All ETF Daily News Articles

SSgA Files For A Third Preferred Stock ETF; The SSgA ETF would compete head-to-head against two others already on the market.

etf-news7State Street Global Advisors has filed to launch an exchange-traded fund that would invest in nonconvertible preferred stocks. It would trade on the NYSE Arca and seek to replicate the Wells Fargo Hybrid and Preferred Securities Aggregate Index. No cost information was supplied in the filing. Full Story:
NYSE:PFF May 5, 2009 12:01pm

ETF’s Make It Easy To Invest In Gold And Silver!

gold-and-silverIt has been investment that has been driving silver in 2009, and so, once again, silver's behaviour has been more like that of gold. How do these flows compare? According to The Silver Book, an investment research from V M Group, supporting both gold and silver has been great demand from the exchange-traded funds (ETFs) and the futures market at Comex in New York. There are three silver ETFs: the market-leading Barclays Global Investors (BGI), which is based in New York; and two in Europe, ETF Securities in London and ZKB in Zurich. By late April these had 8,413t, 534t and 1,422t respectively, totalling 10,394t. This is 2,140t more than at the end of 2008, a year when 2,325t were added in total. How do these flows compare to those into gold ETFs? In late April 2009 the 15 gold ETFs held 1,643t, up 454t in the year, much more than the 321t taken in the whole of 2008. Total holdings of silver ETFs are thus 6.3 times that of gold, while inflows this year so far have been a smaller 4.7 times the size of gold's. Drilling down further, whereas in January they were 8.1 times gold, in February they were just 3.2 times and in March just 1.7. However April saw inflows into silver, but a net outflow for gold. Full Story:
NYSE:GLD May 5, 2009 11:55am

3 Ways To Earn Your Future Back

backtothefuture......Take a moment to visualize the pervasive atmosphere of 2007. Predominantly good news and overly optimistic news coverage made the future look bright. The Dow Jones (NYSEArca: DIA - News) crossed 14,000 for the first time ever, producing the general consent that the bull market was here to stay. Rather than giving the stock market credit for executing the bait-and switch game to perfection, it would be more accurate to point out that investors simply have not figured out how to interpret the signals of their peers. How so? Broad market indexes such as the S&P 500 (NYSEArca: SPY - News) serve as a composite barometer of investors perception. In fact, the stock market is the most accurate reflection of perceived value. Any stock is only worth as much as investors are willing to pay - the perceived value. The perceived value rises along with positive news and declines along with negative news. News-induced buying/selling further intensifies price extremes. Perceived value is always highest at the top and lowest at the bottom. $100/share for a company with no earnings - which drove the Nasdaq (Nasdaq: QQQQ - News) and Technology Select Sector SPDRs (NYSEArca: XLK - News) to all-time highs - might be just as inappropriate as $5/share for GE (NYSE: GE - News), the oldest and only original DJIA component. Nevertheless, that's where supply and demand met to determine the price. Investor's perception is driven by investor sentiment and news. Investor sentiment is probably the most treacherous force on Wall Street as it is the stock market's closest ally in bait-and-switching investors out of their money. Optimistic sentiment often signals a top while pessimistic sentiment can be indicative of a bottom. Case in point: According to Hewitt Associates, stocks made up 69% of 401(k) assets at the market's all-time high in 2007. As the stock market bottomed in March 2009, stocks took a back seat to bonds and cash for the first time ever. Only 48% of 401(k) funds were allocated to stocks in February '09. Full Story:
NASDAQ:QQQQ May 5, 2009 11:53am

Are ETF’s Scaring Investors?

ghostLarge investors like hedge funds and pension funds have embraced ETFs, and Wall Street is now wondering if that’s good for business. Since the credit crisis sent the stock market on its wild ride, ETFs — baskets of stocks that trade on exchanges — have grabbed a bigger and bigger share of overall stock trading volume. Today, they represent about one-third of daily volume, up from 14% in 2006, according to Barclays PLC’s iShares unit. Big trading desks have been slow to react, for reasons ranging from the dire climate at investment banks to worries ETFs aren’t as profitable for these firms as other securities such as single stocks or options. “It’s a problem we all created for ourselves. (ETFs) are a product with great liquidity and low margins, but we’d all rather have investors buying single names,” says a head trader at a Wall Street trading firm. In interviews with nearly a dozen trading Wall Street firms, only one had hired more ETF market makers or traders in the last six months. Most have just moved around personnel and resources from other departments into their ETF trading operations. Some question whether ETF volume can stay as high as it is right now. Large investors jumped at the chance to trade baskets of stocks last year when the market was at its most volatile and single stocks were perceived as too risky. One family of ETFs popular with hedge funds and other rapid-fire traders, the Select Sector SPDRs, now trades about 300 million shares a day, 10 times what they did several years ago, according to product manager Dan Dolan. Full Story:
ETF BASIC NEWS May 5, 2009 11:16am

Four ETF’s That Capture Big Opportunities In Small Caps

stock-ideaFinding the next Apple or Microsoft is like looking for a needle in a haystack. And even though most people will never find either, none of it keeps them from trying. 

