Another week and another frenzy of trading on Wall Street. The past five sessions have been defined by more eurozone woes as Spain officially received a 100 billion euro bailout over the weekend. While the news came as a relief to some, others simply saw it as postponing the inevitable. As one British official pointed out, 20% of the bailout is financed by Italy, who is lending at 3%. But in order to finance the bailout, Italy must borrow at a rate of approximately 7%, setting up a potentially disastrous situation. Looking to the week ahead, a key Fed meeting seems to hold the fate of markets in its hands, as many are hoping for news of QE3 [see also Jim Rogers Says: Buy Commodities Now, Or You'll Hate Yourself Later].
The ETF world saw several new entries this week, including the Oil Sands ETF (SNDS) which has the potential to be a strong investment for the future of our fossil fuel addiction. Below, we outline the three best stories from around ETF space this past week.
1. Why Bond ETFs Often Do Not Track their NAV at LearnBonds
Often the price of a bond ETF will be slightly higher than the NAV of the underlying bonds. This confuses some investors as the price of most stock ETFs closely mimics the price of the stocks’ NAV. The spread between the “ask” and the “bid” is farther apart when trading bonds. LearnBonds clears up the confusion by describing in detail the reasons why such gaps exists between bond ETFs and their NAVs.
2. The Insider’s Guide to Sugar Trading: Q&A With Sal Gilbertie of Teucrium at Commodity HQ
Sal Gilbertie, President of Teucrium, offers valuable insight into the sugar industry and his take on the commodity’s probable movement within the next couple weeks. The increase in strength of the Brazilian Real has caused turmoil in the sugar industry; Brazil is the world’s largest producer of sugar cane. The interview continues with a breakdown of the Teucrium Sugar Fund (CANE) and Gilbertie’s tips on trading commodities.
3. Calling All ETF-Friendly Financial Advisors at ETF Database
As you may know, finding a financial advisor who embraces ETFs can be a daunting task in this mutual-fund saturated market. Individuals seeking exposure to the benefits of ETFs can breathe easy as ETFdb has compiled a growing list of ETF-friendly advisors. Locations and contact information for each advisor has been provided for your convenience.
Disclosure: No positions at time of writing.