ETF Articles

Mar. 11, 2015 — ETF Trends — Principal Financial Groups (NYSE: PFG) Principal Global Investors signaled its intent to join the rapidly-growing exchange traded funds industry with the recent hiring of Paul Kim as managing director and head of ETF strategy.

Mar. 10, 2015 — ETF Trends — Money managers could bring their strategies to market more quickly through an active exchange traded fund as the New York Stock Exchanges Arca proposes a rule change on how funds are listed.

Mar. 10, 2015 — Thomson Reuters — The best performing technology fund since the peak of the dot com boom did it all without owning Apple Inc (AAPL.O), whose soaring stock price has pushed the Nasdaq near a new record high.

Mar. 09, 2015 — WallStreetJournal — The municipal-bond market isnt always the easiest to navigate. But the simple, cheap choice of investing in muni bonds through ETFs is about to get a boost.

Mar. 05, 2015 — Barron’s — As traders grapple with when to call the bottom on oil prices, one large options trade on Thursday suggests somebody is convinced that oil will stick within a stable range for nearly two years.

Mar. 05, 2015 — Thomson Reuters — Billions of dollars are pouring into oil exchange-traded funds as investors, many of them small savers more familiar with stocks than commodities, risk big losses and focus on the chance of huge rewards.

Mar. 05, 2015 — Bloomberg — The Nasdaq OMX Group Inc. is making a push to grab more exchange-traded note listings, challenging long-time market leader NYSE Arca for what can be lucrative listing and trading fees.

Mar. 04, 2015 — Wall Street Daily — Pacific Investment Management Co. (PIMCO) is facing an investor confidence crisis.

The storied bond firm experienced over $150 billion of mutual fund outflows in 2014. And PIMCOs flagship Total Return Fund is now 54% smaller than it was at its peak in April 2013, when assets under management (AUM) reached $293 billion.

Mar. 04, 2015 — CNBC — Amidst the worst crash in oil prices since the 1980s, with oil companies cutting capital spending budgets, Bayard Closser had an idea: Try to sell investors on a new fund focused on master limited partnerships in the energy business.

Mar. 01, 2015 — WallStreetJournal — Institutions are piling into exchange-traded bond funds at the fastest pace on record, driven by forces reshaping the increasingly illiquid corporate-debt market and their desire to stay nimble ahead of expected interest-rate moves.

• AMZA is the first actively-managed C-corporation MLP ETF and was issued in October 2014.
• The fund made its first distribution in January 2015, and at $0.50 would project to amount to a roughly 9% annual yield.
• I provide five reasons to consider buying this fund, ultimately relying on the skill of the funds manager.

Feb. 25, 2015 — seekingalpha.com — Summary

The wide use of ETFs doesnt necessarily mean a commitment to indexing.

Some investors use ETFs to try to outperform the market.

Vanguard shares the research and explains the risks.

Feb. 24, 2015 — seekingalpha.com — Summary

HYHG is duration neutral and has zero exposure to rising rates.

This makes it an excellent addition to a broader strategy in that it can take down overall interest rate risk within a portfolio.

Although its been a longtime loser for investors, I think HYHG will be a strong performer over the next several years.

Feb. 24, 2015 — Bloomberg — More and more, exchange-traded funds that invest in corporate debt are a playground for hedge funds.

Feb. 24, 2015 — CNBC — The manager of an ETF-heavy fund is sticking to U.S. stocks as major indexes trade near records.

Feb. 24, 2015 — Thomson Reuters — Jeffrey Gundlachs DoubleLine Capital launched on Tuesday its first actively managed exchange-traded fund, the SPDR DoubleLine Total Return Tactical ETF, contending with the Pimco Total Return Active Exchange-Traded Fund which was previously run by Bill Gross.

Feb. 20, 2015 — Bloomberg — In trying to capitalize on the news of mergers and acquisitions, hedge funds are being outdone by an exchange-traded fund clone.

Feb. 11, 2015 — seekingalpha.com — Summary

I was invited to interview the portfolio management of the newest, actively managed, MLP-focused ETF, trading under the symbol AMZA.

My concern with the new fund was the level of visibility provided about fund holdings, compared to a traditional ETF, which must match a specified index.

AMZA provides a new, enhanced packaged fund product for investors who want MLP exposure. The active management strategies should provide meaningful and measurable improvements on traditional MLP ETFs.

