (ETFs) in the next few months, Chitra Ramakrishna, MD and CEO, NSE, said here at an event to celebrate 20 years since the launch of the NSE. The exchange organised the event to discuss the future of ETFs in India.
An ETF is like a mutual fund which issues units and closely tracks the price of an underlying security (like stock or a commodity), but can be traded on an exchange platform. India mostly has equity, gold and gilt ETFs, but globally, the ETF industry offers products on other commodities and fixed income securities………………………………………..Full Article: Source

Currency Hedge Your ETF Or Not?

Posted on 27 October 2015 by VRS  |  Email |Print

Currency-hedged ETFs are hugely popular with investors, who continue to buy into these funds looking to mitigate currency risk associated with their international stock allocations. Some of these strategies—perhaps most notably the WisdomTree Japan Hedged Equity and the WisdomTree Europe Hedged Equity —performed very well last year, as the dollar rose against the Japanese yen and the euro.
But their returns have stalled relative to unhedged funds this year. So we asked three ETF strategists the following question: Should investors always opt to currency-hedge, to not currency-hedge, or to use both approaches in international stock investing?……………………………………….Full Article: Source

Emerging-market ETFs in U.S. raked in money before central bank guidance

Posted on 26 October 2015 by VRS  |  Email |Print

Investors pumped hundreds of millions in new dollars into U.S.-listed exchange-traded funds tracking emerging markets ahead of news suggesting central bankers will keep monetary policy loose to stimulate global economic growth.
Fund companies recorded $710 million in net emerging-market fund inflows on Thursday alone, according to FactSet Research Systems Inc, with one such product posting its largest single-day haul ever………………………………………..Full Article: Source

Investors pump $6.6 bln into stock and taxable ETFs -Lipper

Posted on 23 October 2015 by VRS  |  Email |Print

U.S-based stock and bond exchange-traded funds attracted $6.6 billion of new money in the week ended Wednesday, according to data from Lipper, marking another week of risk-taking by institutional investors. “There was quite a dichotomy between retail and ETF investors,” Tom Roseen, head of research services at Lipper, said.
“The retail investors are still sitting on the sidelines, despite three up weeks in the broad-based indices. So it is risk on, but not for all.” Investors in ETFs are often thought to represent the institutional investor, including hedge funds. Mutual funds are thought to represent retail investors. Institutional investors have poured money into ETFs as chances of a Federal Reserve interest-rate increase in 2015 are diminishing amid new signs of anemic economic activity………………………………………..Full Article: Source

Gold, Silver Shine Again as Investors Add $393 Million to ETFs

Posted on 22 October 2015 by VRS  |  Email |Print

Precious metals are once again enticing investors. After ignoring the assets for most of the year, investors added $393 million to U.S. exchange-traded funds backed by precious metals this month through Oct. 20, on course for the biggest monthly inflow since February. Gold and silver are gaining favor amid increasing expectations that the Federal Reserve could wait until next year to raise interest rates.
Higher rates curb the appeal of precious metals because they don’t offer interest or yields. Gold has rallied more than 8 percent from a five-year low in July and silver climbed after the Fed kept interest rates unchanged in its September meeting, citing global risks that threaten curb domestic growth and depress inflation………………………………………..Full Article: Source

Should You Be Weary of Inverse Commodity ETFs?

Posted on 22 October 2015 by VRS  |  Email |Print

Last week, we touched on potential markets that might finally be breaking out of the slow moving commodities sell off that’s been going on for around a year. In that post, we do what we do every month, looking at the difference in performance between the commodity futures market (Dec. contract) to its commodity ETF counterpart.
This time around, we got to thinking it might be interesting to look at the flipside of that…. How inverse ETFs have performed against those same futures markets. At first thought, you might think that the ETFs are outperforming the futures counterparts until you realize that those inverse ETFs should all be positive due to the fact that the futures contract they supposedly track are negative………………………………………..Full Article: Source

Smackdown: Commodities Futures vs. ETFs

Posted on 22 October 2015 by VRS  |  Email |Print

Historically low commodity prices are beginning to lure investors with little to no commodities experience into gold, oil, copper, natural gas and even agricultural products like grains. Given their familiarity with stocks, many are flocking to commodities ETFs, but sometimes what’s familiar isn’t necessarily optimal. I believe players who are willing to educate themselves about futures markets and the discipline involved in limiting leverage can enjoy far-more-efficient commodities exposure through futures trading.
Here are a few points to consider when choosing between commodities ETFs or futures: You Don’t Have to Use Futures Leverage: You might be told that largest advantage to trading futures is the leverage — or you might be told that this leverage is the biggest disadvantage. It all depends on whom you’re speaking to………………………………………..Full Article: Source

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