This Week In ETFs: August 13th Edition

by on August 14, 2010 | ETFs Mentioned:

Equity markets tumbled again this week, with major indexes sinking by close to 4% and oil dropping nearly 7% on continuing fears over the health of the global economy. The week was also unkind to CEOs; two major companies announced changes in their leadership positions with the chiefs of both General Motors and Hewlett-Packard stepping down from their positions. The markets were uneasy leading up to and directly following the Federal Reserve meeting, but tanked once the details of the Fed’s plans became known. The Fed announced that it will take the proceeds from its maturing mortgage backed securities and reinvest them in long-term treasury bonds, sparking interest in an increasingly popular sector. The news from the Fed’s recent behaviors sent equities tumbling Wednesday with the Dow Jones Industrial Average dropping nearly 300 points on the day. Also this week, Cicso reported disappointing earnings, furthering the drop of an already wobbly market.

Finally, there was some good news on Friday as the Euro-zone reported a surprising 1.0% GDP growth lead by the Germans who saw gains of roughly 2.2% in the second quarter.

It was another busy week in the ETF world, with a number of new products hitting the market [see India Infrastructure ETF Hits The Market]. Below, we profile three of the best ETF stories from around the Web from the last week:

Frontier ETFs: the New Emerging Markets at ETF Zone:

This article outlines frontier market ETFs and the potential benefits they can provide to a portfolio. Frontier market ETFs are a good way to gain exposure to these markets, since mutual funds targeting these areas tend to be inefficient and expensive when it comes to tracking these rapidly developing countries. Will McClatchy outlines several different funds, detailing which countries they invest in as well as some of the risks involved with investing in these up-and-coming but often volatile markets.

Which Is The Best Emerging Market Debt Fund? at Index Universe:

Until recently, the only way to access emerging market sovereign debt was through a select number of dollar-denominated funds. That is no longer the case thanks to two new ETFs that allow investors to buy emerging market debt in local currencies. In this article Olivier Ludwig digs into these two new ETFs, the Market Vectors Emerging Markets Local Currency Bond ETF (EMLC) and the Wisdom Tree Emerging Markets Local Debt Fund (ELD), to see how they compare side-by-side. Both of these funds offer exposure to local emerging market currencies including countries like Brazil, Columbia, Turkey, Mexico, and Malaysia.

ETFs To Invest Like Bill Gates at ETF Database:

This article looks into the investments made by Bill Gates and his foundation in recent years in order to ascertain where one of the world’s richest investors sees opportunities. Gates has been spotted investing in waste management firms, clean car technology, as well as putting his money into philanthropic acts for Africa. In this piece, we present three ETF ideas for investors interested in replicating some of the strategies used by the Microsoft founder.

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Disclosure: No positions at time of writing.