Indexing

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Smart-beta exchange traded funds (ETFs) have evolved as the industry matures. Before, investors had ETFs with a single twist that provided a themed approach to investment styles. Now, index providers and ETF sponsors implement a multi-factor approach to potentially enhance investment returns and diminish overall volatility. In the beginning, investors relied on market cap-weighted indices to […]

Investors have been giving real estate investment trusts a second look ahead of indexing sector reclassification, bolstering demand for REITs-related exchange traded funds. “Demand for US real estate securities accelerated in May, as exchanged traded funds focused on the investment segment gathered $1.31 billion of new money, up from $510.4 million in April,” Todd Rosenbluth, […]

More exchange traded fund investors are looking to smart beta or alternative index-based strategies to fill out their investments, and focusing on which targeted factors within the indexing methodology matters when appropriately balancing a portfolio. On a recent webcast, Smart Beta Factors: How Many and What is Ideal?, Joel Schneider, Senior Portfolio Manager and Vice […]

Investors can look to smart-beta, alternative index-based exchange traded funds to for a diversified solution to enhance returns and balance an investment portfolio. On an upcoming webcast this Tuesday, Smart Beta Factors: How Many and What is Ideal?, Joel Schneider, Senior Portfolio Manager and Vice President of Dimensional Fund Advisors, and Phil Fontana, Head of Product […]

Smart- or strategic-beta exchange traded funds that track alternative or customized indices have been a popular way to gain diversified exposure to the equities market. However, the recent surge is making some of these smart-beta strategies pricey. Rob Arnott, founder of Research Affiliates and father of fundamental indexing, warns of a potential bubble or possible […]

Investors tracking the iShares MSCI Emerging Markets ETF (NYSEArca: EEM) should not expect any major changes to their holdings after Morgan Stanley Capital International completed its annual review of its market classification and announced it will not include Chinese mainland-traded A-shares in its key emerging market index. “International institutional investors clearly indicated that they would […]

The Pakistan country-specific exchange traded fund surged Wednesday, with Pakistani markets touching a record high, after Morgan Stanley Capital International upgraded the former frontier economy to “emerging” status. The Global X MSCI Pakistan ETF (NYSEArca: PAK) rose 5.6% Wednesday on over three times its average daily volume. Meanwhile, the benchmark Pakistan Stock Exchange rose gained […]

Columbia Threadneedle Investments has expanded its suite of exchange traded funds to include three smart-beta, index-based options that target global companies that adhere to socially responsible practices with the financial stability to support and grow future dividends. The three new ETFs include the Columbia Sustainable U.S. Equity Income ETF (NYSEArca: ESGS), Columbia Sustainable International Equity […]

Investors have looked to emerging market exchange traded funds to access potential growth opportunities in a low return environment and diversify an investment portfolio. On the recent webcast, Define Your Emerging Market Smart Beta Strategy, Mike LaBella, Portfolio Manager at QS Investors, pointed out that the developing economies are projected to expand 4.1% this year […]

Bucking global market trends on Tuesday, Chinese mainland stocks and related A-shares exchange traded funds inched higher ahead of MSCI’s indexing decision due in the evening. The db X-trackers Harvest CSI 300 China A-Shares Fund (NYSEArca: ASHR), the largest China A-shares-related ETF, rose 0.7% Tuesday. ASHR has declined 18.5% year-to-date. Chinese markets strengthened on bets […]

Exchange traded funds are among the go-to investment picks among financial advisors seeking to build a cheap, tax-efficient and diversified portfolio for clients. According to a recent survey conducted by the Journal of Financial Planning and the FPA Research and Practice Institute, a survey of financial advisors revealed that 83% of respondents indicated that they […]

Traditional emerging market investors may be overexposed to regional risks. Instead, traders may consider an alternative to cap-weighted index strategies, such as a smart-beta exchange traded fund that takes a more balanced macro approach the the developing countries. On the upcoming webcast, Define Your Emerging Market Smart Beta Strategy, Mike LaBella, Portfolio Manager at QS […]

