Will Active ETF’S Be The Way Of The Future?

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June 13, 2009 10:11am ETF BASIC NEWS NYSE:PLK

futureIan Salisbury from the  online WSJ  reports that “BlackRock Inc.’s (BLK) plan to buy exchange-traded fund powerhouse Barclays Global Investors has prompted speculation the combined entity could dominate the active ETF business. There’s one hitch: so far, active ETFs have been a flop.” 

“It’s too early to tell exactly how BlackRock plans to approach ETFs. But it has hardly been shy about highlighting the potential benefits of marrying its expertise as a stock- and bond-picker with Barclays’ more hands-off indexing approach,” Ian Salisbury Reports. 


Ian Salisbury continues writing  that “Barclays’ iShares ETF unit does plan to create active funds, says spokeswoman Christine Hudacko, but she adds that the products still face a number of regulatory, design and marketing hurdles.”

“Active ETFs have been around for more than a year, and investors have mostly turned up their noses. Five launched by Invesco Ltd.’s (IVZ) PowerShares unit have an average of just $3.6 million in assets. Since market makers typically keep a little money in all ETFs to make sure the funds remain easy to trade, it’s difficult to tell how much of that, if any, represents money from actual investors. PowerShares didn’t respond to requests for comment,”  Ian Salisbury Reports.

ETF DAILY NEWS TAKE:  Even though active ETF’s have been around for a year, look at what the markets have done in the past year.  We need to give these ETF’s a chance to filter through the system and get into asset managers hands.  We are sure Larry Fink from BlackRock will overcome his hurdles and put forth a great plan for active ETF’s.  We have listed some active ETF’s from Powershares below for you to take a look at.

Full Story: HERE


 

We ran these three actively managed ETF’S through the market club software and found the following results from their chart analysis program:

POWERSHARES ACT MEGA-CAP (PACF:PMA)
Smart Scan Chart Analysis confirms that a strong uptrend is in place and that the market remains positive longer term. Strong Uptrend with money management stops. A triangle indicates the presence of a very strong trend that is being driven by strong forces and insiders.Based on a pre-defined weighted trend formula for chart analysis, PMA scored +100 on a scale from -100 (strong downtrend) to +100 (strong uptrend):
     
+10 Last Hour Close Above 5 Hour Moving Average
+15 New 3 Day High on Thursday
+20 Last Price Above 20 Day Moving Average
+25 New 3 Week High, Week Ending June 6th
+30 New 3 Month High in June
+100 Total Score
 
POWERSHARE ACT MULT ETF (PACF:PQZ)
Smart Scan Chart Analysis continues positive longer term. Look for this market to remain firm. Strong Uptrend with money management stops. A triangle indicates the presence of a very strong trend that is being driven by strong forces and insiders.

Based on a pre-defined weighted trend formula for chart analysis, PQZ scored +90 on a scale from -100 (strong downtrend) to +100 (strong uptrend):

     
-10 Last Hour Close Below 5 hour Moving Average
+15 New 3 Day High on Thursday
+20 Last Price Above 20 Day Moving Average
+25 New 3 Week High, Week Ending June 13th
+30 New 3 Month High in June
+90 Total Score
 
POWERSHARES ACT LOW DURN (PACF:PLK)
Smart Scan Chart Analysis indicates a counter trend rally is underway. It also indicates that the current down trend could be changing and moving into a trading range Sidelines Mode.

Based on a pre-defined weighted trend formula for chart analysis, PLK scored -55 on a scale from -100 (strong downtrend) to +100 (strong uptrend):

     
-10 Last Hour Close Below 5 hour Moving Average
+15 New 3 Day High on Thursday
-20 Last Price Below 20 Day Moving Average
-25 New 3 Week Low, Week Ending June 13th
+30 New 3 Month High in March
-55 Total Score

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