This Week In ETFs: May 20th Edition

by on May 20, 2012

Product development seemed to be put on the back burner this week with no new launches from the ETF industry. Despite the slowdown, some ETFs may be getting a makeover soon as Facebook’s highly anticipated IPO hit the markets on Friday to an overwhelmingly high volume. While a number of internet IPOs saw their stock prices soar upon their first day of trading, FB was relatively calm as far as performance is concerned, much to the dismay of Facebook founders. Major benchmarks had a sour week, as news from the euro zone continued to infect trading as investor confidence seems to be rapidly deteriorating [see also Which ETFs Will Own Facebook (And When)].

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

Are JPMorgan Chase ETNs Safe? at Money And Markets:

Last week’s biggest headline was the announcement of J.P. Morgan’s monumental trading blunder; a staggering $2 billion loss was incurred after the firm tried to scale back on its excessively risky derivatives positions. To make matters worse, Fitch Ratings downgraded its credit rating of the firm, and other rating agencies have indicated taking similar action. In this article, author Ron Rowland explains how investors in JPMorgan Chase ETNs will be affected.

ETFs And A Calif. Muni Storm at IndexUniverse: 

California, the largest issuer of municipal bonds in the U.S., is coming under fire after politicians and bondholders learned of the state’s alarming $16 billion deficit. The surprising development has investors extremely concerned about the ironically dubbed “Golden State’s” ability to service its debt. This article, by Paul Baiocchi, describes the impact of the state’s massive defcit on investments in California municipal bond ETFs.

3 ETF Trading Tips You Are Missing at ETF Database:

When it comes to the ETF industry, there are several crucial factors investors too often overlook when trading these products. Despite the numerous efficiencies provided by these funds, ETFs are no different from other financial instruments and are subject to several complexities. In this article, author Stoyan Bojinov highlights three important ETF trading tips that everyone investor should keep in mind.

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Disclosure: No positions at time of writing.