What are ETF’s-Portfolio Building Blocks By Tom Lydon
April 9thĂ‚Â 2012 The exchange traded fund industry has matured like a fine wine, getting better with age. However, the business has transformed in ways that were unseen back in 1993, when the first U.S. ETF launched. “The uses of ETFs have changed. It started as a strong institutional product but we are now seeing them being used by wealth managers as building blocks in portfolios,” Jim Ross, managing director …
Mutual Funds fight for flows against ETF’s By Chris Taylor
Mon, Apr 9 2012 NEW YORK, April 9 Reuters – A funny thing happened on the way to the death of the traditional mutual fund, foretold by some analysts. It hasn’t happened. Instead, in the last two months, flows into equity exchange-traded funds (ETFs) have slowed, while flows into equity mutual funds have picked up. Just last December, the spread between the two was a whopping $46 billion in favor …
State Street Begins Asset-Allocation ETF’s in Active Push By Alexis Leonids and Christopher Condon
– Apr 26, 2012 State Street Corp. (STT), the second- largest manager of exchange-traded funds, opened three products that can spread money across a range of asset classes in a push into actively managed ETFs. The funds will use tactical asset-allocation strategies and invest in ETFs including those run by State Street, James Ross, senior managing director of State Street Global Advisors, the Boston-based company’s money-management unit, said today at …
Study: Hedge Funds Outperform Other Asset Classes Commissioned By KPMG
Apr 24 2012 New research commissioned by KPMG and a hedge fund lobby group shows hedge funds have significantly outperformed equities, bonds and commodities over the last 17 years. The report—The Value of the Hedge Fund Industry to Investors, Markets and the Broader Economy—was done by the Centre for Hedge Fund Research at Imperial College in London at the behest of the international tax firm and the Alternative Investment Management …
Misleading ETF’s By Karen DeMasters
April 23, 2012 “Let the buyer beware.” According to Casey Research, that should be the mantra for some exchange-traded funds now on the market that have misleading names that don’t reflect their true makeup. Casey Research issued a report that names funds it says are particularly misleading or require careful scrutiny before investing in it. The report, written by senior analyst Vedran Vuk, doesn’t necessarily conclude that the funds are …
ETF Liquidity In Action by Noel Archard
April 12, 2012 If you know me, you know I love a good liquidity story. Watching the tape a few weeks ago, I saw what I think is a great example of liquidity in one of our newer funds and the ETF creation/redemption process in action. Some investors tell us that seeing trading volume is important to feel comfortable buying a newly launched ETF. Understandably, they want to make sure …
Active Bear ETF: Insurance for your portfolio -By Jeff Reeves, Editor of InvestorPlace.com
Manager John Del Vecchio on why his ETF isn’t tied to an index and why it’s a great hedge “The stock market is far more likely to blow up…than your house is likely to burn down.” – Active Bear ETF manager John Del Vecchio A lot of investors have been feeling bearish lately after the stock market’s red-hot run since Thanksgiving. After all, expensive oil, high unemployment, persistent housing trouble …
ETF Assets Seen Growing to $5 Trillion By Tom Lydon
March 31st at 6:00pm Current Affairs News: Rise of Volatility ETFs Impacting VIX Futures Schwab Mulls ETF Warnings: Report BlackRock Closing Canadian Inverse Bond ETF The nascent exchange traded fund industry is quickly expanding and garnering greater assets, sometimes at the expense of the mutual industry. At its current pace, ETF assets under management could double in just a few more years as more independent advisors utilize the low-cost investments, …
Investing inactive funds: What’s the point? By Natsuko Waki
Ă‚Â March 19, 2012 Active vs passive investment is a long-lasting debate: active funds will tell you they deliver alpha (extra returns), but for a fee. Passive investment simply tracks the index so it’s cheaper. TheĂ‚Â riskĂ‚Â isĂ‚Â you may under-perform yourĂ‚Â peers. New research from Thomson Reuters Lipper throws upĂ‚Â an interesting twist in the debate: It found thatĂ‚Â less than half of theĂ‚Â actively managed mutual funds in Europe outperformed their benchmarksĂ‚Â over the past 20 years. …
ETF Portfolios will transform investing By Philip Salter
Monday 12th March 2012 Picking exchange-traded funds is as tricky as choosing the right equity – but off-the-shelf solutions will open up these efficient products to more investors THE inability of many active managers to beat their index over a year should shock investors. Their failure over a longer period of time should have them running for the hills. Through luck or judgement some outperform, but often not for long, …