Feb. 06, 2015 — Forbes — Its a bit of inside baseball in the money management world, but some advisors lean toward using index funds for their clients and some prefer exchange-traded funds (ETFs).

Feb. 06, 2015 — Thomson Reuters — The latest edition of Inside Credit features Fitch Ratings study of corporate bond issue size and trading frequency. A sample study of five major U.S. corporate bond exchange-traded funds (ETFs) underlying holdings shows that investment-grade corporate bond issues under $500 million trade significantly less frequently than larger issue bonds. The matter has specific importance for ETFs because they trade continuously, while the underlying bonds supporting the ETFs prices do not.

Feb. 05, 2015 — Barron’s — Fidelity Investments added real estate to its ultra-cheap corral of passive exchange-traded funds on Thursday, the first bolt-on to its sector-based offerings since they were launched over a year ago.

Feb. 02, 2015 — seekingalpha.com — Summary

The ETF has a relatively attractive level of correlation to SPY, but I expected lower for another continent.

The liquidity is excellent but ETF is so volatile that the high correlation makes it hard to diversify the risk away.

Jan. 24, 2015 — Barron’s — Two of the oldest and largest ETFs were the biggest losers in terms of outflows. But its not about performance — why the PowerShares QQQ and the iShares MSCI Emerging Markets funds might go the way of the dodo.

Jan. 22, 2015 — seekingalpha.com — Summary

Poor American infrastructure has an overall Grade of D+ by American Society of Civil Engineers.

Congested roads alone cost America $101 billion in fuel and wasted time in 2010 and last major infrastructure work was in 1956 by President Eisenhower.

Jan. 22, 2015 — seekingalpha.com — Summary

The InfraCap MLP ETF is one of the new, actively managed ETFs, bringing return-enhancement strategies to the ETF space.

MLP-focused funds face additional tax hurdles not faced by ETFs in other market sectors. The InfraCap fund strategies may help overcome those hurdles.

Jan. 20, 2015 — Forbes — Jay Hatfield: In our approach to investing, were focused on master limited partnerships, and our ETF, InfraCap MLP ETF (NYSE: AMZA), focuses on the largest, most liquid, midstream MLPs in the United States. We focus on midstream MLPs which typically own and operate pipelines and storage facilities rather than upstream MLPs which own and operate commodity producing wells.

Jan. 14, 2015 — Forbes — Ask Lee Kranefuss for a stock pick and he will begin by telling you that 90% of the variance in investors returns comes from asset allocation rather than security selection.

Jan. 13, 2015 — WallStreetJournal — BlackRock Inc. the worlds largest asset manager, announced Tuesday the launch of a new exchange-traded fund designed to mimic investment in physical U.S. real estate and help feed the growing appetite for property.

Jan. 10, 2015 — Barron’s — Exchange-traded-fund providers are taking on the role of Savile Row clothiers, tailoring ETFs to the unique specifications of large clients. Thats great news for the parties involved in the transaction, but when retail investors try on the same ETF, they can end up looking like theyre wearing dads old suit.

Jan. 08, 2015 — seekingalpha.com — Summary

Uncertainty in the markets can be a scary thing and often prompt ill-timed moves that set your portfolio back from achieving your goals.

The unknown is how long will it take for new opportunities to develop and where the most rewarding setups may ultimately materialize.

Jan. 02, 2015 — Barron’s — In most circles, a poor copy is considered more gauche than a good one, scorned as much for its transparency and lack of skill as its lack of originality. Yet for the exchange-traded funds that try to mimic hedge-fund strategies, imperfect imitation led to outperformance in 2014.

Dec. 29, 2014 — seekingalpha.com — Summary

I am baffled by the economic acceleration certainty that nearly every respected voice has endorsed.

In spite of the rosiest government data on jobs and GDP, which ETF asset classes proved most resilient in a month of volatile price movement? Utilities and REITs.

Dec. 27, 2014 — Barron’s — The exchange-traded fund industry heads into the New year having notched a fresh milestone: $2 trillion in assets under management, achieved just last week. This caps asset growth of 18% in 2014.

While the most complex and quirky ETFs tend to garner disproportionate attention in a field of nearly 1,700 funds, it is the low-cost, tax-efficient bread-and-butter ETFs that are fueling the industrys growth.

