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ETF Plays On The Next Developed Markets

Michael Johnston — Tue, 08 Jun 2010 13:11:19 +0000

Before it attracted intense scrutiny from the international community for its ongoing blockade of Gaza, Israel had made headlines last month for a relatively rare economic achievement. The country was recently upgraded from an emerging market to a developed market by index provider MSCI Barra, meaning that Israeli equities were cast out of the MSCI Emerging Markets Index and into the MSCI EAFE Index. Israel became the first country to graduate to developed status (in the eyes of MSCI at least) since Greece in 2001. While somewhat uncommon, upward movements to developed status are not unprecedented; many of the world’s advanced economies were once tabbed with “emerging” status, including Japan. It’s worth noting that while an upgrade to developed status is undoubtedly a major accomplishment, the impact on equity markets can be adverse. When Israel’s promotion was made announced, stocks promptly plummeted. That’s because investors anticipated a net selling of [...]

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Edward Jones Discontinues Sale Of Leveraged ETFs

Michael Johnston — Wed, 22 Jul 2009 14:38:26 +0000

The swelling controversy over the risks associated with leveraged ETFs has apparently caused its first casualty. St. Louis-based Edward Jones & Co., the prominent financial services firm, decided during a regular review of its products in June to stop selling leveraged funds, citing the fact that they are “one of the most misunderstood and potentially dangerous types of ETFs,” according to mutual fund research analyst Katie Martin. Edward Jones prepared a report titled “Not All ETFs Are Created Equal” that highlights the potential pitfalls with these complex financial instruments. “Investors also need to recognize that leveraged ETFs have an increased potential for capital gains distributions and significantly higher expense ratios than the traditionally broadly based stock market ETFs, negating some of the benefits of purchasing an ETF,” the report said. Edward Jones’ decision to drop the product line comes as calls for regulation of leveraged ETFs are reaching a fever pitch. [...]

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ProShares Launches Four New Leveraged International ETFs

Michael Johnston — Thu, 04 Jun 2009 15:31:34 +0000

ProShares, a leader in the inverse and leveraged ETFs, today launched four new ETFs offering magnified exposure to international markets. The funds, which seek 200% of the daily returns of their target indexes, are: Ultra MSCI EAFE (EFO) Ultra MSCI Emerging Markets (EET) Ultra FTSE/Xinhua China 25 (XPP) Ultra MSCI Japan (EZJ) Commenting on the new funds, ProFunds Chairman and CEO Michael L. Sapir said, “With some international markets posting strong year-to-date returns, investors are expressing interest in tools that allow them to gain magnified exposure to these markets. These new ETFs complement our existing ETFs that are designed to provide short (or inverse) exposure to the same international indexes. Over the coming weeks, we plan to further expand our international offerings with ETFs covering more regions and specific countries.” According to ProShares web site, the sponsor is targeting the future launch of “four new UltraShort ProShares for European, Pacific, and [...]

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ETF Plays On The Next Developed Markets

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Edward Jones Discontinues Sale Of Leveraged ETFs

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