All ETF Daily News Articles

How iShares Sale Will Impact ETF Industry

ishares_logoMany investors might be curious about what’s going to happen after the sale of iShares‘ popular line of exchange traded funds (ETFs) takes place.

Word on the Street is that Barclay’s plans to sell its paramount iShares ETF business to a limited partnership established by private equity giant CVS Capital Partners Group for a whopping $4.4 billion, states John Spence of The Wall Street Journal.

Some worry that this move could take away from one of the most attractive characteristics of ETFs: their low expense ratios. These low costs were one driving force which enabled ETFs to snatch away several billions of dollars worth of assets from mutual funds which tracked the same indexes but cost a lot more in fees. Fortunately, there is plenty of competition in the market place to keep prices fair.

Full Story:

ETF BASIC NEWS May 2, 2009 10:19am

Late Surge Swings ETFs Into Black

etf-news7Market Wrap-Up Stocks finished flat Friday as flu fears and financials weighed down a previously rallying market. The Dow Jones Industrial Average had a late afternoon Friday rally to rise 44 points and close at 8212. Friday's gains left the index up 1.7% for the week as a mix of lower than expected jobless claims and some positive earnings offset the bankruptcy of Chrysler and global alarm over the spread of swine flu. To see a complete rundown on Friday’s trading session see our market story. Winners Forecasts that the semiconductor market had reached a significant bottom helped the iShares MSCI Taiwan Index fund (EWT: 10.31, +0.09, +0.88%), which counts chip makers among its biggest holdings, gain 16.3% by Friday's close. The lead-up to the summer driving season fueled anticipation about gas prices, and pushed up shares of the United States Gasoline fund (UGA: 25.40, +0.88, +3.58%) 9.9% for the week. Losers Financial stocks, still at the center of questions about the sustainability of the rally, bobbed up and down through a week highlighted by the ouster of Ken Lewis from the chairmanship of Bank of America (BAC: 8.70, -0.23, -2.57%). By Friday, the SPDR KBW Bank fund (KBE: 16.04, -0.29, -1.77%) was down 4.7%. Stock rallies drove down metals prices, though, and the iShares Silver fund (SLV: 12.31, +0.10, +0.81%) shed 4.3% for the week Full Story:
ETF BASIC NEWS May 1, 2009 4:28pm

Retail ETF XRT Gets Bearish Attention

bearAn option trader takes a position that will pay off if this retail sector ETF takes a 15% tumble in coming weeks. Retail Select Sector SPDR ( XRT - news - people ): The retail exchange-traded fund appeared on our 'most active by options volume' market scanner after one investor appears to have initiated a ratio put spread in the near-term May contract. Shares are slightly off by about 1% for the fund to $27.45. The sale of 6,600 puts at the May 25 strike price for 36 cents apiece was spread against the purchase of 3,300 puts at the May 27 strike for about 97 cents each. The net cost of the bearish position amounts to 25 cents and yields a maximum potential profit to the trader of 1.75 if shares decline to $25.00 by expiration this month. Shares would need to fall by about 9% from the current price in order for maximum gains to be realized. Losses needn't accrue until shares breach $23.25 to the downside. Full Story:
NYSE:XRT May 1, 2009 3:55pm

Market Vectors Family of Municipal Bond ETFs Announces Distributions

dividendsNEW YORK--(BUSINESS WIRE)--The Market Vectors ETF Trust announced regular monthly distributions today for five ETFs within the Market Vectors Family of Municipal Bond ETFs*.

The following dates apply to today’s distribution declarations:

            Distribution     Distribution Amount


    Ticker     Frequency     Per Share
Market Vectors                  
Intermediate Municipal Index ETF     ITM     Monthly    

$ 0.0660

Market Vectors                  
Long Municipal Index ETF     MLN     Monthly    

$ 0.0740

Market Vectors                  
Short Municipal Index ETF     SMB     Monthly    

$ 0.0370

Market Vectors                  
High-Yield Municipal Index ETF     HYD     Monthly    

$ 0.1600

Market Vectors                  
Pre-Refunded Municipal Index ETF     PRB     Monthly    

