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 Of ETF Investing]. [click to continue…]
After recently rolling out a suite of ETFs linked to popular S&P indexes, Vanguard continued its push to grab a larger share of the ETF market on Wednesday by introducing seven new products linked to Russell benchmarks. The new Vanguard ETFs include:
U.S. equity markets continued their September surge in Monday trading, as all of the major indexes climbed higher throughout the day. The tech-heavy Nasdaq was the biggest winner, gaining 1.7% on the day, and was followed closely by the broad S&P 500, which surged by 1.5%. The Dow which jumped higher by 1.4%. This boost [...]
Paul Weisbruch is the VP of ETF/Options Sales and Trading at Street One Financial, a firm that specializes in educating, evaluating, and trading ETFs, equities, and options. He recently took time out of his busy schedule to share his thoughts on the liquidity of ETFs, fallout from the “Flash Crash,” and more. ETF Database: There [...]
It is no secret that the ETF industry has been wildly successful in recent years, taking in hundreds of billions of dollars and being embraced by both cost-conscious buy-and-holders and more active investors. This rise in popularity has made ETF issuers attractive assets to some investors; acquisitions of iShares, Claymore, and Rydex over the last [...]
Although most U.S. investors build their portfolios around a core of large cap domestic equities, small-cap firms, which generally have a market capitalization’s under $2 billion, are a vital component as well. Because small cap stocks tend to have smaller customer bases, shorter operating histories, and less cash on hand, they are often more volatile [...]
With IRA contribution deadlines right around the corner, many investors are scrambling to decide how best to allocate their money. ETFs are a relatively new vehicle for many investors, but they are becoming increasingly common choices for IRA accounts. Admittedly, some of the benefits traditionally associated with ETFs don’t translate completely to an IRA. Tax-efficient [...]
The crowd gathering around the periphery of the ETF industry continues to expand, and some big names are joining the group. Russell, known in the ETF space as the index provider behind some of the largest exchange-traded products, recently detailed plans for 11 of its own ETFs in a filing with the SEC, including:
Equity markets trended modestly upwards Monday as health care stocks led the way after sweeping reforms passed in a tense vote in the House of Representatives on Sunday night. The divisive bill seeks to expand coverage to millions of Americans, and will likely have far-reaching effects on the economy for years to come (see which [...]
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 [...]
Over the last several years, investors have embraced the benefits of the exchange-traded structure, transforming ETFs from a closet industry to a mainstream investment option that threatens to continually grab market share from traditional actively-managed mutual funds. As the popularity of ETFs has surged, so too has the number of funds available to investors. While [...]
