This Week In ETFs: December 16th Edition

by on December 16, 2012

After yet another week of speculation on the fiscal cliff and the solution to it, Republicans and Democrats continue to clash on the correct solution for a fragile America. Markets enjoyed a bump towards the middle of the week after high manufacturing numbers from China were reported, but by Friday the major U.S. indexes were back to Monday’s levels. Technology endured an especially harsh fall this week after a federal jury found Apple to be infringing on patents owned by Nokia and Sony, both of which avoided the general market downturn. Manufacturing and factor sales in the eurozone reported rising numbers, especially from Germany, which came under more fire from other country officials for influencing the European Central Bank, even as economic conditions continue to improve [see also Checking In On The 10 Largest ETFs Year-To-Date].

While no new ETFs launched this week, a number of plans for products were filed, promising for a busy beginning of the year. State Street is looking to revive the Russell ETFs, which were shut down earlier this year by FactorShares, while Fidelity plans to add its first active ETF to the product roster.

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

 1. JPM a Top 25 Dividend Giant With $2.13B Held By ETFs at Forbes:

JP Morgan Chase was named one of the top 25 Dividend Giants earlier this week, with over $2.13 billion of the company’s stock held by different ETPs. Yielding 2.81% over the last few years, JPM is highly accessible for ETF investors looking for current income. ETF Channel announced the list earlier, which included Abbott Labs, GE, and many other firms also widely held by ETFs.

2. Industrial, Transportation ETFs Get Upgrades From S&P at ETF Trends:

The industrial sector may see a new wave of interest from Wall Street after being upgraded from “Marketweight” to “Overwieght” earlier this week. Influenced by global GDP improving and increasing economic stability in high production countries like China, S&P Capital IQ has made a decision likely to bring in new investments to ETFs. Ton Lydon lists which funds will enjoy the sector upgrade [see also Free 7 Simple & Cheap All-ETF Portfolios].

 3. SEC Ruling: Active ETFs Now Allowed To Use Derivatives at ETF Database:

Given the relative youth of the ETF industry it comes as no surprise that regulatory government agencies like the SEC have launched several reviews into the workings of ETFs. One such investigation lasted two years, but finally ended last week, at the conclusion that actively-managed ETFs will be able to use derivatives.  Daniela Pylypczak dives deeper into this controversial decision and what it will mean for the future structure of ETPs.

Disclosure: No positions at time of writing.