[This article is a free preview of the special ETF research report Dividend ETFs In Focus: Finding The Best Yield. ETFdb Pro members can read the entire report here; sign up for a free 7-day trial to get your copy]
The proliferation of exchange-traded products offering investors exposure to dividend-focused strategies is a testament to the efficiency of the marriage of this methodology with the inherently appealing exchange-traded structure. The wealth of choices is certainly a luxury, as it allows investors to specifically target the exposure desired. But with dozens of exchange-traded products offering up access to dividend paying stocks, it can be challenging to sort through the entire lineup. Not all dividend ETFs are created equal, and in fact the differences in the risk / return profile among the products in this segment of the ETF universe can be significant. The nuances of the underlying indexes can be somewhat complex, but can be critically important in determining the yield and volatility that can be expected from these products. This article serves as a guide for the important factors to consider when evaluating potential dividend ETFs, including index weighting methodology, sector biases, and the several metrics that can be used to measure current returns. [click to continue…]
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 [...]
The expansion of the ETF industry over the last several years has been truly impressive, as the product lineup has grown to more than 1,200 exchange-traded products and assets have passed the $1 trillion mark. But May marked a small step backwards, as ETF assets dipped slightly as a result of both weak equity market [...]
PowerShares rolled out the latest additions to its ETF lineup on Thursday, commencing trading on two ETFs that offer exposure to specific subsets of the S&P 500 Index. The two new ETFs are:
Online broker Firstrade has become the latest firm to roll out a commission-free trading platform in an effort to lure ETF investors. The firm announced this week that ten ETFs would be available commission-free on its platform, including funds covering a number of asset classes and strategies. The commission-free ETFs include six Vanguard ETFs, three [...]
U.S.-listed ETP assets grew to $1.078 trillion at the end of March according to the latest data from the National Stock Exchange, putting the cap on another solid quarter of growth for the industry. Cash inflows in March totaled $11.2 billion, a material increase from $7.4 billion the month before. That figure could have been [...]
Now available from ETF Database is the free Head-To-Head ETF Comparison Tool, an analytical resource that allows investors to quickly and easily compare two ETFs side by side and analyze how potential investments stack up in terms of holdings, performance, technical strength, and other descriptive metrics. The new comparison tool joins a number of free [...]
As the ETF industry has grown by leaps and bounds in recent years, advisors are finding themselves with more options than ever before. While choices for achieving certain types of exposure are limited–VNM, for example, is the only pure play Vietnam ETF on the market–most asset classes present investors with various options. In many cases, [...]
Last week we highlighted several often-overlooked nuances of popular exchange-traded products, detailing the surprisingly large impact that seemingly minor distinctions can have on a portfolio’s risk/return profile. From the weighting methodology employed by the underlying index to the choice between large caps and small caps for international equity exposure, many details that are often the [...]
It may be premature to hit the print button for the death certificate of active management, but changes to the investing landscape over the last several years have forced a reassessment of the value proposition this strategy offers. Research suggesting that active managers fail to add value is, of course, nothing new. Over the last [...]
Last week was a roller coaster ride for equities, as markets began the week by plunging, then surged based on strong U.S. data. The week closed out with markets straddling the gain/loss line as U.S. unemployment saw an unexpected jump from 9.6% to 9.8% on Friday. Europe was one of the the main focuses of [...]
