ETF Edge: July 2011

Published on by on July 1, 2011

Welcome to the July edition of ETF Edge! The last several weeks have seen no shortage of activity, as investors have once again turned their attention to the debt saga playing out in continental Europe. The relatively tiny economy of Greece has cast a significant show over international equity markets, a domino poised to potentially set off a devastating string of events that could ripple throughout the global economy. Partially as a result of Greece’s woes, most investors have little to show for their efforts at the half-way point of the year; many asset classes are sitting close to where they began 2011. As the third quarter begins, however, we see several attractively-priced ETFs out there, and inside our experts lay out their four picks for this month and reflect back on June’s selections.

Despite a slowdown at the end of the month, June was another busy month for the ETF industry. Dozens of new products debuts, including several that came flying out of the gates and generated immediate interest among investors. 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. June also saw several ETFs hit important milestones, putting dozens of new products into play for investors who face age restrictions within their portfolios.

The mid way point of 2011 presents an opportunity to break down the best and worst performers to date this year; our databank of nearly 1,300 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 June, including another private equity investment in an ETF issuer and plans for perhaps the most granular ETF yet.
  • Actionable ETF Investment Ideas: Our team of  experts looks back on how our aggressive June predictions played out and make several new forward-looking picks designed to capitalize on fear in the current environment.
  • ETFdb Portfolios: Our team of ETF experts comment on the performance of their all-ETF model portfolios, noting some new additions and winners and laggards over the last month.
  • Coming and Going: With dozens more ETPs debuting last month, we offer a recap of the activity on the product development front. Highlights from June include more sector-specific emerging markets funds, new innovations in “contango killing,” and a new kind of dividend ETF. In this section, we highlight the investment thesis behind each new ETP and 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 June. For investors and advisors facing “age restrictions” or uncomfortable investing in products without a sufficient track record, a recap of the June “birthdays” should be interesting.
  • 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 one of the new ETFs from Russell that offers easy access to a popular investment strategy previously not available in the ETF wrapper.
  • 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 month of June, taking a closer look at some of the drivers for each.
  • Now Is The Season To: This section takes a look at several new ETFs that offer exposure to floating rate debt, an asset class that might be useful for those concerned about rate hikes coming sooner rather than later.
  • ETF Performance Database: Year-to-date performance and expense data for all 1,200+ U.S.-listed ETFs, organized by ETFdb Category.

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