ETF Database » DBC

101 ETF Lessons Every Financial Advisor Should Learn

Michael Johnston — Wed, 23 May 2012 12:00:06 +0000

Exchange-traded funds (ETFs) have burst on to the scene in the last few years, raking in hundreds of billions of dollars in assets and prompting a major shift towards indexing strategies in the process. ETFs have empowered financial advisors (FAs), registered investment advisors (RIAs), Chief Financial Officers (CFOs), money managers, and retail investors to take greater control over their portfolios, pushing down fees and maxing out tax efficiency in the process. While ETFs appear quite simple on the surface, these securities can be quite complex. In order to get the most out of ETFs, there’s a lot that investors need to know about the structure, opportunities, and limitations of these securities. Below we outline just about everything you need to know about ETFs, from the basics to the more sophisticated aspects of these products. 1. ETFs Are Tax Efficient One of the biggest advantages of ETFs is their tax-efficient structure; [...]

Click here to read the original article on ETFdb.com.

ETF Technical Trading FAQ

Stoyan Bojinov — Mon, 21 May 2012 13:00:33 +0000

The growth of the ETF industry has spawned numerous tools that bring forth previously difficult-to-reach corners of the market at the fingertips of mainstream investors. The evolution of the exchange-traded product structure has not only become the preferred vehicle for investors looking to achieve cost-efficient diversification, this instrument has also struck a chord with active traders. ETFs are useful as building blocks in long-term portfolios, however they can also serve as incredibly powerful tactical tools for those looking to implement shorter-term trading strategies. The trading community has embraced ETFs given their unparalleled transparency, cost-efficiency, ease-of-use, and intraday liquidity. Likewise, technical analysis studies used in the equity market have also carried over to ETFs; traders and investors alike can serve to benefit from using technical analysis in their ETF investment experience [see also Free Report: How To Pick The Right ETF Every Time]. The guide below offers an insightful and educational look at the concepts [...]

Click here to read the original article on ETFdb.com.

Easy As 2-4-6: UBS Launches New Commodity ETN (BLND)

Michael Johnston — Fri, 27 Apr 2012 13:00:54 +0000

UBS, one of the largest issuers of ETNs including a number of commodity products, is the latest to make an addition to the fast-growing ETP lineup. The new ETRACS DJ-UBS Commodity Index 2-4-6 Blended Futures ETN (BLND) will take a unique approach to delivering exposure to commodity futures. The underlying Dow Jones-UBS Commodity Index 2-4-6 Forward Blend Total Return consists of futures contracts diversified across multiple maturities–specifically two, four, and six months out. Those three maturities will be equally weighted [see also Five Questions To Ask When Buying An ETF]. Spreading exposure across the maturity curve could potentially reduce the adverse impact of “roll yield” close to spot, which can result from contango in futures markets, while still offering exposure to a diversified basket of natural resources futures contracts. The potential trade-off could come in the form of reduced sensitivity to changes in spot prices; the further down the curve [...]

Click here to read the original article on ETFdb.com.

ETF Tax Tutorial: Complete List Of ETFs That Issue A K-1

Jared Cummans — Mon, 13 Feb 2012 13:00:37 +0000

ETFs have become so popular in recent years in part because of the tax efficiencies that they offer relative to traditional mutual funds. Due to the nuances of the creation / redemption mechanism, ETFs are generally able to give investors more control over their tax situation–instead of pinning them with capital gains obligations due to the activities of other investors. Unfortunately, however, the tax treatment of exchange-traded products cannot be summed up simply as being more efficient than mutual funds. There are various complexities across the different product structures that impact the effective tax liabilities that will be incurred on gains. And there are also some nuances that impact how taxes on various ETP positions must be reported that are of major importance to some financial advisors. Gains and losses on the majority of exchange-traded products are reported on Form 1099, just like individual stocks. A select few among a [...]

Click here to read the original article on ETFdb.com.

ETF Insider: France Downgrade Erodes Confidence

Stoyan Bojinov — Sat, 14 Jan 2012 15:00:48 +0000

Equities inched higher throughout the week, bolstered by positive economic data release on the home front coupled with encouraging developments in the debt burdened Euro zone. Euphoria spread throughout Wall Street as investors digested better-than-expected consumer credit data along with optimistic forward looking commentary released by the Fed in the latest Beige Book report. Investors overseas were cheerful as well as borrowing costs dropped after successful Spanish and Italian debt auctions. However, much of the gains on the week evaporated on Friday as investors gave into selling pressures following the downgrade of France’s credit rating and worse-than-expected earnings results from J.P. Morgan. Actionable ETF Trade Ideas Last Week’s Actionable ETF Ideas Ticker Position Performance FXB Long -0.9% DBC Short 1.2% XLI Long 2.3% Our picks from Monday’s Insider posted a fairly strong performance this past week, with two of our recommendations turning solid gains, while our third position incurred a [...]

Click here to read the original article on ETFdb.com.

