ETF Database » IVE

Large Cap ETFs: Studs and Duds

Jared Cummans — Mon, 26 Sep 2011 13:45:56 +0000

This year started off strong, as it looked like the economic recovery was finally gaining some steam. Major indexes trended upwards for the first seven months of the year, with the S&P 500 hitting 1,370 at its peak. It marked good progress as we exited the “Lost Decade” where most indexes finished where they were back in 2000, marking a ten year drought of little to no returns. But just when it seemed like we finally found our footing, a number of factors combined to create the perfect storm for equities, slaughtering a variety of investments and benchmarks [see also Three ETFs For ‘Operation Twist’]. First, markets took a hit when Congress nearly failed to extend the debt ceiling, which would have essentially frozen government spending. Though the legislation was finally passed, investor confidence was rattled as it seemed that Washington was more concerned about politics than the well-being of [...]

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Seven Surprising ETF Holdings: Why Investors Should Always Look Under The Hood

Michael Johnston — Mon, 20 Jun 2011 14:00:06 +0000

The old adage “never judge a book by its cover” has been applied to a wide variety of situations over the years, from encouraging open mindedness in social situations to shopping for a car to, well, judging books by their covers. And it turns out this piece of advice can be quite valuable for investors as well, especially those who have embraced ETFs as tools for building long-term portfolios or establishing short-term tactical tilts. For investors who wish to take a longer look under the hood of a product, the transparency offered by ETFs allows them to do just that; most products publish a complete list of holdings on a nightly basis, allowing for a complete review of components that isn’t possible with mutual funds and various other types of securities. In most cases, the holdings of an ETF are fairly predictable; most investors could guess the primary components of [...]

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Closer Look At S&P 500 ETF Options

Michael Johnston — Mon, 25 Oct 2010 12:00:33 +0000

The S&P 500 Index is perhaps the world’s best known benchmark. First published in 1957, the cap-weighted index consists of 500 large cap U.S. stocks listed on either the NYSE or NASDAQ and has become a widely-followed barometer measuring the performance of the U.S. economy. The S&P 500 is a common benchmark for active managers seeking to generate alpha, but the index has also become one of the most widely-traded assets in the world, as the rise of indexed mutual funds–and more recently ETFs–have transformed benchmarks into investable securities. According to S&P, assets invested in products indexed to the S&P 500 total nearly $1 trillion, a figure that has increased as more and more investors have embraced indexing as an investment strategy [see also How To Pick The Right ETF Every Time]. ETFs account for a growing portion of assets indexed directly to the S&P 500, with the three U.S.-listed [...]

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Seven Alpha-Seeking ETFs That Have Crushed Their “Benchmarks”

Michael Johnston — Thu, 25 Feb 2010 15:29:20 +0000

Many investors point to the rise of the ETF industry as a clear shift in preferences away from relatively expensive active management in favor of low-cost indexing. It’s been said that the alpha hunters have evolved into beta grazers. But the benefits of the ETF structure aren’t reserved solely for passive cap-weighted products, and the last few years have seen a huge increase in the number of ETFs that blur the lines between active and passive management. While the vast majority of ETF assets are invested in beta funds that track widely-followed equity and fixed income benchmarks (such as the S&P 500 or the MSCI Emerging Markets Index), there are a number of funds that track non-traditional “intelligent” indexes. These benchmarks are typically constructed using various proprietary quantitative methodologies that aim at achieving excess returns by identifying securities poised to outperform the broader markets and experience above-average capital appreciation (read [...]

