ETF Database » FNX

Not All Mid Cap ETFs Are Created Equal

Stoyan Bojinov — Mon, 14 Nov 2011 12:00:00 +0000

Ongoing worries of a global economic slowdown coupled with Euro zone debt woes have prompted many investors to reallocate capital to safer corners of the market in recent months. U.S. large cap stocks have been a popular destination, largely considered a “safe haven” amongst equity investors, as this asset class has staged an impressive comeback since earlier in October of this year. However, investors looking to further diversify the equity portion of their portfolio ought to take a closer look at mid cap U.S. equities. Mid caps are often overlooked, although research suggest that this asset class can offer an appealing risk/reward profile relative to large cap stocks [see 25 Things Every Financial Advisor Should Know About ETFs]. Investing in mid cap equities may be appealing to investors who are seeking out the potential for significant capital appreciation while still maintaining relatively “safe” exposure, unlike small and micro cap stocks [...]

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AlphaDEX ETFs Turn In Impressive Performance

Michael Johnston — Thu, 27 May 2010 19:02:01 +0000

The impressive rise of the ETF industry in recent years is often held out as evidence of an ongoing shift in investor preferences away from costly active management and towards low cost indexing. Investors frustrated with the inability of pricey mutual fund managers to consistently beat their benchmark have abandoned stock picking in favor of simply owning the entire benchmark. With the relatively recent introduction of actively-managed ETFs, the ETF universe is being split into two groups based on fundamentally different investment strategies (in fact the ETF Screener includes an active/passive filter). But within the ETF industry, the active/passive distinction isn’t a black-and-white issue. There are dozens of ETFs available to U.S. investors that blur the lines between active and passive management, replicating “enhanced” indexes that are designed and maintained with the objective of outperforming traditional cap-weighted benchmarks (see Alpha ETFs Come Of Age). As indexes have transitioned from hypothetical [...]

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Beyond MDY: Three Outperforming Mid Cap ETFs

Michael Johnston — Tue, 22 Dec 2009 08:00:06 +0000

As 2009 draws to a close, it appears that this will be another “year of the mid cap.” Although equities of all sizes have posted strong gains this year (particularly when compared to 2008), mid caps have led the way, and mid cap ETFs have generally outperformed their small and large cap peers. Some investors take a “barbell” approach to the domestic equity portion of their portfolios, allocating assets primarily to large cap and small cap ETFs, and anticipating that the risk and return profile of mid caps will fall somewhere in between. While they fall between these two groups in size, the same can’t always be said for performance: mid caps have been known to deliver returns both excess and inferior returns. Mid Cap ETFs ETF YTD Performance RWK 51.0% FNX 45.8% CZA 42.1% MDY 35.1% As of 12/21/09 For investors looking to gain mid cap exposure, the most [...]

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Special Report: Alpha ETFs Come Of Age

Michael Johnston — Tue, 01 Sep 2009 09:00:55 +0000

In the summer of 1992, Eugene Fama and Kenneth French published “The Cross-Section of Expected Stock Returns” in The Journal of Finance, a groundbreaking analysis that prompted financial presses to run headlines declaring “beta is dead.” While the death sentence may have been a bit severe, it struck a significant blow to a widely-accepted and longstanding financial concept, causing academics and investors to reconsider tenets they once took for granted. In recent decades, a collection of academic studies, disillusioned investors, and financial innovations have contributed to a similar prognosis for beta’s Greek neighbor, alpha. The idea that was hatched by Brinson and Hood and supported by the likes of Ibbotson and Kaplan and Barras and Scaillet was fueled by years of investor frustration. Following the introduction and rapid rise in the popularity of indexing and ETFs, it seemed that what started out as a scholarly whisper had grown into a [...]

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ETF Database » FNX

Not All Mid Cap ETFs Are Created Equal

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AlphaDEX ETFs Turn In Impressive Performance

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Beyond MDY: Three Outperforming Mid Cap ETFs

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