This Week In ETFs: October 30th Edition

by on October 30, 2010 | ETFs Mentioned:

As the nation anxiously awaits the results of the midterm elections that will take place next week, the financial world is buzzing after a period of high volatility thanks to a host of earnings reports and financial data. The U.S. government released its anticipated GDP growth report from the third quarter on Friday, which came in at 2% as predicted, painting a lukewarm picture for the economy heading into the all-important holiday season. The Fed has also been slowly revealing its plans to execute another wave of quantitative easing, which has many investors worried as to how markets will react to this move. This week also saw earnings reports from many industry leaders like Microsoft, ExxonMobil, and Merck, which helped to give the markets direction ahead of what is likely to be an extremely choppy week to open up November. Below, we highlight three of the best ETF stories from around the Web during the last week:

BoJ Details Asset-Purchase Program at The Wall Street Journal:

For the last two decades, Japan has been faced with major deflationary issues that have rattled its economy. On Thursday, the Bank of Japan released details on its newly announced asset-purchase program, which will amount to 5 trillion yen (US $61.5 billion). Though the majority of the money will be spent buying back Japanese government securities, the BOJ will be purchasing exchange-traded funds for the first time. The ETF purchases will amount to 450 billion yen and will “represent more than 20% of the estimated size of the ETF market in Japan”. As far as we know, this is the first time that a central bank has bought up ETFs in an asset purchase program so it represents a watershed moment for the entire industry.

Is The New Precious Metals ETF Worth Buying? at Hard Asset Investor:

Last week saw the introduction of a new fund that has created quite the buzz; the ETFS Physical Precious Metal Basket (GLTR). The ETF will feature physical holdings in gold, silver, platinum, and palladium, with a majority of the weightings granted to gold and silver. With precious metals surging in today’s markets, Julian Murdoch takes a look at the sector as a whole to help investors decide if this fund is a good purchase for them.

Closer Look At S&P 500 ETF Options at ETF Database:

The S&P 500 is one of the most well-known benchmarks in the world, and has become somewhat of a barometer for our economic performance. There are currently three ETFs that replicate the famous index, and combined, their assets account for more than 10% of the entire ETF space. This article outlines each ETF option for exposure to the popular benchmark, and the subtle differences, to allow investors to pick the right fund for their portfolio.

Disclosure: No positions at time of writing.