ETF Insider: Beware Of Lingering Euro Fears

Stoyan Bojinov — Mon, 09 Jan 2012 18:17:46 +0000

Equity markets hit the ground running last week as investors came back from the holiday weekend with a fairly optimistic outlook for 2012. U.S. stocks started off the year with a solid rally as investors’ confidence was bolstered by multiple better-than-expected economic data reports; consistent improvements in the housing market coupled with a downtick in the unemployment rate were enough to reignite bullish momentum on Wall Street. Gold inched higher last week, climbing back over $1,600 an ounce, although the precious metal continues to face headwinds given the looming uncertainty stemming from the Euro zone. Weekly Outlook The coming week will be fairly busy with activity and economic data releases both at home and on the international front. Below, we highlight ETFs that may see an increase in trading activity as relevant market data is released and evaluated by investors: Van Eck Market-Vectors Chinese Renminbi/USD ETN (CNY): China’s consumer price [...]

Click here to read the original article on ETFdb.com.

When Structure Matters: ETF, ETN, Or Other?

Michael Johnston — Mon, 12 Dec 2011 14:00:19 +0000

As some financial advisors are now well aware, the term “ETF” is often used rather liberally to refer to a variety of different exchange-traded products that generally function in the same manner from the perspective of an investor. More accurately, ETFs can be described as a type of exchange-traded product, or ETP, an umbrella that also covers exchange-traded commodities, exchange-traded notes, and unit investment trusts (UITs). The nuances of these various structures might not make for the most lively discussion, but it is a worthwhile task for anyone who manages money for a living, as the seemingly minor differences between these types of products can often have a meaningful impact on risk taken on and bottom line returns realized [see 25 Things Every Financial Advisor Should Know About ETFs]. Most advisors are aware of the general differences between ETNs, which are debt instruments, and true ETFs, which feature no credit [...]

Click here to read the original article on ETFdb.com.

10 Strange But True Facts About The ETF Industry

Michael Johnston — Mon, 31 Oct 2011 13:00:21 +0000

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 this point, as are the tickers of many of the more popular exchange-traded products [see also Bright Spots In The ETF Landscape: Five Funds Holding Their Value In A Wild 2011]. But even if you’re up to date on the latest developments in the ETF industry, odds are that there is quite a bit you don’t know about exchange-traded funds (and the various ETF cousins out there). Here are ten facts about the ETF industry that may seem a bit hard to believe: 1. Surprising Active ETF Leader As of September 30, active ETF assets [...]

Click here to read the original article on ETFdb.com.

Commodity ETF With Asian Twist On Tap

Michael Johnston — Wed, 12 Oct 2011 11:00:26 +0000

United States Commodity Funds, the company behind the ultra-popular natural gas (UNG) and crude oil (USO) products, has laid the groundwork for another unique exchange-traded commodity product. In a recent SEC filing, USCF outlined some details for a proposed Asian Commodity Basket Fund, which would include exposure to commodities deemed to maintain “systemic importance to Asian economies, including the three major Asian economies of China, Japan, and India.” The filing noted that the proposed fund may also include futures contracts that trade on an Asian domiciled futures exchange. The construction of the underlying index of commodity futures will take into account a number of different factors, including: Percentage of global production that occurs in Asian countries Percentage of global consumption that occurs in Asian countries Tendency of the Asian economies to be either net importers or net exporters of a particular commodity Size and liquidity of the regulated futures markets based [...]

Click here to read the original article on ETFdb.com.

One Year Later: USCI Remains An Intriguing Commodity ETF

Michael Johnston — Fri, 12 Aug 2011 11:00:31 +0000

Though the entire ETF industry has grown at a blistering pace, certain segments of the market have expanded much more quickly than others over the past few years. Few types of financial products have seen stronger asset growth than commodity ETPs, as investors of all sophistication levels have embraced the exchange-traded structure as the most efficient means of accessing an asset class that has become increasingly popular as a source of both diversification benefits and return enhancement. And one of the most exciting new product introductions in this corner of the market came about a year ago when United States Commodity Funds rolled out USCI, a fund dubbed by many as a “contango killer.” Billions of dollars have flowed into commodity ETPs in recent years, as nearly every type of natural resource has delivered sharp increases in price thanks to rising demand for raw materials from many of the world’s emerging markets. [...]

Click here to read the original article on ETFdb.com.

ETF Database » DBC

101 ETF Lessons Every Financial Advisor Should Learn

Related Posts:

ETF Technical Trading FAQ

Related Posts:

Easy As 2-4-6: UBS Launches New Commodity ETN (BLND)

Related Posts:

ETF Tax Tutorial: Complete List Of ETFs That Issue A K-1

Related Posts:

ETF Insider: France Downgrade Erodes Confidence

Related Posts:

ETF Insider: Beware Of Lingering Euro Fears

Related Posts:

When Structure Matters: ETF, ETN, Or Other?

Related Posts:

10 Strange But True Facts About The ETF Industry

Related Posts:

Commodity ETF With Asian Twist On Tap

Related Posts:

One Year Later: USCI Remains An Intriguing Commodity ETF

Related Posts: