ETF Database » ICI

Getting Creative With Currency ETFs

Michael Johnston — Tue, 19 Apr 2011 14:00:33 +0000

ETFs have become popular in recent years as tools for establishing low cost and tax-efficient exposure to traditional asset classes such as stocks and bonds. But the exchange-traded structure also carries appeal as a means of accessing asset classes that have historically be hard-to-reach or difficult to efficiently maintain. That is certainly the case in the commodity space, as investors have embraced a comprehensive lineup of exchange-traded commodity products as a way to bet on natural resource prices. Many have also turned to ETFs for currency exposure, whether it be hedging against exposure maintained elsewhere in a portfolio or speculating on movements in exchange rates. There are currently 30 ETFs in the Currency ETFdb Category with aggregate assets in excess of $5.5 billion. The majority of those products offer exposure to the value of a single foreign currency relative to the U.S. dollar, including the Chinese yuan, Swedish krona, and [...]

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Free ETF Trading: Comparing All The Options

Eric Dutram — Fri, 22 Oct 2010 15:00:25 +0000

As the ETF world continues to grow, the competitive landscape continues to evolve. In recent years, a growing number of firms have attempted to differentiate themselves by offering unique exposure to asset classes and strategies not previously available–such as funds tracking the Philippine stock market or ETNs linked to the price of industrial metals such as zinc or tin. More recently, the ETF industry has witnessed escalating price wars, with multiple issuers lowering management fees in an attempt to lure cost-conscious investors. These price wars have sent expense ratios to as low as six basis points, much to the delight of investors accustomed to forking over upwards of 1.5% annually to active mutual funds. But many ETF issuers have recognized that the total cost of ETF investing goes beyond just expense ratios, and have aggressively marketed programs designed to save investors money when executing ETF trades [see The Total Cost [...]

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TD Ameritrade To Offer Commission-Free ETF Trading

Eric Dutram — Sun, 10 Oct 2010 15:00:59 +0000

As the ETF world continues to expand, more online brokerage houses are beginning to offer their clients commission-free trading on ETFs as a way to generate interest in these relatively new investment vehicles. Among the first firms to offer this program were Fidelity, which currently offers 26 commission-free iShares ETFs, Charles Schwab (11 ETFs), and Vanguard (62 ETFs in total). One popular online brokerage company that has been noticeably absent from this list is TD Ameritrade. which currently has over six million U.S. accounts under management. But now all that is changing. While a few others may have beaten Ameritrade to the punch, the Omaha-based company is making up for lost time by offering a much wider-suite of commission-free ETF products to its clients. Ameritrade will be offering well over 100 ETFs– more than the other three combined– potentially generating a large amount of interest among small investors and RIAs. [...]

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Inside The Not-So-Simple Currency ETFs

Cathy Carlson — Wed, 28 Jul 2010 10:30:19 +0000

While the majority of the nearly $800 billion in ETF assets is found in equity funds, it is other corners of the market that have accounted for the significant cash inflows and asset growth exhibited in recent years. Fixed income and commodity funds have been particularly hot, taking in more than $25 billion in aggregate during the first six months of 2010 [also see Top Performing Currency ETFs From The First Half Of The Year]. Currency ETFs haven’t experienced nearly the same level of popularity as have bond and commodity funds, but have nevertheless seen huge growth over the last year despite significant outflows in the first half of 2010. At the end of June, currency ETF assets stood at $5.3 billion, an increase of more than 42% from the same period a year earlier. In an environment where correlations between most major asset classes–stocks, bonds, commodities, and real estate–has [...]

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Currency Carry Trade ETFs Head To Head: DBV vs. ICI

Eric Dutram — Fri, 20 Nov 2009 14:50:09 +0000

While there are historically low interest rates in the United States (as well as rates of 0.1% in Japan), many other developed countries, including Australia and Norway, have begun to raise rates as a sustainable economic recovery has taken hold. With virtually all of the major central banks meeting in the next three weeks, currency news will certainly be in focus as 2009 winds to a close, with investors playing the “carry trade” paying particularly close attention. The carry trade involves a relatively simple strategy: investors borrow in low cost currencies (such as the the yen and the U.S. dollar) and then invest the proceeds in high yielding currencies (such as the Australian dollar). If exchange rates remain stable, investors profit off of the interest rate differential, while an appreciation of the high-yielding currency will further enhance returns. There is, of course, risk of loss if the higher-yielding currency drops [...]

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Five ETFs to Watch in Obama’s Second 100 Days

Michael Johnston — Tue, 12 May 2009 09:00:13 +0000

For those of you who haven’t heard (and you must’ve been on the moon if you haven’t), President Obama recently marked the end of his first 100 days in office. Ever since FDR pushed through 15 major bills in his first 3+ months on the job, pundits have sold the idea of this period as a meaningful indicator of ability and future success (it often isn’t). After a frantic first 100 days that involved bankruptcies, bailouts, pirates, and pandemics, here’s a look at five ETFs to keep your eye on over the next 100 days of Obama’s presidency. Dow Jones U.S. Pharmaceuticals Index Fund (IHE): Although we seem to have dodged the swine flu bullet for now, many health experts are warning that we are not out of the woods yet. Some are predicting that the virus has faded for the moment, but could return with a vengeance once flu season begins. [...]

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Five ETFs Most Investors Don’t Understand

Michael Johnston — Mon, 11 May 2009 17:48:59 +0000

The majority of ETFs on the market follow the traditional ETF model – tracking an underlying equity or bond index. But as the benefits of the ETF structure become more widely accepted, inflows from increasingly sophisticated have created a demand for increasingly complex funds. Here are five of the more complex ETFs available to investors today, along with explanations of their objectives and strategies. PowerShares S&P 500 BuyWrite Portfolio (PBP): This ETF is based on the CBOE S&P 500 BuyWrite Index, which measures the rate of return of an S&P 500 covered call strategy. This strategy consists of holding a portfolio indexed to the S&P 500, and selling a series of call options, each with an exercise price at or above the current level of the S&P 500. Selling options hedges downside risk if the market falls (since the ETF receives premiums from options that are out-of-the-money), but limits upside returns if [...]

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ETF Database » ICI

Getting Creative With Currency ETFs

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Free ETF Trading: Comparing All The Options

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TD Ameritrade To Offer Commission-Free ETF Trading

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Inside The Not-So-Simple Currency ETFs

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Currency Carry Trade ETFs Head To Head: DBV vs. ICI

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Five ETFs to Watch in Obama’s Second 100 Days

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