All ETF Daily News Articles

Currency ETFs have their uses, just not as long-term investments.

richIn the past year, cash became a very appealing place to be. Believe us, we know--our own Hands-On tactical portfolio had nearly 60% of assets in cash through much of the crisis. However, as the economy bottoms out (as it seems to be doing) and risk appetites return, we have looked to get back into assets that can generate returns over the longer term, or at least save us from the potential ramifications of today's loose monetary policy. The quick stimulus spending and cheap cash churned out by the U.S. government and Federal Reserve seem to have helped avoid a Great Depression-style collapse, but it will be extremely difficult in the future for policymakers to steer between the Scylla and Charybdis of excessive tightening triggering a new recession and continued lax monetary policy generating rampant inflation. In this tricky investment environment, we have heard that a new class of ETF is being offered as the answer: currency funds.
ETF BASIC NEWS May 27, 2009 1:57pm

Researching ETFs

ETF BASIC NEWS May 27, 2009 1:46pm

Best ETFs Tap Singular Theme (Let’s Build Stuff!)

buildingAlthough our markets began to climb alongside the improved news in financials, the best ETFs over the last 3 months revolve around metals and materials used to build things. Here are the 5 best ETFs (excluding financials) on a rolling 3-month basis: Best Non-Financial ETFs Over 3 Months (2/27/09-3/26/09)                                                                           % Gain Claymore China Real Estate     (TAO)               79% Market Vectors Steel                (SLX)                69% Claymore Global Timber           (CUT)               68% SPDR Metals and Mining           (XME)               56% First Trust Materials                 (FXZ)                56% The implications here are twofold. One, the companies involved in the production, extraction and transportation of basic materials as well as industrial metals and lumber have collectively seen their share prices surge. Two, we can credit China's infrastructure stimulus package in addition to the Chinese consumer. For all of the talk about rebuilding U.S. infrastructure, only 5% of our stimulus package is going to these efforts. China? Some $300 billion of the $600 billion Full Story:
NYSE:CUT May 27, 2009 1:22pm

A Clear Play With This Clean Energy ETF

clean-energyInvestors buying PowerShares WilderHill Clean Energy Fund (NYSEArca: PBW) likely agree with most of the following theses: Carbon dioxide emissions must be curbed, developed countries will vigorously pursue energy independence, research and investment financing will be available at reasonable rates, and governmental subsidies will remain large and persist long enough for alternative technologies to reach cost competitiveness. [But] while the thought of environmentally friendly renewable power sources that would grant the industrialized world energy independence is a laudable goal, the economics and feasibility of the technologies proposed remains questionable.
NYSE:PBW May 27, 2009 12:23pm

Make A Buck On The Rising Euro with “FXE” ETF

euroThe euro has jumped in value against the dollar since March, and the charts still sound the all-clear for euro bulls. "Momentum precedes price" is a mantra used by many technical analysts to spot early trend changes in a stock, commodity, bond or even currencies. Over the last year, measuring the euro's changing momentum could have helped many investors conserve capital or even profit from the currency's changing trend. The first chart below displays a chart of the CurrencyShares Euro (FXE) exchange-traded fund (ETF). This currency-tracking stock reflects the euro's changes as it appreciates and depreciates against other foreign currencies. Momentum, in this case, is measured using the two-line moving average convergence-divergence indicator. We could say that the MACD measures the trend's underlying strength. Full Story:
ETF BASIC NEWS May 27, 2009 12:23pm

The Downside Bets With Inverse ETFs

humor"Don't be fooled by bear market rallies, which are sharp, short-lived and, in some cases, extremely powerful," says Martin Weiss. In his The Safe Money Report, he looks at inverse ETFs. "Bear market rallies prompt short-sellers to panic, bears to mellow, bulls to come out of hiding, and Washington to declare 'the worst is over.' That’s precisely what’s happening today.  But don’t be fooled! "So our targets for this bear market are unchanged: 5000 on the Dow, 500 on the S&P 500, and 850 on the Nasdaq. Meanwhile, here are some of the best investments for protection and profit as the bear market resumes:......
NYSE:DOG May 27, 2009 12:16pm

ETF Gold (GLD) Is A Kind Of Religion That You Either Believe In Or You Don’t

gold-crossIT GETS dug out of the ground in Africa, or some place. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it IT GETS dug out of the ground in Africa, or some place. Then we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility. Anyone watching from Mars would be scratching their head. Warren Buffett.  The bedrock case for gold: THE basic premise is not new, but then nothing’s changed much... Ludwig von Mises, the father of Austrian economics, who recognised early on that government attempts to massage the credit cycle always end in tears, memorably described the phenomenon as follows: “There is no means of avoiding the final collapse of a boom expansion brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”....... 
NYSE:GLD May 27, 2009 12:03pm

The iShares Natural Resources Sector ETF Is A Great Passive Investment Vehicle

natural-resourcesiShares S&P North American Natural Resources Sector Index (IGE) is an equity ETF that tracks an index based on US traded natural resources related stocks. iShares IGE ETF is a passive fund and seeks to replicate the performance of the underlying index. At any given point, it invests about 90% of its assets in the underlying index related stocks. The iShares IGE ETF has a total operating expense of 0.48%. The iShares IGE ETF may declare and pay out a dividend semi-annually and if there are any capital gains from sales of its assets, it may pay that at the end of the year. Full Story:
NYSE:IGE May 27, 2009 11:49am

Four Ways To Go Long Silver (Two Are With ETF’s)

silver-etfSilver has a long history. Ancient cultures used silver for trade, jewelry, and crafts.  Silver ore was first processed by the Chaldeans around 2500 BC as well as in Asia Minor (Turkey).  In an effort to meet rising societal demand, ancient Mediterranean cultures eventually looked to silver deposits in modern-day Armenia. Later, Rome exploited deposits from the Laurium mines in the Black Sea region.  The Romans used silver and other metals for coinage. The Carthaginians looked to Spanish mines for their silver ore supply. Most cultures have valued that shiny metal known as “gold’s poor cousin.”
NYSE:AGQ May 27, 2009 10:23am

Are ETFs Tax Efficent?

