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Small Cap Emerging Asia Pacific ETF Debuts

Michael Johnston — Mon, 16 Jan 2012 12:00:16 +0000

In yet another first for the U.S. ETF industry, State Street has rolled out the first fund to focus exclusively on small cap stocks in Asia Pacific economies. The New SPDR S&P Small Cap Emerging Asia Pacific ETF (GMFS) joins an existing SPDR ETF targeting large cap stocks in the region, as well as a growing number of international equity funds focusing on smaller stocks. The recently launched ETF is linked to the S&P Asia Pacific Emerging Under USD 2 Billion Index, a benchmark that consists of about 500 different holdings with an average market cap of approximately $460 million. By comparison, the SPDY S&P Emerging Asia Pacific ETF (GMF) has a weighted average market cap of more than $12 billion. Under The Hood The country allocation of GMFS is certainly worth noting, as this fund consists of a huge weighting towards a market that many investors consider to be developed. Taiwan stocks account [...]

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Tax Efficiency Report Card

Daniela Pylypczak — Tue, 10 Jan 2012 12:00:24 +0000

The year-end periods provides the ETF industry with a couple of opportunities to flex its collective muscle; performance comparisons generally tend to favor those products with lower expense ratios–a defining feature of exchange-traded funds. But early January also puts another benefit of exchange-traded products into focus: enhanced tax efficiency relative to traditional mutual funds. The nuances of the exchange-traded structure have the potential to bring additional tax efficiencies to investors thanks to the availability of an “in kind redemption” that ultimately gives investors more control over the timing of tax obligations. Mutual funds, on the other hand, have a nasty tendency to stick remaining shareholders with tax liabilities incurred as a result of redemptions by others–a development that can obviously be undesirable [see Tax Loss Harvesting With ETFs: 6 Ideas To Lower Client Liabilities]. ETFs won’t allow investors to skip out on their taxes, but this product structure can deliver [...]

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ETF Tax Efficiency Report Card

Michael Johnston — Wed, 22 Dec 2010 15:00:04 +0000

When rattling off the advantages that ETFs hold compared to traditional actively-managed mutual funds, most investors usually start with the issue of expenses. The easiest comparison to make involves expense ratios, the fees charged by ETF and mutual fund companies for investing in a product. Though some mutual funds offer single-digit expense ratios, most actively managed products charge in excess of 1% (the average for the mutual fund industry is in the neighborhood of 1.4%). By comparison, the average expense ratio for ETFs is less than 0.60%, and there are more than a dozen funds that charge less than 10 basis points. But the potential cost efficiencies of ETFs relative to actively-managed mutual funds go beyond simple expense ratios. ETFs also have the potential to be more tax efficient, thanks to the unique “in-kind” rules of the creation/redemption process. Whereas mutual fund investors may incur capital gains as a result [...]

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Coming Soon From iShares: Philippines ETF (EPHE)

Eric Dutram — Sat, 18 Sep 2010 21:34:38 +0000

So far in 2010, the ETF market has been booming as a variety of new and interesting funds hit the market seemingly every week. While the great majority of this interest has gone towards commodity funds and a host of bond ETFs, products targeting international markets have also made a name for themselves in recent months. Some continue to target varying aspects of the BRIC economies such as consumer or infrastructure sectors while others have taken a different approach and have given investors exposure to a variety of smaller and often unreachable equity markets. Expansion in this sector of the ETF world has been tremendous with funds targeting countries ranging from Peru to Poland hitting the market in recent months. iShares, the world’s largest ETF company has been at the forefront of this development having recently launched the much anticipated (at least by me), iShares MSCI New Zealand Investable Market [...]

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Next Frontier Of ETF Investing: Long/Short Trades

Michael Johnston — Tue, 10 Aug 2010 10:00:07 +0000

There is no denying that the ETF boom is in full swing, as billions of dollars continue to flow into the industry every month despite a difficult economic environment. As individual investors and advisors alike become more informed on the nuances and potential benefits of ETFs, usage has surged. Part of the impressive surge in assets is no doubt attributable to the flexibility of the exchange-traded structure; these securities have found homes in the portfolios of investors across the risk tolerance spectrum. ETFs have been embraced by long-term buy-and-holders because of the extremely competitive expense ratios relative to traditional actively managed mutual funds [see True Cost Of Mutual Fund vs. ETFs]. They’ve also become quite popular as “replacements” to equities; more active investors who measure holding periods in hours have gravitated towards the exchange-traded structure because it provides exposure to a basket of securities that can be traded throughout the [...]

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Five ETFs For An Asia-Centric World

Michael Johnston — Tue, 23 Feb 2010 17:08:54 +0000

Since the economic recovery began, many investors have looked to Asia to drive growth and stimulate global demand. China has grabbed most of the headlines, as tremendous growth in the world’s most populous nation has essentially pulled this emerging market into a tie with Japan as the world’s second-largest economy. In recent weeks, uncertainty over China’s next monetary policy moves caused turmoil in global equity markets, an indication of the influence that the country now holds over the global economy. This economic influence has perhaps translated into increased political clout as well: many global leaders, including president Obama, have been criticized for their reluctance to push China on issues such as human rights and currency devaluation. While China’s growth has been impressive, recent data releases have shown that Asia isn’t a one-trick pony. Taiwan and Thailand both recently reported their fastest economic growth in recent years, perhaps indicating that China’s [...]

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Malaysia ETF Offers Exposure To Forgotten Emerging Market

Michael Johnston — Fri, 17 Jul 2009 06:05:59 +0000

Throughout the first half of 2009, emerging market ETFs have been a hot discussion topic and investment option, with much of the attention focused on stellar returns to BRIC funds and the boom in the Chinese real estate market. While that attention is much deserved, these behemoths have overshadowed an investment jewel in Southeast Asia that remains hidden to most American investors. That jewel is Malaysia: a small nation straddling the South China Sea that is home to about 28 million people and one rapidly industrializing economy. Diversified Economy Malaysia’s economy, unlike those of many emerging and frontier markets, is very well diversified. It is blessed with an abundance of natural resources, including oil, rubber, and tin, and is a leading exporter of palm oil (which makes a very efficient biodiesel fuel). Due to the high Islamic population, Kuala Lumpur is fast becoming a center for Islamic finance, which may be [...]

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Surging Indonesia Heads To Polls: ETFs in Focus

Michael Johnston — Mon, 06 Jul 2009 14:40:07 +0000

Earlier this year, India conducted one of the world’s largest exercises in democracy when more than 710 million citizens headed to the polls to complete general elections. Following the announcement of the results, several India ETFs (such as PIN, INP, and EPI) surged more than 20% in a single session on news that the Indian National Congress, generally regarded as a pro-business party, won the ability to form a majority government in Delhi without major allies. This week Indonesia, one of the world’s most populous countries and fastest-growing economies, will hold national elections that will be monitored closely by investors around the world. From Chaos To Civilization Following its declaration of independence from the Netherlands in 1945, Indonesia battled extreme poverty for several decades. In 1965, authoritarian president Suharto took control of the country, spurring growth through western investment and foreign aid, but also breeding a culture of corruption and implementing [...]

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ETF Database » GMF

Small Cap Emerging Asia Pacific ETF Debuts

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Coming Soon From iShares: Philippines ETF (EPHE)

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Malaysia ETF Offers Exposure To Forgotten Emerging Market

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