When referring to the impressive rise of the ETF industry or discussing the benefits of ETF investing, many investors use the term “ETF” incorrectly. While the majority of the 900-plus exchange-traded products listed in the U.S. are true 1940 Act exchange-traded funds, there are dozens of securities structured slightly differently, including exchange-traded commodities and currency grantor trusts. But the most popular cousin to the ETF is the exchange-traded note (ETN), a structure that provides many of the benefits of ETFs but that features some key differences as well (see Five ETNs Investors Love). [click to continue…]
As the economic recovery has taken root over the last year, one of the most interesting developments has been the widening gap between the emerging and developed economies of the world. High unemployment rates and mounting government debt continue to weigh on the U.S. and much of Europe, while Japan battles the additional forces of [...]
Most of what’s written about ETNs is cautionary in nature, focusing on the credit risk inherent in any debt security. And with good reason; the risks of ETN investing are very real. While most exchange-traded notes are issued by major financial institutions with lofty credit ratings, the last few years have taught investors that credit [...]
Investing in emerging and frontier markets can often help investors to diversify equity holdings and provide exposure to growth opportunities not available in advanced economies. But with any opportunity for big gains often comes significant risk, including the potential for political instability, currency revaluation, and government intervention in the private sector. There’s also the issue [...]
As developed economies struggled to regain their footing in the wake of the recent economic downturn, many investors have been drawn to the potential for meaningful growth offered by emerging markets. While recovery efforts in the U.S., western Europe, and Japan have been slow to gain traction and deliver meaningful economic expansion, developing markets have [...]
After watching their portfolios take devastating blows in 2008, many investors hoped that a new year would bring a reversal of fortune and a recovery of lost assets. After the first two months of the year tested resolve, things finally took a turn for the better in March, and long climb upwards began. Most equity [...]
Following a year that saw some of the worst performances in recent memory, many asset classes have bounced back in 2009. But some have performed better than others, and as the year draws to a close we take a look at some of the best-performing ETFs. The year’s top gainers include a few of the [...]
India reported surprisingly strong GDP growth for the third quarter, posting 7.9% growth in the July through September period. These numbers surprised both analysts and government officials: the growth was higher than even the most bullish analyst forecast, and the Reserve Bank of India said that it will likely revise upward future forecasts. According to [...]
Barclays Global Investors announced on Friday the launch of the iShares S&P India Nifty Fifty Index Fund (INDY), a new ETF tracking an index composed of the 50 largest and most liquid Indian securities listed on the National Stock Exchange of India. INDY will compete with several existing India exchange-traded funds, including products from iPath, [...]
Emerging Global Advisors, the New York-based ETF issuer that earlier this year pioneered sector-specific emerging markets funds, has filed a prospectus with the SEC for seven additional ETFs. The proposed funds include the first sector- and country-specific international funds, as well as the first ETFs to target mid-cap stocks in emerging market economies:
Asia Pacific ETFs posted big gains on Thursday following the release of updated growth projections from the International Monetary Fund that included upward revisions for the region for both this year and next. The region as a whole – including Japan, Australia, and New Zealand – is expected to grow by 2.8% for 2009 and [...]
