Archive for the 'ETF' Category

The Clear and Present Regulatory Danger Facing ETFs

Martin Fluck submits: We may not have long to wait for the collapse in the exchange-traded fund bubble. The ETF industry ran out of control long ago, but regulators can no longer ignore the retail money faddishly pouring into these funds, and how it is distorting market prices. Stuffed with exotic derivatives and super-concentrated bets [...]

USCI: Commodities and Academics in One ETF

Tom Lydon submits: The ETF industry’s newest commodity offering combines brains and natural resources, but it’s worth closer examination before you dive in. SummerHaven Investment Managment LLC partnered with a Yale professor to create the computer-driven investment strategy on which the U.S. Commodity Index Fund (NYSEArca: USCI) is based. Ian Salisbury for The Wall Street [...]

Water ETFs for a Global Crisis

Tom Lydon submits: Never mind the financial crisis; the world has a water crisis. Many countries – both emerging and developed – face shortages and lack of adequate access to clean, potable water. And therein likes the ETF opportunity. The World Health Organization (WHO) reports that up to half of civilization has one of six [...]

New ETN Allocates Capital Between Equities and Existing Volatility Product

optionMONSTER submits: By Chris McKhann The line-up of volatility products available to retail traders continues to expand, as Barclays has rolled out its S&P VEQTOR ETN (VQT). As the first dynamic volatility fund, VQT will be very interesting to follow. It is comprised of a long S&P 500 position, a long VXX Short Term VIX [...]

Five Criteria to Select High Dividend Equity ETFs

Hao Jin submits: In an environment where the 10-year Treasury yield is less than 3 percent, dividend stocks with long track records of consistent, growing payouts to shareholders are becoming quite attractive. However, the dividend payments of any single company might be cut or even disappear (just ask BP shareholders). ETFs offer a more stable [...]

3 Semiconductor ETFs in Focus as Intel Slashes Outlook

Jarred Cummans submits: In a period of economic instability, like we have seen for the majority of this year, consumer spending is usually low. The low buying power that consumers hold during uncertain times wreaks havoc on a slew of companies whose profit relies on the consumer’s willingness to buy. So it came as a [...]

A Slow Evolution in Indexing for Sovereign Debt ETFs

Tom Lydon submits: A prominent figure in the exchange traded fund world describes a RAFI fundamental index evolution, which will help achieve greater returns at lower risks. However, there is a caveat. ETF traders will have to see this slow change over the next 10 years. Olivier Ludwig for IndexUniverse asked Rob Arnott, founder of [...]

ETF Rewind: Extended Short-Term Overbought Readings Across All Indices

ETF Prophet submits: by Market Rewind (Click Image to Enlarge/ ETF Rewind Glossary) Equities made a furious dash higher on oversold conditions combined with several marginally better than expected economic reports and talks of status quo taxation, taking the S&P 500 (SPY) higher by +3.8%. The most impressive sector movers were the Financial (XLF) and [...]

Ireland ETF Faces Challenges

Tom Lydon submits: Ireland’s exchange traded fund has continued to struggle, but the country’s citizens are more evenly divided on the direction of their economy. Standard & Poor’s recently downgraded Ireland’s debt, but in a poll, 53% said that S&P was being overly pessimistic about the economy, says Graham MacKay for International Business Times. Complete [...]

Mining ETFs Facing Global Shifts

Tom Lydon submits: Growing nations are starving for raw materials. Their newly-minted middle classes are ready to spend, they’re buying cars and they’re moving to the cities. Mining exchange traded funds are in a position to reap the rewards of this growth. New buildings demand copper for wiring and pipes. New cars call for platinum [...]