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Fidelity To Offer Commission-Free Trading On 25 iShares ETFs

Michael Johnston — Tue, 02 Feb 2010 17:33:13 +0000

Fidelity Investments announced today that it will offer its retail customers commission-free online trades for a suite of 25 iShares ETFs. The funds included in the commission-free platform include ETFs in all nine domestic equity style/size categories, as well as international equity and fixed income options. “Fidelity has partnered with the leading ETF provider in the market to bring investors the best brokerage offering in the industry today,” said Kathleen A. Murphy, president of Personal Investing at Fidelity Investments. “Simply put, we’re offering the broadest selection of commission-free ETFs from the undisputed ETF leader, and it’s only available through Fidelity.” The iShares ETFs will be available for commission-free trading beginning tomorrow. Commission-Free iShares ETFs Value Blend Growth Large Cap IVE, IWD IVV, IWB, IWV IVW, IWF Mid Cap IJJ IJH IJK Small Cap IJS, IWN IJR, IWM IJT, IWO EAFE EFA, SCZ Emerging Markets EEM Global ACWI Total Bond Market [...]

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Chrales Schwab ETFs: Uphill Battle Ahead

Michael Johnston — Thu, 23 Jul 2009 13:21:55 +0000

Charles Schwab, one of the world’s best known and largest asset management firms, recently took another step towards finally breaking into the rapidly-expanding ETF industry. Earlier this month, Schwab filed paperwork with the SEC to launch nine ETFs. The proposed funds will have the benefit of the Schwab name (and the tremendous resources that come along with it), but will still face an uphill battle, given the firm’s late arrival to a now very crowded market. According to ETF Trends, Schwab’s first nine ETFs will include six broad-based domestic funds and three international funds. The domestic ETFs will track Dow Jones indexes, while the international ETFs will follow FTSE benchmarks: Schwab U.S. Broad Markets ETF Schwab U.S. Large Cap ETF Schwab U.S. Large Cap Value ETF Schwab U.S. Large Cap Growth ETF Schwab U.S. Mid Cap ETF Schwab U.S. Small Cap ETF Schwab U.S. International Equity ETF Schwab U.S. International [...]

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Are Value ETFs Leading Us Out Of The Recession?

Michael Johnston — Thu, 25 Jun 2009 06:05:08 +0000

Conventional wisdom says that while growth stocks outperform their value counterparts during recessions, value stocks gain the upper hand once the economy hits bottom, leading the way during the early recovery stage of most economic cycles. That’s according to a report by Russell Investments of Tacoma, Washington, which indicates that growth outperformance tends to reverse as soon as the economy bottom. So what are the numbers telling us about the market’s bullish run over the past few months? Is it the beginning of a recovery or simply another glimmer of false hope? Here’s the logic behind the “rules of thumb,” according to an article by Dan Jamieson: during recessions, the fundamentals of value companies tend to deteriorate rapidly, leading to underperformance. Financial companies are particularly susceptible to underperformance (a trend once again characteristic of this recession). Once the economy “turns,” however, companies with low price-to-book and price-to-earnings ratios are often among the [...]

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Guide to ETF Index Weightings

Michael Johnston — Tue, 02 Jun 2009 06:05:29 +0000

ETFs have enjoyed a tremendous surge in popularity in part because they allow investors to gain exposure to a broad (or narrow) market index in a timely and cost efficient manner. When implementing their investment strategy through construction of an ETF portfolio (or when using ETFs to round out a portfolio), investors have the option to choose from dozens of equity indices, as well as numerous commodity and fixed income benchmarks. While the underlying constituents of each index obviously vary from index to index, the manner in which returns are calculated and individual stocks are weighted can also be quite different. Here’s a quick guide to understanding the various weighting methodologies applied to most market indices. Price-Weighted Index In a price-weighted index, each component stock makes up a fraction of the index proportional to its trading price. Think of a price-weighted index as if it holds one share of each [...]

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ETF Database » IVE

Large Cap ETFs: Studs and Duds

Related Posts:

Seven Surprising ETF Holdings: Why Investors Should Always Look Under The Hood

Related Posts:

Closer Look At S&P 500 ETF Options

Related Posts:

Seven Alpha-Seeking ETFs That Have Crushed Their “Benchmarks”

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Fidelity To Offer Commission-Free Trading On 25 iShares ETFs

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Chrales Schwab ETFs: Uphill Battle Ahead

Related Posts:

Are Value ETFs Leading Us Out Of The Recession?

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Guide to ETF Index Weightings

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