Each day, ETFtrends.com publishes news, strategy and commentary on ETFs in the realms of Commodities, Currency, Equities and Smart-Beta to name a few.
Here’s a look at the Top 15 Most Viewed Articles of the Week on ETF Trends, Aug. 15-19, 2016.
Click the headline to read the full article – enjoy!
1. How to Access Healthcare REITs Via ETFs
High-yielding, income-generating asset classes are benefiting this year as Treasury yields decline and the Federal Reserve puts off another interest rate increase. The group of beneficiaries includes exchange traded funds holding real estate investment trusts (REITs).
Within the REIT space, long-term investors may want to consider those ETFs with exposure to healthcare REITs, which are plays on the aging U.S. population. The Vanguard REIT ETF (NYSEArca: VNQ), SPDR Dow Jones REIT ETF (NYSEArca: RWR)and iShares Dow Jones US Real Estate Index Fund (NYSEArca: IYR) are among the most popular REIT ETF plays. While these are some of the top-performing sector funds this year another fund gives investors exposure to healthcare REITs.
2. The Foibles of ETF Expense Ratios
ETFs have seen explosive growth, in part due to lower overall costs and with some assistance from active managers underperforming for a number of years.
Now, don’t get me wrong – low fees are great for investors, particularly long term (which most, if not all, investors should be).
3. A New Active ETF Tries to Improve on Modern Portfolio Theory
Virtus Investment Partners (NasdaqGS: VRTS) partnered with iSectors to launch an actively managed exchange traded fund that promises to track a type of next-gen modern portfolio theory approach.
On Wednesday, iSectors rolled out its flagship iSectors Post-MPT Growth ETF (NasdaqGM: PMPT). PMPT has a 1.55% total expense ratio.
4. ETF Option Strategy: Think Outside the Collar – Protecting the Zone
“Stay near me – do not take flight! A little longer stay in sight! Much converse do I find in thee… Float near me; do not yet depart!” William Wordsworth’s words in “To a Butterfly” (1801) can be aptly applied to traders and portfolio managers alike when speaking of option butterflies. Can this option structure be used for more than just speculative purposes? For savvy traders and portfolio managers it can be used as a replacement for more traditional hedging vehicles.
5. Analyzing the Inverse/Leveraged ETF Business: Q&A With Direxion’s Sylvia Jablonski
Direxion managing director Sylvia Jablonski is regarded as a recognized expert in the ETF industry.
Since joining Direxion in 2009, Jablonski has led the company’s sales team while focusing on global product implementation within the institutional and tactical client segment as well as promoting ETF education and strategy throughout the financial industry.
6. Another Positive for REIT ETFs
Investors have been giving real estate investment trusts a second look ahead of indexing sector reclassification, bolstering demand for REITs-related exchange traded funds. However, there is some other good news for the high-yielding asset class.
7. High Yields: Love ‘em if You Can Leave ‘em
Investor demand for high yield debt has been strong in recent months. And even though spreads have come down and the opportunity for capital appreciation is lower, there simply aren’t many other options for investors looking for yield.
8. VIX, Volatility ETFs Reveal an Overly Complacent Market
The markets have grown overly complacent, with the CBOE Volatility Index and related exchange traded funds slipping to lower levels this year, as stocks continue on their eight-year bull run toward new record highs.
The CBOE Volatility Index, or VIX, is hovering around 11.8, its lowest level so far this year.
For instance, with volatility dissipating and stocks moving higher, the iPath S&P 500 VIX Short Term Futures ETN (NYSEArca: VXX)and ProShares VIX Short-Term Futures ETF (NYSEArca: VIXY) have declined 54.0% year-to-date.
9. What the ETF Industry Has Done Since the Mini Flash Crash
As the market approaches the one-year anniversary of the August 24 sell-off, exchange traded fund providers and market exchanges have come together to outline new rules for more orderly early morning trades to avoid another mini flash crash.
10. Gold ETFs to Hedge Against a Fed Surprise
Gold prices inched higher Tuesday, despite conflicting views from Federal Reserve officials. As the U.S. waits for the Fed announcement, traders may consider a bearish or inverse gold exchange traded funds to hedge against a more hawkish outlook.
On Tuesday, the SPDR Gold Shares (NYSEArca: GLD), iShares Gold Trust (NYSEArca: IAU) and ETFS Physical Swiss Gold Shares (NYSEArca: SGOL) were up about 0.7% while Comex gold futures were 0.5% higher to $1,354.8 per ounce.
11. Making the Case for Emerging Markets
We had been cautious about investing in emerging markets for the last few years and had avoided significant emerging markets exposure, as risks remained elevated.
Pressure stemming from falling commodity prices, slowing growth in China, sharp decreases in capital flows, and a strengthening dollar left risks to these economies relatively high despite their overall attractive valuations. However, we believe the risks have stabilized and investors should reconsider emerging markets, as they are now more attractive on a risk/reward basis than they have been for some time.
12. Smart-Beta Energy ETF Jumps Out as Crude Oil Turns Bullish
After just a couple of weeks past a bear market fall off, crude oil futures moved backed into bullish territory Thursday. Meanwhile, some larger traders jumped into a smart-beta, energy sector exchange traded fund on the suddenly rosier outlook in the oil market.
13. China A-Shares ETFs Climb on Anticipated Shenzhen-Link
Mainland Chinese markets and related China A-shares exchange traded funds rallied Monday on hopes of a formal announcement to a Shenzhen-Hong Kong trading link.
Leading the market surge on Monday, theVanEck Vectors ChinaAMC SME-ChiNextETF (NYSEArca: PEK) rose 4.2%, VanEck Vectors ChinaAMC CSI 300 ETF (NYSEArca: CNXT) gained 3.8% and db X-trackers Harvest CSI 300 China A-Shares Fund (NYSEArca: ASHR) increased 4.0%. Both PEK and ASHR are trading back above their long-term, 200-day simple moving averages.
14. Record Investment Demand for Gold ETFs
Global central bankers’ ever-looser monetary policies and increased uncertainties helped drive investment demand for gold bullion and related exchange traded funds to record highs for the first six months of the year.
15. An Outperforming International Smart-Beta ETF Strategy
The Gavekal Knowledge Leaders Developed World ETF (NYSEArca: KLDW), the first exchange traded fund based on the so-called Knowledge Effect, has been an outperforming international play.
Since its inception as of July 31, 2016, KLDW has outpaced the MSCI World Index by over 5.5 percentage points. Over the past year, KLDW increased 7.4% while the iShares MSCI World Index Fund (NYSEArca: URTH)rose 2.5%. Year-to-date, KLDW increased 10.1%, compared to the 6.3% advance for URTH.