“This year, emerging markets mutual funds are up an enticing 54 percent, according to Lipper Inc. That indicates developing nations have the capacity to survive global economic trauma and investors are regaining an appetite for risk,” Reports Andrew Leckey from stltoday.com. Read more…
Van Eck Global has filed papers with the Securities & Exchange Commission for a new exchange-traded fund that will target small- and mid-cap gold and silver mining companies.
The filing contains few details, but the new Market Vector Metals ETF will follow a passive indexing strategy to capture a float-adjusted, market-cap-weighted index of smaller mining outfits. Read more…
There has been much talk about an economic recovery lately. Without analyzing WHETHER a recovery is even validated, the focus of attention has shifted to the actual shape of a recovery. Rather than getting caught up by wishful thinking, we actually bothered to take a look at the big picture. Sooner or later, the missing link in the above chain of reasoning will become painfully obvious…..
Those who fail to learn from history…
This bear market has often been compared to the 1972-1974, or 1980-1982 bear. The 80’s bear was fairly shallow with a 27% decline in the S&P 500 (NYSEArca: IVV). The 70’s bear did send the S&P 500 tumbling by 48%. So far, the current bear market has melted the Dow Jones (top to bottom) 55%. This exceeds the 70’s and 80’s bear, and makes them unsuitable for comparison purposes. Read more…
Of course, corporate earnings still face serious financial headwinds and investors could pay a steep price for getting in too early.
Nonetheless, Russell Investments recently examined the stock market’s performance during the five recessions that have hit the U.S. economy since 1980, including the current credit malaise. The research uncovered clear trends in how growth and value stocks perform during recessions. Read more…
Van Eck Global today introduced the Market Vectors Brazil Small-Cap ETF (NYSE Arca: BRF), the first U.S.-listed exchange-traded fund (ETF) to focus on Brazilian small-cap stocks.
BRF and its underlying index (Market Vectors Brazil Small-Cap Index, ticker: MVRIO) are designed to give investors exposure to domestic investment themes and opportunities, such as the growth potential in Brazil’s homebuilding and consumer goods sectors.
“In our view, small-cap stocks represent excellent direct exposure to the Brazilian economy since small-caps are typically driven by local trends,” said Jan van Eck, Principal at Van Eck Global. “BRF is well diversified and avoids the heavy commodities and materials weightings of other Brazil-focused products currently on the market.”
“Energy and Materials accounted for more than 50 percent of the weighting in the typical Brazil-focused index as of April 30th of this year,” continued van Eck. “By way of comparison, Energy and Materials made up just 16 percent of MVRIO at that same time. We believe that this makes BRF a unique product and one that will appeal to investors who are looking for a different type of exposure to Brazil’s local economy.” The top three industry weightings for BRF’s index are Household Durables, Food Products and Specialty Retail at 16%, 9% and 8%, respectively.
VALLEY FORGE, Pa.–(BUSINESS WIRE)–Vanguard FTSE All-World ex-US Small-Cap ETF, which seeks to track the performance of the FTSE Global Small Cap ex US Index, has begun trading on the NYSE Arca exchange under the ticker symbol VSS. The launch brings the number of Vanguard’s ETFs to 39, with aggregate assets topping $44 billion.
VSS holds approximately 2,100 securities and has an expense ratio of 0.38%, making it lower-cost and more broadly diversified than the other small-cap international-focused ETFs available today.* It is the only international small-cap ETF in the marketplace to cover both developed and emerging international markets (Source: Lipper Inc., February 27, 2009).
“Many advisors are committed to providing international exposure within their clients’ portfolios, but until now a low-cost index option with developed and emerging market small-cap exposure was not available,” said Martha Papariello, principal, Vanguard Financial Advisor Services. “VSS serves as the ideal complement to Vanguard FTSE All-World ex-US ETF [VEU], which was introduced in March 2007 and holds mid- and large-cap securities.”
With a historically low correlation to U.S. small-cap securities, international small-cap ETFs can further diversify a portfolio containing only domestic and international large- or mid-cap stocks. VSS provides advisors with a low-cost option for customizing and diversifying their clients’ international portfolios.
Financial advisors seeking more information about Vanguard’s ETFs and low-cost mutual funds can visit https://advisors.vanguard.com. The site features analytic tools and practice-management programs to help advisors better meet the changing needs of their clients.
Vanguard, headquartered in Valley Forge, Pennsylvania, is one of the world’s largest investment management companies and a leading provider of company-sponsored retirement plan services. Vanguard manages $1 trillion in U.S. mutual fund assets, including nearly $490 billion in retirement assets. Vanguard offers more than 150 funds to U.S. investors and more than 50 additional funds in non-U.S. markets.
*Sources: Lipper Inc. and Vanguard, February 28, 2009. The expense ratio for Vanguard FTSE All-World ex-US Small-Cap ETF is estimated at 0.38%, far below the 0.64% average expense ratio for international small-cap ETFs. FTSE All-World ex-US Small-Cap ETF has approximately 70% more holdings than the nearest competitor ETF—2,100 holdings versus 647.
All asset figures are as of March 31, 2009, unless otherwise noted.