This Week In ETFs: November 11th Edition

by on November 11, 2012 | ETFs Mentioned:

Earlier this week, Americans voted for President Obama to continue in office for four more years and while many across the country were celebrating, Wall Street showed its frustration through a huge lose in momentum. Coal was the biggest loser this week, as traders remembered Obama’s promise for advances in clean energy and decided to abandon ship early. Bonds, on the other hand, have been gaining as a part of this asset shift, while many investors fear the fiscal cliff is now unavoidable. Outside of the United States, Greek stocks are still having some of the lowest returns since May 2010, bringing eurozone fear back into market play. Even powerhouse Germany is down this week after poor industrial production reports rolled in, prompting European Central Bank President Mario Draghi to admit that the euro crisis is affecting even the Germany economy, which has stayed relatively strong over the last five years [also see How To Invest Like The Noble Foundation With ETFs].

Pyxis and iBoxx have launched their Senior Loan ETF (SNLN) together, which was meant to launch two weeks ago but was delayed due to Hurricane Sandy. With continued recovery efforts underway along the East Coast, the New York Stock Exchange and NASDAQ are still operating below normal capacity, as are the traders there. Four ETPs from RBS are still being delayed from launching, but will hopefully be accessible soon.

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

 1. S&P’s Rosenbluth: ETF Fee War Is Good at Index Universe:

The recent drop in fees from issuers like Vanguard and iShares has created more competition and barriers to enter this already cut throat industry. These cut backs are always great for investors looking to spend less money on their investments, but S&P Senior Director Todd Rosenbluth thinks these fee cuts are just the first step in a maturing industry. Olly Ludwig talked with Rosenbluth about where ETPs are heading and why mutual funds should start to worry.

2. Turkey Leading ETFs After Credit Upgrade at ETF Trends:

The country, which has spent the last decade working toward becoming a member of the European Union, was recently upgraded by Fitch to investment grade status on stronger economic strength and fewer short-term risks. Much like the United Kingdom, Turkey was able to adjust its currency when the financial crisis started and has been on the road to recovery since last year. Tom Lydon lists the ETFs that are enjoying this boost to the Turkish economy and how investors overseas can benefit as well [see also Free 7 Simple & Cheap All-ETF Portfolios].

 3. Obama Victory Puts Healthcare ETFs In Focus at ETF Database:

Tuesday night was a very polarized moment in the United States; while half the country jumped for joy over four years of Obama administration and Democrat policies, others were in a state of shock over Romney’s defeat. On Wall Street, investors reacted by selling off coal and buying up biotech and medical device funds, as they are expected to play an integral part in the next steps of Obama’s healthcare plan. Daniela Pylypczak discusses which ETFs could thrive during the next four years.

Disclosure: No positions at time of writing.