ETF 101

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As the economy improves and consumers begin to spend again, investors can capitalize on the growth through consumer discretionary exchange traded funds. Consumer stocks have benefited from stronger household finances, rising employment and slowly expanding wages. Additionally, the plunge in energy prices, along with lower price tags at the gas pumps, have helped kept more […]

A recently launched social media insights exchange traded fund (ETF) provides investors with a social momentum strategy that harnesses insights from big data mined from media outlets. On a recent webcast, The Social Media Index: Today’s Market Sentiment Indicator, Jeremy Held, Director of Research & Investment Strategy at ALPS Portfolio Solutions, explained that the Sprott […]

A rising interest rate environment will weigh on fixed-income portfolios. Bond traders do not need to sacrifice yield-generation to diminish rate risk. Instead, investors can look to rate-hedged or zero-duration bond exchange traded funds. A relatively new breed of interest rate-hedged, zero duration ETFs hold long-term bonds, but they will simultaneously short Treasuries or Treasury […]

In anticipation of a rising interest rate environment, fixed-income investors should consider exchange traded funds that track floating rate notes. Should expectations of higher interest rates gain momentum, it would not be surprising to see investors embrace floating rate exchange traded funds as additions to fixed income portfolios. Related: 41 Target Maturity Bond ETFs for […]

As the U.S. braces for a rising interest rate environment, exchange traded fund (ETF) investors may adopt a bond ladder strategy to hedge against the risks through maturity- or target-date ETF options. With the Fed intent on hiking rates ahead, investors can implement a bond laddering strategy through defined-maturity bond funds to hedge their fixed-income positions. […]

Investors seeking an easy way to fill out a fixed-income portfolio may start off with an aggregate or total bond market exchange traded fund that provides diversified exposure to U.S. government and corporate debt securities. For instance, the Barclays U.S. Aggregate Bond Index has been the go-to benchmark for many fixed-income investors. The benchmark tracks […]

Oil prices are rebounding, with the fundamental outlook improving. As more return to the energy play, investors can consider a broad energy infrastructure exchange traded fund. On the recent webcast, High Quality MLP Strategy: Understanding the Benefits of Pipeline ETF, Brian Sulley, Vice President of Tortoise Capital Advisors, projects that oil demand will grow in […]

Note: This article is courtesy of Iris.xyz By Shundrawn A. Thomas Exchange traded funds (ETFs) and mutual funds can accurately be characterized as “sister” investment products because of their many similarities: Both are basically baskets of investments and offer a diverse range of investment types and strategies; Because a single fund can hold hundreds of […]

Note: This article is courtesy of Iris.xyz By Edward A. Rosenberg As you determine which ETFs best meet your clients’ needs and objectives, bear in mind ETF liquidity and trading. This will help you better maximize opportunities and optimize trades at the best possible price in order to gain potentially higher total returns. A common […]

Municipal debt and bond-related exchange traded funds have been used as a relatively stable fixed-income stream for many investment portfolios. Since muni bond interest is exempt from federal taxes, muni ETFs are a good way for investors seeking tax-exempt income, especially those in higher tax brackets. Due to its tax-exempt status, the asset category is […]

As energy prices rebound, commodity traders have jumped on oil exchange traded funds to ride the rally from 13-year lows. However, long-term investors should understand that these ETFs track the futures market and come with specific risks. For instance, many have turned to the U.S. Oil Fund (NYSEArca: USO), which tracks West Texas Intermediate crude […]

In anticipation of rising inflationary pressures ahead, fixed-income investors have turned to a number of Treasury inflation protected securities and bond-related exchange traded funds. U.S. core inflation, which excludes more volatile oil and food prices, increased 0.1% in March, according to Reuters. Core CPI also ran 2.2% in March year-over-year after gaining 2.3% in February. […]

When diversifying into international markets, investors are exposed to currency risks or the ebbs and flows in the foreign exchange. Consequently, one may consider a currency-hedged exchange traded fund to help remove the risks from the equation. “Currency risk can impact international equity return and risk, but full exposure is often assumed to be the […]

As the markets slow down from a multi-year bull rally, investors can turn to smart beta exchange traded funds to navigate uneven growth and potential hurdles ahead. On the recent webcast, J.P. Morgan’s Market Outlook and ETF Strategy for 2016, Andrew D. Goldberg, Managing Director and Global Market Strategist at J.P. Morgan Funds Management, helped […]

Many investment innovations have been meet with skepticism, but exchange traded funds (ETFs) that track smart-beta or alternative index-based strategies have quickly caught investors’ attention. Contributing to the rapid growth, smart beta ETFs have helped investors capitalize on actively managed investment styles at a fraction of the cost. “Strategic beta, unlike most innovations, demands less […]

Bond investors who are wary of dipping too far into junk bond territory but want better yield payouts than Treasuries may consider investment-grade corporate bond exchange traded funds. Currently, credit spreads are falling. Looking at corporate bonds, the diminish spread between government Treasury yields and corporate debt yields reflects investors’ lower perceived risks ahead. The […]

Bonds have regained their momentum this year, but after a multi-year run, many traditional fixed-income assets look pricey or overvalued. Alternatively, investors may consider opportunities in exchange traded funds (ETFs) that track emerging market debt. Investors may be attracted to the cheaper valuations and wider yield premiums that emerging market bonds offer over safe-haven government […]

The foreign exchange market, or forex, is the largest, most liquid financial market in the world. Investors can easily track currency moves through exchange traded funds (ETFs). Investors who want exposure to a forex exchange market without dealing with futures or directly with a forex account may be better suited trading in currency ETFs, which […]

As markets move toward the late-cycle phase of the normal business cycle, investors should look to areas like the materials sector and related exchange traded funds (ETFs). With the economy recovery maturing, the materials sector, which is closely tied to the prices of raw materials, have traditionally done well as inflation rises and late-cycle economic […]

Speculative-grade, junk bonds have staged an impressive recovery from the February lows, but face mounting risks, notably from commodity producers. Investors, though, can diminish credit risks associated to more troubled areas through targeted high-yield bond exchange traded funds. The junk bond market faces heightened default risks ahead. According to Moody’s Investor Service, default rate for […]

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 […]