This Week In ETFs: April 30th Edition

by on April 30, 2011

This week was yet another strong one for major indexes, as the Dow and S&P 500 have been slowly moving toward pre-recession levels, subsequently creating tailwinds for equities. On the commodity side of things, oil remained relatively stable this week, as it continues to straddle the $113 per barrel mark. Though gold is sitting at an all time high, it was silver that stole recent headlines, as the precious metal is quickly making its way to its historical high, with its sights firmly set on the $50 per ounce mark in the meantime. The ETF world saw a fair amount of activity this past week, with several new launches as well as plenty of filings to keep the exchange traded pipeline full [see UBS Debuts BDC ETN (BDCS)].Below, we profile three interesting ETF articles from around the Web:

A Family Of Contango Killers? at Index Universe:

Last week saw iPath launch a slew of “Pure Beta” funds; 18 of them to be exact. But unlike normal futures-based funds that run the risks of contango and backwardation, these new products will attempt to exclude these frustrating issues. This article, by Carolyn Hill, outlines the details of these new funds, and how they will aim to nix contango. Hill does point out that the ETN’s are not perfect, “they’re ultimately just promises from Barclays Bank, as risky as any bond you might buy issued by Barclays,” but insists that these funds deserve a closer look from investors looking to avoid contango in the commodity space.

Newly Launched ETFs That Screen for Quality at Morningstar:

As of April 26, 116 new exchange traded products have hit the market this year. Some of these funds offer exposure to Asian debt, or even a managed futures portfolio. Of the new launches, sending the ETF industry on its way to 1,300 products, there are a few that stand out by attempting to screen for higher quality portfolios. This article, by Patricia Oey, outlines several new funds that will attempt to create a high quality portfolio through various metrics, possibly making them choice picks for an investor’s portfolio.

Three ETFs For $50 Silver at ETF Database:

While gold has been skyrocketing in recent months, it seems that silver’s meteoric rise has been flying under the radar, until now. As silver approaches its historic highs, the investing world has been clamoring for all things silver. ETFs are among the most popular options to gain exposure to this metal, as there are numerous products with varying strategies to take advantage of the shiny commodity. In this article, Eric Dutram outlines three prospective ETFs for $50 per ounce silver.

Disclosure: No positions at time of writing.