A number of winning streaks came to a halt on Friday, as a generally solid start to earnings season was overshadowed by reports of fraudulent behavior at Goldman Sachs. Financial ETFs plummeted on Friday as anxiety over the regulatory backlash sent the sector sharply lower. Markets will look to another wave or earnings reports next week, as investors continue to gauge the fallout at Goldman and determine the long-term ramifications.
Below, we present our picks for the best ETF articles from around the Web over the last week:
Greenwich Associates Study Shows Huge ETF Upside at IndexUniverse
Could ETFs double in size over the next two years? Matt Hougan thinks such a growth rate might not be all that far-fetched. After analyzing a recent research report from Greenwich Associates, an institutional financial services consulting and research firm, Hougan notes that the usage rate of ETFs among institutions is surprisingly low. The report, which collected data from 70 institutional investors, suggests that only 14% of institutions are currently using ETFs. “It’s easy to do the math,” writes Hougan. “A minor uptick in the number of institutional users—say, from 14 to 21 percent—could theoretically drive another $200 billion in assets.”
Five Ways To Find The Right ETF On ETFdb.com at ETF Database
Finding the ideal ETF for your portfolio can be a daunting and time consuming process. This feature breaks down how an investor can maximize the use of proprietary software to select an ETF that meets a desired risk/return profile. These methods can benefit all investors. Free tools available include an ETF screener, list of 60+ best fit ETFdb Categories, and pages grouping various asset classes into various types.
New JCO ETF: Investing in the Contrary at Seeking Alpha
Javelin Exchange Trade Funds (JETS), a relatively new issuer to the scene, launched its second ETF late last week. The JETS Contrarian Opportunities (JCO) will track the Dow Jones U.S. Contrarian Opportunities Index, an equally weighted index consisting of 125 U.S. securities. This ETF will focus on companies with strong fundamentals that have delivered poor performances over the last three years. Patrick Wilson explains in great detail the rigorous tests that are performed in order to determine which equities are selected for this particular index strategy. JETS released Javelin Dow Jones Islamic Market International Index Fund (JVS) in June 2009.
ETFs for Oil-Rich Countries at ETF Zone
There are a few ways in which investors can take advantage of surging oil prices as the summer driving season approaches. This article delves into the ETFs that offer exposure to oil-rich countries, such as Saudi Arabia, Canada, Iraq, and Iran. U.S. investors only have access to ETFs offered for two of the the top ten countries with the largest oil reserves: iShares MSCI Canada (EWC) and Market Vectors Russia ETF (RSX). Other options include the Market Vectors Gulf States ETF (MES), WisdomTree Middle East Divided (GULF), PowerShares MENA Frontier Countries (PMNA), and Market Vectors Africa (AFK).
Disclosure: No positions at time of writing.