All ETF Daily News Articles

Today’s Pending Home Sales Show Great Comfort (XHB)

housing1If you are an investor or a buyer in the market for a new home or if you are a homebuilder, there may be some good news after waves and waves of bad news and then “less-bad news.”  The National Association of Realtors said that pending home sales has risen with many new first time home buyers taking advantage of the affordability of housing.  Pending Home Sales rose by 3.2% in March, 2009 to 84.6.  This compares to 82.0 in February, 2009 and compares to 83.7 in March, 2008.  This has the SPDR S&P Homebuilders (NYSE: XHB) screaming on the news. Full Story:
NYSE:XHB May 4, 2009 10:48am

SEI Selected by Global X Management to Provide Turnkey Solution to Support Their Exchange Traded Funds

etf-news7May 4, 2009:  SEI (Nasdaq: SEIC) today announced that it has been selected by Global X Management Company to provide a fully integrated, turnkey solution to support the firm's global exchange traded funds (ETFs). SEI's integrated ETF solution is designed to help investment managers meet the emerging market demand for launching new ETF products, while supporting greater transparency and efficiency. It also provides an efficient way for managers to enter the market quickly with limited investment.

Under the terms of the agreement, SEI will provide a complete outsourcing solution that includes fund administration, accounting, investor servicing, distribution and authorized participant (AP) processing for Global X's ETFs in a straight-through electronic processing environment. SEI was selected following a thorough search process that included the major providers in the ETF space. The company's best-in-class approach, scalability, and straight-through processing environment were pointed to as key factors in the decision.

"SEI's fully integrated solution provides a comprehensive, single source environment that isn't possible when working with multiple vendors," said Bruno del Ama, CEO of Global X Management. "We are launching funds in different countries and SEI's experience and knowledge in the ETF business is a big advantage for us. We know that they have the depth to service us now and, more importantly, they have the ability to scale this offering with us as we grow - and that's critical." SEI is the leading processor for ETF trades for authorized participants. With the first family of ETFs, Global X is launching global ETFs focusing on the Nordic region, Colombia, Argentina, Peru, Philippines, and Egypt.

Full Story:

ETF BASIC NEWS May 4, 2009 9:55am

New BGI Program Highlights 401(k) ETF Providers

401kFinancial advisers looking to access exchange-traded funds for their 401(k) accounts may find the search is easier with the launch of a new Barclays Global Investors program that is designed to highlight administrative providers and networks that enable the use of ETFs in 401(k)s.   See Story: Why the Case For ETFs In 401(k) Plans Just Got Stronger Essentially, the "iShares in 401(k) Program" gives certain service providers BGI's stamp of approval. It officially went live on May 1. ETFs are very appealing to 401(k) investors in small- and mid-sized plans, which may not qualify for some of the lower fund fees available to larger plans. ETFs are cheaper than most traditional mutual funds, including many index funds. But the record-keeping and transactional accounting systems for 401(k) funds were originally designed for mutual funds, which trade once a day at the end of the day and can only be bought and sold in full shares - unlike ETFs, which trade throughout the day and can be traded in fractional shares. Although there are ways to access ETFs indirectly, and some self-directed plans from large brokerage houses actually do allow for direct ETF ownership, it's only recently that solutions have been developed to bypass these obstacles for the average 401(k) plan. However, such plans are few and far between, and they've been a bit slow getting off the ground. The program is targeted at financial advisors and screens the firms considered for inclusion for low pricing and directness of access. Fee transparency and quality of service are also major considerations in the evaluation. Full Story:
ETF BASIC NEWS May 4, 2009 9:33am

Fidelity’s Mutual Fund Assets Shrink 4.9%, Mirroring Customers’