Janus Capital Group expanded its offerings to include four new exchange traded funds that track various health and living-related themes. Janus rolled out The Health and Fitness ETF (NasdaqGM: FITS), The Long-Term Care ETF (NasdaqGM: OLD), The Organics ETF (NasdaqGM: ORG) and The Obesity ETF (NasdaqGM: SLIM). Each fund comes with a 0.50% expense ratio. […]

Franklin Templeton, a long-time active fund manager, has rolled out its first group of passive global exchange traded funds that track customized or smart-beta indices. The fund provider recently launched the Franklin LibertyQ International Equity Hedged ETF (NYSEArca: FLQH), Franklin LibertyQ Emerging Markets ETF (NYSEArca: FLQE), Franklin LibertyQ Global Dividend ETF (NYSEArca: FLQG) and Franklin […]

State Street Global Advisors has partnered up with Dorsey, Wright & Associates, a Nasdaq company, to launch a fixed-income exchange traded fund that implements a relative strength indexing methodology to focus on debt securities with strong forward momentum. To commemorate the recently launched SPDR Dorsey Wright Fixed Income Allocation ETF (NasdaqGM: DWFI), SSGA rang the […]

In an year of uncertainty, the consumer staples sector has acted as a defensive play for more conservative investors, with an equal-weight consumer staples exchange traded fund standing out from the rest. The defensive consumer staples sector has been one of the year’s best performing areas of the S&P 500, with the S&P 500 Consumer […]

Exchange traded funds that track smart beta strategies or alternative indexing methodologies are quickly gaining traction among institutional investors. According to a recent FTSE Russell smart beta survey, global institutional asset owners currently evaluating smart beta has doubled to 36% in 2016 from 15% at the first survey in 2014, and 62% of asset owners […]

Chinese A-shares and country-specific exchange traded funds experienced their largest one-day jump in almost three months on speculation that MSCI could add mainland traded Chinese stocks to its benchmark Emerging Markets Index. The Market Vectors ChinaAMC SME-ChiNext ETF (NYSEArca: CNXT) and Deutsche X-trackers Harvest CSI 500 China A-Shares Small Cap Fund (NYSEArca: ASHS) led gains […]

The smaller companies and small-cap exchange traded funds (ETFs) are beginning to pull ahead. Over the past week, the Russell 2000 Index rose 3.4% while the S&P MidCap 400 Index gained 3.2% and S&P 500 added 2.1%. The small-cap segment has been gaining momentum in recent months, jumping on the risk-on sentiment after the Fed […]

Middle-capitalization stocks are outperforming this year, and investors can also target the mid-cap segment through related exchange traded funds. The middle capitalization category has also outperformed, with the S&P 400, a benchmark for mid-cap companies across the U.S., up 5.9% this year, compared to the 2.5% increase in the S&P 500 and 0.5% gain in […]

Developed markets have led the charge, with the U.S. experiencing multi-year rally, but now, investors may be turning to developing economies and emerging market-related exchange traded funds in search of untapped opportunities. We are beginning to see a shift to emerging market assets. After an encouraging first quarter, emerging market equities experienced inflows for the […]

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 […]

Social media has become an ingrained facet of everyday life, reflecting people’s various opinions on the spot. As a way to harness the freely available information, a new exchange traded fund strategy hones in on online investment discussions and identifies trending stocks. On the upcoming webcast this Tuesday, The Social Media Index: Today’s Market Sentiment […]

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 […]

Peruvian equities and country-specific exchange traded fund investors breathed a sigh of relief as a recent ruling helped ease fears that MSCI indexing would downgrade the emerging market to frontier status. The iShares MSCI All Peru Capped ETF (NYSEArca: EPU) gained 2.8% Friday. Peru has also been one of the best performing emerging market this […]

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 […]

Volatility is a reoccurring hurdle that has weighed on investment portfolios. However, investors can utilize disciplined smart-beta index based exchange traded funds (ETFs) as a way to better control the risks. On a complimentary upcoming webcast this Thursday, J.P. Morgan’s Market Outlook and ETF Strategy for 2016, Jillian DelSignore, Executive Director and Head of ETF Distribution […]

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 […]

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 […]