Mutual Funds

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Index exchange traded fund giant Vanguard Group is broadening its scope as the money manager files with the Securities Exchange Commission to launch active ETF options. According to a recent SEC exemptive relief filing, Vanguard is seeking to allow a group of its active funds to be permitted to issue ETF shares that will be actively […]

In a world awash of easy money and rising uncertainty, investors and advisors should consider allocating a portion of their portfolio to hard assets like gold to help stabilize their investments against swings in traditional assets. On the upcoming webcast this Thursday, What’s the Optimal Percent Allocation to Gold?, Jerry C. Wagner, President and Founder […]

Active fund managers have been underperforming broad stock market benchmarks for the past decade, supporting the notion that investors may be better off with a passive strategy or index-based exchange traded fund. According to Bank of America Merrill Lynch data, over the 10-year period ending in 2015, an average of just 37% large-cap mutual funds […]

Fidelity Investments has petitioned the Securities and Exchange Commission to launch non-transparent, exchange traded active funds, or ETAFs as a way to capitalize on the more efficient exchange traded product wrapper while limiting active managers’ risks to potential front runners. According to a recent SEC exemptive relief filing, Fidelity is seeking approval to operate non-transparent […]

While the equities market is making new highs, investors have increasingly turned to passive open-end strategies, along with index-based exchange traded funds, over active mutual funds to gain exposure to the record run. S&P 500 Index mutual funds attracted $3.0 billion in net inflows in June, writes Todd Rosenbluth, S&P Global Market Intelligence Director of […]

Exchange traded funds have been a huge hit in the investment community, with financial advisors increasingly turning to the index-based tool as their go-to investment option for clients. According to the annual 2016 Trends in Investing Survey conducted by The Journal of Financial Planning and the FPA Research and Practice Institute, 83% of advisors use […]

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 […]

The markets still face a number of headwinds. Consequently, investors should consider specific hurdles and look toward asset allocation opportunities. On the recent webcast, Tactical ETF Strategy in an Easy Mutual Fund Package, Deborah Frame, President and Chief Investment Officer of Frame Global Asset Management, pointed to a stagnation outlook, with waning strength in the […]

As we weigh market risks ahead, investors can look to some exchange traded fund strategies to capture opportunities that can help hedge against potential hurdles while participating in any upside. On the upcoming webcast, Tactical ETF Strategy in an Easy Mutual Fund Package, Deborah Frame, President and Chief Investment Officer of Frame Global Asset Management, […]

The ongoing underperformance in actively managed mutual funds is triggering a shift in the fund industry toward cheaper, passive index-based exchange traded funds. The S&P Global Market Intelligence’s Mutual Fund Research Group revealed that only 437 of 2053, or 21%, large-cap fund share classes equaled or beat the 3.57% total return of the S&P 500 […]

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 […]

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 […]