fidelity“ETFs are beginning to eat everyone’s lunch in this industry,” May 4 (Bloomberg) -- Fidelity Investments, the world’s largest mutual fund company, has one thing in common with some of its customers: it has less money in stock and bond funds than it did a decade ago. Fidelity’s long-term assets fell 4.9 percent to $521 billion at the end of March, according to Financial Research Corp., a Boston-based company whose data excludes money-market funds. “A lot of their funds have had middling performance and that turns people off,” said Russel Kinnel, director of mutual fund research at Morningstar Inc., a Chicago-based company that tracks the industry...... ......ETF Specialists Two other companies that gained market share, Barclays Plc, and State Street Corp., are first and second in exchange-traded fund assets, according to data from State Street. Exchange- traded funds mimic indexes such as the S&P 500. In April, Barclay’s agreed to sell its ETF business, known as iShares, to CVC Capital Partners Ltd. for $4.4 billion. Lowell, in his newsletter, had urged Fidelity to bid for iShares. “ETFs are beginning to eat everyone’s lunch in this industry,” he said in an interview. Fidelity has $65 million in exchange-traded funds, according to State Street. Vanguard has $40 billion in them. At Fidelity’s former flagship, Magellan, assets have dwindled to $18.6 billion, Bloomberg data show. Performance has perked up this year: Through April 29, the fund rose 9.9 percent. Full Story:
ETF BASIC NEWS May 4, 2009 9:33am

Inflation, Energy & Treasury Bubble (USO, GLD)

NYSE:GLD May 4, 2009 9:21am

Annual Closed-End Fund & ETF Awards – 2008 Winners

winnerNEW YORK, NY--(Marketwire - May 4, 2009) - The Annual Closed-End Fund & ETF Awards, an initiative of Capital Link, a New York-based investor relations and financial communications firm with a strategic focus on CEFs and ETFs, aim to identify and recognize annually those fund sponsors and executives who consistently apply high standards of financial disclosure, investor and shareholder relations and innovation. Nicolas Bornozis, President of Capital Link, mentioned that the CEF & ETF Awards are based on nominations by a committee of analysts and industry specialists who actively follow CEFs and ETFs. Capital Link is not part of the Nominating Committee. The Awards are presented within the context of the 8th Annual Capital Link Forum on Closed-End Funds & Global ETFs that took place on Wednesday, April 29 in New York City. CLOSED-END FUND AWARDS - 2008 WINNERS The Most Innovative New Closed-End Fund in 2008 Award was presented to BlackRock by Mr. Lawrence Leibowitz, Group Executive Vice President, Head of US Markets and Global Technology, NYSE Euronext. Member of NYSE Euronext Management Committee Mr. Brian D'Anna, Vice President, Product Management and Development at BlackRock, stated: "It is especially gratifying to receive this award from such a distinguished panel of industry analysts. BlackRock is dedicated to the continued innovation of both product structure and composition, and BlackRock Defined Opportunity Credit Trust (BHL) is an excellent example of creating a product structure that appropriately matches the unique long-term investment opportunity in the credit markets." The Best Shareholder Relations by a non-US Closed-End Fund Family in 2008 Award was presented to Aberdeen Management by Mr. Dennis Emanuel, Managing Director of CEF & ETF Research from Citigroup. Mr. Tim Sullivan, Vice President, Head of Product Development, Aberdeen Asset Management, who accepted the award, stated: "At Aberdeen we are honoured to be recognized by our peers for our commitment to shareholder communications, which we believe is essential to corporate governance. This award comes at an important time as we are preparing to welcome the shareholders of five Credit Suisse closed-end funds in a transaction that, pending shareholder approval, is expected to be completed July, 1, 2009." The Best Shareholder Relations by a US Equity Closed-End Fund Family in 2008 Award was presented for the fourth year in a row to Eaton Vance Investment Managers by Mr. Alexander Reiss, Analyst Closed-End Fund Equity Research, Stifel Nicolaus. Full Story:
ETF BASIC NEWS May 4, 2009 9:08am

Tight-Fisted Investing

tightfistKeeping costs low is a top priority of this financial adviser. If you don’t need a lot of advice, he says, why pay for it? Low costs and a blend of stock- and bond-index funds are the hallmarks of the investment philosophy of Richard Ferri, chief executive of investment-advisory firm Portfolio Solutions LLC in Troy, Mich. The index-based funds provide exposure to designated broad markets and so don’t entail stock pickers or making bets on individual securities. Favoring funds with low fees helps him hold down overall costs for clients: He typically charges 0.25% as advisory fees, less than half the industry standard...... ......Here the advisers share a model portfolio used by a large number of their clients. The portfolio falls into four major categories: U.S. stocks, at 30%; foreign stocks, at 15%; bonds, at 50%; and real-estate investments at 5%. The weighted-average expense ratio is 0.16%. U.S. STOCKS: Of the total portfolio, 21% is invested in the broad stock market through Vanguard Total Stock Market Index ETF. While this ETF has an allocation to stocks of all market capitalizations, the team at Portfolio Solutions uses an additional fund for both small and micro-cap stocks, because they believe these stocks can boost the portfolio’s long-term returns. They invest 6% of the portfolio in iShares S&P SmallCap 600 Value Index ETF, which tracks an index of small “value” stocks, those considered cheap based on factors like their earnings potential. For the 3% micro-cap allocation, the advisers for about four years have used Bridgeway Ultra-Small Company Market, a fund that uses quantitative models to invest in the smallest companies in the country, within certain guidelines. Full Story:
ETF BASIC NEWS May 4, 2009 8:58am

