Another eventful week has passed us by, leaving investors with plenty to chew on as they try and figure out hectic markets. The week started off with the closing of four ETFs, as Claymore‘s said goodbye to IRO, CRO, EXB, and ROB as the four failed to attract any meaningful amount of assets [see Four ETFs To Close Their Doors]. Intel announced the acquisition of software and spyware company McAffe, shooting its share price up nearly 60% in one trading day. While certain individual securities had strong performances, markets as a whole took a turn for the worse late in the week as first time unemployment claims surged past expectations to hit the half million mark, reigniting fears of an economic slowdown. The recurring fear of a double-dip sparked a major inflow to gold and Treasury funds as investor confidence was stunted in light of this weak data. For investors trying to make sense of all of the recent chaos we profile three of the best ETF stories from around the Web from the last week:
The Split Personalities of Platinum and Palladium ETFs at Morningstar:
Typically, when investors are looking to add a precious metal to their portfolio they stick with the time-tested gold; it has been considered a safe haven during troubled times for centuries and is universally recognized as a store of wealth. However there are a variety of other metals to consider which can offer similar levels of protection. This article outlines two often overlooked precious metals and highlights the many uses of platinum and palladium; two metals that have many more uses than just jewelry. In fact, the metals are used primarily for industrial applications and are very susceptible to market swings, creating a unique opportunity with its fair share of risk. The article goes on to compare and contrast two ETFs; ISE Global Platinum Index Fund (PLTM) and ETFS Physical Palladium Shares (PALL).
US One Seeks To Offer Foreign-Holding ETFs at Index Universe:
U.S. One Trust has filed for a line of ETFs that will revolutionize the fund of funds space. The funds will be actively managed, and made up of ETFs, some of which will be listed on foreign markets, given investors opportunities that they would not be able to easily access on their own. The company will aim to hold low-cost funds, although it did not disclose the tickers or expense ratios in its filing. U.S. One Trust maintains a buy and hold philosophy, as evidenced by their first of these unique funds, the One Fund (ONEF).
Investors Can’t Get Enough Of Junk Bond ETFs at ETF Database:
With equities experiencing a tumultuous August, it is no secret that investors have been funneling in to corporate fixed income ETFs, seeking the high yields that they offer, especially when compared to low-yielding Treasury Bills. Unfortunately, inflation fears, and the large influx of investors has pushed yields down, which are not expected to bounce back for a foreseeable future. Low returns have put the spotlight on junk bonds, and the juicy yields they provide. The article outlines several options for investors seeking high yields that have all but disappeared in the rest of the fixed income market.
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Disclosure: No positions at time of writing.