This Week In ETFs: August 14th Edition

by on August 14, 2011 | ETFs Mentioned:

Investors have been glued to their computers, newspapers, and major news networks this week, as we saw one of the most volatile set of trading sessions in recent memory. The S&P downgrade coupled with the Fed’s decision to keep rates steady until 2013 slaughtered markets on Monday and Wednesday, while Tuesday and Thursday saw massive gains. The VIX “fear” index hit a multi year high this week, as investors flocked to these funds to try and produce a nice return in the short term; and with some of these funds returning over 90% in the last week, many investors certainly succeeded. The ETF world saw healthy activity, as the first ever India Consumer ETF launched, giving investors a new way to play one of the world’s most popular emerging markets [see EGShares Rolls Out India Consumer ETF].

Below, we outline three of the best ETF stories from around the web during this past, chaotic, week:

Buying Oil ETFs On A Dip at IndexUniverse:

Oil prices have had a hectic 2011, not to mention an abysmal week, as the price of crude dipped below $80 per barrel at one point. Now, with prices just above the $85 range, investors are left wondering if this is a good buying opportunity for battered oil ETFs. This article, by Ben McFadden, outlines a number of oil ETFs over the past week and looks at which were hit hardest. McFadden gives a list of which funds might be right for different kind of investors, allowing everyone to find the right fit for their portfolio.

An ETF That Buys High and Sells Higher at Morningstar:

It sounds too good to be true, a product that buys in at highs and sells higher? Most investors aim to buy low and sell high, because buying high typically leads to losses in a portfolio, but the new momentum products from Russell seemed to have broken the status quo. Each month, these ETFs dump the worst performing holdings, and buy in to those that have been outperforming the competition, and the strategy is working. This article outlines the various aspects of these two products that follow this brand of momentum investing and how their strategy holds up in a real market setting.

Not Just EEM & VWO: Emerging Markets ETF Options at ETF Database:

The past few years have seen a surge in popularity for emerging market products as issuers have been working hard to release new funds to target just about any emerging sector an investor could ever want. But many are only aware of the two broad-based funds EEM and VWO, sticking with what they have known for years thinking that this is the best way to achieve all of the exposure to these vital growth regions. What they do not realize, is that there may be better options out there for them besides these two big name products. This article, by Michael Johnston, outlines a slew of alternate emerging market ETFs, to educate investors on all of the choices that are available to them.

Disclosure: No positions at time of writing.