This Week In ETFs: November 6th Edition

by on November 6, 2011 | ETFs Mentioned:

Major stock indexes took a roller coaster ride this week as the seemingly never-ending crisis in Europe brought upon new market turmoil. After showing strong gains earlier in the week, U.S. and global stocks dropped significantly with the announcement of Greece’s decision to shelf their controversial bailout referendum. Further worsening matters, the G-20 summit departed from their two-day meeting without a definitive action plan to resolve the euro-zone debt crisis. All of Europe’s turmoil this week overshadowed the moderately positive gains in U.S. job creation reported for the month of October. In the commodities space, crude oil futures flattened out as investors heard the newest jobs data while gold fell with the strengthening of the U.S. dollar. U.S. Treasuries rebounded this week as investors chose to fall back on the traditional safe haven of U.S. Treasury bonds amidst market turmoil [see also ETF Insider: Greek Drama Steals Spotlight].

The rapidly growing exchange traded fund industry saw five new ETFs launch this week. Invesco ProShares introduced four new financial equities ETFs that offer exposure to banking, capital markets, and insurance industries. PIMCO launched its new Australian Bond Index Fund ETF, which is comprised of Australian dollar-denominated investment grade debt instruments [see also PIMCO Launches Aussie Bond ETF].

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

 7 Liquid ETFs Beating The Market at BigTrends:

With 2011 quickly coming to a close, some investors are arguing that this year solidified their belief that the traditional “buy and hold” of major market indexes hasn’t been working.  The ETFs that are designed to track the major indexes have had mixed performances in 2011, mirroring the extremely volatile environment experienced this year. In this article, author Moby Waller, outlines 7 liquid ETFs that have surprisingly outperformed the market.

HDV: A Game Changer at IndexUniverse:

With interest rates at rock-bottom lows and volatile market environments, investors are looking for alternative ways to make a profit. The most popular alternative has proved to be investing in high-yielding dividend securities and ETFs. One ETF that has caught the eye of many investors is iShare’s High Dividend Equity Fund ETF (HDV), which now holds the title of the fifth-largest U.S. dividend equity ETF. This article, by Dennis Hudachek, takes a deeper look at HDV’s performance explains why this ETF has become so popular.

25 Things Every Financial Advisor Should Know About ETFs at ETF Database:

Over the last several decades, the ETF industry has experienced rapid expansion and development. There are now over 1,300 exchange-traded products that cater to a variety of investment objectives. With this surge in financial innovation, it is important for both investors and financial advisors to educate themselves on the various risk factors and nuances of ETPs. In this article, author Michael Johnston outlines 25 things that every financial advisor should know about ETFs in order to have a clearer and well-rounded understanding of the exchange-traded industry.

Disclosure: No positions at time of writing