Author Archives: gurvich1
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 …
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 …
Underperformance Rife Among Active Fund Managers By Chris Flood Writing for the FT
Almost three-quarters of actively managed US large-cap funds failed to outperform the S&P 500 over the past three years, according to an analysis by Standard & Poor’s. S&P has constructed a scorecard that summarizes the performance of active managers in different categories across one, three and five years compared with a relevant benchmark. The study calculated average returns for each fund group weighted by the size of each fund constituent. …
Active Maager Flame Outs Drive Investors to ETF’s by Tom Lydon Max Chen contributed to this article.
Current Affairs News The market’s wild volatility and herd-like movement has created an extremely difficult environment for stock pickers and caused some investors to abandon actively managed mutual funds for indexed exchange traded funds. Even prominent fund managers are having trouble in the current environment. However, ETFs seem to have attracted a larger following as stocks move in tandem. Bill Miller, manager of the Legg Mason Value Trust, was known …
Analysis-Absolute Return no refugee in stressed markets. By Natsuko Waki
LONDON (Reuters) – Investors who bought into “absolute return” funds hoping to make money in relentlessly turbulent trading are instead finding their capital eroded in markets that are making a habit of sudden mass flight from risk. High correlation among different asset classes and shrinking liquidity are making life difficult for the $180 billion (114.8 billion pound)-plus absolute return funds industry, which unlike hedge funds has limited means to ride …
The Real Reason Bill Gross is Losing Money By Amanda B. Kish
In the wake of the stock market’s stomach-churning roller-coaster ride of recent years, many investors have simply decided they’d rather not play that game. Assets have been flowing out of the equity markets at a furious pace, headed for the perceived safety of bonds. Billions of dollars have been stuffed into bonds since the onset of the financial crisis, as weary investors seek solace from the storm. Unfortunately, on some …
Playing it Safe By Beverly Goodman
Special Report on ETFs. Three well respected advisers tell Barons their strategies for ETFs. “At least 90% of your returns are determined by your asset allocation,” With some $1.4 trillion invested in exchange-traded funds and 157 new products launched in the past six months alone (that’s more than one per business day), ETFs are at their most popular—and their most confounding. Though the term “ETF” is often used for the …
Barrons ETF Expert Portfolios-Not much in the way of innovative thinking. By Roger Rusbaum
One of the features in this week’s Barron’s included an interview with three investment advisors who were billed as ETF experts using all-ETF portfolios for clients. Obviously I have no idea where Barron’s found these guys but the conversation read like something you could have read four years ago at IndexUniverse (that is a compliment to IndexUniverse and a shot at the Barron’s article). Each interviewee provided specifics of the …
ETFs To Smooth Volatility: Looking at Some Long/Short Options by Stoyan Bojinov
by Stoyan Bojinov on October 31, 2011 | ETFs One of the oft-cited benefits of the ETF boom over the last several years is the democratization of asset classes, such as commodities and volatility, that were previously available only to sophisticated and wealthy investors. The marriage of these asset classes with the exchange-traded structure allows investors to tap into securities that can be extremely valuable to both long-term portfolios …