Volatility

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As the Brexit referendum results triggered a global risk-off event, exchange traded funds (ETFs) that track safe-haven plays surged on the increased volatility. For instance, gold jumped the most since the 2008 financial downturn as traders turned to the Brexit haven, Bloomberg reports. Gold futures jumped as much as 8.1% on three times the average […]

As the equities markets continue to slide on ongoing concerns, exchange traded fund investors may look to strategies that track the CBOE Volatility Index and bearish play on stocks. U.S. stocks broke even after falling off for most of the session Thursday as global stocks weakened in response to Japan’s central banks decision to push […]

The equities markets are slipping and the CBOE Market Volatility Index, along with VIX-related exchange traded products, is spiking as traders try to hedge a number of risk events ahead. On Monday, the REX VolMAXX Long VIX Weekly Futures Strategy ETF (BATS: VMAX) surged 9.6%, iPath S&P 500 VIX Short Term Futures ETN (NYSEArca: VXX) […]

Note: This article appears on the ETFtrends.com Strategist Channel By Marc Odo Read the fine print of the disclosures of a leveraged exchange traded fund (ETF) and you’ll probably come across something like the following: “This leveraged ETF seeks a return that is +200% or -200% of the return of its benchmark index for a single […]

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 […]

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 […]

The month of April was more or less a wash for equities and stock exchange traded funds as the market ends the month on a down note after a spate of earnings misses. Over April, the Dow Jones Industrial Average was up 0.6%, the Nasdaq Composite dropped 1.4% and the S&P 500 dipped 0.3%. The […]

Market volatility not only creates an environment rife with behavioral errors, it can also rob even the best financial advisors of productivity and limit their business potential. After decades of working with financial advisors, I have found that during times of downside volatility, advisors typically report lower year over year production as new business slows […]

U.S. equities and stock exchange traded funds slipped on the last day of March, ending the month on a muted note after a wild quarter that pushed the markets into a correction before clawing back the losses on swift rebound. The Dow Jones Industrial Average gained 1.5% over the first quarter of 2016. Meanwhile, the […]

With the equities market rebounding from the sell-off earlier this year and pushing back toward their all-time highs, some more skeptical investors have increased bets on the CBOE Volatility Index, or VIX, and related exchange traded products to hedge against a market turn. Investors funneled a record amount of cash into exchange traded funds that […]

Francis Kinniry, principal in Vanguard Investment Strategy Group, and Joel Dickson, a senior investment strategist and a principal in Vanguard Investment Strategy Group, joined ETF Trends publisher Tom Lydon to look at the ongoing volatile conditions in the equities market and how exchange traded fund investors are reacting. Click on the video below to see […]

VXX attracts $260.1 million in net flows as ETPs start to gain traction A rise in trader interest for these types of assets have typically preceded a swing in equity volatility The volatility index is now trading at around the 18 level, hovering around its historical average Exchange traded products that help investors hedge against […]

U.S. equities and stock exchange traded funds experienced their roughest start to a new year but ended the month on a lighter note after the Bank of Japan surprised markets with an aggressive policy move. Year-to-date, the Dow Jones Industrial Average fell 5.7%, the Nasdaq Composite dropped 6.0% and the S&P 500 retreated 4.9%. The […]

Exchange traded products that track the CBOE Volatility Index, or VIX, have experienced large outflows, suggesting that investors are anticipating smaller swings and calmer markets ahead. Traders pulled $850 million from two of the most popular ETPs, which include both exchange traded funds and exchange traded notes, in January, even as the VIX is set […]

As the exchange traded fund industry grows, the number of critics are growing as well. While we do hear about a number of concerns that are unique to ETFs, investors should separate the facts from fiction. For instance, some are concerned that ETFs cause volatility in the stock market. However, people may be confusing the […]

