The trickle of exchange traded fund (ETF) filings and launchings has now morphed into a flood. Renewed investor confidence, money on the sidelines waiting to be deployed and optimism about the direction of the economy has fueled the fire.
Van Eck is planning a few ETFs that focus on Eqypt and Kuwait indexes. Daisy Maxey for The Wall Street Journal reports that the new ETFs will deliver exposure to companies domiciled in their respective countries, or companies that derive at least 50% of their revenue from the region.
John Jannarone for The Wall Street Journal reports that ETF Portfolio Management is using ETFs to create a twist on a hedge-fund strategy called “trend following,” which bets on sustained price movements to make returns with low correlation to the broad market. Trend-following funds are part of a group managing $92 billion that returned 18% last year when broader markets plunged, according to Hedge Fund Research. These types of funds focus on futures contracts.
Vanguard opened seven index funds that target fixed-income investments, the U.S. mutual-fund asset category that has drawn 94% of inflows this year. Three of the funds will buy U.S. government debt, three will hold corporate bonds and one will focus on mortgage-backed securities, reports Chris Condon for Bloomberg.
For more stories about new ETFs, visit our new ETFs category.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.