ETF-Based Strategies Grew 43% as Investors Avoid Active Funds By Christopher Condon
Ă‚Â Jan. 23 (Bloomberg) — Money overseen by U.S. investment managers who buy exchange-traded funds instead of individual stocks and bonds rose by 43 percent in the last year, even faster than the growth for ETFs, according to a report from Morningstar Inc. The 370 ETF-based investment strategies tracked by Morningstar grew to $27 billion in the year ended Sept. 30, the Chicago-based research firm said today. That outpaced the …
Fund Companies to Expand ETF Presence in `12 By Virginia Munger Kahn
The stage is set for more exchange-traded fund launches from traditional fund companies this year. Last month, Fidelity investments moved to significantly expand its role in the ETF market by filing an application for exemptive relief with the Securities and Exchange Commission to roll out a suite of ETFs. The filing envisions the launch of index-based domestic and international stock and bond funds including 130/30 and other long/short funds. “This …
Are Elevated Correlation the New Normal? By Sam Stovall S&P Equity Research
Sectors within the S&P 500 have exhibited a similar trend. Summary Points The correlations of many assets with domestic stocks have increased during the past 30 years. The availability of mutual funds and Exchange Traded Funds has contributed to this trend. Correlations of the S&P 500 with all 10 of its component sectors are at or near their highest points in 20 years. Over the past 30 years, the variability …
The Power of Low-Correlation Investing –By Marc.D. Stern
Ă‚Â In Brief Mixing Asset Classes Over the Long Term No one can predict market performance over any time period, short or long, but the study of correlations shows that, over time, different asset types have not performed in sync with the stock market. An investor who holds a portfolio diversified with low-correlating assets has the opportunity to benefit from returns with less risk. Balancing won’t always produce a gain, …
Absolute Return: winners and losers
With absolute return portfolios growing in portfolio, how can you separate the good from the ugly? Top managers share their experience over the past year with Citywire Global. Marta Campello, Abante Asesores Investors ask for positive returns and low volatility in any market conditions. Since we have experienced a prolonged spell of volatility they are looking for shelter in so-called absolute return funds, but they do not show a clear …
Selectors reveal top absolute return fund picks – by Citywire
Appetite for absolute return funds is increasing so how are fund selectors meeting this demand and are they happy with the performance in this space? Daniel Aymerich Biota, Banco Inversis Asset managers are finding the absolute return concept is a valuable tool allied with their commercial strategies during periods of market turmoil. In theory, it helps to align the interests of investors wishing for attractive, risk controlled returns with the …
9 Things We Learned About ETF’s in 2011 Transcript from video of Scott Burns
Taking a look back at 2011 in ETFs. Hi there! I’m Scott Burns–Morningstar’s director of ETF, closed-end fund, and alternatives research–here to talk a little bit about what we learned in 2011 in the ETF space. I think the first thing that we learned and saw is that ETF adoption continues unabated. Flows remain generally positive in every month, and we continued to see more and more adoption and more …
Cliff Asness: A hedge fund genius goes retail, by Shawn Tully
He already manages billions for elite investors. Now Cliff Asness believes he’s perfected a better way for regular folks to play the market, and he’s using that formula to build a mutual fund empire. At his home in Greenwich, Conn., Asness displays an admiration for Winston Churchill. His firm, AQR Capital, runs $42 billion. FORTUNE — Even among hedge fund brainiacs, Cliff Asness qualifies as a high achiever. In just …
Volatility prompts growing use of ETFs, says survey by Chris Flood
Ă‚Â High levels of volatility across financial markets are forcing US financial advisers to pay more attention to risk management, leading a majority to adopt blended strategies employing passive exchange traded funds and active investments, according to Invesco. Invesco surveyed 206 financial advisory firms and found some advisers using basic strategies, such as investing more conservatively or rebalancing portfolios frequently, to minimise risk. Employing a blend of active investments and passive …
JP Morgan Woos Clients with Simplicity By Jessica Toonkel
Ă‚Â Tue, Dec 13 2011 By Jessica Toonkel NEW YORK (Reuters) – JP Morgan Chase & Co.’s fund division is banking on the idea that if it can help advisers and investors understand what’s going on in the markets, they will buy its funds. Stock market volatility, the European debt crisis and uncertain macro-economic trends have left investors and some advisers uncertain about where to put their money. “I don’t think …