Take for example, America’s mutual fund managers. They’re charged with the responsibility of discovering tomorrow’s blue chip stocks. Yet, according to Standard & Poor’s research, over the past five years an astonishing 79.1% and 85.8% of mid and small company stock funds were outperformed by dull mid and small cap stock indexes. Put another way, professional money managers have been buying the wrong stocks!

What about individual investors? It seems like they too are having difficulty in making the right investment decisions.

In its 15th annual survey of investor behavior Dalbar found that 58% of investors bought and sold their investments at the wrong time last year. As a result, many of these same investors experienced substantially worse performance of their investments compared to stock index funds.

The mistake of buying the wrong stocks could’ve easily been avoided if investors just trusted in the indexes and the financial products following them instead of the fund managers that try to beat them and fail.

Let’s evaluate 4 exchange-traded funds or ETFs that can help you to capture the big opportunities in small stocks.

  • iShares Russell 2000 Index Fund (NYSEArca: IWM)
  • SPDR Dow Jones Small Cap ETF (NYSEArca: DSC)
  • Vanguard Extended Market ETF (NYSEArca: VXF)
  • WisdomTree Small Cap Dividend Fund (NYSEArca: DES)

Full Story:

NYSE:DES May 5, 2009 9:55am

ANALYSIS-Commodity markets cautiously shift strategy

commodityLONDON, May 5 (Reuters) - A credit crunch, economic downturn and now swine flu have knocked down expectations of a swift return to a commodities super-cycle, but signs have emerged of more adventurous trading strategies. As proof of investor interest, flows of new money into commodities in the first quarter have been estimated at record levels as cheaper markets provided buying opportunities. (For related factbox, please click on) London Metal Exchange copper has risen by around 50 percent so far this year and U.S. benchmark crude futures have gained 22 percent. The most investment in the first quarter went into single-commodity exchange-traded funds (ETFs), also known as exchange-traded products, which allow investors to buy a share in raw materials in a similar way to acquiring an equity stake in companies. Daniel Wills of ETF Securities, an ETF specialist, said investors had become bolder after a period of carefully focusing on individual commodities. "What we've seen more recently is investors starting to broaden their exposure and come out of their shell a little bit," he said. Full Story:
ETF BASIC NEWS May 5, 2009 9:46am


deathrowThe number of exchange-traded products on Deathwatch decreased for the second month in a row.  It would be premature to declare that the peak is now behind us, because I would not be surprised to see additional recession-related declines in trading activity for some ETFs in the months ahead.  This month’s list contains 155 names, down from 162 last month and down from the record high of 171 for the March list. The current list consists of 114 ETFs and 41 ETNs that are at least six months old and failed to have an Average Daily Value Traded (ADVT) of at least $100,000 during April. Elements Ben Graham Large Cap Value ETN (BVL) heads up the list this month with a pathetic 38 shares traded per day - an ADVT of just $242.  Closer inspection reveals that BVL only traded on five separate days in April, and its highest-volume day was just 200 shares.  The two other Elements Ben Graham products are on the list as well.  The second entry on the list is Barclays GEMS Asia 8 ETN (AYT) which only traded one day last month.  A grand total of 400 shares traded hands, all on April 7. PowerShares has the largest number of products on the list with 37 (30 ETFs, 6 ETNs, and 1 BLDR), or nearly 24% of the list.  PowerShares took a step last Friday to improve their standing by announcing the closure of 19 ETFs.  However, only ten of those funds are on ETF Deathwatch.  That means that after the closures, there will still be 26 PowerShares products on ETF Deathwatch plus one BLDR, which is now sponsored by PowerShares. Clearly, more than just trading activity goes into the decision of whether or not to close an ETF.  One potentially better gauge is assets under management (AUM) for the fund.  However, getting AUM data in a timely manner is tough, and then one would need to determine what percentage is “real investor” money versus “seed money” from the sponsor.  Nearly every fund on this list is composed primarily of the original seed money.  I have found that ADVT does a great job of pointing out where the problems are. Full Story:
ETF BASIC NEWS May 5, 2009 9:17am

How to Capitalize on Electrical Grid Upgrades With ETFs (TAN, FAN, PBW)

electricmeterNo question: the U.S. electrical grid needs a serious upgrade, and exchange traded fund (ETF) investors could stand to benefit as the changes take place. The task of quantifying savings is almost, if not completely, impossible. The price tag of a new grid is elusive, and estimates that do exist can range from $100 billion to $2 trillion, explains Jenny Gold for NPR. The focus of the problem is that the grid is made up of many little parts, which would be built and managed by different sectors of the energy industry. Each new system (such as power lines, smart technology and new sources of power) can add hundreds of billions of additional dollars to a total cost estimate. The bottom line is that the upgraded grid will be expensive and cost billions. Then there’s the specter of public opposition because of the costs being passed down to the consumer, as well as political loopholes. But one step consumers can take is installing a digital smart meter in your home, which costs  $250. As such meters catch on, it can give utilities a better idea of their consumers’ needs and help fund improvements. Full Story:
ETF BASIC NEWS May 5, 2009 9:11am

