This week, the market was very low key up until Thursday night, when Speaker John Boehner said that he would be willing to work with House Democrats and President Obama on their plan for ending the fiscal cliff. Many investors saw this as a sign of higher taxes in 2013 and the U.S. market took a turn for the worst. Bank of America and Disney experienced some of the largest dips, each losing about 20 points before noon on Friday. Outside of the United States, Italian Prime Minister Mario Monti announced that he will resign on Friday, after only a few years in office during the Euro Crisis and recovery period [see 101 ETF Lessons Every Investor Should Learn].
This week saw the introduction of three new dividend ETFs from FlexShares: the Quality Dividend Index Fund (QDF), the Defensive Index Fund (QDEF) and the Dynamic Index Fund (QDYN). They all follow a common strategy of investing in a high quality, income-oriented portfolio of long, U.S.-only equities with an emphasis on long-term capital growth.
Below we outline the three best stories from around the ETF space this past week:
1. 13 High Yielding Commodities For 2013 at CommodityHQ:
Over the last few years investing in commodities has taken off, especially among individuals and part-time investors. As it continues to be a growing asset class, it also can prove to be a difficult topic to look ahead on, and not every investor is lucky or knowledgeable enough to take them on. Aaron Levitt lists which companies he thinks will do well next year, as well as investing options.
2. Stable ETFs For Fiscal Cliff Padding at ETF Trends:
As the fiscal cliff that many investors fear draws ever closer, many have chosen to accept the inevitable and brace for impact. Those who are risk-averse should start looking for places to store their investments until the storm calms down, while the adventurous investor could make a great amount if they play the market right. Tom Lydon lists what the worried investor should look into before closing up their investment bunker.
3. ETFs Then And Now at ETF Database:
Next year will mark the 20th year of official ETF trading, while SPY is nearly turning 30. Taking a look back just to 2007 its immediately apparent how much this industry has grown and evolved to meet the needs of investors. Michael Johnston takes a look back at just what has happened over the last five years, and what developments we could see in the future.
Disclosure: No positions at time of writing.