Mutual Funds

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In response to the so-called flash crash that triggered wide oscillations in the exchange traded fund market, the Securities and Exchange Commission is reviewing the investment vehicle and considering potential rules to obviate trading and pricing disruptions. SEC Chairman Mary Jo White said the SEC is examining the full life cycle of ETFs, particularly Wall […]

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 […]

Expanding on its presence in the exchange traded fund industry, J.P. Morgan Asset Management has taken a minority stake in Global X Management Company, an ETF provider known for its targeted country and market segment offerings. “Investing in Global X augments our ETF strategy by expanding and deepening our participation in this fast-growing industry,” Jed […]

Investors have stepped back into the U.S. market, picking up broad stock exchange traded funds for the sixth straight week. U.S. stock ETFs attracted $3.5 billion last week and saw their sixth straight week of net cash inflows, reports Trevor Hunnicutt for Reuters. “ETF investors have fueled the bull market since the end of February,” […]

Bolstering the case for passively managed exchange traded fund as a good way for investors to tap into the equities market, active stock fund managers just experienced one of their worst quarters in almost two decades. Less than one in five large-cap funds outperformed the benchmark S&P 500 Index, the lowest number of beats since […]

John Hancock has filled out the gaps in its smart-beta exchange traded fund suite with five new sector-specific ETFs backed by Dimensional Fund Advisors’ research-based factor investing. According to a press release, John Hancock’s new funds include: John Hancock Multifactor Consumer Staples ETF (NYSEArca: JHMS) John Hancock Multifactor Energy ETF (NYSEArca: JHME) John Hancock Multifactor […]

Rick Genoni, managing director and head of ETF product management at Legg Mason, and Mike LaBella, a portfolio manager with QS Investors, joined ETF Trends publisher Tom Lydon to talk about Legg Mason’s entry into the exchange traded fund arena. For instance, Legg Mason recently launched the Legg Mason US Diversified Core ETF (NasdaqGM: UDBI), […]

Mutual funds have been underperforming their benchmarks  Investors interested in these investment styles may be better off with a low-cost, index-based ETF S&P Dow Jones Indices continuously paints a stark picture that many of these actively managed mutual funds may not be worth the cost Mutual funds have been underperforming their benchmarks and issuing high fees […]

Many believed this would be the year that active stock pickers and mutual fund managers could choose their battles to generate alpha. However, the majority of active managers continued to underperform benchmark indices, bolstering the case for passive index-based exchange traded funds. Goldman Sachs analysis found that over the first two months of the year, […]

As the Federal Reserve looks to interest rate normalization, some bond observers are worried about exchange traded fund liquidity risks in the event of a major sell-off. Consequently, the Securities and Exchange Commission has proposed a set of rules to help obviate the potential risks. The SEC is concerned that funds might be exposed to […]

Most actively managed open-end funds have underperformed their benchmarks over the long haul. Alternatively, investors may be better off in cheap passive, index-based exchange traded funds. “In the long run, active funds underperform their passive counterparts due to higher fees and trading costs,” Tim Strauts, Senior Markets Research Analyst at Morningstar, said. Over the one-, […]

In a volatile 2015, investors lost confidence in active fund managers, shifting into cheaper index-based investments and exchange traded funds that promise to reflect market moves. According to Morningstar data, investors pulled $207.3 billion from actively managed mutual funds and moved $413.8 billion into passively managed funds, reports Sarah Krouse for the Wall Street Journal. […]

Franklin Templeton Investments may soon be entering the exchange traded fund space with a handful of smart-beta or alternative index-based ETF options. According to a recent Securities and Exchange Commission filing, Franklin Templeton is working on its first group of ETFs, including the Franklin LibertyQ International Equity Hedged ETF, Franklin LibertyQ Emerging Markets ETF, Franklin […]

Many expected this to be the year that active mutual fund managers would be able to pick and choose their battles and generate alpha for investors. However, active managers continued to underperform benchmarks, bolstering the case for low-cost, passive index-based exchange traded funds. According to Goldman Sachs analysis, only 27% of large-cap core funds beat […]

A Third Avenue junk bond mutual fund has halted investor redemptions, provoking concerns that this may be the canary in the high-yield fund coal mine. However, exchange traded funds that track speculative-grade debt are not exposed to the same level of risks. On Tuesday, Third Avenue Management LLC blocked investors from redeeming positions from the […]

