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Smart-beta exchange traded funds are a quickly growing segment of the fund industry, combining actively managed investment styles with a passive index-based structure. Investors, financial advisors, institutions and even the Bank of Japan have turned to these alternative index-based strategies. Japan’s ETF industry is being pressed into national service as the BOJ looks to promote […]

In anticipation of the summer doldrums, many have increased cash positions to sit out potential volatility ahead. However, increasing negative sentiment may signal contrarian opportunities for some areas of the market and exchange traded funds. A Bank of America Merrill Lynch fund manager survey revealed that money managers are increasing their cash positions this month […]

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 […]

Japanese markets closed lower Monday, but on the other side of the globe, U.S.-listed Japan country-specific exchange traded funds bounced as speculators tried to catch the falling knife. Japanese stocks plunged Monday, with the Nikkei 225 Index down 3.1%, on the yen currency’s jump to a one-and-a-half year high against the U.S. dollar, weak earnings […]

In stark contrast to market expectations of further intervention to stimulate a stagnating economy, the Bank of Japan opted to stand pat Thursday, triggering a surge in the Japanese yen and currency-related exchange traded fund. The CurrencyShares Japanese Yen Trust (NYSEArca: FXY) jumped 3.2% Thursday as the U.S. dollar depreciated 3.0% to ¥108.2. Meanwhile, the […]

Japanese equities bounced Friday, with currency-hedged exchange traded funds leading the charge on a weakening yen, as speculators bet the Bank of Japan will give banks a helping hand. Currency hedged ETFs, which diminished the negative effect of a weaker yen currency, outpaced non-hedged funds, on Friday. For instance, the WisdomTree Japan Hedged Equity Fund […]

With international equities bouncing back, exchange traded fund investors seeking to diversify into overseas markets should also consider the potential currency risks associated with foreign investments. On the upcoming webcast, Currency – Hedging Matters: Simple ETF Strategies, Robert Bush, ETF Strategist at Deutsche Asset Management, Scott Kubie, Chief Investment Strategistat CLS Investments, and Kize Behrends, […]

After lagging behind other markets for most of the year, Japanese and Eurozone related exchange traded funds are gaining momentum and broke back above their long-term trend lines. Over the past three months, the iShares MSCI EMU ETF (NYSEArca: EZU) added 10.9% and the SPDR EURO STOXX 50 (NYSEArca: FEZ) returned 9.9%. The two ETFs, […]

After underperforming the developed economies for years, emerging markets are roaring back, and exchange traded fund investors have taken notice. The iShares MSCI Emerging Markets ETF (NYSEArca: EEM) was the third most popular ETF over the past month, attracting almost $1.3 billion in net inflows, according to ETF.com. Meanwhile, the Vanguard FTSE Emerging Markets ETF […]

Once loved, Japanese stocks and country-specific exchange traded funds are getting the cold shoulder as investors dumped exposure to the developed Asian market on concerns over economic weakness and the effects of a stronger yen on exporters. Since the start of 2016, foreign traders have yanked $46 billion from Tokyo’s stock market for 13 straight […]

Without much confidence in the Bank of Japan’s ability to stem the tide of a strengthening currency, the Japanese yen and related exchange traded funds have hit an 18-month high. On Tuesday, the CurrencyShares Japanese Yen Trust (NYSEArca: FXY) jumped 1.4% while the ProShares Ultra Yen (NYSEArca: YCL), which tries to reflect the daily 2x […]

The Japanese yen weakened for the seventh day, bolstering export-heavy Japanese market and currency-hedged country-specific exchange traded funds. The CurrencyShares Japanese Yen Trust (NYSEArca: FXY) dipped 0.5% as traders trimmed their safe-haven bets in light of an improving U.S. economy and on renewed bets that the Federal Reserve would hike rates. The U.S. dollar gained […]

Bank of Japan has released details on what types of new ETFs it wants financial companies to create Companies that increase capital or research spending will be eligible for purchases Additionally, funds that track firms boosting staff numbers, wages and investments in employee development will also meet BOJ standards The Bank of Japan has outlined […]

Financial sector ETFs maintained momentum Wednesday after stumbling at start of year Global financial sectors also rallied on Wednesday Market observers appear to be pouncing on a sector that has been underperforming in 2016 Despite a relatively tepid Wednesday, financial sector exchange traded funds maintained their momentum as bargain hunters jumped back into an oversold market segment. […]

Japanese equities and country-specific exchange traded funds have suffered through the recent global sell-off, but the developed Asian market could turn around and end the year on a high note. Year-to-date, the iShares MSCI Japan ETF (NYSEArca: EWJ) fell 10.6%, Deutsche X-trackers Japan JPX-Nikkei 400 Equity ETF (NYSEArca: JPN) dropped 9.8% and iShares JPX-Nikkei 400 […]

