ETF Edge: January 2012
Welcome to the January edition of ETF Edge! The last trading month of 2011 was filled with more of the same uncertainty and volatility that characterized the year as a whole. Lawmakers overseas have begun to implement their multi-pronged approach in ensuring stability in the financially fragile currency bloc. On the home front, investors’ confidence in the economic recovery has improved considerably thanks to reassuring economic data. Wall Street has digested a host of better-than-expected economic reports out of both the housing and labor market, giving investors hope and painting an optimistic outlook for the year ahead.
Despite a slowdown in activity around the holiday season, the ETF universe continues to buzz with excitement on the product development front. Inside, we break down all of the new additions to the ETP lineup, highlighting the important aspects of each and determining which products might be appropriate for which investors. December also saw several ETFs hit important milestones, putting dozens of new products into play for investors who face age restrictions within their portfolios.
The end point of 2011 presents an opportunity to break down the best and worst performers to date this year; our databank of over 1,400 exchange-traded products provides a flexible resource for investors to analyze the performance or products in every ETFdb Category.
Here’s a look at what’s inside this month’s ETF Edge:
- Heard On The Street: In addition to several new ETF launches, the industry saw a number of intriguing developments in December, including noteworthy inflows for many products as well as a slew of exciting proposals.
- Actionable ETF Investment Ideas: Our team of experts looks back on how our predictions from last month played out and make several new forward-looking picks which are favorably positioned as the global economic recovery picks up steam.
- Coming and Going: In this section, we highlight the investment thesis behind each new ETP that launched in December, and also discuss which type of investors may be interested in some of the latest additions to the lineup.
- ETF Milestones: In this section ETF Edge, we highlight all of the ETFs that reached three-year and five-year milestones in December. For investors and advisors facing “age restrictions” or uncomfortable investing in products without a sufficient track record, this section is worth a closer look.
- ETF Spotlight: In this segment we highlight an ETF that is flying under the radars of most investors, but that may present an intriguing investment option in the current environment. This month’s spotlight focuses on a new fixed income ETF that offers easy access to all major global bond market sectors under one ticker.
- ETF Scorecard: This section includes a performance matrix that highlights how the combination of market cap exposure and weighting methodology can lead to very different bottom line results. Also, we take a look as how U.S., developed, and emerging markets have performed over the last month.
- Sector & Region Outlook: In this section, we take a look at pricing multiples across the U.S. economy and around the world, pointing out some apparent opportunities.
- Inside The ETFdb 60 Index: We take a look at the biggest gainers and losers in our all-ETF index for the last month in 2011.
- Now Is The Season To: This section takes a look at several new ETFs that offer targeted exposure to low volatility stocks from a range of investable universes.
- ETF Performance Database: Year-to-date performance and expense data for all 1,400+ U.S.-listed ETFs, organized by ETFdb Category.