It was a poor week for markets around the world, with stock and even gold prices declining like the autumn temperatures. Even with bad market out looks, the consumer sentiment gauge reported the highest rate in five years, meaning consumers think the future looks just a bit brighter, maybe due to the better-than-expected unemployment numbers last week. Analysts pointed their fingers at turmoil outside the United States for the low returns this week – Spain in particular as the country tiptoes around the issue of asking for a sovereign bailout from the European Central Bank. However, not every sector declined this week; consumer goods and oil both finished the week strong yet again[see Mortgage REIT ETFs: 10% Yields + Low Volatility].
FlexShares and Barclays iPath both brought unique products to the stage this week, RAVI a new active money market ETF looking for current income, and CAPE using a new intelligent beta strategy developed by a Yale finance professor.
Below we outline the three best stories from around the ETF space this past week:
1. Hated Sector; Big Potential at Index Universe:
Renewable energy, while probably something as a country we should be working towards, is one of the easiest ways to watch your money disappear in an ETF. It has had historically low if not negative yields, but some investors are starting to take another look at this funds. Dennis Hudachek proposes how advances in technology, growth in the general economy, and consumer concerns could mean big opportunities in green energy ETFs.
2. More ETFs to Shine a Light on Low-Yielding Money Funds at Forbes:
RAVI is just one of the many new ETFs focused on making a pretty penny off of the money markets. Many more fund concepts are in the pipeline from issuers after the mixed bag of returns from this summer, as investors look for a good mix of income and liquidity. Ari Weinberg discusses the appeal of these ETFs and how they could fare through the winter.
3. 7 Leverage ETFs Every Day Trader Must Know at ETF Database:
ETFs have opened the door to many new investment opportunities that can be the foundation of a portfolio or a riskier addition. Leveraged ETFs are just one of these volatile opportunities, some of them require more attention and care than others. Investors who have the time and inclination to include these fussy holdings should see which ETFs Stoyan Bojinov thinks are the most important for day traders to be aware of.
Disclosure: No positions at time of writing.