$ 0.0240

Full Story:
ETF BASIC NEWS May 1, 2009 3:18pm

A Bull Case For Ishares Silver ETF

silverUnlike gold, says Morgan, which is useful predominately as a store of value, "silver has a dual personality, as both an industrial and monetary asset." Silver's innate physical properties make it an ideal ingredient in several industrial applications. As nature's best electrical and thermal conductor, the metal is perfect for high-performance electronics or high-voltage circuits. Silver's high reflectivity makes it a must for fine-precision optics, and photosensitive silver compounds are the engine behind photographic film. The metal is even a natural biocide, which is handy in sterilization and treating wounds. Given silver's valuable characteristics, it's not a big surprise that industrial demand for the metal has risen every year since 2001. The industrial sector now accounts for 54% of global silver usage. (The remainder breaks down into luxury demand - namely, the jewelry trade - and investment demand.) "Not only is industry the fastest-growing segment of demand for silver, it's also the largest," says Morgan. Demand could continue to grow long term, since silver is a component in many up-and-coming "green" technologies. Photovoltaic cells in solar arrays require silver coatings. Water purification plants use silver compounds to prevent bacteria and algae buildup. And super-efficient, eco-friendly silver-zinc batteries may soon supplant their lithium-ion cousins in the rapidly growing electric car market. "Silver is a very clean metal, a very green metal," says Morgan. "And it's also inelastically priced: For some applications, no matter how you price it, you have to use silver." Another growing demand comes from silver ETFs, which despite their relative newness, have attracted a significant following among individual investors and institutions, like pensions and insurance companies (which can't access the derivatives market). Combined, the silver ETFs added 63.5 million ounces to their stocks throughout the first three months of 2009, and the iShares Silver Trust ETF (NYSE Arca: SLV) now holds over 270 million ounces of fine silver - roughly three-fifths the total silver stocks, says Morgan. Full Story:
NYSE:SLV May 1, 2009 3:14pm

Bears vs. Bulls: What about the pigs?

pigs1Fortunately today has been a healthy reprieve from the fallout. There has been little to no signs of a worsening flu pandemic. People are not dropping like teenage girls at a Beetle’s concert (or an Obama sighting). And share prices have found enough of a reason to continue their climb even after a solid week of gains from the equities market. Wall Street appears to be undecided about next week’s action, however. About half of the crowd is calling for a fizzle, while the other half is calling for more gains based on signs the economy is improving at a faster-than-expected rate (the stimulus worked!). The answer will come from Mexico. Watch the iShares MSCI Mexico ETF (NYSE:EWW), which has the perfect ticker considering the current flu scare, over the next few trading days. It will be a strong indication of what Wall Street thinks of Mexico’s economic chances. If the fund lags the market, I expect the equities markets to eventually turn around and follow Mexico into the red. If the ETF is a strong leader, however, it means the fears were way overblown and the equities market as a whole is undervalued. Full Story:
NYSE:EWW May 1, 2009 2:14pm

Can The The TECH Q’s Continue It’s Rebound In 2009?

uptrend"A lot has changed since the go-go days of the late nineties, when tech stocks soared to amazing heights and then crashed and burned when reality set in. To learn about this paradigm shift, click here. Today, the reality is that tech stocks are here to stay." Writes Sean Hyman
"What were once speculative and highly volatile companies are now mainstays in our economy. This is part of the natural evolution of tech companies, that the winners survive and prosper, and the losers get acquired or eliminated. " Writes Sean Hyman
"The Powershares QQQ (QQQQ), an ETF that replicates the Nasdaq 100, has become synonymous with tech stocks, and has enjoyed a nice rebound in 2009.   The (QQQQ) is up roughly 10% in ’09, and up roughly 25% from its march lows." Writes Sean Hyman 
NASDAQ:QQQQ May 1, 2009 2:03pm

Note: Invesco PowerShares Announces Changes to ETF Family

updateInvesco PowerShares Capital Management LLC is a leading global provider of exchange-traded funds (ETFs). The PowerShares product line includes 135 unique portfolios with assets of $25.8 billion as of March 31, 2009. The family of ETFs is one of the broadest in the marketplace today and spans numerous market segments, sizes, styles, themes and security types, both domestic and international. In an effort to position its business for future growth opportunities and to align its family of ETFs with the changing investment landscape, Invesco PowerShares announced today that it plans to close 19 of its ETFs. The affected funds represent less than 1% of Invesco PowerShares' total assets. "After carefully evaluating numerous factors including shareholder considerations, length of time on the market, asset levels and the potential for future growth, we proposed closing certain portfolios that have not gained sufficient acceptance with investors," said Bruce Bond, president and CEO of Invesco PowerShares. "We remain fully committed to the ETF industry and expect to offer new, exciting products in the months ahead." Full Story:
ETF BASIC NEWS May 1, 2009 1:49pm

