This Week In ETFs: October 7th Edition

by on October 7, 2012 | ETFs Mentioned:

With only a month left until the U.S. general election, every financial report that comes out will be under even more scrutiny and press coverage than usual. This week’s unemployment report was no exception as unemployment fell to 7.8%, its lowest level since January 2009, and every columnist had their own opinion on which candidate will benefit from this bright outlook. The markets reacted to the good news accordingly and climbed to end the week on a high note, but still not close to the amazing numbers seen just three weeks ago. International markets also ended on a high note this week, even with the decisions to aid Greece and Spain still in the air. A series of glitches at the NYSE Liffe exchange in London stalled commodities trading around the world and caused for some price discrepancies and angry investors [see ETFs To Play 9 Markets In Limbo].

IndexIQ was the first to bring a product to market this October with the introduction of its new systematic risk adverse fund, QMN. QuantShares and LocalShares have both filed with the SEC for the creation of new products focusing on absolute returns, quantity, value and the city of Nashville.

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

1. ETFs That Mature Like Bonds at The Wall Street Journal:

Most investors look to ETFs for the simplicity of investing in a basket of funds that you can trade like a stock, yet some investors are turning to a new twist on ETFs: using a date to maturity. A group of Guggenheim ETFs looks to combine to diversification of a bond fund, with the fixed term of an individual bond. Daisy Maxey explains why this class of investing might appeal outside of its previous core investor group of financial advisers.

 2. EGPT and Beyond: 2012′s Top ETFs So Far at Index Universe:

Two years ago if anyone had said the ETF EGPT will be the biggest winner so far into 2012, you would have laughed them off and explained that a country needs more time after over throwing its leader to rise to the top. And yet, Egyptian stocks and business are up, along with many other unexpected funds like construction and biotech, which had both struggled since the financial crisis. Ana Kostioukova discusses the biggest winners so far and who could still improve.

 3. Third Time’s a Charm? Best ETF Plays For QE3 at ETF Database:

The Fed has decided to step in once again and will begin its third round of quantitative easing later this year to the mixed reactions of investors around the country. The plan this time is more open ended than before, and investors are scuttling to change position and adapt to another hand in the market. Daniela Pylpczak outlines how investors should consider playing out this round of easing and what funds may flourish in this environment.

Disclosure: No positions at time of writing.