Dec. 23, 2014 — seekingalpha.com — Summary

History seems to favor long/short strategies.

Just take a look at the 20-year track record of long/short hedge funds.

Cumulatively, long/short plays have bettered the S&P benchmark by 62 percent with a third less volatility.

U.S. equities look fairly priced, if not overvalued, as the bull rally continues.

Investors who want to find cheap investment opportunities should look at the emerging markets.

Dec. 15, 2014 — Barron’s — Goldman Sachs Group (GS) filed with regulators on Friday for nearly a dozen exchange-traded funds, the latest step for the banks asset-management arm to enter the $2 trillion U.S. ETF market.

Dec. 15, 2014 — WallStreetJournal — At Pacific Investment Management Co.s holiday party at the Hyatt Regency Huntington Beach Resort and Spa on Dec. 6, more than 1,000 employees and their spouses admired the Pacific Ocean and mingled between stops at appetizer stations.

Dec. 13, 2014 — Barron’s — Tax efficiency is a much-touted virtue of exchange-traded funds, a distinguishing trait that gives ETFs an edge over traditional mutual funds. But 2014 has ushered in a handful of noteworthy reminders that the tax advantages ETFs boast arent shared universally. Investors in some popular international ETFs in particular might be surprised this year to receive heftier capital gains than in previous years.

Nov. 14, 2014 — Barron’s — After more than a year of scrutiny by regulators, Howard Present, the head of F-Squared Investments, among the fastest-growing users of exchange-traded funds, stepped aside on Friday.

Nov. 13, 2014 — ETF Trends — Exchange traded managed portfolios are growing in the separate accounts space as financial advisors partner with ETF strategists to create customized asset allocation tools and optimize their advisory firms.

Nov. 12, 2014 — seekingalpha.com — Summary

The first U.S.-listed ETF that provides exposure to Chinas onshore bond market.

A closer look at the Market Vectors ChinaAMC China Bond ETF.

The new bond ETF helps investors round out their China exposure, coupled with the recently launched China A-shares equity ETFs.

Nov. 11, 2014 — Barron’s — A program to connect stock exchanges in mainland China with Hong Kong, slated to start next week, is shining a spotlight on handful of exchange-traded funds that navigate the countrys tightly controlled domestic market.

Nov. 11, 2014 — seekingalpha.com — The bond ETF space and the likely rise in short-term interest rates next year have become hot topics of discussion in the U.S. market. Investors are busy analyzing what type of duration and investment grade bonds should be the best pick at present especially given faltering global growth, strengthening of the U.S. economy, Fed outlook and Ebola concerns (read: 3 Overlooked BondETFs Holding Up in The Market Slump).

Nov. 10, 2014 — Thomson Reuters — U.S. regulators rejected a proposal from BATS Global Markets that would allow it to list and trade actively managed exchange-traded funds that do not have to disclose their holdings on a daily basis.

Nov. 10, 2014 — seekingalpha.com — Summary

EDIV has a 5.35% yield.

EDIV currently falls in the value section of Morningstars Style Box, but has less exposure to the cheapest sectors and markets than DEM.

Nov. 04, 2014 — WallStreetJournal — Saudi Arabias surprise move to cut U.S. oil prices raised fears the market would be inundated with crude. By one closely watched measure, the gluts already here.

Nov. 04, 2014 — seekingalpha.com — Summary

Ark Investment Management recently launched an actively managed Genomic ETF.

Nov. 03, 2014 — Financial Times — Volatility in foreign exchange markets has been muted for much of this year and exchange traded funds and products that provide exposure to currency fluctuations have struggled to win investors attention.

Oct. 24, 2014 — WallStreetJournal — The asset-management industry suffered a setback when regulators rejected a proposal by BlackRock Inc. to launch an exchange-traded fund that would have kept its holdings hidden from investors.

Oct. 23, 2014 — Thomson Reuters — (Reuters) — Janus Capital Group Inc said on Thursday that third-quarter profit rose 25 percent, but the mutual fund company posted more outflows of investor cash as the arrival of star bond manager Bill Gross came too late to reverse the trend.

Oct. 22, 2014 — Bloomberg — Investment firms made it easy for individuals to plow into infrequently-traded debt in good times. Perhaps they should make it tougher to exit in downturns.