Plenty Of Sun For The Solar ETF’s

sun"Obama’s goal to put 1 million plug-in vehicles on the road in the U.S. by 2015 is gravy for companies that are already selling their batteries for more prosaic uses such as mobile phones. There will likely be many false starts in the race toward a “green” car, but a lot of battery power will be expended in the race. " Robert Curran Writes "Meanwhile, solar-power companies, one of the hot plays of early 2008, are having another hour in the sun. Both the Market Vectors-Solar Energy ETF and Claymore/MAC Global Solar Energy Index ETF have both halved, then nearly doubled so far this year. And those are broad ETFs, not single stocks.  Long term, however, technicians note both ETFs and much of the sector is still in the midst of a strong uptrend. "Robert Curran Writes “It’s one of the few areas in the market people can dream about real and big growth,” said Phil Roth, chief technical strategist with Miller Tabak. “There is almost nothing with that kind of growth and the hot money will gravitate to it.” "Pacing the sector is industry leader First Solar Inc. The maker of solar-power harnessing panels and cells is up 23% for the week after the company reported its first-quarter net income more than tripled on surging revenue Wednesday. " Robert Curran Writes Full Story:
ETF BASIC NEWS May 1, 2009 1:10pm

Latest Lemon List Reveals 2,335 Mutual Funds with $718 Billion in Sour Assets

lemonTop 10 Worst Funds on Fabian's Lemon List according to Asset Size - See attachment for more detail:          Fund Asset Size          In Millions - Fund Name          $25319.20 - Dodge & Cox Stock                                                      $22602.70 - American Funds Bond Fund of Amer A                          $15529.10 - Fidelity Magellan                                              $13455.10 - Davis NY Venture A                                          $12713.50 - Fidelity Equity-Income                                              $12018.90 - Dodge & Cox Balanced                                              $ 9721.00 - T. Rowe Price Equity Income                                  $ 8969.80 - Franklin Income C                                                      $ 8871.70 - Fidelity Freedom 2010                                              $ 8501.00 - Fidelity Investment Grade Bond                          This quarter, out of a universe of 2,335 lemon funds, more than 30% or 730 total had negative annualized returns over the past 10 years. Historically stellar funds like Fidelity Magellan and Fidelity Growth & Income did not even perform as well as the S&P 500 (SPY) over the past 10 years. "Investors need to wake up to the reality that many mutual fund managers do not perform as well as many exchange-traded funds (ETFs) with the same investment objective," said Doug Fabian. "As a result, investors are losing money they cannot afford to lose right now." ETFs offer liquidity, leverage, and much lower management fees when compared to most mutual funds. When choosing an ETF over certain mutual funds - significant savings could result. Here are some examples of what $100,000 invested in a mutual fund vs. an ETF 5 years ago would yield: Fidelity Growth and Income would yield $53,360 today, but the ETF equivalent (SPY) the fund's benchmark, would yield $77,308 or a difference of almost $24,000! Full Story and Chart:
ETF BASIC NEWS May 1, 2009 11:42am

The Best Way To Pick International ETF’s

globe"Stocks, domestically and abroad, are blossoming once again. Since the March 9th low, the S&P 500 (NYSEArca: SPY) gained 30% while the broad based international iShares MSCI EAFE Index ETF (NYSEArca: EFA) spiked 33%. We’ll discuss in a moment whether these rallies are true green shoots or just weeds." Says Simon Maierhofer "According to ETFguide’s ETF database, there are 13 broad international equity ETFs, 26 regional equity ETFs, 42 country-specific equity ETFs, 32 international equity sector ETFs and 16 size specific international equity ETFs. No doubt, finding the right ETFs is no walk in the park." Says Simon Maierhofer "The misconceptions exists that broad indexes like the MSCI EAFE deliver instant diversification across the developed world markets. Unfortunately, most broad international indexes lack proper diversification."  Says Simon Maierhofer Full Story:
NYSE:EFA May 1, 2009 11:15am

