Volatility

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 […]

To say the equity markets have been extremely turbulent over the last several weeks would be an understatement. Nothing demonstrates this better than the benchmark indicator of volatility, the CBOE Volatility Index, along with VIX-related exchange traded funds. When looking at the period of July 31 to August 21, volatility jumped 131.3%, from an index […]

So much for a quiet summer. Stock markets ran into turbulence at the end of August as worries over potential contagion from a slowing Chinese economy rippled across the globe. The S&P 500 finished the month off 6.0%, its worst monthly performance since May of 2012. The MSCI Europe fell 9.6%, while Japan finished 11.4% and […]

While the markets plunged and the CBOE Volatility Index spiked, some investors threw over a billion dollars into VIX-related exchange traded products, indicating a turn around and more complacent market outlook. Since August 20, the VelocityShares Daily Inverse VIX Short-Term ETN (NYSEArca: XIV) has accumulated $1.1 billion in net inflows, according to ETF.com, growing almost […]

The Securities and Exchange Commission will be scrutinizing its rule book after the bout of volatility triggered a mini flash crash in exchange traded funds during the height of the market selling last Monday. Diminished transparency at the start of the trading day and a slew of automated trade orders may have contributed to the […]

Markets across the globe were rocked by volatility from sources new and old last month. The old was a play-by-play repeat of the “taper tantrum” as capital fled from emerging markets in anticipation of a September date for the first rise in U.S. rates since 2006. The new was triggered by evidence that the rollercoaster […]

U.S. equities and stock exchange traded funds were moseying along during most of August but experienced a precipitous plunge in the later half of the month after volatility in China and an unclear Federal Reserve policy outlook triggered a market correction. Over August, the Dow Jones Industrial Average fell 6.6%, the Nasdaq Composite decreased 7.0% […]

On Aug. 21, the Dow Jones Industrial Average entered a correction — falling 10% from its most recent peak — and reminded investors what volatility looks like after almost four correction-free years. While volatility exposes weaknesses in the market, in my opinion it also reveals the strength of high conviction managers who are skillfully navigating […]

Some are crediting me with calling the 6-day mini-crash. On the contrary. When I wrote “15 Warning Signs Of A Market Top” on August 18, the intent was to discuss micro-economic (corporate), macro-economic, fundamental and technical reasons for reducing one’s overall allocation to riskier assets. I did not predict the epic fall from grace for […]

This article was written by Rob Waldner, chief strategist and head of the Multi-Sector team for Invesco Fixed Income. China’s central bank cut key policy interest rates Tuesday to help calm markets after its recent currency devaluation set in motion a cascade of Chinese and global stock market turmoil. The People’s Bank of China (PBoC) […]