This Week In ETFs: April 15th Edition

by on April 15, 2012

Stock markets took their worst tumble these past few days, posting 2012′s biggest weekly decline yet. Disappointing economic data from China coupled with troubling news concerning Spain’s borrowing costs led major indexes to fall dramatically; the S&P 500 dropped 130 basis points, while Nasdaq shed 44.2 points, or 1.5%. Many investors question whether this recent drop is simply a market correction, or if there are more economic troubles looming ahead. And as stocks took their tumble, so did many commodities: copper fell to its three-month low, gold dropped 1.2%, and crude oil settled 81 cents lower [see also Touring The Muni Bond ETF Universe]. 

The ETF industry set somewhat of a sluggish pace this week with only two new funds hitting the markets. Despite the slowdown, investors were introduced to some intriguing new products: Van Eck debuted their new “Fallen Angel” junk bond fund while US Commodity Funds rolled out another addition to its suite of “third generation” commodity products.

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

Connecting With Social Media ETFs at The Street: 

With social media giant Facebook’s IPO just around the corner, investors interests in profiting from the industry boom are on the rise. To tap into this corner of the technology market, many have turned to the ETF world for easy and cheap access. While there are a number of options available, it is important for investors to take a closer look under the hood of these products to find the best match for their investment objectives. In this article, author Don Dion outlines two ETFs that will allow investors to successfully gain exposure to this lucrative and growing segment of the tech market.

Club Med In An ETF? Not Yet at Money and Markets:

As the ETF industry continues to expand, investors now have access to nearly every corner of the investable universe. When it comes to gaining international exposure, exchange-traded products help investors pin point specific geographical regions or countries to establish tactical tilts in their portfolios. But as with any product, it is crucial for investors to take a close look at a fund’s underlying holdings to determine whether or not it will give them the kind of international exposure they really want and need. This article, by Ron Rowland, explains how to overcome some of the hurdles investors face when it comes to choosing the right international ETF.

Which Fundamentals Are Driving Gold ETFs? at ETF Database: 

As bullish momentum continues to dominate the equities market, the ultra popular and preferred safe haven investment gold has seemingly taken a back seat so far in 2012. With looming economic uncertainty, many investors have wondered what the future holds for the shiny yellow metal. Gold’s recent back-and-forth price action and the reasons behind these volatile movements have been a serious topic of concern for investors. In this article, author Stoyan Bojinov explains which fundamental factors have been driving the price of the precious metal.

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Disclosure: No positions at time of writing.