Luciano Siracusano, Chief Investment Strategist at WisdomTree Investments, joined Tom Lydon, ETF Trends Publisher, at the Inside ETFs conference to discuss the dynamic foreign exchange market and currency-hedging exchange traded fund strategies. Siracusano points out that after unhedged and currency-hedged ETFs, we are now at versuib 3.0 or dynamic currency-hedged strategies. WisdomTree offers the WisdomTree […]

While the U.S. dollar has swung lower on the lower economic outlook, the greenback is still more likely to appreciate against foreign currencies than weaken ahead, potentially weighing on international stock exchange traded fund investments. “Fundamentally, nothing has changed,”  Robert Bush, Investment Strategist at Deutsche Bank, told ETF Trends. While the equity forecast is slightly […]

Japanese government bonds and related exchange traded products have been on a streak this year, with Japan becoming the first major economy with a sub-zero yield on benchmark 10-year debt. The DB Japanese Govt Bond Futures ETN (NYSEArca: JGBL), which tracks 10-year Japanese government bond futures, rose 3.8% year-to-date. Meanwhile, the DB 3x Japanese Govt […]

I do the “ETF of the Week” for MarketWatch every week on Chuck Jaffe’s MoneyLife Show where I highlight big movers and disappointments among exchange traded funds. This week, I looked at the Deutsche X-trackers MSCI Japan Hedged Equity ETF (NYSEArca: DBJP). The Bank of Japan has revealed that it will use whatever monetary policy […]

When investing in overseas markets, some investors have turned to both international stocks and a currency-hedged strategy to even out foreign exchange fluctuations. Alternatively, people can look to partial currency-hedged exchange traded funds to help diminish currency risks, especially as the U.S. dollar experiences short-term volatility. “Investors are being whipsawed by gyrations in the currency […]

As markets turned lower in January, the Bank of Japan has been buying the dips with Japan-listed stock exchange traded funds. According to the Japan Exchange Group, combined January trading of all ETFs was at a record ¥7.94 trillion, or 100% increase for the same period year-over year and a 53.4% month-on-month increase, reports Leo […]

The Bank of Japan unexpectedly implemented negative interest rates Friday in response to the volatile global markets that has added to its ongoing deflationary risks, bolstering Japan country-specific exchange traded funds and pulling the rug from under the yen currency. The iShares MSCI Japan ETF (NYSEArca: EWJ), the largest Japan-related ETF, was 1.8% higher Friday. […]

Despite the ongoing volatility, the Federal Reserve has not shifted away from an interest rate tightening cycle. Consequently, investors should understand the potential effects or rising rates on the markets and incorporate alternative exchange traded fund strategies to adapt to the changes. On the recent webcast, Positioning Portfolios in a Rising Rate Environment, Joe Benevento, […]

The equities market and stock exchange traded funds retreated in a violent start to a new year. As volatility dissipates, exchange traded fund investors should consider areas where selling may have been overdone. “In our opinion, much of the recent selling has been overdone and, as such, has created some bargains,” Russ Koesterich, Global Chief […]

Hopes of further monetary easing helped Japanese equities and country-specific exchange traded funds rally Friday, with formerly bearish traders adding to the momentum on short covering. The iShares MSCI Japan ETF (NYSEArca: EWJ) was 4.4% higher Friday after falling 10.9% year-to-date. However, the CurrencyShares Japanese Yen Trust (NYSEArca: FXY) dipped 1.0% on prospects of further […]

The ongoing selling pressure has dragged on global markets, with developed market country-specific exchange traded funds falling off as Japan and Europe dip into a bear market. British equities are joining other European markets like Germany, France and Spain in a bear market after Wednesday’s 3.5% decline in the FTSE 100 Index, reports Cecile Vannucci […]

With the U.S. equities market expected to slow down this year, exchange traded fund investors may want to look to overseas markets, like the Eurozone or Japan. Citi strategists downgraded U.S. equities Tuesday, citing potential negative impact of Federal Reserve interest rate hikes and stalling corporate profitability, reports Matt Clinch for CNBC. “Fading EPS momentum […]

Exchange traded funds have seen trading activity increase over the years as more investors see the benefits of the investment vehicle. For instance, since ETFs trade on an exchange like a stock, many have utilized the funds to execute quick or tactical positions to capitalize on market turns. While ETFs accumulate more assets and investor […]

The Bank of Japan announced Friday that it will maintain the quantitative easing program and increase purchases of Japanese equities through exchange traded funds. However, market observers were unimpressed by the extended measures to combat a prolonged growth stunt. Japanese equities weakened Friday, with the Nikkei 225 index falling 1.9% to 18,986.8, after the BOJ […]

As investors take a hard look at their investment portfolios to potentially rebalance positions for the year ahead, people may consider exchange traded funds to better capture value and diversify across the global market. The markets have seen benchmark equity indices flatten out after a multi-year rally, U.S. Treasury yields stubbornly hold on to record […]