State Street Global Advisors rolls out new ETF

housingState Street Global Advisors, the investment management arm of State Street Corporation, has launched the SPDR KBW Mortgage Finance ETF. According to State Street Global Advisors, the SPDR KBW Mortgage Finance ETF is the first exchange traded fund (ETF) to provide US investors with precise access to equities in the mortgage finance industry. The SPDR KBW Mortgage Finance ETF seeks to track the total return performance of the KBW Mortgage Finance Index, a modified market-capitalization weighted index of the stocks listed on US stock markets comprising of pure mortgage players, mortgage processors, title insurers, homebuilders, and banks and thrifts where mortgage loans dominate the loan book. Full Story:
ETF BASIC NEWS May 4, 2009 8:41am

New Actively Run ETF Launches Today For Trading (GVT)

etf-newsThe first exchange-traded fund whose managers pick its stocks is making its debut Monday. Unlike other ETFs, which mainly track indexes, the "actively managed" Grail American Beacon Large Cap Value ETF will be comprised of names that the ETF's managers choose based on research aimed at finding good, cheap stocks. A few other ETFs bill their portfolios as "actively managed," meaning the stocks aren't bought simply because they mirror those in an index such as the Standard & Poor's 500-stock index. But in those actively managed ETFs, offered by Invesco Ltd.'s PowerShares Capital Management LLC, managers buy stocks based on computer models. Grail's ETF mark "the next step in the ETF evolution," says William Thomas, chief executive of Grail Advisors LLC, a unit of San Francisco merchant bank Grail Partners LLC. ETFs are bundles of securities that are traded on exchanges throughout the day, unlike conventional mutual funds. Unlike closed-end funds, which also are traded on exchanges but are sold by a firm only during the initial public offering, ETFs are offered to investors continuously. The Grail ETF will charge fees of 0.79% of assets, compared with the 1.4% fee for a typical stock mutual fund, according to fund tracker Morningstar Inc. Full Story:
ETF BASIC NEWS May 4, 2009 7:46am

REITs’ Rise Sets Back Day Traders

reitFor months, "day traders" and hedge funds have locked onto real-estate companies' stocks to make short-term market bets, causing volatility and adding to turmoil in the industry. But after several large stock offerings, the conditions that made such trades profitable may be shifting. A year ago, the day-trading of real-estate stocks might have seemed like an oxymoron. Real-estate investment trusts posted slow and steady growth, paying out most of their rental income as dividends. The stocks rarely made major moves. That changed in September, when the credit crunch turned into a crisis, commercial real-estate values began to plunge and some once-strong REITs were unable to refinance debt. It was an environment ripe for some hedge funds, which were becoming big participants in the REIT market, taking short positions on the belief that many REITs would fail. That caused volatility in the sector, attracting day traders who popped in and out of a stock based on short-term trends and news. One measure of the volatility: The Dow Jones All Equity REIT Total Return Index swung up or down by 5% or more in a single day 35 times in the fourth quarter of last year, 29 times in the first quarter of this year, and 10 times in April. In the index's first 18 years, from January 1990 to December 2007, there were just three days in which the index swung by more than 5% Full Story:
NYSE:SRS May 3, 2009 9:44am

