This Week In ETFs: June 12th Edition

by on June 12, 2011

The first full week in June has been anything but kind to investors looking to shed some of the losses that have accumulated over the last few weeks. In fact, Friday saw the Dow briefly lose grip on the 12,000 benchmark as equities endured their sixth straight week of losses. A wealth of disappointing data as well as fears that a Greek default is inevitable have all led to downward pressure on markets. The ETF world was able to keep busy this week, with several new funds launching, giving investors new options to weather the storm that is our current investing environment [see Deutsche Bank Debuts Suite Of Currency Hedged Equity ETFs].

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

Finally, Active ETFs Worth Watching? at SmartMoney:

Actively managed ETFs have been slow to gain traction in the overall industry, as they attempt to shed the problems that actively managed mutual funds exhibited, which is what sparked the growth of the exchange traded world in the first place. But 2011 has investors singing a different tune, as traders are beginning to embrace active bond ETFs with open arms. Through May of this year, these funds “have drawn inflows of $755 million, 33% more than all other actively managed ETFs combined, according to fund tracker Morningstar” writes Jonnelle Marte. This article outlines the nuances of these products to give investors a better understanding of why these funds are surging in popularity.

Is MOO The Ultimate Defensive Play? at Index Universe:

While investors are scrambling to find any investment that isn’t tanking alongside major equities, the Market Vectors Agribusiness ETF (MOO), has been a diamond in the rough. “Last month, MOO was the single most popular U.S.-listed exchange-traded product, hauling in $1.4 billion in new assets, raising its total assets to $5.21 billion at the end of the month” writes Oliver Ludwig. One possible explanation is that the fund appears to have caught the eye of some institutional investors. What is even more astonishing is that MOO had high inflows in a month investors were generally cashing out of their commodity holdings as that market sector experienced a nasty pullback. The article goes on to outline other factors keeping MOO one step ahead of the competition.

Five ETF Strategies For A Sideways Market at ETF Database:

Most investors have a good understanding of what funds will do well in a bull market, and in a bear market for that matter. But where many run into trouble is in a horizontal market, where major indexes can’t seem to establish a trend, and chug along in a sideways pattern. With markets now exhibiting significant volatility, Michael Johnston outlines five ETPs for a sideways market, giving investors new strategies for a market that is often difficult to profit from.

Disclosure: No positions at time of writing.