ETF 101

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Real estate investment trusts (REITs) and sector-related exchange traded funds (ETFs) are a good source of attractive payouts in a low-yield environment. REITs are securities that trade like a stock and invest in real estate directly through property ownership or mortgages. Consequently, revenue are mainly generated through rents or interest on mortgage loans. To qualify […]

Exchange traded funds (ETFs) that implement smart-beta strategies help investors move away from traditional market-cap methodologies to generate better returns without paying for the high costs associated with an active manager. On a recent webcast, How Smart Beta is Getting Smarter and Why Advisors Should Pay Attention, Eric Shirbini, Global Product Specialist at ERI Scientific […]

Each week ETF Trends publisher Tom Lydon sits down for “ETF of the Week” for MarketWatch on Chuck Jaffe’s MoneyLife Show where he highlights big movers and disappointments among exchange traded funds. This week, Lydon looked at the iShares Silver Trust (NYSEArca: SLV). Among precious metals, silver has been outperforming. Click here to listen to the podcast. The opinions […]

Exchange traded funds (ETFs) are an investment vehicle that basically reflects an investment on a group of underlying securities. Consequently, many have looked at the net asset value, or NAV, as a good indicator of what an ETF is worth. However, the NAV is not as binding as one might think. Dave Nadig, Director of […]

Smart-beta or alternative index-based exchange traded fund (ETF) strategies have quickly gained traction among financial advisors and investors seeking to enhance portfolio returns or smooth out their investment ride. On a complimentary webcast this Thursday, How Smart Beta is Getting Smarter and Why Advisors Should Pay Attention, Eric Shirbini, Global Product Specialist at ERI Scientific Beta, […]

After enjoying a multi-year bull run, equities may be in for greater volatility ahead. Nevertheless, exchange traded fund (ETF) investors can still keep their toe in stock market but hedge against large drawdowns through a low-volatility strategy as a way to potentially generate steadier returns over the long run. While not as glamorous as high-flying […]

High-yield dividend exchange traded funds offer attractive yields for the income-strapped investor, but the higher payouts come with risks, such as potentially unsustainable dividends from a beleaguered energy sector. “A lot of companies have adopted dividend policies that are unsustainable and have been rewarded by the financial markets that don’t sufficiently question the sustainability,” Harald […]

Many investors have shied away from exchange traded funds with low trading volumes, but do not let the perceived liquidity deter you from a potentially lucrative investment strategy. Investors who are trading a stock would look at the average daily volume as a guide to how quickly and efficiently they are able to place a […]

As oil prices rebound on improved market sentiment, master limited partnership exchange traded funds have broken above their long-term trend lines and offer attractive yields to boot. Crude oil prices just finished higher for the third consecutive week as market sentiment turned upbeat on strengthening U.S. gasoline consumption ahead of the summer driving season and […]

As competition in the fund industry heats up, exchange traded fund investors have enjoyed lower fees on their investment portfolios. Over the past decade, the asset-weighted average expense ratio for ETFs, an indicator for the average fee an investor is paying, dipped to 0.23% from 0.28%, writes Morningstar analyst Patricia Oey. In contrast, the asset-weighted […]

Technology-related exchange traded funds that follow the traditional market capitalization-weighted methodology are under pressure as two tech giants fell sharply on lackluster first quarter earnings. Google parent company Alphabet Inc. (NasdaqGS: GOOGL) revealed adjusted earnings per share last quarter total $7.50, missing analysts’ target of $7.96, with $16.47 billion in revenue also under estimates, reports […]

The U.S. exchange traded fund industry has accumulated over $2 trillion in assets under management, but the majority of assets remain allocated toward the largest offerings, potentially causing investors and advisors to miss opportunities in smaller or lesser known ETFs. “The next time you are looking for an ETF solution to solve a client’s needs, […]

When investing in overseas markets, investors should consider a currency-hedged international stock exchange traded fund to help diminish volatility associated with foreign exchange risks. “Since 1978, currencies have increased volatility 91% of the time over five-year rolling periods, contributing 2.7% more volatility on average each year,” Robert Bush, ETF Strategist at Deutsche Asset Management, said […]

With the various market segments beginning to show diverging growth and small capitalization stocks gaining on their large-cap counterparts, exchange traded fund investors may consider an actively managed small-cap option to capitalize on potential opportunities ahead. On the recent webcast Tuesday, Active & Passive in a Simple Small-Cap ETF Discipline, Michael Simon, Founder, President and […]

Each week ETF Trends publisher Tom Lydon sits down for “ETF of the Week” for MarketWatch on Chuck Jaffe’s MoneyLife Show where he highlights big movers and disappointments among exchange traded funds. This week, he looked at the ProShares Russell 2000 Dividend Growers ETF (BATS: SMDV). SMDV may be a better way to access the small-cap category as the fund […]

