This week was a relatively calm one in relation to the recent international affairs which have dominated headlines for over a month. Conflicts in Libya have escalated, now with heavy U.S. and NATO involvement, but markets have remained relatively calm and have even trended higher. The wake of the Japanese earthquake still continues to bring unfortunate news, however, as radiation was detected in some of the tap water in Tokyo. The ETF world was also busy, as a wave of new funds launched to bring increased innovation to the exchange traded space [see Country-Specific Bond ETNs Debut].
Below we highlight three intriguing articles from the always interesting world of ETFs from the last week:
PowerShares Changes Ticker Symbol of Tech-Heavy QQQ ETF at Morningstar:
The ETF formerly known as QQQQ has been one of the most popular exchange traded products available on the market. The NASDAQ-based ETF trades more than 60 million shares daily, and is well-known for its tech-heavy allocations. Launched in 1999, the fund’s original ticker was QQQ, but when it moved to the NASDAQ it became QQQQ due to the fact that all NASDAQ securities must have a four letter ticker symbol. But now, Powershares has changed the ticker back to its original QQQ, shaking up one the most highly traded securities in the world.
What Are You Weighting For? at Index Universe:
It seems that more often than not, advisors hone in on the most liquid ETF of a specific category, without taking time to consider the underlying index strategy. But what many are missing is just how important a specific fund’s weighting strategy is, and how it can lead to drastically different returns among funds. This article, by Paul Baiocchi, compares different funds and their weighting strategies and why performances are often times highly varied.
Announcing The Free Head-To-Head ETF Comparison Tool at ETF Database:
Adding to the line of our free resources for investors, ETF Database is proud to announce our new Head-To-Head ETF Comparison Tool. This new tool will allow users to enter in any two funds, and will then compare them on all levels of the playing field, including holdings, performance, technicals, while Pro members can unlock another tab which details descriptive data as well. We look forward to hearing your feedback on the latest free ETF tool, and are excited to introduce several more resources in coming months. For updates on all new tool launches and other ETF developments, sign up for our free ETF newsletter.
Disclosure: No positions at time of writing.