This Week in ETFs: August 21 Edition

by on August 21, 2009 | ETFs Mentioned:

It’s been an exciting week in the world of ETFs, with new fund launches, a nice run-up on Wall Street, and plenty of other happenings. Here are the ETF Database staff picks of the week’s most important and interesting stories from around the Web:

Gold Or Oil: What’s A Better Inflation Hedge? at Hard Asset Investor:

There has been a lot of discourse about inflation, mostly focusing on when (not if) it’s coming. As a result of governments all over the world spending enormous amounts of money to stimulate their economies, many analysts anticipate an uptick inflation either this year or next. HAI offers some interesting insight into the relative benefits of gold and oil as inflation hedges.

Do Leveraged ETFs Have a Place in Client Portfolios? at ETF Database

As the debate over their intended uses and alleged abuses continues to heat up, many investors have been scared away from leveraged ETFs. As part of our new Financial Planner & RIA ETF Center, we take a look at leveraged funds and examine the role they may play in client portfolios.

An Ugly Side to Some Commodity ETFs at Morningstar:

Most popular commodity ETFs such as GLD or SLV are backed by stockpiles of physical gold and silver, which makes them better trackers of the respective prices. Others such as agriculture or natural gas funds may turn out not to be good trackers because they are merely backed by futures contracts, which, as Bradley Kay points out, are subject to contango and backwardation.

First Nordic ETF To Take On Active Mutual Fund Field at IndexUniverse:

The first pure-play exchange-traded fund focused on the Nordic region of Europe launched on Wednesday. The largest component company at the end of July was Sweden’s Nordea Bank, at 10%. Other leading names were: Novo-Nordisk (8%); Nokia (8%). GXF will represent the second ETF that the New York-based Global X offers.

BGI Lists Peruvian ETF On Mexican Stock Exchange at Wall Street Journal:

Peru’s strong economic performance (it has been one of Latin America’s best-performing economies) has flown under the radar of many investors. The iShares Peruvian ETF was launched in New York in June and in its first month saw assets under management grow to more than $30 million. While many investors think of Brazil when considering Latin American investments, Peru may be worth keeping an eye on.

European ETF Market Surpasses United States at ETF Trends:

The U.S’s status as the leader in ETFs has been usurped by Europe, which is now the largest market for ETF in terms of number of ETFs offered. However, the U.S. does still remain top in terms of assets under management – this just shows the magnitude of this explosion in demand for ETFs, even in the current market environment.

That’s it for This Week in ETFs: happy reading. Have a great weekend everyone!