This Week In ETFs: August 26th Edition

by on August 26, 2012

The FOMC released the minutes from its July/August meeting on Wednesday, and little else has been discussed since then. It was reveled in the minutes that Bernanke is supporting measures to take on another round of stimulus, probably to occur some time in the fall. Quantitative easing will probably again be implemented in the stimulus package to help boost the economy. Some investors are worried about the conditions that the Fed has put on its stimulus plan, but this apprehension didn’t stop both the S&P 500 and NASDAQ from closing on a high note Wednesday. After a steady decline earlier in the week the markets bounced back Friday to recover its losses [see also 3 ETFs With Surprisingly Stellar 3-Year Returns].

No new ETFs were launched this week, but over a dozen new funds were filed with the SEC. FlexShares, Global X, Legg Mason, IndexIQ, and iShares all submitted a wide range of new products this week.

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

1. The Many Ways To Play Obamacare with ETFs at IndexUniverse:

Obamacare has been slowly going into effect ever since 2010, and insurance companies are merging and acquiring each other as fast as they can. Large corporations are scooping up small key players in the Medicaid and Medicare market as the demand for their programs is only going to go up with each new healthcare reform. There are 18 US healthcare specific ETFs available on the market, but all with different focuses in such a wide industry. Dennis Hudachek sheds some light on which might blossom during and after healthcare reforms.

 2. ETFs Become Surprise Mutual Fund Holding at Market Watch:

The big difference between  an ETF and a mutual fund is who operates it: a computer or a human. But with ETFs performing so well over time its no surprise that mutual fund managers are starting to incorporate these funds into their portfolios. Many consider it an easy way to get total industry coverage, but others see it as cheating or laziness. Ian Salisbury explains why having an ETF in your fund is the newest trend in investing.

 3. Canada ETFs: 9 Ways To Play at ETF Database:

With the US economy recovering at a snail’s pace and Europe being a little unreliable at the moment, many investors are looking North for stable but profitable investments. As a commodity rich country, Canada offers exposure to a wide variety of natural resources with the added benefit of being home to some of the most stable financial institutions in the world. Daniela Pylypczak takes a closer look at the Great White North’s ETF options for outside investors.

 Disclosure: No positions at time of writing.