Exchange traded funds have been lauded for their efficiency and tax benefits but that there are still some exceptions to the rule. ETFs are typically seen as more tax efficient than mutual funds due to their structure. Mutual fund managers may buy or sell components to take a profit or meet redemptions from shareholders, which […]

Municipal bond mutual funds gathered USD 2.8 billion in the four-week period ending Oct. 28, 2015, according to the Investment Company Institute, while muni bond ETFs added USD 593 million of inflows in October, according to SSGA.  Despite this low number, at the recent S&P Dow Jones Indices Municipal and Global Bond Forum, various panelists […]

The $2.2 trillion exchange traded fund industry has been slowly eating away at the mutual fund industry’s market share. While the relatively new investment vehicle is making inroads into the financial industry, there are still many detractors censuring the products. Peter S. Kraus, chief executive of AllianceBernstein, has issued a warning on ETFs that have […]

AlphaMark Advisors is the latest fund manager to turn to the exchange traded fund space, launching an actively managed small-cap ETF that was converted from a mutual fund. The recently launched AlphaMark Actively Managed Small Cap ETF (NasdaqGM: SMCP), which has $23.7 million in assets under management, fills a hole in the AlphaMark fund line […]

The exchange traded fund industry has been slowly gaining presence in the investment industry, and old mutual funds are finally beginning to jump on the ETF bandwagon lest they get left behind. “With $2 trillion in assets and investors indicating plans to expand their ETF usage in the intermediate term, we expect additional firms to […]

Actively managed mutual funds have been getting pummeled over the past few months, adding to the investment case for passively managed index-based investments and exchange traded funds as a better way to track the markets. According to a J.P. Morgan U.S. equity strategy note, 67% of mutual funds underperformed their benchmarks in the third quarter, […]

In recent years, passive management has had an increasingly strong foothold, with a sharp rise in assets under management (AUM). According to PricewaterhouseCoopers Asset Management’s 2020 report, the AUM of global passive investments stood at USD 7.3 trillion as of 2012, and they are expected to grow to USD 22.7 trillion by 2020. The active […]

Expanding on the success of its hedge fund replication strategies, Index IQ has come out with a new exchange traded fund that tries to track the best global tactical asset allocation mutual funds. According to a press release, the IQ Leaders GTAA Tracker ETF (NYSEArca: QGTA) began trading Wednesday. The new fund has a 0.45% […]

As investors dip into the financial markets to pick out the best fit, many will choose investment options from the fund market, comparing traditional open-end mutual funds to the relatively new exchange traded funds. Potential investors should understand the benefits and weigh the drawbacks as they fill out a diversified investment portfolio. For starters, the […]

In the wake of the mini flash crash during the height of the recent market volatility, the Securities and Exchange Commission is taking a closer look at safeguards to help obviate another wild swing in exchange traded funds. The SEC will vote on proposed rules requiring mutual funds and ETFs to better handle periods of […]

Some investors argue that actively managed funds are better capable of navigating through the fixed-income market. However, passive index-based bond exchange traded funds may do just as well, if not better, as active strategies. “In the first eight months of 2015, investors added $37 billion into fixed income ETFs compared to the $85 billion for […]

The majority of actively managed large-cap managers are underperforming the benchmark S&P 500, adding fuel to the benefits of passively managed, index-based exchange traded funds. As of June 30, 2015, the SPIVA, or S&P Indices Versus Active, U.S. Scorecard data reveals that 65.3% of large-cap managers underperformed the benchmark S&P 500 index over the past […]

During the late summer market swing, many investors were selling and buying funds to adjust their equity exposure. The change up, though, revealed that investors are ditching mutual funds and are increasingly turning to exchange traded funds to capture market moves. On August 24, the S&P 500 Index plunged 3.9%, one of the worst days […]

OppenheimerFunds announced its acquisition of VTL Associates, an independent investment firm known for its RevenueShares exchange traded funds, joining a growing group of mutual fund providers expanding their investment suite with ETFs. According to a press release, OppenheimerFunds acquired VTL on Wednesday. VTL has been in talks to woo a suitable buyer, so the acquisition […]

Among the growing group of mutual fund providers eyeing the exchange traded fund space, Legg Mason is planning four new smart-beta, index-based ETFs. According to a recent Securities and Exchange Commission filing, the money manager is working on the Legg Mason Developed ex-US Diversified Core ETF, Legg Mason Emerging Markets Diversified Core ETF, Legg Mason […]