This Week In ETFs: May 27th Edition

by on May 27, 2012

Ahead of the long holiday weekend, stocks showed little movement as investors digested the latest news from both the home front and overseas. On the upside, U.S. data on consumer sentiment surpassed expectations, showing that Americans are now more positive than they have been since the recession. After the highly anticipated Facebook IPO last week, investors were somewhat disappointed with the stock’s performance: Facebook dropped to close on Friday way bellow its initial-public-offering price [see also Updated: Which ETFs Will Own Facebook (And When)].

The ETF industry finally picked up the pace this week, after what seemed to be one of the slowest months on the product development front. Investors were introduced to a new first-to-market product from ProShares, which will provide exposure to “covered bonds”. Additionally, UBS launched a pair of leveraged dividend ETFs, while AdvisorShares rolled out their new “sustainable investing” fund [see also Why You Need A Preferred Stock ETF].

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

Avoiding JP Morgan In ETFs at IndexUniverse:

J.P. Morgan’s staggering $2 billion trading blunder has understandably made investors leery of the company’s stock, leading many to either jump ship or ride through the storm. ETF investors have also been taking a closer look at their portfolios, calculating just how much exposure they have to the company. In this article, author Devin Riley explains how to sidestep those ETFs with significant JP Morgan exposure.

Emerging Market Bond ETFs May Be Safer Than You Think at Money And Markets:

As the Euro Zone debt crisis continues to take center stage, many investors have been flocking to their preferred safe haven investments. For many, exposure to emerging markets seems uncomfortably risky during uncertain times like these. However, this article, by Ron Rowland, explains how some emerging market bond ETFs are actually safer than you might think.

101 ETF Lessons Every Financial Advisor Should Learn at ETF Database: 

When it comes to the exchange-traded fund industry, many investors have embraced this product as their go-to vehicle of choice for transparent, efficient, and low-cost access to nearly every corner of the investable universe. While ETFs seem to be quite simple, a closer look under the hood reveals something . In this article, author Michael Johnston outlines 101 ETF lessons every financial advisor should learn.

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Disclosure: No positions at time of writing.