This Week in ETFs: May 1 Edition

by on May 1, 2009

It’s been an exciting week in the world of ETFs. Here are the ETF Database staff picks of the week’s most important and interesting stories from around the Web.

David Morgan: A Bull’s Case For Silver at Hard Assets Investor:

With a track record of strong performance during economic crises, silver seems particularly well poised to weather the current storm, especially the impending threat of inflation. Even our own Brad Zigler pointed out the potential staying power of the silver rally way back in February.

But if silver has so much potential, why is it still so hush-hush among investors?

New Mortgage ETF Buys Stocks, Not Bonds at Index Universe:

Anticipating a return in U.S. mortgage markets, State Street Global Advisors launched Thursday an exchange-traded fund focusing on companies involved in that corner of the market.

The SPDR KBW Mortgage Finance ETF (NYSE Arca: KME) takes a different approach than other financial-focused funds on the market. It holds banks dominated with mortgage loans on their books as well as related service providers.

What the iShares deal means for ETF investors at MarketWatch

Can the vaunted iShares business — the clear market-share leader in ETFs — continue to thrive under private equity’s umbrella? Should investors in iShares ETFs expect anything different, especially in terms of fees?

Muni Bond ETFs Defend Against Bears and Taxes at ETFZone:

For investors still waiting out the vagaries of the stock market, munis remain compelling as an interest-bearing alternative to cash. And muni ETFs are a fine defense against deflation, with one important caveat. The longer the average maturity, the greater the interest rate risk. Experienced investors are warning that interest rate hikes could be severe.

Investors Have Left the Building at Yahoo! Finance/RealMoney:

More than any other time I can recall, the stock market is dominated by short-term traders who only care about the price at the close of the day or — perhaps for some real long-term folks — Friday’s closing bell. The market is news- and politically driven, creating very sharp back and forth moves on a daily basis.

New ETF Player Aims At Tax-Deferred Yields On SPY at Index Universe:

Its only holding would be the S&P 500 SPDRs (NYSE: SPY)… What’s interesting about this ETF is that by making predefined distributions on a regular basis, such payouts could be treated as return of capital for tax purposes. That would seemingly provide investors with a way to earn tax-deferred treatment of distributions from the fund.

The Truth About 3x ETFs and Long Term Investing (Or, Don’t Use a Toaster to Cook a Turkey) at ETF Database:

These securities may seem like a golden ticket to an early retirement, but before you go plowing your nest egg into BGU or TNA, let’s take a deeper look at how these funds actually work.

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