All ETF Daily News Articles

Position Limits for Options on Exchange-Traded Funds and Registration Qualifications with Respect to Options Discretionary Accounts

etf-news6FINRA is the largest independent regulator for all securities firms doing business in the United States. We oversee nearly 5,000 brokerage firms, 173,000 branch offices and 653,000 registered securities representatives. Our chief role is to protect investors by maintaining the fairness of the U.S. capital markets.      Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act”),1 and Rule 19b-4 thereunder,2 notice is hereby given that on May 11, 2009, Financial Industry Regulatory Authority, Inc. (“FINRA”) (f/k/a National Association of Securities Dealers, Inc. (“NASD”)) filed with the Securities and Exchange Commission (“SEC” or “Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared by FINRA. FINRA has designated the proposed rule change as constituting a “non-controversial” rule change under paragraph (f)(6) of Rule 19b-4 under the Act,3 which renders the proposal effective upon receipt of this filing by the Commission. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
ETF BASIC NEWS May 25, 2009 12:26pm

Options Activity In Materials ETF Shows Room To Rise

fuelThe XLB materials exchange traded fund has risen 50 percent since its March lows, and options traders are betting that it still has some fuel left in the tank .

More than 71,000 calls changed hands at the June 28 strike on Wednesday last week, including a single chunk of 49,900 bought for $0.90, according to OptionMonster's tracking systems. The average daily volume at that strike is just 38 calls, and open interest was 1,072 contracts.......

........Yesterday's call activity suggests that traders believe that the XLB will climb at least to $28 by the time contracts expire in mid-June. The ETF, which combines agriculture, chemical, and metals names, has ramped higher along with the rise in commodities.

Full Story:

NYSE:XLB May 25, 2009 9:57am

ETF: TBT’s Day Has Come

nextbigthingInvestors who have been patiently waiting in the Proshares UltraShort 20-year Treasury (TBT), an ETF which shorts the 20-treasury note, are finally reaping their rewards as the fund is up 17% since mid March. As investors start to worry about the increasing risks of inflation, credit downgrades, or even a US sovereign default, they are demanding higher yields on US debt. Higher yields mean lower prices, and a higher TBT, as the leveraged fund aims to return 200% the inverse of long dated treasuries. Rates above 5% would mean a healthy return for the fund. But the macroeconomic fundamentals of the American economy would suggest a 20 year note closer to 10%, meaning the potential for upside is huge. Full Story:
NYSE:TBT May 25, 2009 9:10am

Gold softens slightly, ETF holdings inch up

gold-barGold prices softened on Monday but remained within sight of a two-month high above $960 touched in the previous session, retaining their sheen in the face of a weaker dollar. Crude oil's rise to a six-month high has also benefited gold, which is often bought both as an alternative to the dollar and as an inflation hedge. Gold markets showed little initial reaction to a report by South Korea's Yonhap news agency that quoted a ruling party official as saying North Korea conducted a nuclear test on Monday......
NYSE:GLD May 25, 2009 9:00am

Why Investors Should Avoid The ETF “TIP”

etf-news6With inflation worries starting to surface and the US Dollar resuming its fall, many investment advisors have advocated the iShares Barclays TIPS Bond Fund (TIP). This ETF invests in Treasury Inflation Protected Securities, treasury bonds which promise to completely protect against inflation by calculating the coupon payment on inflation-adjusted principal. The TIP is a smartly designed fund with an attractive expense ratio and plenty of liquidity. But it has one fatal flaw: TIPs haven't been tested in truly inflationary times, and are thus a much riskier investment than most people think. The protective value of TIPs rests on an accurate calculation of inflation. Critics have long accused the CPI of underestimating the true value of inflation. Much like the unemployment figures, the CPI numbers have been openly massaged over time to look more benign. They aren't falsified per se, the index's parameters are simply changed in a way that produces overly conservative figures. TIPs were first issued in 1997, smack in the middle of the "great moderation". They weren't tested in the 1970's. We don't know if the US government will pay them back honestly and in full. It may simply be easier and cheaper to lower the CPI numbers, leaving TIPs holders exposed. This excellent Bloomberg story describes how poorly TIPs performed in early 2008, right when pre-crisis inflation hit its peak. Full Story:
NYSE:TIP May 25, 2009 8:09am

Turning the Infrastructure Into Profits Through ETFs

infrastructureWANT to buy a bridge, or at least invest in a company that builds one? (No, that bridge is still not for sale.) As they search for better returns, more investors are discovering that the road to riches could lie in the vast global infrastructure: an assortment of companies that build or manage highways and tunnels, water and waste systems, parking garages, airports and other properties. These rather obscure investments offer predictable cash flow, largely impervious to economic and market fluctuations. Big institutions like pension funds are putting money into private funds and looking into direct investments in projects. But even individual investors are finding a number of options, many of them fairly new, through private equity funds, separately managed accounts and limited partnerships, along with exchange-traded and mutual funds......
ETF BASIC NEWS May 24, 2009 9:00am

