Markets this week rebounded as investors found new hope for the resolution of Europe’s debt crisis. Concerns were abated after the E.U. announced its plan to impose a 50% haircut on Greek bonds and to apply more leverage to their bailout fund. The week ended on a slightly weaker note as stocks eased back after Thursday’s incredible rally. In the commodities space, both oil and gold experienced a slight reversal as well after showing strong performances and gains earlier in the week. On Thursday, investors saw the euro rise to record levels not seen in over 2 years. The dollar however, continued to slump to dramatic lows against the yen. On the macro level, the U.S. welcomed good news this week with reports of an optimistic 2.5% GDP growth in the third quarter. Many economists attribute this rise to the recent increases in consumer spending. Despite quelling some fears of the U.S. falling into a double-dip recession, investors are still skeptical about how long this positive economic growth trend will last.
The Exchange Traded Fund industry saw two new ETFs launch this week. Wisdom Tree launched their Australia and New Zealand Debt Fund ETF (AUNZ), while RBS introduced a new ETN to the health & bio-tech category with their Global Big Pharma ETN (DRGS).
Below, we outline the best ETF stories from around the web this past week:
Quelling Eurozone Blues at IndexUniverse:
Over the last few months, markets have been experiencing volatile swings due to European debt crisis worries. To avoid potential losses, many investors have shied away from European markets and have been focusing instead on U.S. stocks. There are however, less risky alternatives that offer international equity exposure through ETFs. In this article, author Carolyn Hill outlines several defensive ETFs that allow investors to safely reenter European markets.
How To Occupy Mall Street With Retailing ETFs at Money and Markets:
With the holiday season right around the corner, both retailers and investors are focused on this year-end’s retail outlook. Many consumer-oriented sectors saw their sales rise dramatically from 2010. Gasoline stations, clothing stores, and restaurants experienced explosive increases in sales that ranged from about 7% to just over 20%. This article, by Ron Rowland, explains how investors can profit from strong retail performances through the usage of ETFs.
Recent innovation has to the rapidly developing growth of ETFs that offer exposure to one of the world’s most powerful economies; China. Although there are numerous funds that seek to capture the performance of the country’s stock markets, there have not been many opportunities for investors to gain access to Chinese debt securities. In this article, author Michael Johnston outlines several ETFs that provide exposure to the Chinese bond market.
Disclosure: No positions at time of writing