Financial advisors and individual investors who have embraced ETFs are generally painted as a cost conscious crowd, passing over expensive active mutual funds in favor of cheap indexing strategies. In general ETFs are considerably cheaper than mutual funds, thanks not only to the indexing strategy but also to the more efficient exchange-traded structure.
But not all ETFs and ETNs are equally tax efficient; in many cases, the differential between products offering similar exposure can be meaningful. In fact, there are several examples of products linked to identical indexes with wildly different expense structures. And while there has been a movement towards cheaper products, a number of more expensive ETFs remain tremendously popular. So much so that movements from a handful of funds to lower cost alternatives could result in aggregate annual savings of more than $400 million in management fees–without altering the underlying index [see 25 Things Every Financial Advisor Should Know About ETFs] . [click to continue…]
The saying “never judge a book by its cover” is certainly applicable to a wide range of situations. That includes the business of investing; for advisors and individuals who use ETFs, the old adage can be very relevant, valuable advice. There are now more than 1,300 exchange-traded products now available to U.S. investors, and that [...]
The rapid expansion of the ETF industry has been one of the most important developments of the last several decades to financial professionals; as the lineup of exchange-traded products has surged past 1,300, financial advisors now have more tools in their toolkits than ever before to help construct client portfolios. With these new financial products [...]
ETF Database has introduced another new resource to its lineup of analytical tools designed to help financial advisors and individual investors navigate through the rapidly-increasing universe of exchange-traded products: ETF Scorecards that provide relevant, timely, and unbiased analysis of more than 1,300 ETPs. The ETF Scorecards are in-depth, customized analyst reports that highlight the noteworthy [...]
Improving optimism over the Euro zone debt negotiations coupled with positive earnings and economic data releases at home pushed stock markets higher last week. Investor confidence improved considerably as domestic equity indexes climbed higher above key resistance levels and held onto gains the entire week. Bailout talks in the Euro zone reignited fears of inflation, [...]
As ETFs have burst on to the scene in recent years, just about every serious investor and professional money manager has taken a crash course in exchange-traded products, becoming familiar with the countless benefits and nuances of these products. Features such as enhanced transparency, upgraded tax efficiency, and low costs are generally well known at [...]
Equity markets have taken investors for a wild ride over the past three months with chaotic trading dominating virtually every nook and corner of Wall Street. Amidst the volatility, investors have been seeking out refuge and fleeing to “safer” asset classes; although rational, this approach inevitability overlooks certain corners of the market that may in [...]
iShares, the largest issuer of ETFs in the U.S. by total assets, rolled out another suite of funds on Thursday that offer targeted exposure to domestic and international equity markets. The new iShares minimum volatility ETFs are the latest in a trend of products targeting specific investment factors and disciplines, following similar offerings in recent [...]
The impressive pace of expansion in the ETF industry over the last several years has been well documented; continuous product development has resulted in the launch of more than 250 so far in 2011, and there are now more than 1,300 names in the ETF lineup. But while the depth of the ETF space has [...]
September was one of the worst months in years for global equity markets. Volatility swept throughout every corner of the financial markets as escalating Euro zone debt woes worried investors of an impending crisis. Investor confidence has been slowly eroding given the concerning global economic outlook, prompting many to pull out of the markets all [...]
September was a brutal month for equity markets around the globe, as anxiety over Europe and intensifying concerns about the growth prospects for many emerging markets hammered asset prices. The freefall in stock markets hit the bottom line of the ETF industry as well; despite another month of strong inflows, industry assets fell below the [...]
