Markets around the world continued to climb throughout the week as a part of the typical January bump, but also because of outstanding year end data from China, the United States, and many in the European Union. China saw soaring increases in manufacturing and infrastructure, but also a rise in inflation that had negative runoff effects on a number of U.S. banks. The United States actually saw growth in every sector but banking this week. It was also announced at the end of the week that talks between Obama and Afghan President Karzai have led to a increase in the speed of U.S. troop withdrawal [see 101 ETF Lessons Every Investor Should Learn].
Even though the global market has been on a bull run since the beginning of 2013, there were no new ETFs added to the fray. Proshares, however, did file for a new global infrastructure ETF earlier this week, which is set to track the performance of the NMX 30 Infrastructure Global Index.
Below we outline the three best stories from around the ETF space this past week:
1. Euro ETFs to Buy or Sell in 2013 at The Globe and Mail:
At the end of 2012, the European Central Bank decided that if a time ever came again where a European nation needed aid, the ECB would purchase unlimited amounts of short-term, troubled country bonds. Since then the price of bonds from troubled countries like Italy and Spain have risen, all based on the promise the ECB made. Gary Gordon discusses what effects this increase in sales could mean for the European Union and how ETF investors can smartly invest in this changing market.
2. Brennan: ETFs Gave Advisors Missing Tools at Index Universe:
The introduction of ETFs into the average investors’ portfolio was not an overnight process. To this day some do not see the use these funds, but Jack Brennan, the BEO of Vanguard from 1996 to 2008, is not one of them. Even though he is retired, he still takes personal interest in the movements of the company and how they use ETFs. Drew Voros talks with Brennan about how these funds have evolved into the necessary investing tool they are now.
3. 3 Defensive Plays For The Fiscal Cliff Fakeout at ETF Database:
For the first time in twenty years taxes will be raised on individuals making over $450,000 dollars a year as a part of the fiscal cliff compromise. Even though the compromise allowed for this debate to fade to the back of American citizens’ minds for a while, it’s not close to being over, as the date to decide spending cuts was merely pushed back a month. Daniela Pylypczak showcases three different investment options for investors looking to brace themselves for the impact of the eventual return of the fiscal cliff.
Disclosure: No positions at time of writing.