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 …
iShares Drafts Emerging Dividend ETF
iShares, the world’s largest ETF firm, is taking steps to launch another two dividend ETFs, one focused on emerging market securities and the other targeting the Asia/Pacific region, adding to a growing stable of ETFs that serve up dividend-paying stocks in the developing world. The iShares Emerging Market Dividend Index Fund , as well as its more tightly focused Asian counterpart, the iShares Asia/Pacific Dividend 30 Index Fund , will each track a respective Dow Jones Select Dividend benchmark. They would both invest in local firms that have consistently provided high dividend yields over time.
Monetary Collusion Masking A Vulnerable Aussie Dollar
Jack Crooks: This week global central banks announced a coordinated effort to inject liquidity into credit markets. From Reuters : “The central banks of the United States, euro zone, Japan, Canada, Britain and Switzerland announced on Wednesday coordinated global action to provide liquidity to the financial system, lowering the price on existing dollar swaps.” As frequently as these monetary powers must work together in world-saving plans, this is only the third instance of this particular type of announced collusion. The first was in December 2007.
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 …
2 ‘Pair Trades’ for an ‘Absolute Return’ Strategy, By Jamie Dlugosch
by Jamie Dlugosch | November 21, 2011 9:59 am The lack of confidence in the stock market should be no surprise. Investors have been put through the ringer, and even though a dearth of enthusiasm is ultimately bullish for stocks, it’s tough to be a believer these days. The U.S. economy is teetering, and the lack of a debt deal from the supercommittee[1] is an immediate threat to investors. Then …
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 …
Managed funds and ETFs – understanding the similarities and differences By Graham Hand
Managed funds are supposedly a non-transparent and expensive way of investing, while ETFs are increasingly touted as low cost investment saviours. Graham Hand outlines how similar the two investment products are when compared on a like-for-like basis and highlights the features that can set a managed fund apart. Exchange Traded Funds and managed funds are very similar. In fact, “ETFs are listed managed funds” according to the Australian Securities Exchange …