The rise of ETFs has led to the democratization of many asset classes which were once reserved for the ultra-rich. While investors have quickly adapted to ETFs offering exposure to commodities and quantitative strategies, another alternative asset has also seen a recent surge in popularity. Traditionally, hedge funds have been known for their ability to deliver strong returns with low volatility and low correlations to other asset classes. These returns often come in return for big fees; hedge funds generally charge 2% of assets per year plus 20% of profits, enabling fund managers to live handsomely off of profitable investments. Furthermore, some hedge funds require that their investors earn a minimum amount of money annually and have a net worth of more than $1 million, thereby limiting the universe of available investors. [click to continue…]
PIMCO, the bond fund giant that has quickly become a major player in the fixed income ETF space, is looking to expand its ETF presence even further. The Newport Beach, California-based firm has filed for SEC approval on six new bond ETFs, including: [click to continue…]
To many investors, last month’s data release showing that core CPI declined in January for the first time in nearly 30 years was a welcome bit of news. The fact that inflation has yet to rear its head might extend the already prolonged period of low interest rates a bit further, as the Fed looks [...]
ETFs finished February range-bound, as most equity markets remained choppy to finish the week. This came after continued weakness in the euro zone and some disappointing news on the jobs front, with 20,000 additions to the list of people seeking unemployment benefits. In other news, AIG reported a $8.87 billion quarterly loss, raising concerns that [...]
As seasoned investors know, any potential investment must be evaluated not on a stand-alone basis but on its contribution to an overall portfolio. In addition to considering the risk and return profile of a particular asset, the relationship between that asset and the other holdings of the investor is of vital importance in the construction [...]
Whenever a company prepares for a public offering, executives have been known to spend an inordinate amount of time choosing the combination of letters that will serve as the company’s ticker and often nickname within the investment community. To many, the fixation on selecting the perfect ticker seems like an irrational obsession on par with [...]
Following the unprecedented economic turmoil, market volatility, and government intervention of the last two years, many investors felt that the painful lessons from the downturn had yielded a “new normal.” The term, coined by PIMCO executive Mohamed El-Erian, has seen its scope expand to describe an era where risk aversion runs high, caution trumps emotion [...]
Many investors will be sorry to see 2009 end. Following one of the most disruptive years in recent memory in 2008, almost every asset class participated in a stellar recovery this year. At the depth of the recession, fear trumped reason, and irrational anxieties pushed many assets, including ETFs, well below their intrinsic value. Much [...]
In the business of asset management, bond investing may not get much love, but it can be as vital a component of an investor’s portfolio as equities. Fixed income investing isn’t nearly as sexy as stock picking, but as many investors have learned in recent years, a well-rounded bond allocation can significantly reduce the overall [...]
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 [...]
The reasons for the rise of the ETF industry are numerous: intraday liquidity, (potentially) superior tax efficiency, and enhanced transparency relative to traditional actively-managed mutual funds have all contributed to the billions of dollars of inflows that these funds have seen in recent years. But the real attraction for most ETF investors is the reduced [...]
The rise of the ETF industry has been impressive, expanding from virtually no listings ten years ago to about 900 today. And there is still plenty of room for growth. As we head towards the end of a wildly successful year for the ETF industry, ETF Database is taking a look forward, making our predictions [...]