Slow and steady wins the race. Investors seeking an exchange traded fund strategy that can produce attractive risk-adjusted returns over the long haul should take a look at the low-volatility theme. “Imagine a race between a speedy, boastful hare and a steady, quiet tortoise,” Andrew Ang, Head of BlackRock‘s Factor Based Strategies Group, mused in […]

Each week ETF Trends publisher Tom Lydon sits down for “ETF of the Week” for MarketWatch on Chuck Jaffe’s MoneyLife Show where he highlights big movers and disappointments among exchange traded funds. This week, he looked at the iShares J.P. Morgan USD Emerging Markets Bond ETF (NYSEArca: EMB). As the emerging markets rebound, fixed-income investors may look to this emerging […]

As people diversify their portfolios in light of an ongoing low-yield environment, investors may want to take a look at exchange traded funds that track small- and mid-cap dividend growth strategies to potentially generate better risk-adjusted returns. On the recent webcast, Dividend Growth: Compelling Opportunities Beyond Large Caps, Simeon Hyman, Head of Investment Strategy at […]

Fixed-income investors seeking to diversify their holdings can look to municipal bonds and related exchange traded funds for their attractive yields, especially in a taxable investment portfolio. On the recent webcast, Goundhog Day: Will the Muni Market See Its Shadow in 2016?, Ashton P. Goodfield, Co-Head of the Municipal Bond Department and Portfolio Manager for Municipal […]

Exchange traded funds that track liquid alternatives or replicate hedge fund strategies are beginning to outperform traditional hedge funds that they were mimicking. Goldman Sachs looked at 337 “hedge fund-like” funds from Morningstar’s universe of 677 liquid alternative funds and found that hedge fund investing categories like equity long/short, event driven, relative value, macro and […]

Each week ETF Trends publisher Tom Lydon sits down for “ETF of the Week” for MarketWatch on Chuck Jaffe’s MoneyLife Show where he highlights big movers and disappointments among exchange traded funds. This week, he looked at the Vanguard REIT ETF (NYSEArca: VNQ). With the Federal Reserve keeping rates depressed, income-minded investors are turning back to yield-generating assets like real […]

Investors can use leveraged and inverse exchange traded funds to hedge a long position against sudden turns or capture short-term trends in more volatile market conditions. On the recent webcast, Tactical Strategies to Combat Market Volatility, Sylvia Jablonski, Managing Director and Co-Head of the Capital Markets & Institutional Strategy Team at Direxion, points out that […]

Investors seeking a steady yield-generating exchange traded fund to help diversify their portfolios in a volatile year can look to the ProShares S&P 500 Aristocrats ETF (NYSEArca: NOBL) for quality stock market exposure and sustainable dividends. “By investing in dividend growth strategies, you not only get high-quality companies that have delivered strong total returns, you […]

Investors looking for a long-term investment option may do well with a smart-beta exchange traded fund strategy that focuses on innovative companies that actively look for the next big thing. On the recent webcast, Knowledge, the “Super Factor” for Buy-and-Hold Investors, Steven Vannelli Managing Director and Chief Investment Officer of Gavekal Capital, helps explain the […]

Todd Rosenbluth, Director of ETF & Mutual Fund Research at S&P Capital IQ, joined ETF Trends publisher Tom Lydon to touch upon some of the biggest themes that exchange traded fund investors and advisors should be monitoring. Rosenbluth argues that with all the market volatility, advisors should consider utilizing ETFs to help offset some of […]

Investors are turning to broad EAFE – developed Europe, Australasia and Far East – Index ETFs Popular picks include EFA, VEA and DBEF as they utilize currency forward contracts to diminish negative effects of weaker foreign currencies Investors with currency-hedged developed EAFE market exposure are receiving a positive cost of carry from each of the four […]

ETFs do not contribute to market volatility and will hold up in times of market stress, according to Vanguard expert Global ETF industry represents about $3 trillion in assets, compared to the $300 trillion in financial assets over all Data shows ETF activity only drives a small percentage of volume for most stocks As the […]

Glimpse given into the factor selection process behind the new suite of John Hancock smart-beta ETFs Why focusing on smaller stocks and those with lower relative prices may improve a portfolio’s expected return In an attempt to capitalize off these factors, John Hancock has come out with six smart-beta ETF options track indices Smart-beta exchange […]

Investors must keep in mind that most of their commodity-related ETFs do not track the spot price However, there are some exceptions, including precious metals-related exchange traded products Futures market may diverge from the spot price due to a number of factors, including storage costs and seasonal patterns With commodity exchange traded funds gaining traction as raw […]

Webcast this Tuesday to explain types of smart-beta strategies Investors who want to capitalize on these alternative index-based ETFs should fully understand what they are getting themselves into The one-hour session will provide best practices for incorporating strategic-beta ETFs into a portfolio Smart-beta or factor-based strategies have quickly gained traction in the exchange traded fund universe. Investors […]