Investors see bright future in wind energy ETF

wind-farmBecause many wind energy companies are foreign-based there are always geopolitical and currency risks to weigh. Investors also will want to be wary of emerging companies with unproven ideas. At a minimum, you'll want to be sure that the company is well capitalized and has a strong business model. When investing in a fund, such as an exchange traded fund, Siegel of Green Chip Stocks recommends making sure it is balanced. Some funds are very sector specific, focusing on solar stocks, for example. If something were to happen to impact that industry such as a shortage of the electronic components that convert sunlight to electricity, your entire fund could crash. There are funds such as Market Vectors Global Alternative Energy ETF Trust (GEX), which includes wind, solar, geothermal and other business types. As you look for investment opportunities, be aware that the global economic slump began hitting the renewable energy sector hard late last year and it's continued into the first quarter. Full Story:
NYSE:GEX May 3, 2009 8:38am

Wall Street Media Presents Exclusive Video on an Intelligent Oil Play

oilWall Street Media presents exclusive video of the insightful Todd Sullivan of ValuePlays sharing his ideas on how he is looking for rising oil. He points out that Mexico is running out of supply faster than expected and Canada’s tar sands is not profitable with oil. Todd shares a potential idea to benefit from rising oil prices is United States Oil (NYSE: USO - News), the one that tracks the crude market. Please visit the following link to view the video:**http%3A//
NYSE:USO May 3, 2009 8:18am

Take A Look At These Commercial Real Estate Sub-Sector ETFs

commercialI plead guilty to treating commercial real estate as a single homogeneous entity in my two previous commercial real estate posts, Commercial Real Estate Problems Piling Up and Moodys/REAL Commercial Property Price Index. The truth is that while there are a wide variety of REITs out there that span the full range of commercial real estate activity, my focus is mainly on ETFs and when it comes to ETFs, most of the popular real estate ETFs are of the large catchall variety, such as iShares Dow Jones US Real Estate (IYR), iShares Cohen and Steers Realty Majors (ICF), Vanguard REIT Index VIPERS (VNQ) and streetTracks Wilshire REIT (RWR). While I am not aware of any ETFs that are pure plays on shopping center REITs, office REITs or apartment REITs, there are three commercial real estate sub-sector REIT ETFs that can help sort through various sectoral trends within the REIT universe. Full Story:
NYSE:ICF May 3, 2009 8:04am

How to Benefit From Our Global Trash Problem With An ETF

trashRubbish, trash, garbage, waste, whatever you call it, we all generate it, and it is taking over the world’s space and mother nature’s abundance faster than imaginable. If we continue to be a disposable society, there’s at least one exchange traded fund (ETF) that could benefit. Although waste is universal, the concept of it is ignored and poorly understood. Nobody really knows how much is produced or what happens to it once it’s created. The Economist explains that both developed and emering countries generate vast quantities of construction and demolition debris, industrial effluent, mine tailings, sewage residue and agricultural waste. Waste is harmful. It stinks, it’s ugly, attracts vermin and releases harmful chemicals and and debris into soil and water when it is dumped. It is the source of almost 4% of the world’s greenhouse gases, mostly in the form of methane from rotting food, which does not take into account the methane from animal and farm waste. There is so much waste out there, in fact, that in a deserted stretch of the Pacific Ocean void of shipping lanes, islands and human life, miles and miles of trash has accumulated, drawn there by converging currents. Full Story:
NYSE:EVX May 3, 2009 7:45am

Is Your Portfolio Sinking?

sinking-shipNo one knows if 2008 was an anomaly or the beginning of a prolonged missile attack similar to the 1930s. Investors need to realize that sticking to their investment plan is essential, and that the investment principles of diversification, tax efficiency, and cost containment will work over the longer term.

It is true that investors who purchased equities at the peak in1929 weren’t made whole until 1949, but those investors who abandoned equities for cash after the crash waited much longer to break even. For investors owning equities at the nadir of the decline in 1932 experienced the best returns ever for equities over the ensuing 5, 10, and 20 year periods.

Even the current yield on equity instruments should calm investors nerves. Today, investors could guarantee their return for the next 10 years by purchasing a Treasury bond. They would earn roughly 2.8% for the next decade. Or, investors could buy an equity ETF and capture a much higher yield.The high yielding WisdomTree Total Dividend Fund (NYSEArca: DTD) currently yields 4.24%. The PowerShares International Dividend Achievers Index (NYSEArca: PID) boasts a 5.26% yield while the iShares Dow Jones Real Estate (NYSEArca:IYR) provides investors a 12.5% yield.

Full Story:

NYSE:DTD May 2, 2009 1:52pm

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