How to Profit from New Investment Mega Trends

trendInvestors are always looking for the next 'big thing.' In the late 90s, technology was the opportunity of the decade. From 1995 to 2000, the Nasdaq soared from below 800 to above 5,000. From 2002 to 2007 the S&P 500 (SPY) and Dow Jones (DIA) nearly doubled. Real estate prices in some areas more than quadrupled, while broad based real estate ETFs like the SPDR Dow Jones REIT ETF (RWR) and iShares Dow Jones US Real Estate ETF (IYR) nearly tripled from 2000 to 2007 If you missed out on any of the above mega themes, don't sweat it. The Nasdaq (QQQQ) has since plummeted, as did the Dow and S&P. Real Estate ETFs have given up all of this century's gains. Where is the next bull market? An old Wall Street adage says that there is always a bull market somewhere. As it turns out, this is yet another piece of Wall Street wisdom that has been proven wrong. In 2008, the only bull market to be found was in short ETFs. The key question is whether investors should be looking for the next new bull market, or get used to a prolonged bear market while figuring out how to prosper along the way.   Full Story:
ETF BASIC NEWS May 24, 2009 8:30am

Reports that leveraged ETFs will disrupt market are overblown

blahblahLeveraged exchange traded funds are clearly not for everyone, especially if you are of the buy-and-hold mind-set. But claims that these feisty newcomers threaten to ignite extreme market volatility don't quite add up. This particular brand of ETF is designed to give short-term traders leveraged long or short exposure to a variety of indexes.
ETF BASIC NEWS May 24, 2009 8:03am

Financials weak, AIG chief throws in the towel

towelU.S. financial stocks were little changed on Friday, with shares of American International Group the biggest loser after the company said its chief executive will resign. The Financial Select Sector SPDR (XLF) , which tracks the financial stocks in the S&P 500, slipped 0.2%. American International (AIG) said late Thursday that Chief Executive and Chairman Ed Liddy will leave after replacements are found. AIG also said it plans to split the roles of chairman and chief executive at the giant government-owned insurer. Full Story:
NYSE:XLF May 24, 2009 8:00am

Can Nanotechnology ETF Make A Comeback For Investors?

nanotechnologyHow long has it been since nanotechnology was on the tip of everyone’s tongue as the next great speculative investment frontier?  It seems like ancient history.  But we have seen news from Altair Nanotechnologies Inc. (NASDAQ: ALTI), IBM (NYSE: IBM), Harris & Harris Company, Inc. (NASDAQ: TINY), and Nanosphere, Inc. (NASDAQ: NSPH) this week.  We have even seen a bit of a move in the PowerShares Lux Nanotech (NYSE: PXN) ETF that tracks nanotech this week. This week was actually more nanotech-related news than we have for some time even if there is still no clear direction on which way the political environment will treat nanotech in the months and years ahead.......
ETF BASIC NEWS May 23, 2009 2:19pm

ETF Death Toll Climbs To 113: On Pace To Set Another Record For Closures In 2009

closedMay 18 was the last trading day for 19 ETFs from PowerShares. If you did not sell your shares by the deadline, you now get to experience the ETF liquidation process first-hand
ETF BASIC NEWS May 23, 2009 1:47pm

Everyone Is Talking About The Fear Of Inflation!

fearAs inflation worries still nag at investors, ETF issuers continue to offer a variety of methods to invest in gold. The latest issue of Scottsdale Futures and Options Limited’s PowerShares Momentum Tracker examines Momentum Tracker DB Gold (DGL), an ETF that aims to give small investors a sophisticated exposure to the price of gold. “While gold has inspired both issuers and investors alike in recent months,” noted publisher Dan Rillon, “results have been mixed on our Commodities Momentum Table.” Momentum Tracker publishes a weekly ranking of Momentum Tracker ETFs, where position on the table is determined by a momentum formula that utilizes relative strength indicators. 
ETF BASIC NEWS May 23, 2009 1:25pm

John Paulson Betting Big On Gold ETF

john-paulsonAs we head into Memorial Day weekend, we are also closing the books on one of my favorite investing holidays -- the time period for most money managers to file their 13-F with the SEC is pretty much coming to an end. These filings are an incredibly valuable tool, providing insight into the thoughts and actions of some of the best investors on the planet. I have written about the moves by some of my favorite investors recently and I want to finish out the week by examining a few others. John Paulson has very quickly become something of an investment legend. After a 500%-plus return in 2007 shorting mortgage-backed securities, he followed it up by earning better than 35% in the difficult 2008 period. In the first quarter of 2009, he appears to be betting big on gold. 
NYSE:GLD May 23, 2009 8:11am

Active ETFs Prove Slow To Gain Assets

turtleActively managed exchange-traded funds haven't attracted assets as quickly as some have expected, but that hasn't slowed the race to expand ETFs beyond their index-tracking roots. Most ETFs defined as actively managed are still quantitative and formulaic. Still, the first to qualify as actively managed in the traditional sense -- using analysis and known stock pickers -- have already come to market, and more are on the way. ETFs are baskets of securities that trade like individual stocks. Their structures generally offer cost and tax advantages over conventional mutual funds as well as more transparency because they disclose their holdings daily. 
NYSE:PLK May 22, 2009 5:00pm

Hyperinflation? ETF Options

inflationMethods to protect or hedge oneself against the upcoming hyperinflationary phase Solution 1 As we stated last week one of the simplest and easiest methods would be to open an option for those who cannot or do not want to travel will to invest via currency ETF's FXY= Japanese Yen FXF= Swiss Franc, FXE= Euro FXC= Canadian Dollar FXA= Australian Dollar FXS= Swedish Krona Finally, the last option would be to open a Pay Pal account, fund it and then activate the currency option feature. Right now they offer the Euro, Canadian dollar, Swiss Franc and British Pound. Solution 2
NYSE:FXA May 22, 2009 4:25pm

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