This Week In ETFs: February 5th Edition

by on February 5, 2011 | ETFs Mentioned:

This week’s headlines were dominated by growing concerns in Egypt, as rumors swirl that the nation’s leader Hosni K. Mubarak will step down, as he has already announced that he will not run for another term. Thankfully, a major storm system striking the Midwest failed to make any significant impact on markets, as some parts of the nation saw up to two feet of snow in just a matter of hours. The Dow Jones Industrial managed to break and hold the 12,000 mark, while the S&P 500 did the same with the 1,300 bar. Though equities saw an unstable week, a drop in unemployment closed out the first days of February on a positive not. The ETF world saw high activity with the Egypt ETF (EGPT) experiencing volumes nearly 150 times its normal figures [see Egypt ETF (EGPT) In High Demand].

Below, we profile three interesting ETF articles from around the Web that caught out attention over the past week:

Exchange Traded Products and Taxes at Morningstar:

In this article various ETP structures and their tax implications are outlined in concise detail. The author, Abraham Bailin, delves into the issue of distinguishing all of the unique tax “quirks” of each kind of product. Tax treatment of different product structures, with regards to their distribution, is summarized at the end of each section, making this piece a great reference.  Leveraged and inverse ETF tax implications are  explained very clearly, shining light on a topic misunderstood by many.

ETFs To Watch As Egyptian Drama Plays Out at ETF Database:

As Egypt has become the central point of interest for the media and investors alike, Michael Johnston looks at popular funds and some not-so obvious ones that are fundamentally linked to the developments overseas. The civil unrest in the country has had a truly global economic impact, with equity and commodity markets continuing to react to news and developments.  Egypt’s status as a major commodity producer and consumer give its current political instability even more influence on financial markets, especially with regards to oil, wheat, and cotton prices.

Options Offer Clues To Gold’s Direction at Hard Assets Investor:

Gold has been trending lower and most surprisingly of all, the precious metal has failed to rally significantly in the face of instability and unrest overseas. Given SPDR Gold Trust (GLD) currently low volatility, Brad Zigler discusses plausible scenarios of where the fund could be headed in the coming months. The article concisely outlines probabilities of various forecasts, and offers insightful commentary along with its assumptions.

Disclosure: No positions at time of writing.