This Week In ETFs: September 23rd Edition

by on September 23, 2012 | ETFs Mentioned:

After last week’s record-setting highs, the market did not continue with its amazing climb, but instead buckled and returned to a far more average level for most of the week. The global economy took a dip Thursday when speculations of Spain’s ability to recover at the same rate as other European nations lead to the European Central Bank’s decision to bail out the country. After this decision was released, the markets recovered by Friday. Energy stocks as a whole have continued to ride last week’s wave and finished the week strong, bringing the whole S&P5o0 back up as well. Tech indexes also got a bump by the end of the week with the iPhone 5 going on sale and the new releases of even more smartphones and tablets to keep Apple on their toes. [see 101 ETF Lessons Every Investor Should Learn].

This week saw the introduction of two new ETFs both with a global focus. First, AdvisorShares came out with VEGA, offering a way to invest in the world while maintaining a sense of security, and later this week WisdomTree introduced CHXF, an ETF focused only on growth in China.

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

1. TIPS In a Brave QE3 World at Index Universe:

After the Fed announced another round of quantitative easing, many investors are looking to protect their investments from the increasing risk of inflation. In the past investors looking to play it safe would have invested in T-bills, but with yields actually lower than inflation levels, this option does not seem so appealing any more. TIPS guarantee that if inflation exceeds speculation you will have a return, and some ETFs offer a simplified way to take your chances. Spencer Bogart discusses how ETFs play a roll in the TIPS market, and what to look out for when investing in them.

 2. Dreadful ETF Performance Going Unnoticed at Market Watch:

While 2012 has surprisingly been one of the best years in the equities market in a long time, not every fund is using the growing equities market to their advantage. Many ETFs that have the potential to flourish in a good economy are not, for varying and concerning reasons. Benzinga’s ETF Professor lists some of the products that are sneaking under the radar as poor performers so far, and maybe why these funds have done so poorly.

 3. 3 Simple Moving Average ETF Trading Strategies at ETF Database:

Short-term investing is a strategy employed by many in the industry, and ETFs have only made quick trades and adjustments easier. Spending some time looking at technical analysis can show as-yet unseen patterns and allow investors to make more educated  and confident decisions on positions. Technical analysis isn’t right every time, but Stoyan Bojinov explains three strategies that investors can use to better their chances in short-term investing.

Disclosure: No positions at time of writing.