Fidelity investments adds IQ ALPHA Hedge Strategy Fund to mutual fund platform

fidelityThe IQ ALPHA Hedge Strategy Fund - the first no-load, open-end mutual fund to bring hedge fund-style investing to retail investors - has been added to the Fidelity Investments mutual fund platform. The no-transaction fee Investor Class Fund is available through Fidelity Investments with a minimum required investment for first-time shareholders of USD2,500. The Institutional Class Fund is available with a minimum aggregated investment of USD250,000. "The extraordinary market volatility investors have experienced serves to highlight the positive role alternative asset classes can play in providing portfolio diversification," says Adam Patti, chief executive officer at IndexIQ. "Our goal is to make these strategies available to Registered Investment Advisors and retail investors through products that are transparent and cost-efficient. The addition of the IQ ALPHA Hedge Strategy Fund to the Fidelity Investments platform is a significant step forward in reaching this broader market." Full Story:
ETF BASIC NEWS May 5, 2009 9:02am

Stocks surge; S&P 500 turns positive for 2009

sandpNEW YORK (AP) -- The Standard & Poor's 500 index is up for the year. And for once, it was the housing market that sent stocks soaring. The S&P 500, considered Wall Street's most important indicator, bounded up 3.4 percent Monday and erased the last of its losses for 2009. And the Dow Jones industrials shot up more than 200 points and had their first finish above 8,400 since Jan. 13. Two months ago, an S&P 500 in positive ground would have seemed impossible, with the stock market having fallen to 12-year lows on fears of a worsening recession. Monday's rally was led by the same financial and housing stocks that were decimated by the credit crisis and the sinking economy, and it added more momentum to a stunning rally that began March 10. A double dose of good housing news ignited the advance: Pending U.S. home sales rose more than forecast and had their second straight monthly gain, while construction spending rose unexpectedly in March after five straight declines. With Monday's gain, the S&P has soared 34.1 percent in the 39 trading days since the rally began, its steepest gain over that many days since 1933. The Dow, meanwhile, is up 28.7 percent. Investors are betting that a stream of slowly improving data since early March mean that the economy, and Wall Street itself, have found a bottom. As they've kept buying, they've also overlooked reports, including millions of lost jobs, that point to continuing economic weakness. Full Story:
NYSE:SPY May 4, 2009 9:06pm

PowerShares Pulls Plug on 19 ETFs

plugInvesco PowerShares Capital Management has announced its plan to liquidate 19 exchange-traded funds (ETFs) within its family. The final day of trading for the ETFs listed below will be on May 18, 2009. --PowerShares Dynamic Aggressive Growth Portfolio (PGZ) --PowerShares Dynamic Asia Pacific Portfolio (PUA) --PowerShares Dynamic Deep Value Portfolio (PVM) --PowerShares Dynamic Europe Portfolio (PEH) --PowerShares Dynamic Hardware & Consumer Elec Portfolio (PHW) --PowerShares FTSE RAFI Asia Pacific ex-Japan Small-Mid Portfolio (PDQ) --PowerShares FTSE RAFI Basic Materials (PRFM) --PowerShares FTSE RAFI Consumer Goods (PRFG) --PowerShares FTSE RAFI Consumer Services (PRFS) --PowerShares FTSE RAFI Energy (PRFE) --PowerShares FTSE RAFI Europe Small-Mid (PWD) --PowerShares FTSE RAFI Financials (PRFF) --PowerShares FTSE RAFI Health Care (PRFH) --PowerShares FTSE RAFI Industrials (PRFN) --PowerShares FTSE RAFI Telecom & Tech (PRFQ) --PowerShares FTSE RAFI Utilities (PRFU) --PowerShares High Growth Rate Dividend (PHJ) --PowerShares International Listed Private Equity (PFP) Full Story:
ETF BASIC NEWS May 4, 2009 4:33pm

Dow Jones Suspends Hedge Fund Index

haltAn index that tracks hedge fund strategies with distressed securities has temporarily suspended publication, Dow Jones announced early Monday.  The Dow Jones Hedge Fund Distressed Securities Strategy Benchmark will remain closed indefinitely, the index provider added in a statement.  It said the "decision to halt publication of the benchmark is a result of market conditions in the distressed securities space, and was made jointly by Dow Jones Hedge Fund Indexes and the investment manager of the managed account platform that supports the Dow Jones Hedge Fund Strategy benchmarks." Full Story:
ETF BASIC NEWS May 4, 2009 4:07pm

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

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