It was another volatile week on Wall Street as the broad S&P 500 sank by 5% and the Nasdaq fell by 6% to close out a brutal second quarter. Markets tumbled as investors reacted to poor job creation numbers as well as weak manufacturing data. Commodities also suffered greatly as oil tumbled more than $6/bbl. and gold fell more than $40/oz. in Thursday trading. One of the few winners on the week was the euro which surged more than 3.5 cents against the dollar as the ECB and private European banks were able to successfully remove more than half a trillion dollars of 12 month loans from the markets and replace them with shorter-maturity issues. Below, we profile three of the best ETF stories from around the Web:
Mutual-Fund Firms Jumping Into ETFs at The Wall Street Journal:
Over a decade ago, ETFs were a completely foreign idea to many investors who preferred to stick with more well-known mutual funds. However, the tide appears to be turning as a report came last week suggesting that there might soon be a day when at least half of the mutual-fund community switches to ETFs. This idea was sparked by three separate announcements from major mutual fund providers which continue to expand their ETF selections. The Vanguard Group announced 19 new ETFs which look to be far cheaper than many of their counterparts in the industry, potentially setting of a price war. This announcement was followed by Grail Advisors and Huntington Asset Management who announced their own ETFs which look to further expand the selection available to ETF investors seeking funds from established mutual fund companies.
Rondeau’s Roundup: Could UNG’s Price Finally Be Stabilizing? at Index Universe:
Over the past few years the United States Natural Gas Fund (UNG) has failed to send off bullish signals to investors, but that may soon change. Ray Rondeau outlines the reasons why UNG may be in for a turnaround using chart data from the previous three years. Rondeau analyzes the patterns of the bullish and bearish segments and wonders if the fund is gearing up for a bullish run. The article goes on to point out that UNG does come with a large amount of risk and a high expense ratio. Due to these factors, Rondeau warns long investors to carefully consider other options, which he goes on to describe in detail.
Three ETFs To Own If Paul Krugman Is Right at ETF Database:
One of the few resolutions to come from the G-20 meeting last weekend was a pledge by many nations to get their fiscal houses in order. While many cheered this idea, famous economist Paul Krugman warned that this could throw us into yet another depression. If Krugman is correct, markets may be headed for a steep decline but some asset classes will likely hold their ground or even produce gains for investors. The article goes on to outline three ETFs that could survive a deflationary environment and protect capital against declining asset prices.
Disclosure: No positions at time of writing.