Are You Looking For A Technology ETF In Your Portfolio?

tech-support"The market is showing signs of relief as the major indices have experienced some great up days despite a lack of positive news regarding our economy.  As an investor, you maybe wondering what your options are to return to the equity market with as much prudence as possible.  The first thing to note is that the IT S&P 500 Component has done extremely well, up 11.80% YTD.  A great way to re-enter IT is through the purchase of well constructed Exchange Traded Funds (ETFs). ETFs are a great way to capture the upside potential of various companies while maintaining diversity within your IT portfolio (or any portfolio).  The key to ETF evaluation is to select low cost and well constructed ETFs making it important to conduct due diligence on the major underlying securities of the vehicle.  ETFs can be a great short to medium term security to enter during volatile environments to maintain exposure to certain companies. I have been looking at a few technology ETFs and have compiled a list of the best three and provided some analysis regarding their holdings and future outlook. " Full Story:
ETF BASIC NEWS May 1, 2009 9:40am

ETF KBW Mortgage Finance (KME) Ready For Trading Today!

etf-news"The latest offering from State Street, SPDR KBW Mortgage Finance ETF (KME), began trading today.  The new ETF is designed to track a Keefe, Bruyette & Woods (KBW) index of the 24 largest mortgage finance companies listed on U.S. exchanges.  KME is the first new equity ETF in the SPDR family since last July, when the SPDR international sector ETFs were launched.  The five launches earlier this year were all bond ETFs." "Like the rest of the financial services sector, the performance of the underlying index had a rough time this past year.  At the end of the first quarter (March 31, 2009), the index was down -9.7% year-to-date and off -62.5% for the past twelve months." Full Story:
NYSE:KME May 1, 2009 9:13am

3 New ETFs Worth Waiting For

new1Even the worst economy since the Great Depression and a president who chastises white-collar financial workers for not “making anything” hasn’t stopped the intense pace of innovation in the ETF space, where no fewer than 250 funds await regulatory approval. These aren’t the usual bevy of large-cap lookalikes full of Exxon Mobil (XOM: 66.67, -1.77, -2.58%) and Google (GOOG: 395.97, +4.50, +1.14%). Previously unattainable markets, from commodities, currencies and real estate will soon be as easy to trade as General Electric (GE: 12.65, +0.43, +3.51%)… if the SEC ever gets around to permitting them to list. Here are a few of the upcoming products I’m anticipating the most. 1. ETFs Palladium Trust (No Ticker Yet) Palladium, a sister metal to platinum, is used extensively in auto catalysts, which accounts for roughly 55% of the total demand. It’s also used in dentistry, electronics and jewelry, giving it somewhat of a split personality. It’s an industrial metal that’s often closely correlated with gold and silver. The majority of supply comes from Russia and South Africa, where disruptions in production can often lead to sharp spikes in price. Longtime readers know I’ve had some success in the past with palladium-related equities such as North American Palladium (PAL: 1.81, +0.07, +4.02%) and Stillwater Mining (SWC: 4.51, +0.01, +0.22%). Not unlike SPDR Gold Trust (GLD: 87.27, -1.06, -1.20%) or iShares Silver Trust (SLV: 12.21, -0.34, -2.70%), the ETFs Palladium Trust will aim to simply track the price of palladium, less expenses, making it easier and less cumbersome to trade than futures contracts or actually taking physical delivery. A small and comparatively illiquid market, palladium likely will move quite quickly once signs of an economic recovery begin to appear. For those interested in this unusual opportunity, the prospectus is an informative read. Full Story:
ETF BASIC NEWS April 30, 2009 4:46pm

April ETF Performance Report

report-cardThe markets and exchange traded funds (ETFs) in April had their fair share of ups and downs, but in the end, it was a positive month for several sectors and the major indexes. The Dow Jones Industrial Average rose 7.3% for the month. The Nasdaq gained 12.7%, and the S&P 500 increased 9.4%. While there are some areas that are still struggling, a few sectors are also showing signs of improvement and crossing above their long-term trend lines (200-day moving average). This includes retail (up 20.9% in April), Taiwan (up 26.6%) and networking (up 29.7%). Full Story:
ETF BASIC NEWS April 30, 2009 4:22pm

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