Treasuries and bond-related exchange traded funds advanced Wednesday as benchmark yields tumbled to their lowest since October. On Wednesday, the iShares 7-10 Year Treasury Bond ETF (NYSEArca: IEF) rose 0.5%, Schwab Intermediate-Term U.S. Treasury ETF (NYSEArca: SCHR) was 0.3% higher, Vanguard Intermediate-Term Government Bond ETF (NYSEArca: VGIT) was up 0.3% and SPDR Barclays Intermediate Term […]

The CBOE Volatility Index and VIX-related exchange traded products spiked Thursday after a quick plunge in Chinese markets triggered a sell-off in the U.S. and inflamed investor anxiety. On Thursday, the iPath S&P 500 VIX Short Term Futures ETN (NYSEArca: VXX) rose 11.4%, ProShares VIX Short-Term Futures ETF (NYSEArca: VIXY) gained 10.9%. Additionally, for the […]

U.S. equities and stock exchange traded funds experienced a wild ride this year, but with everything said and done, the markets are closing out 2015 pretty much where they started. The Dow Jones Industrial Average dipped 1.5% over 2015. Meanwhile, the Nasdaq Composite increased 6.5% and the S&P 500 was flat. The top performing non-leveraged […]

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 […]

While U.S. benchmarks retreated Friday and were on course for their worst weekly performance in a month, the CBOE Volatility Index and VIX-related exchange traded funds surged on the elevated risk-off sentiment. Exchange traded products that try to track the VIX were among the best performers on Friday as major stock indices declined over 1.5%. […]

U.S. stocks slid Monday as global growth concerns and prospects of a Federal Reserve December rate hike dragged on the equities, fueling market uncertainty and CBOE Volatility Index, or VIX, related exchange traded funds. On Monday, the iPath S&P 500 VIX Short Term Futures ETN (NYSEArca: VXX) jumped 4.4%, ProShares VIX Short-Term Futures ETF (NYSEArca: […]

Looking back over the last three to four years, global market performance has been driven mainly by quantitative easing, with little to no profit growth internationally. This, in turn, has led to significant multiple expansion. Market leadership has been driven by defensive stocks, such as consumer staples, as pricing power and emerging market demand for […]

Despite finishing on a down note, the equities market and stock exchange traded funds closed out their best month in four years. Over October, the Dow Jones Industrial Average increased 8.5%, the Nasdaq Composite advanced 9.3% and the S&P 500 rose 8.3%. The best performing non-leveraged ETFs over the past month include Global X MSCI […]

With volatility shaking up the markets, investors and financial advisors may consider including some alternative investments into an investment portfolio to help smooth out the ride. While the equities market are trading near full value at best and bonds are being threatened with the prospect of rising interest rates, investors may want to take a […]

U.S. equities and stock exchange traded funds regained their footing Wednesday, ending a tumultuous month on a positive note. Over September, the Dow Jones Industrial Average fell 1.5%, the Nasdaq Composite dropped 1.1% and the S&P 500 retreated 2.5%. The best performing non-leveraged exchange traded products over the past month include the ETFS Physical Palladium […]

After the recent bout of volatility in the marketplace, more eyes are on exchange traded fund flows. ETF Trends editor Tom Lydon appeared on CNBC Tuesday to touch on how ETFs are now a large part of the financial ecosystem and will obviously swing along with the broader markets. Watch the video below to see […]

Over the last 18 months, the Invesco Multi Asset team has maintained that the lack of volatility in several markets versus historical norms was providing interesting investment opportunities. At the start of the year, we published a blog reinforcing our belief that volatility was an undervalued asset class (Investing in Volatility: Is Asian Volatility Poised […]

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 […]

Now that the markets have taken the time to dissect the exchange traded fund mini flash crash during the height of the recent volatility, investors may better understand how the players behind the scenes orchestrate a well choreographed dance to keep ETFs working. According to a recent KCG research note, Phil Mackintosh, Ka Wo Chan […]

The markets have experienced a spike in volatility and some believe we are in for more wild swings ahead. Investors, though, can utilize low-volatility exchange traded fund strategies to ride out the any further bumps in the equities market. Volatility is the new norm for financial markets, writes Mohammed El-Erian, chief economic advisor to Allianz […]