The Dow Jones Industrial Average is one of the most widely-followed stock indexes in the world, seen as a barometer of U.S. equity market performance. The rise of the ETF industry has given investors the option to track the performance of this benchmark, and a number of spin-offs have increased ETF options for investing in the Dow. But before buying into one of the Dow ETFs available, investors should be aware of the potential drawbacks and limitations that an ETF based on the DJIA may have. [click to continue…]
The reasons for the rise of the ETF industry are numerous: intraday liquidity, (potentially) superior tax efficiency, and enhanced transparency relative to traditional actively-managed mutual funds have all contributed to the billions of dollars of inflows that these funds have seen in recent years. But the real attraction for most ETF investors is the reduced expenses these products offer, often only a fraction of the fees charged by mutual funds. [click to continue…]
Earlier this year, best-selling author Harry Dent , Jr. ventured into the ETF industry, launching the Dent Tactical ETF (DENT) in a move that further blurred the lines between active and passive management. DENT is actively managed by a team of analysts using primarily economic and demographic analysis to determine the overall trend of U.S. [...]
It was all smiles on Wall Street Wednesday, as the Dow Jones Industrial Average closed above 10,000 for the first time since October 3, 2008. But it seems that whatever the U.S. can do, the rest of the world can do better. The Dow Diamonds ETF (DIA) gained 1.4% in Wednesday’s session, but lagged behind [...]
Leveraged ETFs have taken a beating in the financial presses lately, mostly the result of misconceptions about the intended uses and users of these funds. Most of the criticism has focused on the performance of leveraged ETFs when held for multiple trading sessions. Because leveraged ETFs seek to amplify the return on their underlying benchmarks [...]
Over the past several months, concerns over the fallout from the massive stimulus plans, rising unemployment, and continued weakness in corporate earnings have left many investors rethinking their allocations to U.S. equities. Once considered an essential element of any portfolio, American stocks have fallen out of favor with some investors who have shifted assets towards [...]
BMO Financial Group launched four ETFs on the Toronto Stock Exchange Thursday, making the company the first major Canadian financial group to offer a family of ETFs. The new ETFs offer exposure to two major markets and three asset classes. The funds are:
With the news that General Motors’ bondholders rejected a proposed debt-for-equity exchange breaking Wednesday afternoon, a bankruptcy filing from the leading U.S. automaker appears to be imminent. The market had been expecting this as a possible outcome for some time, so official news of a filing from GM likely won’t send shock waves through Wall Street. But [...]
Everyone recognizes the “celebrity stock tickers”: GOOG, MSFT, F, JNJ. These are the stocks that are in the news all the time. The world of ETFs has its own well-known tickers, which get above-average attention on trading Web sites, on Stocktwits, and on financial TV programs. Here are seven popular ETFs everyone should know.