ETF BASIC NEWS May 27, 2009 10:00am

ETFs & Diversification: A Study Of Correlations

studyOne important facet of portfolio construction and portfolio management is diversification. By offsetting the risk associated with individual assets, diversification reduces the variability of portfolio returns. To achieve diversification, the returns on the various assets in a portfolio should not be highly correlated. Adding securities whose returns are highly correlation does not reduce the variability of the portfolio return and does not contribute to diversification and the reduction of risk. Thus, the investor or portfolio manager needs to identify assets with returns that are low or even negatively correlated. Exchange-traded funds (ETFs) have become a popular investment vehicle, since the investor acquires a basket of securities without having to select individual stocks or bonds. ETFs may be promoted as a means to achieve diversification and manage risk. Diversification, however, will not be achieved if returns on the various ETFs are highly correlated. The following tables report the correlation coefficients for a variety of ETFs. Weekly returns are computed from the date of each ETF's inception. The resulting returns are used for the calculation of correlation coefficients. While some ETFs (e.g., the SPDRs based on the S&P 500 stock index) have existed for several years, many are relatively new, having been created only in the last few years. The relative newness of many ETFs limits the number of time periods that may be used to calculate the returns. While the results may be considered preliminary, they do suggest that the returns on many ETFs are highly correlated and hence their ability to contribution to diversification is limited. Full Story:
ETF BASIC NEWS May 27, 2009 9:44am

Kotak Securities (India) introduces trading platform providing direct access to equities, ETF’s and Real Estate Investment Trusts spanning 24 international stock exchanges

kotakBrokerage firm Kotak Securities today tied up with Denmark-based Saxo Capital Markets to launch a trading platform that provides real-time access to equities across 24 stock exchanges.   Kotak Trader provides direct access to equities, ETF's and Real Estate Investment Trusts spanning 24 stock exchanges across the USA, Europe, Asia and Australia, Kotak Securities said in a release.
ETF BASIC NEWS May 27, 2009 9:37am

Doctor Doom and the price of gold (ETF: GLD)

chunkThe “final and total catastrophe of the currency system”, is in this case the dollar. If you believe that's where we are headed then gold still has some way to go. To believe it doesn't is to believe the worst is pretty much over, that the excesses have all been unwound, that the central banks have triumphed, that paper currencies have won the day… without threat of inflation. What about deflation? All over the world the central bankers' reaction to the threat of a slowdown has been the same: print more money, slash interest rates, find ways to stimulate. If the patient is going to die, even the most radical course of action is better than doing nothing. Most paper currencies will suffer the consequences." - could be authored by Ludwig von Mises and/or Marc Faber - take your pick. versus: "The gold ETF (GLD) is the 6th largest holder of gold in the world - the whole world, even ahead of China. When investors buy GLD they have to go out and buy gold driving up the prices. This raises a little question - who will be buying this gold from GLD when investors will decide to sell it? Gold is one of those weird assets where nobody knows what it is really worth. You cannot run discounted cash flow analysis to value it - it has no cash flows. It is an asset where perception and realityaredeeply intertwined.
NYSE:GLD May 27, 2009 8:55am

Has The Next Investing Bubble Begun With This ETF?

stock-bubbleEvery month Merrill Lynch (or Bank of America Securities-Merrill Lynch for you scorekeepers) checks in with a bunch of big time money managers to take their bullish/bearish temperature. Collectively the 400 or so global managers in the May survey are pushing the buttons controlling portfolios worth nearly $1 trillion, so we’re not talking about a Beardstown lady survey here. And these pros are getting their bull on. Seventy percent said they believe the world economy will improve over the next 12 months and so they are upping their equity stakes. The area getting the most attention: emerging markets. The report notes that 46% of the money managers are now overweight the emerging markets, compared to 26% back in April. The bullishness for China specifically is at its highest since the survey began tracking Chinese sentiment in 2003.....
NYSE:EEM May 26, 2009 4:24pm

Zions upgrade lifts regional banks, KRE XLF ETFs

bank3A 12% jump in shares of Utah's Zions Bancorp sparked healthy gains in the broader financial sector on Tuesday, particularly among its fellow regional banks. Morgan Stanley analyst Ken Zerbe upgraded Zions' (ZION) shares to overweight from equal weight, saying, "We believe the valuation of Zions has become quite compelling for long-term investors. We believe Zions has an attractive franchise and solid growth opportunities, making it an attractive investment for long-term holders." Zions rose 12% to $14.20 Tuesday, topping all gainers among the financial stocks in the S&P 500. The gain helped lift the KBW Regional Banking ETF (KRE ) by 4.5%, and drove the Financial Select Sector SPDR (XLF) up about 2%. Full Story:
ETF BASIC NEWS May 26, 2009 12:48pm

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