As ETFs have become increasingly popular among more active traders in recent years, it may be easy to forget that the vehicle was originally designed with the long-term buy-and-holder in mind. For those who take stock in the numerous academic studies indicating that active management generally destroys value over the long haul, cost efficient vehicles that own the market have obvious appeal over pricey funds that attempt to beat it. While ETFs are now components of sophisticated and short-term trading strategies, they remain as critical portfolio building blocks of retirement portfolios and other longer-term investment objectives [see also ETF Alternatives To The World’s Largest Mutual Funds]. [click to continue…]
As investors have become more comfortable with the marriage of fixed income exposure and the ETF wrapper, billions of dollars have flowed into bond ETFs in recent years. Impressive innovation in the space has provided investors with more options than ever before, including enhanced granularity in virtually every corner of the fixed income market. Still, [...]
With the first three quarters of the year now in the books, 2010 has so far seen a continued expansion of the ETF industry; more than 100 new funds have launched and assets have climbed closer to $1 trillion in total. But some corners of the industry that had been pegged as major sources of [...]
Rob Arnott’s footprint on the ETF industry just might be getting a little bit bigger. ProShares, the Maryland-based leveraged and inverse ETF giant, recently filed details with the SEC on an ETF that would seek to track the performance of the RAFI US Equity Long/Short Index. That benchmark is based on a methodology devised by [...]
As the ETF industry has expanded at a breakneck pace in recent years, keeping track of all the products out there has become no easy task. There are now well more than 1,000 exchange-traded products included in the ETF Screener, and many of those have hit the market in the last two to three years.
The impressive ETF boom of the last several years has in many ways changed the investing landscape quite dramatically. Although index mutual funds have been around for more than 30 years, the introduction of low-cost ETFs has many investors questioning the merits of pricey active management [see Two Cases Against Active Management]. The introduction of [...]
The monthly ETF statistical bulletins have become somewhat predictable in recent months, as continued inflows into the ETF industry have been about as certain as death and taxes. So the latest figures from the NSX came as a bit of a shock; total ETF assets declined from about $835 million to $815 million during the [...]
For investors used to living off of juicy coupon payments from fixed income portfolios, the last several years have been trying times. As central banks around the world slashed benchmark rates to stave off a recession and investors flocked to safe haven investments, yields on high quality fixed income securities have plunged to a fraction [...]
by Eric Dutram on August 3, 2010 | Updated August 4, 2010
Earlier this week, ETF giant PowerShares announced a change in indexes for its popular High Yield Corporate Bond Fund (PHB). The fund will now track the RAFI High Yield Bond Index which measures potential returns of a theoretical portfolio of high yield, U.S. dollar denominated corporate bonds registered for sale in the United States whose [...]
Invesco PowerShares, the Wheaton, Illinois based firm known for its “intelligent” ETF products, is planning to change the indexes underlying three of the company’s Target Allocation ETFs according to a recent SEC filing. PowerShares is also looking to make a change to its high yield bond ETF. The changes to the product lineup include:
Investors who have taken measures to protect their portfolios against the ravages of inflation will have to continue to hold their breath; the last week saw the release of two reports indicating that an uptick in prices is still a long ways off. The producer price index (PPI) fell by 0.3% in May, the third [...]