From the monthly archives:

May 2009

Earlier this week, I posted an article summarizing two well-respected and well-known (at least within the investor community) studies that have, on the whole, repudiated the benefits of active management as it relates to over / under weighting asset classes and selecting individual securities. These studies (the first conducted by Brinson, Hood, and Beebower and the second conducted by Ibbotson and Kaplan) indicated that nearly 100% of portfolio returns are attributable to their policy benchmarks. In case these arguments weren’t convincing, here are two more pieces that will hopefully persuade you active management is for the birds. [click to continue…]

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Deutsche Bank announced it is expanding its ETF product offering in France, launching 14 new ETFs under its “db x-trackers” line. The new funds, which will be listed on NYSE Euronext’ Paris exchange, are significant because they represent the introduction of several new features to the French ETF market. [click to continue…]

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With the news that General Motors’ bondholders rejected a proposed debt-for-equity exchange breaking Wednesday afternoon, a bankruptcy filing from the leading U.S. automaker appears to be imminent. The market had been expecting this as a possible outcome for some time, so official news of a filing from GM likely won’t send shock waves through Wall Street. But […]

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There’s an old adage that rings true in our current economic environment: crisis begets opportunity. I don’t think anyone would argue that we’re deep into a crisis that has proved to be more prolonged and more severe than most predicted. Until now, however, we’ve yet to see a wave of buyers snatching up companies with […]

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Survey: ETF Investors Highly Satisfied

by on May 27, 2009 | Updated June 18, 2009

The EDHEC Risk and Asset Management Centre recently released the results of its EDHEC European ETF Survey for 2009. The survey, which includes 360 institutional investors and private wealth managers, indicates high satisfaction with ETF investing and points to continued growth in the industry.  Among the findings:

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Mutual funds were once hailed as a revolutionary financial instrument able to provide investors with instant access to well-diversified market indices and achieve economies of scale by pooling resources with fellow investors to develop investment portfolios that previously would have been prohibitively expensive. Over the past several decades, as fund sponsors have promoted their superstar […]

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By now, many investors have heard countless times the advantages of ETFs over mutual funds: lower costs, tax efficiency, improved transparency, etc., etc. While the cost issue is relatively straight forward, the tax advantages of ETFs are a bit more confusing. Even with a detailed explanation, this advantage remains a largely theoretical concept for most […]

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Consumer discretionary ETFs surged Tuesday morning on news that consumer confidence increased again in May to its highest level since September 2008. The Conference Board announced that its index of consumer confidence for May increased to 54.9 from 40.8 in April (originally reported at 39.2). Expectations for economic activity over the next six months jumped […]

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It’s no secret that ETFs are rapidly attracting investor dollars away from traditional mutual funds and other investment vehicles. Coupled with the rise of the ETF industry as a whole, an extended period of extreme financial turmoil has made gold ETFs one of the most popular investments in today’s environment. To meet the demand, a number […]

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Financial regulators in Hong Kong and Taiwan have reached an agreement that will expand the availability of ETFs in these markets. Hong Kong’s Securities and Futures Commission and Taiwan’s Financial Supervisory Commission announced late last week that they have approved the cross-listing of 16 ETFs listed in Hong Kong and 11 listed in Taiwan. 

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ETF Database Senior Analyst Michael Johnston appeared on Business News Network‘s Stars & Dogs program earlier today. Up for discussion was Emera (EMA TSX), a utility company whose core business is electricity. Emera provides services mainly in Canada and the Northeastern US. Michael discussed how the stock’s possible upcoming inclusion in a certain index will […]

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How to Build Your Own Ivy Endowment Portfolio Using ETFs

by on May 25, 2009 | Updated November 1, 2012

Those who believe in the virtues of passive indexing will generally pooh-pooh the idea that one can beat the market. But the truth is, a small percentage of people do beat the market over the long term. Putting aside the statistical flukes (retail investors who get lucky), you can still observe a group of people […]

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