Hedging with Bearish ETFs

The WSJ’s Ian Salisbury recently explored the use of bearish ETFs as a way to hedge risk. Salisbury noted that the 25 best-performing ETFs in 2008 have all had total returns exceeding 19% and that they try to generate returns that match the inverse of the major benchmarks. Specific ETFs mentioned include UltraShort Semiconductor ProShares […]

New ETF emulates covered call strategy

One approach investors consider in uncertain market conditions is a covered-call strategy. The idea is that you write out-of-the-money call options on stocks that you hold to tweak your returns while collecting dividends and waiting for the market to start heading up again. PowerShares Capital Management recently listed the Powershares S&P 500 BuyWrite Portfolio (PBP) […]

Vanguard in 3rd Place in ETFs

Vanguard, although late to the ETF scene, has established a solid 3rd place position behind Barclays and State Street. In their upcoming 2008 Fund Guide, Forbes‘ Michael Maiello recaps the story behind the birth of the ETF industry and why Vanguard is playing catch up.

Looking for an ETF with Less Volatility?

Check out timber. According to Zephyr Style/ADVISOR, the timber asset class, as measured by the Dow Jones World Forestry & Paper Index, has had a historically low correlation with other asset classes, which could provide investors a unique diversification tool that may help reduce a portfolio’s overall volatility. Claymore Securities manages an ETF that focuses […]

Target Date ETFs aimed at Goal-Based Investors

Back in October, TD Ameritrade and XShares Advisors launched a series of Target Date ETFs aimed at “Goal-Based” investors. The basic idea is that an investor can get a combination of investments that rebalance over time with a specific exit date that ranges from 2010 to 2040 depending on the fund. The companies cite several […]

ETFs and capital gains distributions

Thought you had escaped the annual distribution of capital gains when you moved from funds to ETFs? Think again. According to Morningstar, last year 95 or 18% of all exchange-traded funds distributed capital gains and 47 of those funds distributed gains in excess of 1% of capital. Capital gains distributions are painful because they require […]

Country-Specific ETFs

The WSJ’s Rob Wherry put together a nice summary of country-specific ETFs over the weekend. A quick synopsis: Key Facts: There is an ETF for almost every country in Europe, Asia and Latin America New funds are emerging for Africa and the Middle East There are at least 36 single-country ETFs with a total of […]

Asia ETF Listing Agreement to Help Liquidity

According to a Dow Jones Newswire report, the Tokyo Stock Exchange and Taipei Stock Exchange have agreed to cross-list Exchange Traded Funds as early as the first half of 2008. Because the ETFs will be accessible to more investors, the cross listing agreement should increase trading volume and improve liquidity. As noted in an article […]

ETFs 1, Closed-End Funds 0

The Wall Street Journal’s Ian Salisbury highlights a key difference between ETFs and closed-end funds: “Unlike the stock of index-based exchange-traded funds, or ETFs, shares of closed-end funds frequently change hands at premiums or discounts, prices significantly above or below the value of their underlying assets.” It seems that investors that paid a premium to […]

Morningstar’s Worst New ETFs

Morningstar’s Jeffrey Ptak published his list of 2007′s worst new ETFs. The list includes: Emerging Markets SPDR S&P China (GXC) First Trust ISE Chindia (FNI) Real Estate Adelante Shares Real Estate iShares FTSE NAREIT Funds (RTL) Commodities Claymore Clear Global Timber (CUT) Ptak cites timing and declines since the launch of the ETFs as qualifiers. […]

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