This Week In ETFs: October 9th Edition

by on October 9, 2011

Though the week got off to a rocky start, it finished out strong as major indexes posted their first winning week in quite some time. Friday’s job report came in with surprisingly strong results, but it was not enough to overcome the consistent fears surrounding the eurozone, thus ending the week’s final trading day on a flat note. With the Dow once again treading on the 11,000 line, it seems that we have gotten ourselves into something of a sideways market, making steady returns hard to come by. The ETF world saw another healthy bump in activity as a number of new funds launched to offer more options than ever for investors seeking to gain access to their favorite asset classes [see Russell Brings More “Investment Discipline ETFs” To Market].

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

The Case Against Commodities at The Wall Street Journal:

Over the past several years, rising prices have made investing in raw materials and commodity-backed ETFs a winning ticket, scoring big gains for investors. This upward trend of commodity prices have led many to believe that long-term investments should be made in commodities. Despite this new and popular theory, investors are now making a case against commodities. They argue that in the long-run, there is a serious risk that innovation will respond to rising commodity prices and will create alternative ways to meet the demands of the market. This article, by Liam Pleven, provides examples that back the case against commodities and explains how ETFs play a role in this argument.

25 Ways To Invest in Silver at Commodity HQ:

In troubling market conditions and poor economic outlooks, investors often flock to their favorite safe haven investment options. Gold is viewed as the most popular safe haven despite the fact that the metal’s actual use is relatively low. However, some investors fear that gold may be overvalued and are now turning to other precious metals – such as silver – as an alternate safe haven option. In this article, author Jared Cummans outlines 25 ways for investors to gain exposure to silver through ETFs, stocks, bullion, futures, and mutual funds.

Why We Don’t Need Any More ETF Closures at ETF Database:

Both the popularity and size of the ETF industry has grown tremendously over the past several years. This month alone saw close to 40 new ETFs and ETNs begin trading in the market. Despite the industry’s rapid development, there have been a number of ETF closures due to poor performances. Some argue that the ETF industry’s large size is actually detrimental to investors and believe that more consolidation is needed. This article, by Michael Johnston, outlines the argument against the notion that more ETFs should be shut down.

Disclosure: No positions at time of writing.