As the ETF industry has maintained its strong growth, investors have grown increasingly comfortable with establishing exposure to various markets utilizing the exchange-traded structure. Now, with 1,300+ funds in the space, there is an ETF for almost any investment objective, with further innovation still on the way. But as the industry rapidly expands, some funds will be on the receiving end of ETF growing pains, as many have a hard time trusting younger or less-popular products; but this lack of faith may represent a major missed opportunity for some investors.
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A new all-ETF model portfolio is now available to ETFdb Pro members; the Equal Weight ETFdb Portfolio offers an alternative investment style for investors who wish to steer clear from the potential pitfalls of the traditional market cap-weighted methodology. In a traditional market cap-weighted index, such as the S&P 500, each component stock is weighted according [...]
Thanks in part to the rise in popularity of exchange-traded funds in recent years, debate over the relative merits of various strategies for building and maintaining indexes has intensified considerably. The ETF boom has accelerated the transformation of benchmarks into investable assets, prompting investors to consider the impact of index nuances on the risk/return profile [...]
Emerging markets have seen their importance to the global economy swell in recent years, as the developing markets of the world have become the primary drivers of growth not only in their home market but in advanced economies around the globe as well. With many developed countries struggling to gain traction and facing elevated unemployment [...]
The past week was a relatively quiet one in the ETF industry in terms of new product launches, with just three new ETFs debuting, First Trust kicked off and capped the activity, debuting the first car ETF on Tuesday and rolling out another addition to its AlphaDEX suite later in the week; those launches sandwiched [...]
Recently, we sat down with Tony Davidow the Managing Director-Portfolio Strategist at Rydex SGI at our headquarters here in Chicago. In Tony’s current role, he has helped to spread the word on ‘alternative’ weighting methodologies beyond the traditional market-cap weighted system that most benchmarks use today. In this interview, we discuss why market cap weighting [...]
Rydex, building off the launch of five equal-weight ETFs last month, announced today the debut of the MSCI All Country World Equal Weight ETF (EWAC). The new fund will seek to replicate the MSCI All Country World Equal Weighted Index, providing an alternative for investors seeking a one stop shop for global equity exposure. The [...]
When constructing a portfolio, most investors focus on the decisions that seem to have the most significant impact on the risk/return profile delivered. How much should be allocated to stocks vs. bonds? What breakdown between developed and emerging markets is desired? What sectors should be overweight, and which should be avoided? These decisions obviously go [...]
Last year was a good year for most asset classes, as investor portfolios continued to recover from the recent recession. The difference in performance between many comparable funds was significant, and many of the best performers of 2010 are relatively small funds that maintain considerably smaller asset bases than their more popular competitors. Below, we [...]
The S&P 500 Index is perhaps the world’s best known benchmark. First published in 1957, the cap-weighted index consists of 500 large cap U.S. stocks listed on either the NYSE or NASDAQ and has become a widely-followed barometer measuring the performance of the U.S. economy. The S&P 500 is a common benchmark for active managers [...]
As ETFs have burst on to the scene in recent years and worked their way into the investing mainstream, the number of products available and complexity of exposure offered has increased significantly. Advisors and investors have taken steps to educate themselves on the ins and outs of ETFs, but many are still scrambling to play [...]